Tag Archives: research

Brother To Brother: Sorry Jarrett, Athletics Can Not Save Us, But Research & Entrepreneurship Can


“And this is going to piss Will off when I say this, but go get a football coach.” – Jarrett Carter

I open this “letter” to my dear brother saying that we have known each other for many years and this debate maybe as old as our friendship. Even I will admit that at one point I too believed that if HBCUs could return to obtainment of our community’s physical talent on the football field and basketball courts that our schools would reap the financial rewards they so desperately need. Unfortunately, Michael Vick, LeBron James nor his son, or the likes of Zion Williamson is walking through our doors anytime soon. Instead, we are going to have to rely on what truly drives the economics and finances of higher education institutions and that is research, entrepreneurship, and good old fashioned Afro-Brain Power.

Let me first address why we have absolutely no chance in sports savings us. I do not mean we have a little chance, I mean we have no chance. None. Zero. Negative zero even. Unfortunately, HBCUs even if LeBron James had gone to one can not fight the shiny uniforms that billionaire boosters like Nike’s Phil Knight rolls out to the University of Oregon every other week or the tens of millions that Kevin Plank the founder of Under Armour has poured into the University of Maryland’s athletic facilities. The former has so much influence in the state of Oregon that when he wanted to build a headquarters dedicated just to football that apparently ran afoul with the state building process – the state changed it. Yes, the state changed it. Both of these programs mentioned until these billionaire boosters got involved were marginal programs at best and are now most would agree significantly better, but by no means powerhouses. Essentially, Knight and Plank have poured over $500 million into these programs combined to take them from the basement of Division 1 college athletics to middle of the pack and sometime contenders. Between these two men, they are worth a combined almost $40 billion. It is safe to say the interest on their wealth alone allows for eight and nine figure donations to their alma maters in perpetuity if they so choose. Ironically or not, both of these men were college athletes who became entrepreneurs and not professional athletes and whose products were essentially developed in their time on campus, but more on this later.

Secondly, the ROI on athletes going pro or schools turning a profit on athletics is just not even worth a paragraph so I will keep this short. The NFL, NBA, and NCAA continues to squeeze HBCUs out of professional sports. HBCUers in the NBA is more a historic statement than current or future one. This year’s list of HBCU alumni in the NFL and their earnings: 22 players representing 16 HBCUs and combining for almost $40 million in earnings, which is the lowest earnings figure since HBCU Money started tracking the data. For perspective, that $40 million is 0.1 percent of Knight and Plank’s combined net worth. To further drive the point home, if Knight and Plank put all of their wealth into a savings account paying 1 percent, it would earn $400 million – ten times what all HBCU players will earn in 2018. Further to the point, because these careers are so short, major donations from these players who have tasted professional glory have been few and far between. I am still waiting on Jerry Rice to make a public donation of the seven figure variety – not a pledge, Jerry – to Mississippi Valley State University. Yet, schools like Prairie View A&M University spend $60 million on a new stadium that struggles to sellout. Lest we forget the almost disaster dome Jackson State University wanted to build at $200 million. If your school does not have access to a major TV network contract, the chances of you making money is almost slim to none and networks offer those contracts because they want to sell advertisements – networks I might add that are not African American owned and represent a media that shows a consistent disdain for our institutions. How do you sell that level of advertisements? Large fan bases, pure and simple math. The University of Michigan or Alabama on any given Saturday can put 100,000 fans in the seats and probably another million plus eyeballs glued to the television screen. HBCUs (individually) do not have that kind of scale nor the means to create it. So much for a short paragraph, but the problem is deep and the solution even deeper. The solution to building sustainable institutions lies in a holistic and committed approach to research and entrepreneurship on HBCU campuses.

HBCUs (and our alumni) for whatever reason have never really committed to research. Even during the days of George Washington Carver at Tuskegee Institute there were rumors that his research was looked at more in passing than integral to the future of the institution. I dare imagine what Tuskegee would be like had Carver or the institution had the patent on peanut butter. The global peanut butter industry is worth an estimated $3 billion as of 2017 and demand is growing at 6 percent annually according to CAGR. An article in the New Yorker reported, “In 2012, American universities earned $2.6 billion from patent royalties, according to the Association of University Technology Managers. The tech-transfer model is entrenched in medical schools and in biotech development.” As noted in our piece about HBCUs and patents, the University of Wisconsin and Carnegie-Mellon University garnered patent settlements in their favor to the tune of $1.2 billion, an amount that is virtually half of all HBCU endowments combined and almost three times what HBCU spend on research.

HBCUs combined have research expenditures of approximately $520.1 million as of 2017 according to the National Science Foundation data, an amount that is 0.7 percent of the $75.3 billion colleges and universities totaled in R&D expenditures. A number that has been declining every year for the past four years and off dramatically from 2014 when expenditures were a combined $547.1 million at HBCUs, a decline of almost 5 percent over the period while the top ten R&D colleges/universities have seen their expenditures rise by almost 20 percent in the same period. There are now 46 individual colleges and universities whose research and expenditures exceed $520 million per year, 12 of them exceeding $1 billion annually, and then there is John Hopkins University that lords over everyone with its $2.5 billion annually in research expenditures. But what does all this investment in research mean to sustainability? For one, it means these schools are institutions that are integral to the intellectual advancement of the nation in every aspect of industry, government, and military. A charge that HBCUs could take on in a very similar fashion for African America and the African Diaspora at large if it wanted to really be aggressive. However, it also takes on the commercialization of research, which ultimately leads to answering the question you my dear brother asked – Can HBCUs Create Billionaires?

In an oldie but goodie article that I published at HBCU Money many years ago called “The University of Power & Wealth”, I asked the question, “What do Google, Time Warner, FedEx, Microsoft, Facebook, and Dell have in common? They were all founded on college campuses. Google founded at Stanford, Time Warner & FedEx at Yale, Microsoft and Facebook at Harvard, and Dell at the University of Texas.” The value of all those firms as of this publication are a combined almost $2.2 trillion. Yes, that is trillion with a T. In addition, the founders of all these companies, except for the now defunct Time Warner which was sold for $85 billion to AT&T, have a combined net worth over $320 billion as of this publication. Some would argue that even the world’s move valuable company, Apple, is the result of Steve Jobs and Steve Wozniak’s proximity to Silicon Valley, basically a development creation that sprung out of Stanford’s research. Stanford and MIT maybe the nation’s most entrepreneurial colleges and it is no secret that their endowments reflect their innovation.

MIT is a monster or model all in and of itself. The school located in the heart of Boston, MA. has a student population of a little over 11,000 students. It is ranked 14th in the country with $950 million in R&D expenditures and that research combined with entrepreneurial DNA and cultivation shows up in a major way. “A new report estimates that, as of 2014, MIT alumni have launched 30,200 active companies, employing roughly 4.6 million people, and generating roughly $1.9 trillion in annual revenues.” If HBCU entrepreneurs employed 4.6 million African Americans it would be equivalent to employing almost 1 in 4 African Americans that are employed and the $1.9 trillion in revenue would be 50 percent greater than all of African America’s current buying power. MIT is so committed to its entrepreneurial culture in fact that it has even created an accelerator called The Engine to fund these ventures. “Just months after its launch, MIT’s new startup accelerator The Engine yesterday closed its first investment fund for over $150 million, which will support startups developing breakthrough scientific and technological innovations with potential for societal impact.” Can anyone imagine what would come of the ingenuity that our students possess if we had access to startup capital at even a fraction of that amount? Unfortunately, some in leadership want to spend more time bickering about why Michael Bloomberg, John Hopkins alumni and founder of Bloomberg L.P. and net worth of $45 billion, should have given the $1.8 billion he recently donated and some of the $3 billion overall he has donated to John Hopkins to schools who need it more than actually making the investments they can make into their own students, alumni, faculty, and staff so that they can create the next Bloomberg.

Let me also be clear in that last point that this onus is not all, not even remotely the responsibility of administrations who may come and go ultimately, but on alumni. Our alumni and their deference to administrations is part of the problem. Most HBCUs and the communities and towns they are in are underdeveloped and therefore there is millions of dollars that flow from our HBCUs every year from students and the like that could be circulated back. If alumni would invest in the dirt and build infrastructure so that small businesses, entrepreneurship, and capital was available intimately to their own HBCU, it would go a long way in creating communities, businesses, jobs, internships, opportunity, and more.

In closing my dear brother, I say this to you. It is indeed Afro-Brain and intellect that is our key not only to survival but success. Yes, sports pull at our heart strings, but it is not putting anything into our purse strings. Bowie State University obtaining their first patent is amazing, but it needs to go from breaking news to common news. HBCUs can be at the forefront of the new space race, the cure for Alzheimer’s, solving the water crisis in Flint, or the latest best selling apps for smartphones and the like if we truly believe that we can and invest in it like we mean it.

In HBCUs We Trust,

William A. Foster, IV

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The Forgotten Mission – HBCUs Account For Less Than One Percent Of America’s College Research Spending


A man wearing black pants, a white shirt and black shoes, writing on the wall. He is drawing a line of gears and writing business-related words above and below the gears

“Many think that the principal mission of universities is to transmit knowledge; they miss the key point that teaching and research are inseparable. American universities must continue to discover new kinds of knowledge and new ways of thinking.” – Dr. Eric Kandel

In 1896, Booker T. Washington invited George Washington Carver to head Tuskegee Institute’s Agriculture Department. For almost five decades Carver would set himself in stone as the greatest scientist and research ever to grace the halls of an HBCU. To this day he and his accomplishments are the measuring stick by which all HBCU research and scientists are measured. Yet, the fever by which Tuskegee invested in Carver and his research seems like a distant memory in HBCU lore and strategy.

HBCUs have always been known for promoting their values of community service and teaching, but oft left out of the conversation is the research portion of our institutions. The importance of research can not be overstated. As mentioned in the article The University of Power & Wealth that research and an environment of campus entrepreneurship to commercialize that research has produced companies like FedEx, Microsoft, Google, Facebook, Time Warner, and Dell just to name a few of the more well known companies. Not just companies, but products like Gatorade, which was invented at the University of Florida in 1965 and from which the university still receives royalties north of $10 million annually from Pepsi. There have also been inventions that simply serve the societal good like oral contraceptives and the seat belt that were created by college research and ingenuity.

HBCUs comprise approximately 2.3 percent of all colleges and universities in America. However, they make up only 0.7 percent of the research and development spending by American universities. Just to get to its representative amount of 2.3 percent would require R&D spending to increase from its current $500 million to $1.5 billion. Unfortunately, almost every conversation had with HBCU leadership and alumni would lead many to believe the answer to fixing our financial problems is through sports. A recent report by the NCAA showed that only 14 of the 120 Football Bowl Subdivision schools made money from campus athletics. That profit is primarily thanks to television deals through their conferences that HBCUs have little hope of obtaining at scale. That is not to say they can not be profitable, they can, but not following the playing book of their counterparts. For a more intimate perspective let us look at the University of Texas, the school with the one of the most valuable football programs in the country. It produces $109 million in revenue according to Forbes. Sounds great, right? Sounds like the answer to all of our prayers. Because when you are dehydrated even a bit of spit your way will appear to be a glass of water. Meanwhile, the University of Pittsburgh, America’s top grossing university hospital, produced revenue of $11.87 billion or 109 times the revenue that the University of Texas football program produces annually. In fact, even the University of Texas’s most valuable asset is its hospital, which generates almost $5 billion in revenue annually and has unbridled power in the city of Houston’s Texas Medical Center, the largest of its kind in the world.

Currently, HBCUs as aforementioned produce approximately $500 million collectively in research expenditures annually. There are 40 HWCU/PWI schools that individually do $500 million or greater annually and 8 of those 40 conduct $1 billion or greater annually according to the National Science Foundation. The gap between the top twenty HWCU/PWI and HBCUs when it relates to research continues to grow with the most recent data showing for every $1 that HBCUs spend on research, their counterparts are spending $52.

This is not to say that HBCUs are not doing prominent research, they most certainly are. Dr. Hadiyah-Nicole Green, a physicist, alum of Alabama A&M University, and who was a professor at Tuskegee University and now serves at Morehouse School of Medicine, received a $1.1 million grant for a pioneering technology that can kill cancer cells with lasers. That is just one of many prominent discoveries happening within HBCU research, but there are more fields and much more that needs to be taking place from history, economics, STEM fields, and many more. HBCU research should be touching every facet of African American and African Diaspora life. Yet, the commitment and infrastructure to do so is significantly lacking to close the gap.

We have examples of brand new stadiums that cost an HBCU $60 million, but two-thirds of that cost  was paid for by increasing student fees. Where is the same commitment to research? What would it take to build the first HBCU into a billion dollar research institution?

  1. VISION – This is as abstract as it is tangible. Either alumni or a president needs to commit to research as an integral part of the institution and what their plan would be to grow a strategic plan of making it a larger part of the HBCU’s DNA. One way to go about this is to bring in a president with a research background who truly understands and values both STEM and Humanities research and the possibilities it can open for an institution willing to invest in it. We explored a list of a potential HBCU presidents with at least six of the choices having solid research backgrounds in everything from technology to archaeology. These are the type of people who know what it takes to build the infrastructure and develop a strategy as it relates to building a research juggernaut.
  2. RESEARCH PHILANTHROPY – Also known as targeted giving. We see this when alumni are asked to become boosters. Athletics on most college campuses, HBCUs included, has had more targeted giving than other departments. It works primarily because alumni feel the giving is tangible. Give to athletics and your teams win is the tagline. HBCUs must lay out a similar vision and tagline for research. Alumni need to know why they need to give to research and what exactly it is building – see number one. Virginia State University Economics alumni have taken matters in their own hands created an endowment for their department of which a percentage is directly to be used for economics research. It is vital that alumni know what their donation is going to be used for and how much it will take to accomplish the objective.
  3. ALL HANDS ON DECK – By this we mean that research must be present throughout the entire campus. Who on an HBCU campus should be conducting research? Everyone. Quite literally. Freshmen upon entering should know that in order to graduate they will need to have completed some type of supervised research. More students are taking longer than four years to complete undergraduate these days so they may as well add this component while they are matriculating. It may go a long way to keeping them focused as well. According to Science Magazine it also has become a vital piece of obtaining employment or improving graduate schools, “undergraduates participate in research all the time; in chemistry, 72% of graduates had some research experience, according to a recent study sponsored by the National Science Foundation (NSF). In environmental science, the study found, 74% of undergraduates had research experience.” However, it can not stop with the undergraduates or even the graduates, faculty and staff must be involved. Remember the Gatorade? The groundskeeper department may create the next amazing product that can go from college grounds to residential  homes across the country. Make everyone invested in it.
  4. STOP ACADEMIC INCEST – This is strictly for HBCUs with graduate schools.  Far too many HBCU undergraduates who graduate from HBCUs with graduate schools who do not have a job lined up or still not sure what they want to do just park themselves in the school’s graduate school as a placeholder. For those HBCUs, they do not mind because the student keeps supplying them with tuition revenue for a few more years. This is short sighted and apathetic. If the majority of your graduate school is made up of your own undergraduates you are doing something wrong. Students do not benefit from it because they never get new perspectives. Remember, HBCUs are not a monolith of intellect. Students themselves benefit from a change of scenery and institutional DNA. The same goes for the institutions. An infusion of new intellectual capital, more sharpened, and the cream of other HBCUs alumni raises the research prowess.
  5. THE PIPELINE – Last, but not least – the pipeline. This means that HBCUs must be connected. HBCU must make it a point to push their HBCU undergraduates into HBCU graduate schools (just not their own). If the HBCU is an undergraduate institution, then it must ensure its alumni are choosing HBCU graduate schools if they are considering furthering their education. For instance, Texas Southern and Prairie View A&M, two public HBCUs in Texas, have within their own state six private HBCUs that are undergraduate only. Alumni from both institutions are coming together to create scholarships through the HBCU Endowment Foundation that would provide scholarships from the six private HBCUs to those two HBCU’s graduate schools. A vital means to keeping the cream of the intellectual capital from the pipeline within it. A key example of the pipeline is the aforementioned Dr. Hadiyah Nicole-Green (pictured below) who attended Alabama A&M University for undergraduate and has become a faculty at Tuskegee University and is now at Morehouse School of Medicine.

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These are just a tip of the iceberg that HBCUs must do to improve the research prowess of our institutions from undergraduate to graduate and throughout the campus. Colleges and universities importance in creating and impacting societal, economic, and political research can not be understated of the acute importance it prevails. HBCUs can find long-term financial security in more research and increasing their value to African America and to the world in general. We do not need to produce another George Washington Carver, but an army of Carvers. If we are to be present in the institutional landscape for another century, then we must ensure that research is an important part of our foundational pillars we build upon.

HBCU Money™ Dozen 11/17 – 11/21


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Did you miss HBCU Money™ Dozen via Twitter? No worry. We are now putting them on the site for you to visit at your leisure. We have made some changes here at HBCU Money™ Dozen. We are now solely focused on research and central bank articles from the previous week.

Research

Embrace: The smartwatch that detects the skin’s electricity to predict a seizure l New Scientist ow.ly/EFWAb

Artificial stars and shape-shifting mirrors take the twinkle out of the stars l New Scientist ow.ly/EFWNM

1 month to apply for Children’s Environmental Health & Disease Prevention Research l US EPA go.usa.gov/vkvz

New Benchmark Puts Nvidia and Apple Mobile Chips Ahead of Intel’s Atom l CIOonline trib.al/lm5qJhP

From farm girl in a small Chinese village to theoretical physicist and supercomputer specialist l Brookhaven 1.usa.gov/1xbw15v

7 great MOOCs for techies — all free, starting soon! l CIOonline trib.al/3UqDGCy

Federal Reserve, Central Banks, & Financial Departments

Watch videos discussing the pros and cons of the gold standard l St. Louis Fed bit.ly/1zubVcE

3 ways to organise your way to innovation l World Economic Forum wef.ch/1zJxi7h

10 decisions that could block your success l World Economic Forum wef.ch/1xxZAlU

Fewer richer households, more poorer households have negative equity in their homes l St. Louis Fed bit.ly/1t452Xs

The challenge of collecting data on Ebola l World Economic Forum wef.ch/1F9P1HQ

Curious about how payday loans work and who uses them? l St. Louis Fed bit.ly/1vqKdwy

Thank you as always for joining us on Saturday for HBCU Money™ Dozen. The 12 most important research and finance articles of the week.

HBCU Money™ Histronomics: The Bayh-Dole Act


Excerpt from The Great American University by Dr. Jonathan Cole explaining the impact of the Bayh-Dole Act on colleges and universities:

“The change in the law that this act engendered was simple but of profound significance: In the past, intellectual property rights resulting from federally sponsored research at universities had been assigned to the federal government; they would now be assigned to the universities themselves. The universities would be able to patent discoveries and license the patented material to businesses interested in developing marketable products. Universities could even sponsor start-up companies based on the intellectual property that they owned and hold an equity stake in them.”

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The Bayh-Dole Act

It is the policy and objective of the Congress to use the patent system to promote the utilization of inventions arising from federally supported research or development; to encourage maximum participation of small business firms in federally supported research and development efforts; to promote collaboration between commercial concerns and nonprofit organizations, including universities; to ensure that inventions made by nonprofit organizations and small business firms are used in a manner to promote free competition and enterprise without unduly encumbering future research and discovery; to promote the commercialization and public availability of inventions made in the United States by United States industry and labor; to ensure that the Government obtains sufficient rights in federally supported inventions to meet the needs of the Government and protect the public against nonuse or unreasonable use of inventions; and to minimize the costs of administering policies in this area.

2012’s Top 20 HBCU Research Institutions


HBCUs continue to make significant strides in research. The top 20 HBCU research institutions all fall in the top 330 research institutions in America. Unfortunately, none of the top HBCU research institutions make their way into the top 100 so there is still significant work to be done. The 1890 agriculture schools comprise 6 of the top 20 and HBCU medical schools make up 3 of the top 10. A sign that one of the 1890 schools could make significant strides with the addition of a medical school is a strategic issue that must be addressed among HBCUs.

Florida A&M University performs nothing less than a miracle making the leap from the 6 spot to number 1 by more than doubling its research expenditure budget. At the same time Meharry slides from 3 to 8 showing that in any given year a new king can be crowned with the right vision by leadership. Research is still a very under appreciated facet of HBCU life despite the fact that most of the major wealth in America has come as a result of research on college and university campuses. An investment in the mental curiosity of African America could go a long way to much needed innovation and job creation.

If you want to see your HBCU move up this listing you can donate directly to the research budget at your HBCU!

HBCU                                                                    Research Expenditures

1. Florida A&M University                                    $53.5 million

2. Jackson State University                                  $44.9 million

3. Howard University                                            $40.1 million

4. North Carolina A&T State University            $35.3 million

5. University of the Virgin Islands                      $32.4 million

6. Alabama A&M University                                $30.5 million

7. Morehouse School of Medicine                       $30.4 million

8. Meharry College of Medicine                          $27.0 million

9. Charles Drew University of Medicine           $22.2 million

10. Alabama State University                              $16.3 million

11. Tuskegee University                                        $15.6 million

12. Delaware State University                             $15.2 million

13. Hampton University                                       $14.5 million

14. Morgan State University                                $12.8 million

15. Prairie View A&M University                        $12.6 million

16. Tennessee State University                           $12.4 million

17. Fayetteville State University                         $11.9 million

18. Alcorn State University                                  $10.3 million

19. University of Maryland-Eastern Shore      $8.7 million

20. Clark Atlanta University                               $8.5 million

TOP 20 COMBINED TOTAL: $455.1 million

Additional Notes:

Total HBCU Research Expenditures Combined: $605.7 million

Top 20 HWCUs Combined: $18.3 billion

Top 20 Average HWCU – $910 million vs. Top 20 Average HBCU – $23 million

Top 20 HBCUs increase in research expenditure from 2011 is 30.1%

Top 20 HWCUs increase in research expenditure from 2011 is 11.6%

Source: National Science Foundation