Connections between higher education and state governments to promote economic development are discussed, including a regional economic development project in New England, and four partnerships between higher education and the state in Georgia, Iowa, Pennsylvania, and Massachusetts. International examples from France, Great Britain, Russia, and China are also briefly considered. Federal aid for a regional pilot project to the New England Board of Higher Education is designed to inform legislators about the significance of higher education to state economies and the region, and to better prepare legislators to make more informed judgments on issues concerning investment in human capital. Other programs of note are: the Ben Franklin Partnership in Pennsylvania, which focuses on the use of new technologies in basic industries; Georgia's Industrial Extension Service, which provides technical information to counties and companies; the Bay State Skills Corporation in Massachusetts, which provides job training; and Iowa's Industrial New Jobs Training Program for business and industry. Appended is "The Public Investment in Higher Education," a policy briefing report for legslators from Vermont. Approaches for improving the quality of information provided to legislatures include: annual performance report, better communication, informed public debate, and information on state research expenditures per faculty member. (SW)