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There is more than one way to "serve." One way is to provide opportunities for state residents to earn degrees (with state support). States are certainly concerned about that, but they generally seem most concerned about degrees at the baccalaureate level. </p>
<p>Other ways to serve include the production of knowledge and technology, and states seem less concerned with who universities recruit to do that at the graduate level. Maybe they should be more concerned; maybe they should be thinking about the state's supply of PhDs and other advanced degree holders, and look harder into whether state institutions are failing to meet resident demand. I dunno. I just have not seen this be a hot-button issue in my state.
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<p>Well, then I think you can see why this is a paradox. </p>
<p>For example, if if is perfectly fine for a state school bring in plenty of OOS or foreign students for graduate studies, then one could make a perfectly logicl argument for why you should do the same for undergraduate studies. For example, undergrads also produce knowledge and technology, just like graduate students do. Maybe undergrads produce less such knowledge/technology per capita, but I think we can all agree that they do produce some. </p>
<p>On the other hand, if state universities should provide opportunities for state residents to earn bachelor's degrees, then one could construct a perfectly logical argument as to why state universities should also provide opportunities for residents to earn graduate degrees. </p>
<p>But the point is, either way you want to argue the logic, what state schools are doing right now is inconsistent. State schools provide preference to resident undergrads but not to many graduate students, especially PhD students. </p>
<p>Furthermore, we can consider the notion of how exactly do state universities produce greater knowledge/technology within their own states. I know quite a few Asian students who got their PhD's in engineering or science at state universities and then immediately went right back to Asia to become professors in Asian universities or to work in industry. Similarly, I know some people who earned PhD's engineering and CS at top state schools like Illinois, Michigan, Georgia Tech, and others who then upon graduation, immediately took a job in a high-tech cluster in another state (i.e. Silicon Valley in California or the "Technology Highway" area in Massachusetts). It's not clear to me how these people really helped to produce greater knowledge/technology within the state in which their PhD-granting state university is located, as these people not only took their high-powered educations, but also their entire research projects with them. But does that mean that that state university should not have admitted these students in the first place? </p>
<p>On the other hand, one could argue that if these schools did not admit these students, then they would be denying themselves the opportunity to bring in the best PhD candidates in the world. Not only that, but you would also inevitably lose top faculty, as top professors want to be able to run research projects with top graduate students. For example, if Berkeley one day declared a policy that they would only admit (or provide strong preference to) California state residents to their PhD programs, then I think it is inevitable that a lot of top professors would not want to join the Berkeley faculty, instead preferring to work at schools like Stanford, Harvard, MIT, etc. that don't have any such restrictions on the PhD students they admit. It would be a matter of career self-interest. Professors want to publish top research papers in order to advance their own professional standing, and they know that having top graduate students will help them do that.</p>