Select your localized edition:

Close ×

More Ways to Connect

Discover one of our 28 local entrepreneurial communities »

Be the first to know as we launch in new countries and markets around the globe.

Interested in bringing MIT Technology Review to your local market?

MIT Technology ReviewMIT Technology Review - logo

 

Unsupported browser: Your browser does not meet modern web standards. See how it scores »

When John Reed ’61, SM ’65, chairman of the MIT Corporation, reported on the Institute at a recent alumni gathering in Northern California, he noted the positives—and the challenges.

“We continue to get great students and we have great faculty, and we would have to say that the basic mission of the school is being fulfilled quite well,” he said. “The two problems we have are our buildings are getting old and the model of how American research universities function is broken.”

As chairman, Reed examines the hard realities of running a major enterprise with expectations of excellence. And as the former chairman of Citigroup and the New York Stock Exchange, he brings a sharp business perspective to his role. Clearly, if MIT were a business, it would be losing money on its primary products—education and research. Tuition covers only about 28 percent of educational costs, and outside funding for research conducted on campus covers some 80 percent of costs.

“Obviously we are not going to make money on tuition or research,” Reed said. “The question is, can we earn enough money on the endowment or raise enough money to keep the institution on the path we want to be on?”

MITx, the Institute’s new online-learning experiment, is a response to another major challenge—the Internet. What MIT learns from MITx will improve the campus learning experience, he believes, because “it is going to force us to make residential learning even better than it is today.”

Hear Reed’s talk: alum.mit.edu/pages/sliceofmit/2012/02/29/corporation-chairman.

0 comments about this story. Start the discussion »

Reprints and Permissions | Send feedback to the editor

From the Archives

Close

Introducing MIT Technology Review Insider.

Already a Magazine subscriber?

You're automatically an Insider. It's easy to activate or upgrade your account.

Activate Your Account

Become an Insider

It's the new way to subscribe. Get even more of the tech news, research, and discoveries you crave.

Sign Up

Learn More

Find out why MIT Technology Review Insider is for you and explore your options.

Show Me
×

A Place of Inspiration

Understand the technologies that are changing business and driving the new global economy.

September 23-25, 2014
Register »