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Financing the Knowledge Industry


Article # : 12932 

Section : Book World
Issue Date : 5 / 1987  6,151 Words
Author : John Braeman
John Braeman is professor of history at the University of Nebraska at Lincoln.

       TO ADVANCE KNOWLEDGE
       The Growth of American Research Universities, 1900-1940
       Roger L. Geiger
       New York: Oxford University Press, 1986
       352 pp., $27.50
       
       AMERICAN PROFESSORS
       A National Resource Imperiled
       Howard R. Bowen and Jack H. Schuster
       New York: Oxford University Press, 1986
       322 pp., $24.95
       
       Higher education is big business in the United States. There are over 3,200 institutions of higher education, ranging from two-year colleges to research universities. Those institutions enroll more than 12 million students--or adjusting for part-timers, over 8.5 million fulltime equivalents. They have on their staffs approximately 660,000 faculty, over two-thirds of whom are full-time. Their total current expenditures in 1980-1982 amounted to over $65 billion. Perhaps more important, higher education plays a central role in what Daniel Bell has termed our contemporary "post-industrial society."
       
        "Industrial society," Bell explained, "is the coordination of machines and men for the production of goods. Post-industrial society is organized around knowledge, for the purpose of social control and the directing of innovation and change." And he underlined the key importance of a special kind of knowledge: "What has become decisive for the organization of decisions and the direction of change is the centrality of theoretical knowledge." Accordingly, "the university, research organizations, and intellectual institutions, where theoretical knowledge is codified and enriched, become the axial structures of the emergent society."
       
        The higher educational system in the United States is not simply larger than its counterparts around the world but more decentralized in its control and financing, thus more diverse in its makeup. Such decentralization and diversity have been responsible for the intense competition that has existed and continues to exist among American colleges and universities. That competition in turn gave rise to the distinctively American phenomenon of rating institutions by their academic quality. The research accomplishments of their faculty has been the standard most widely used in judging the quality of the
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