Markets, Minds, and Money : Why America Leads the World in University Research

A colorful history of US research universities, and a market-based theory of their global success. American education has its share of problems, but it excels in at least one area: university-based research. That's why American universities have produced more Nobel Prize winners than those of the next twenty-nine countries combined. Economist Miguel Urquiola argues that the principal source of this triumph is a free-market approach to higher education. Until the late nineteenth century, research at American universities was largely an afterthought, suffering for the same reason that it now prospers: the free market permits institutional self-rule. Most universities exploited that flexibility to provide what well-heeled families and church benefactors wanted. They taught denominationally appropriate materials and produced the next generation of regional elites, no matter the students'--or their instructors'--competence. These schools were nothing like the German universities that led the world in research and advanced training. The American system only began to shift when certain universities, free to change their business model, realized there was demand in the industrial economy for students who were taught by experts and sorted by talent rather than breeding. Cornell and Johns Hopkins led the way, followed by Harvard, Columbia, and a few dozen others that remain centers of research. By the 1920s the United States was well on its way to producing the best university research. Free markets are not the solution for all educational problems. Urquiola explains why they are less successful at the primary and secondary level, areas in which the United States often lags. But the entrepreneurial spirit has certainly been the key to American leadership in the research sector that is so crucial to economic success. A colorful history of US research universities, and a market-based theory of their global success.American education has its share of problems, but it excels in at least one area: university-based research. That’s why American universities have produced more Nobel Prize winners than those of the next twenty-nine countries combined. Economist Miguel Urquiola argues that the principal source of this triumph is a free-market approach to higher education.Until the late nineteenth century, research at American universities was largely an afterthought, suffering for the same reason that it now prospers: the free market permits institutional self-rule. Most universities exploited that flexibility to provide what well-heeled families and church benefactors wanted. They taught denominationally appropriate materials and produced the next generation of regional elites, no matter the students’—or their instructors’—competence. These schools were nothing like the German universities that led the world in research and advanced training. The American system only began to shift when certain universities, free to change their business model, realized there was demand in the industrial economy for students who were taught by experts and sorted by talent rather than breeding. Cornell and Johns Hopkins led the way, followed by Harvard, Columbia, and a few dozen others that remain centers of research. By the 1920s the United States was well on its way to producing the best university research.Free markets are not the solution for all educational problems. Urquiola explains why they are less successful at the primary and secondary level, areas in which the United States often lags. But the entrepreneurial spirit has certainly been the key to American leadership in the research sector that is so crucial to economic success. "America's educational system excels in at least one area: university-based research. Why? Miguel Urquiola, an economist of education, argues that the key is that the United States takes a free market approach to education. Urquiola begins by showing how dominant American universities are in research, in part by developing a historical database of Nobel Prize winners. He then traces the history of research at American universities from the seventeenth century until today, showing that research was an afterthought at most universities until the nineteenth century. Until the late 1800s, most universities were set up independently by churches to provide the basic services of denominational sorting and teaching. In world-leading Germany, by contrast, the state directed universities to provide the kind of advanced training that would help the country compete internationally. America's system only began to change when certain entrepreneurial universities, free to change their model, realized there was a demand in the industrial economy for students who were better trained by expert teachers and sorted by talent. Johns Hopkins and Cornell led the way, followed by Harvard, Columbia, and various other universities that remain dominant today. By the 1920s, the U.S. had passed Germany and Britain as the home of the world's best university research"-- Provided by publisher "America's educational system excels in at least one area: university-based research. Why? Miguel Urquiola, an economist of education, argues that the key is that the United States takes a free market approach to education. Urquiola begins by showing how dominant American universities are in research, in part by developing a historical database of Nobel Prize winners. He then traces the history of research at American universities from the seventeenth century until today, showing that research was an afterthought at most universities until the nineteenth century. Until the late 1800s, most universities were set up independently by churches to provide the basic services of denominational sorting and teaching. In world-leading Germany, by contrast, the state directed universities to provide the kind of advanced training that would help the country compete internationally. America's system only began to change when certain entrepreneurial universities, free to change their model, realized there was a demand in the industrial economy for students who were better trained by expert teachers and sorted by talent. Johns Hopkins and Cornell led the way, followed by Harvard, Columbia, and various other universities that remain dominant today. By the 1920s, the U.S. had passed Germany and Britain as the home of the world's best university research"--Résumé de l'éditeur

Free markets made US universities world leaders in research. Economist Miguel Urquiola argues that in the late nineteenth century, entrepreneurial universities saw they could meet the industrializing country's demand for expertise. They moved away from religiously inspired teaching, and market dynamics allowed them to surpass European competitors.