Before Dr. Hall commented on the quickly growing crisis in graduate education, he introduced the audience to some little known laws in Utah:

- It is legal for restaurants to serve wine, if you ask for a wine list first.
- It is against the law in Utah to fish from horseback.
- Once you reach the age 50, you can marry your cousin.
- It is illegal to hunt whales.
- You can't sell gunpowder to cure headaches in Trout Creek.
- It is illegal to detonate nuclear weapons.

In 1942, the University of Chicago had the first controlled nuclear reaction. Before World War II, 10% of research expenditures were from the federal government. Today, 70% of the expenditures are from the federal government. If you have seen the movie "Jerry Maguire," it has the quote "show me the money." NIH, NSF, and DOD (latter a significant source of funding for Utah State University) plowed lots of money into science and engineering research. Research today is a creation of post World War II.

In order for science to make its way, a university needs to do basic research and commercialize technology. The business of the university is more important, and science is its handmaiden. Eighty percent (80%) of research in USA is university research. The same universities are money machines, translating what research does into the applied side. For example, Google was the creation of two graduate students at Stanford. Stanford took a bet on them. It has an equity interest. The capitalization of Google earned $250 million for Stanford. If the capitalization of Google reached $36 billion, as some analysts originally predicted, Google would be worth more than McDonald's. (One recent figure had McDonald's at $34.5 billion, according to Lee Roderick, President Hall's Assistant.)

Universities have created a money trap. In the last year, Utah State earned $162 million in outside contracts and grants. There was $125 million in state appropriations; the state gives 29% for the research budget. This percentage falls 2-3% per year. The reason state universities still function is because of federal research money. Last year the University of Utah and Utah State combined had a half-billion dollars in research funding. Given a standard multiplier of 5, this pumped $2.5 billion into Utah's economy. It is one of the two largest drivers of the economy in the state.

Harvard and MIT have an on-going collaboration on grant proposals. The research triangle at Research Triangle Park, North Carolina, is a reality. For those of us who can't pay all costs, we need to collaborate [such as the collaborations going on at Harvard and MIT and Research Triangle Park]. Science researchers need to become more agile. From World War II to the fall of Berlin Wall, much research was related to the Cold War. It was the key rationale to do research. The most significant growth area now is Homeland Security. We are caught in a powerful lock-fighting the global war on terrorism.

Higher education in the USA involves international students, and we are retreating to a position of isolation. This year there is an 18% decrease in international graduate students coming to the USA. We are keeping out foreigners. One might say this is not a "big deal." But in science and engineering, 40% of the graduate students are foreign, and half are staying on in USA to carry on research. When you eat an M&M candy, think of Utah State. An Indian graduate student at Utah State developed the flavoring on M&M candies. Now he operates a biotech company in Milwaukee, Wisconsin. He intended to return to India, but stayed and created jobs in the USA.

Two years ago, if you wanted to get visa to come to USA, it took 30 minutes to secure a visa in Beijing or Seoul. Today, it requires 5 weeks' wait and usually much more. Utah State experienced a 12% decline in graduate students this year. Utah State is running 41% behind in applications compared to the same time last year.

We cannot afford to isolate ourselves in science and engineering. Science and engineering have been a Mecca in the USA. The White House is dim. The rest of the world understands that what is between the ears is more important than muscles in arms. The students that we lose in the USA go to 1) Australia 2) the United Kingdom and Western Europe 3) India, China, and South Korea. The latter are building a powerful and competing science and industrial basis.

Dr. Hall encouraged the audience to carry away from the conference this information. We need to be part of the world, not outside of it.