American universities have some of the best elite colleges in the world but American students are suffering from a lack of skills in certain areas according to an article in the New York Times. Americans are not doing well in math and literacy which means we have lots of room for improvement. Rethinking higher education may raise quality and create greater price sensitivity.
When market forces work well they can influence and improve American universities by pushing those institutions to grow and change. Such competition can impact the cost of universities as well as the quality of the curriculum.
Whether we are discussing a business or a university it is necessary to keep higher education at the center of innovation and continually seeking methods of growth and development. They should be at the leading edge in quality and concept.
It is difficult to grow and develop unless there are universities that push the limits and institutions that adapt and integrate successful programs. Innovation and market adaptation requires greater flexibility and less regulation to provide opportunities to try new things.
Cost will also creep upwards when government regulations protect some universities and hinder others that are developing new models. New models, such as online education, have reduced overall costs.
Innovation and cost control are best fostered by market competition and multiple types of higher education models in the market. This variability offers appropriate spill over and exchange of new ideas and methods. It also forces entities to compete on price thereby reducing the overall cost of higher education.