Here’s new evidence MSU is prospering. First the Carnegie Endowment just ranked MSU among the top 96 research universities in the U.S. No other school in our region made the cut. Second, on March 6th, Sikorsky Aircraft announced a new Bozeman design center to begin operation this July. Mark Miller, vice president of research and engineering with Sikorsky, cited the “strong university engineering programs at Montana State University as a main reason for locating in Bozeman.”

This progress is surely no accident, but rather the conjunction of leadership, logistics, and location. While many regret the implications reflected in this change, our world has been transformed. While there are a few exceptions, highest rewards go to those who manipulate symbols and build icons. Folks who make mundane material stuff must compete worldwide with the most efficient producers.

That’s why Montana’s relative position has deteriorated so substantially over the past 40 years. Our state’s prosperity was built on natural capital. However, this traditional economy of agriculture, forest products, and metals has dramatically declined and, aside from coal, has little prospect for future growth. Now the key is human capital. And this implies an emphasis on universities. Understanding this fact is the key to success.

Twenty years ago Nobel economist Robert Lucas wrote a paper on forces that spur economic progress, “On the Mechanics of Economic Development.” The central idea was that a modern, vibrant economy depends crucially on increasing the rate of human capital improvement.

Fortunately, as the above Carnegie report indicates, we are well positioned to advance, especially if we capitalize on being the “University of the Yellowstone.” This includes much more than the Park. Following the Yellowstone River to Montana’s Dakota border, and tracing the Yellowstone-to-Yukon habitat corridor, we find MSU near the intersect. And worldwide, “Yellowstone” has unambiguously positive connotations.

Most of America’s major universities have huge momentum, legions of wealthy alums, and a tradition of leadership. Others that advance, exploit niche advantages. Greater Yellowstone is ours, from Anthropology to Zoology. MSU has five times the National Science Foundation grants involving Yellowstone as our nearest competitors, Stanford and UCLA.

The nearly 20-million-acre Greater Yellowstone Ecosystem is one of the largest, relatively intact temperate-zone ecosystems on Earth. It provides a global model for management of complex human and biological systems. It is emblematic of changes taking place in other protected areas around the world and is an ideal laboratory for teaching and science. Perhaps even more importantly, unless one is committed to scuba, sailing, or shopping for haute couture, it’s a great place to live. (I’m told, however, Murdock’s has America’s biggest selection of Carhartts.)

I’m sure it’s no accident Sikorsky picked MSU over Kansas State, which has programs in aeronautics. If you were in senior management, would you prefer to locate near Manhattan, KS or Manhattan, MT?

There are similar advantages in recruiting top faculty and attracting intellectuals. As highly educated Americans become wealthier, quality of life benefits become increasingly important. Few if any schools can boast an equal amenity-shed. Further, top scholars love to visit our area. For example, five future Nobel Laureates have participated in programs I’ve offered here. The most recent Nobel in economics, Tom Schelling, is returning for his eleventh FREE seminar for federal judges, a cooperative program with MSU.

Here’s another example of success. MSU’s Masters in Science Education has a battery of courses around Yellowstone. Teachers nationwide choose the MSU MSSE program largely because of its courses offered near Yellowstone; they can’t find an equal in Boston, Princeton, or Palo Alto.

MSU could employ Internet technologies to great advantage. For example, Apple offers free podcasts for colleges and universities through iTunes. Stanford’s Hoover Institution has made most episodes of its discontinued PBS program, Uncommon Knowledge, available on the web. By “e-casting” our best to the world, we could capitalize on our expertise in Yellowstone.

I believe MSU can at last clear the tipping point toward excellence. Montana is no longer a colonial economy and because of research funds and macro cultural and demographic changes, it’s more independent of political pressures. Now the task is to capitalize on the advantages inherent to its remarkable location and accomplishments.