Prepared by a special commission, this report charges that now is the time for New England higher education to focus on the critical relationship between our knowledge-based institutions and the needs of the region's economy. Section 1 highlights the commission's principal concern for the future of regional higher education institutions. Section 2 presents a basis for concern for the gradual undermining of the competitive strength of knowledge-intensive regions. Three factors are specifically discussed: (1) a fundamental weakening of the public school system, (2) a regional differential in the capacity to finance higher education, and (3) a change in the perception of economic opportunity. All three factors are supported by data provided in tabular form. Recommendations for regaining the competitive strength of the region include striving to overcome the perceived weakening in the public secondary schools, to overcome a regional differential in the capacity to finance higher education, and to improve the perception of New England as a region of opportunity. A call to action for public hearings is presented as the next step. Members of the commission and acknowledgments are also listed. (BJD)