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Using University Capacity to Deliver Regional Economic Results: A New Framework for EDA

The University Economic Development Association (UEDA) has developed a draft framework that proposes a modernized “University Economic Competitiveness Partnership” to replace the now de-funded University Center program.  Built around a newly proposed Institutional Comprehensive Economic Development Strategies (I-CEDS), the initiative would seek to better align university talent, innovation, and place-based work with regional CEDS priorities and federal competitiveness investments.

The executive summary below outlines the core ideas behind this effort and highlights opportunities to strengthen the role universities play in regional economic development through coordinated federal investment and cross-sector partnerships.

Participants registered for the 2026 UEDA Washington Convening will receive the full concept paper in advance of the event. During the conference, attendees will have the opportunity to participate in a working session focused on re-envisioning the future of this framework, helping refine the proposal and shape potential next steps. Register for the conference here. 

UEDA welcomes feedback from the broader university economic development community. If you have comments or suggestions on the ideas presented in this summary, please share them with us at info@universityeda.org.

For clarity, this paper refers to the proposed modernized program as the EDA University Economic Competitiveness Partnership, a results-based Institutional CEDS planning and action initiative building on, but distinct from, the legacy EDA University Center Program.

“Institutional CEDS provide Congress and EDA with a practical mechanism to align federal investments, leverage private capital, and translate regional strategy into measurable results.”


EXECUTIVE BRIEF: At this moment of real inflection, America needs a forward-looking vision for its federal–university economic development partnership. The 2025 decision to end EDA University Center program funding, while controversial, creates space to rethink how the federal government leverages higher education as an economic asset.

Across agencies, expectations are converging. NSF is pushing harder to translate research into economic impact through innovation. The Departments of Education and Labor are sharpening their focus on higher education’s role in building industry-aligned talent pipelines. HUD, USDA, and other agencies are elevating the contribution of universities to community value and place-based outcomes. EDA has an opportunity to serve as a convening force and national leader in bringing the full power of universities to meet the needs of regional economic competitiveness challenges.

By aligning university-wide strategies associated with talent, innovation, and place with federal, state, and regional economic goals, higher education institutions can deliver clear, market-relevant impact. With EDA support for an institutional comprehensive economic development strategy (I-CEDS) combined with targeted implementation efforts, universities can move beyond implementing isolated projects and commit to institution-wide execution that addresses regional priorities, generating far greater national value.

Placemaking now sits at the center of national competitiveness. Economic growth, innovation, and productivity have become increasingly concentrated in a few regions while many others struggle to translate strong assets into durable advantage. These disparities weaken the overall U.S. economy. Executing federal efforts to strengthen national competitiveness depends on aligning regional industry demand, talent systems, public investment, and higher education institutional capacity.

Widely distributed across the US, colleges and universities are often underleveraged economic assets. When in tune with regional strategy, they can accelerate workforce development, support technology transfer and adoption, and strengthen innovation ecosystems critical to productivity growth and supply-chain resilience. The problem is not a lack of activity or expertise. It is fragmented execution, uneven leadership engagement, and often unintentional dissonance among institutions, regions, and funding streams. Too often, institutions treat economic development as peripheral rather than central to their core mission.

Recent changes at EDA create an opportunity to modernize how the federal government engages with higher education in support of the economy. A future-oriented approach should emphasize place-based investment logic, clear expectations, and strong alignment. The objective is simple. University engagement should advance regional priorities that matter nationally and produce measurable outcomes.

Alignment sits at the center of this reimagined approach. Universities should examine how talent development, applied research, innovation, and place-based engagement efforts help advance documented state and regional economic development strategies and meet validated market demand. To succeed, universities need to demonstrate visible executive leadership, institutional accountability, and shared metrics. Modernizing the EDA University Economic Competitiveness Partnership concept around an I-CEDS combined with common national performance measures and targeted pilot implementation would strengthen the strategic role of higher education. This framework requires universities to document their role in their respective regional economy and determine ways that federal investments can enhance their capacity to serve as durable partners to state, regional, and industry leaders.

This proposal builds on existing practice because EDA already requires funded projects to align with a locally developed, federally recognized Comprehensive Economic Development Strategy (CEDS). A CEDS defines regional priorities and guides how public and private investments reinforce one another over time. An I-CEDS would complement this process by creating a recognized process for clarifying how individual colleges and universities deploy their own assets to support workforce development, applied research, innovation, and community engagement to support those same regional and state priorities.

Lasting impact also depends on a true partnership model. Federal investment and university strategy must align not only with public-sector goals but also with private capital, industry-validated demand, and employer commitments. Public, private, and academic partners should co-design and co-invest in talent pipelines, applied research and development, technology transfer and adoption, and commercialization. Well-crafted public strategies require strong market anchors and shared accountability for results to fully function as regional engines of sustained growth.

These recommendations respond to converging pressures reshaping both economic development and higher education, especially in places facing population loss, uneven growth, or widening gaps with high-performing regions. Furthermore, colleges and universities are also confronting enrollment pressures, financial strain, and rising skepticism about the return on investment of a four-year degree. Solutions to these challenges require much more than project-based engagement, an historically common response for many university centers. Institutions must show how education, research, and service translate into systemic regional economic outcomes that matter to students, employers, and policymakers.

The current emphasis on improving national competitiveness adds urgency. Advanced manufacturing, supply-chain resilience, technology adoption, and productivity growth now sit at the center of federal and state agendas. Meeting these challenges requires coordinated investment in talent, applied research, and innovation systems that operate at institutional and regional scale. Fragmented approaches cannot meet the speed or scale of today’s economic demands.

Together, these forces make clear that university engagement in economic development must change dramatically. Universities must demonstrate executive accountability and disciplined strategy execution toward a national mission. A reimagining of EDA’s role from a general technical assistance support organization into supporting a modernized University Economic Competitiveness Partnership model grounded in each institution implementing its own Institutional CEDS offers a timely mechanism to align higher education assets with market demand, regional strategy, and national competitiveness goals.