Results of a survey of the states to determine state incentive programs for graduate education are presented. Attention is directed to three types of initiatives that are receiving special attention in the states: (1) programs to endow faculty chairs (eminent scholars program); (2) funding for special program initiatives or "centers of excellence"; and (3) initiatives to promote applied research centers or other types of business-university linkages. For each state, efforts in three types of incentive programs are described. The eminent scholars program, which is a relatively new development, is designed to provide permanent sources of funds that can be used to attract and retain outstanding faculty for major state universities. This has been done through incentive programs that usually match private giving dollar for dollar with state funds. Targeted state support for centers of excellence is often aimed at promoting state economic development in certain fields, but has also been targeted to other objectives such as improving teacher education programs. State programs to enhance applied research activities and to strengthen higher education-business linkages have diversity in design and are often tailored to the particular economic structure and climate of the region. (SW)