The relationship between higher education and economic development is discussed to help Pennsylvania state officials in policy development. In addition to listing labor force development efforts of Carnegie Mellon University, Community College of Allegheny County, and University of Pittsburgh, Massachusetts' economic strategies are summarized. Six key considerations for economic redevelopment for the 1980s are identified: linkages among business/industry, government, and university are essential; colleges and universities have been key actors in successful recent state and regional economic development activities; universities are excellent sites for conducting basic research and development (R&D), which is important to economic growth; the federal government has urged universities to seek more private sector R&D; colleges should help prepare workers for technical changes; and higher education should play a greater role in human resource planning and training. Strategies that Pennsylvania might follow to strengthen the higher education system are suggested. To help staff members of the House Higher Education Sub-Committee, an annotated bibliography is provided, covering 12 texts/journals, 9 documents about Pennsylvania, 4 documents about other states' strategies, and 8 organizations. (SW)