President G. P. "Bud" Peterson addresses Tech fans before the game against Virginia on Oct. 24.

The state of the economy shaped much of President G. P. "Bud" Peterson's State of the Institute address, delivered to alumni and friends during Homecoming.

"Georgia Tech is a tremendous economic engine for the state of Georgia," Peterson said. "We have the second largest number of patents of any other organization in the state of Georgia. Number one is AT&T."

Peterson pointed out that Georgia Tech has experienced a $50 million cut in state funding in the period of two fiscal years.

"An education is an investment," he said. "Of all the things the state spends money on, education is the only investment. It's the only thing that will grow in value. Transportation, bridges and roads — you build them and they start to decay."

Peterson and a steering committee are investing time and effort in a 25-year strategic plan that will go into effect in the fall of 2010. In his address, Peterson spoke about the difficulty in envisioning Georgia Tech and the world in 2035.

"Think about your life 25 years ago. In 1984 I was an assistant professor at Texas A&M University. I raised my hand in a faculty meeting and told the department head, 'I think we ought to get a fax machine.' His response was: 'What in the world would we do with one of those?' Today you can't find them anywhere except in a museum."

Peterson said he's looking for "big ideas" to determine Georgia Tech's course for the next 25 years.

"When I came, I asked people, 'What's the vision for Georgia Tech?' It was almost like a mantra. People would say: 'to define the technological research university of the 21st century.' How are we going to do that? That's the question that I think we need to answer."

More from the State of the Institute address is available at the Office of the President Web site. More information on the strategic vision is available at the Institute's Web site.