In a world of constantly changing demands for knowledge and technical skills for the work world, higher education has been slow to change to meet these demands. The numbers of American students receiving bachelor's degrees in engineering, mathematics, and computer science fell significantly between 1987 and 1998, while the demand rose. In addition, few four-year institutions have addressed the heavy demand for teachers. In order for the U.S. economy to remain competitive in a worldwide knowledge economy, however, colleges and universities need to provide more innovative approaches to providing education and training. Two-year colleges, in particular, need to offer more flexibility to serve a diverse array of people, from disadvantaged students to adults returning to school multiple times, and in many cases, two-year colleges have more flexibility to do so. It is imperative that two-year colleges become adaptable to change quickly to meet the needs of business for workers trained in the latest technologies. Innovative approaches, such as short-term courses, customized courses, and distance learning via Internet, are needed to meet the needs of today's students and the U.S. economy. (KC)