To be competitive as a state, Texas needs to compare favourably with other states and countries. The number of research universities in Texas is increasing rapidly, but too few of these institutions are ranked at the highest levels internationally. Texas's institutions also do not attract the same share of federal research and development funding as other states, especially California. To further increase the competitiveness of its universities, Texas will likely need to make additional public investments in research capacity for institutions at several stages of development. This chapter examines policies that Texas can use to encourage institutions to pursue excellence in graduate education and research, while meeting state labour market needs.
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