The University Role in University-Community Partnerships in Economic and Community Development

Transcription

1 The University Role in University-Community Partnerships in Economic and Community Development The Honorable Aneesh P. Chopra Secretary of Technology September 24 th, 2007

2 Agenda for Discussion I. The Innovation Imperative II. Three University Levers III. Coda ~ Driving Innovation in the Public Sector Page 2

3 Virginia Leading the Way A Strong Foundation of Leadership for the Innovation Economy Effective Management Best Managed State (2005) A Technology Leader AeA ranks Virginia #1 in Tech Job Creation (2006) 2 nd in Digital States Survey (2006) Forbes.com named Virginia the best state for business (2006) #1 From Cradle to Career Education Week says Virginia children are the most likely in the nation to experience success as they move from childhood to adulthood. The typical student in the commonwealth enjoys higher achievement and is more likely to finish high school and continue on to college than in other states. Page 3

4 The Innovation Imperative Despite Public Accolades, Virginia s Innovation Rankings Fall Short Top Ten States Virginia Scores 2007 Rank 2007 Score State 1999 Rank 1999 Score 2002 Rank 2002 Score Massachusetts New jersey Maryland Washington California Connecticut Delaware Virginia Colorado New York Indicator Rank Fastest Growing Firms 1 Workforce Education 5 IPOs 8 Scientists and Engineers 8 Technology in Schools 9 "Gazelle Jobs" 15 Venture Capital 17 Industry Investment in R&D 18 Job Churning 21 Patents 26 Inventor Patents 35 Entrepreneurial Activity 47 #1 Overall But CNBC most recent best state for business accolade but a closer review of individual scores reveals a modest 14 th ranking in innovation Source The 2007 State New Economy Index from the Ewing Marion Kauffman Foundation and the Information Technology & Innovation Foundation, ITIF Page 4

5 Technology Employment Distribution Overwhelming Reliance on Services (Not IP) to Fuel Tech Economy Third Quarter 2006 Employment by Industry Industry Source Virginia Economic Trends, 2 nd Quarter 2007 Report 2006Q3 Total Employement 3,627,516 Total High Technology 560,606 Level 1 265,065 Pharmaceutical and Medicine Manufacturing 3,536 Computer and Peripheral Equipment Manufacturing 1,489 Communication Equipment Manufacturing 3,053 Semiconductor and Other Electronic Component Manufacturing 6,965 Navigational, Measuring, Electromedical, and Control Instruments Manufacturing 5,241 Aerospace Product and Parts Manufacturing 1,671 Software Publishers 5,027 Internet Publishing and Broadcasting 1,690 Other Telecommunications 392 Internet Service Providers and Web Search Portals 8,286 Data Processing, Hosting, and Related Services 11,790 Architectural, Engineering, and Related Services 70,065 Computer Systems Design and Related Services 120,281 Scientific Research and Development Services 25,580 Level 2 155,723 Level 3 139, % 79.3% of of Virginia s Virginia s L1 L1 high high technology technology employment employment is is in in services services Page 5

6 How Would You Describe the Glass? Highly-Educated Workforce Trails the Nation in Patent Productivity College-Educated Workforce % Adults with Associates Degree or Higher Patents Issued Per Capita (1000) 2005 VA ranks 26th th highest ranking of educational attainment CA MD VA Industry R&D Expenditures % of Worker Earnings (2003) 4.38% Technology firms concentrated in regions with highest educational levels CA VA ranks 18th 3.49% MD 2.65% VA Page 6

7 Three Levers Universities Are Critical to Virginia s (Future) Technology Economy I State R&D Investments #Investing in Guided Innovation: Support $1.2 billion R&D goal through state funding, incentives to promote corporate research II An Innovation Infrastructure #Universal Broadband: Develop public-private partnerships to ensure access to low-cost highspeed services III Filling Tomorrow s High- End Workforce # STEM Education: Strengthen Virginia s K- 12 system by growing tomorrow s science and engineering leaders #Research #Research Consortium Consortium University Opportunities #Regional #Regional Networks Networks #Curriculum #Curriculum Innovation Innovation Page 7

8 State R&D Investments Job Creation Increasingly Linked to University Research Investments 900, , , ,000 University Research & Development All Sources Research Expenditures for Virginia Universities Commonwealth Technology Research Fund Public, Private, Academic Partnership Corning Danville employment declines following leading product termination Innovating research partnership encourages $12M investment, adds 50 jobs VT-IALR-Norfolk State propose to assist in emerging products for Danville Corning invests $400M annually on R&D, relatively little in Virginia 500, , , Publics Total Total Less GW Page 8

9 Research Consortia Intel Leverages University Partnerships to Drive Product Innovation Page 9

10 An Innovation Infrastructure Virginia (Not Quite Yet) Leading the Way in Broadband Broadband Deployment 2007 Composite Score* Virginia s Broadband Roundtable Work Plan Through Summer 2008 GA is the national leader National Average: GA AK jumps from 50 th ( 02)to 2 nd 6.00 AK VA ranks 13th nationally 5.07 VA OECD Report: In December 2006 Broadband Statistics report, US fell to 15 th behind other industrialized nations in broadband subscribers per capita Sub-Committees in Brief -Broadband Adoption Measurement: Surface innovative models to measure adoption and offer target areas for investment -Technology Blueprint: Identify existing and emerging technologies that are suitable for delivering affordable services across Virginia -Innovative Applications: Highlight broadband-dependent applications including telework, telemedicine, distance learning, public safety interoperability and social empowerment -Business Models: Develop community oriented models to finance deployment and provide long-term sustainability with a specific emphasis on ensuring access to all Virginia businesses -Community Outreach: Coordinate outreach strategies to encourage business and resident adoption *ITIF New Economy Index: Score represents weighted measure of broadband lines per household and business based on 2005 FCC deployment data Page 10

11 Regional Networks Southside Virginia Educational Network a Tool for Distance Learning AP Enrollment (At Least One Course) % Public High School Students 9.6% growth rate 12% 2005 Number of students scoring 3 or better increased 12.3% 13% 2006 Initiative NMSI STEM Grants Description Virginia awarded $13.2M from Exxon-Mobil to drive up the utilization of AP exams through training and student incentives Virginia received a $500k grant from the NGA to establish a STEM Center Virginia launched Virtual Virginia to increase access to high-quality AP instruction through distance learning From Competence to Excellence We are committed to accountability in education, and the data-driven approach of this initiative (NMSI) will help us continue to move from competence to excellence. Governor Tim Kaine Page 11

12 Filling Tomorrow s High End Workforce Universities a Strategic Lever in Linking Global Talent Chain A National Story Founded by Immigrants: Duke University estimated that 25% of technology and engineering companies started from 1995 to 2005 had at least one senior executive born outside the United States Patent Filings Percentage by Foreign Nationals in US 24.2% Spur Employment: Immigrant-founded firms employed 450,000 workers and generated $52 billion in sales in % Virginia Technology Startups Percentage Founded by Immigrants Entrepreneurial Activity Adjusted % of Total Population Immigrants 29% Study examined startups launched between 1995 and % CA.30% MD VA ranks 47 th.20% VA Source: Immigrants behind 25 percent of startups, AP (January 3 rd, 2007); SoTech Interviews Page 12

13 Curriculum Innovation Career and Technical Education a Strong Platform to Address Gap Theoretical Physics Experimental Physics Mathematician Scientist Engineer Engineering Technologist* Trades Algebraist Geometer Topologist Statistician Discover languages to quantitatively describe existing world Physicist Chemist Biologist Lab Physicians Astronomer Discover & describe existing world Aerospace Automotive Electronics Computer Civil Design & build new systems Wind Tunnel Aircraft Maint Airframe/Powerplant Particle Detectors Integrated Circuits Design & build new components Traditional Welding HVAC Electricity 21st Century A+ Comp Repair Comp Network Adm Model & Sim 4-yr college (+) 4-yr college (+) Skill Components Traditional Academic THEORY 4-yr college (+) * Sometimes Instrument Maker 2-yr college/ojt Current K-12 Gap HANDS-ON Build or fix existing systems/components HS with national certifications CTE Page 13

14 Coda ~ Driving Innovation in the Public Sector Public Sector Innovation Adoption Holds Promise to Drive Efficiency Technology Adoption Life Cycle chasm Change Management Workout the Foundation Population early adopters Time Gov Change Intensity Accelerated Adoption Life Cycle Population early adopters Requirements Acquisition x Time Gov Source: Modified from Crossing the Chasm by Geoffrey A. Moore, 1991 GE Case in Brief Goal: Build the organizational will for change; establish a common language and methodology for consistent performance Best Practice: Engage all leaders in the cycle of performance improvement; empower managers to participate, drive results Page 14

15 A Global Story Globalization Advancing Social, Economic Development Low-Cost IT Degree Background: Largest for-profit university system (known as the Oxford of India) doubling student population online Solution: 3-year degree in IT delivered in partnership with local proctors; 30% selftraining using electronic course materials, 40% two-way live lectures, and 30% local instructor Economics: Nearly 100,000 students enrolled at $1,200 all-in cost for the IT degree; focus on second chance students A Bold Vision for Education Goal: Ship 1 million $100 laptops around the world Problem: Access to mobile laptops on a sufficient scale provide real benefits for learning and dramatic improvement of education on a national scale, but costs are prohibitive The Lab: In January, 2005, MIT assembles worldclass team to leverage open source and other technologies for a one laptop per child initiative Results: July, 2007 Final Beta Version of XO Laptop launched; Libya, Rwanda and others sign MOU s to deliver OLPC to primary-age children in 5 years Page 15

16 An Inspiration Virginia Professor Removes Arsenic for 99% Less Than Market Rate An Inspired Dream Public Sector Innovation Goal: Develop low-cost method to remove arsenic from water; 10+ million people suffer without treatment Solution: A simple, maintenance-free system that uses sand, charcoal, bits of brick and shards of a type of cast iron; each filter has 20 pounds of porous iron, which forms a chemical bond with arsenic Results: GMU Professor Abul Hussam wins $1M Grainger Prize for $40 solution; donates 70% to buy filters for Third World Requires additional energy investments Arsenic Water Filters Cost ~$5,000 $40 Maintenancefree for five years Market Filters SONO Filter Page 16