A shift toward digital textbooks for kindergarten through high school not only is updating the way students learn, it's changing the business model for Pearson, one of the world's largest publishers of school textbooks.

The essence of its expansion into digital products can be seen at the United Kingdom-based company's new innovation center in Chandler, Ariz.

Pearson, which employs about 700 people in Arizona, already has a contract to supply 45% of California school districts with history textbooks.

These textbooks have no paper -- they're online. By entering a password on the Internet, teachers, students and parents can access a digital textbook, which

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