national innovation initiative sura it committee july 2005 1 thriving in a world of challenge and...
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National Innovation Initiative
SURA IT Committee July 2005 1
Thriving in a World of Challenge and Change
Suzy TichenorVice President and Director, High Performance Computing InitiativeCouncil on Competitiveness
Council on CompetitivenessNational Innovation Initiative
National Innovation Initiative
SURA IT Committee July 2005 2
Who We Are
National Innovation Initiative
SURA IT Committee July 2005 3
The Council on Competitiveness
2006: 20th anniversary year
Non-partisan, Non-profit 501 c (3)
170+ members: CEOs, university presidents and labor leaders
Goals:
Drive U.S. productivity growth
Bolster high living standards
Ensure success in global markets
“Our agenda is at the nexus of necessity and opportunity—and we all have an obligation to serve the nation.”–Duane Ackerman, CEO, BellSouth Corporation, Chairman, Council on Competitiveness
“Our agenda is at the nexus of necessity and opportunity—and we all have an obligation to serve the nation.”–Duane Ackerman, CEO, BellSouth Corporation, Chairman, Council on Competitiveness
National Innovation Initiative
SURA IT Committee July 2005 4
Why Focus on Innovation?
National Innovation Initiative
SURA IT Committee July 2005 5
We Are at a Tipping Point
“To thrive in this new world, it will not be enough – indeed, it will be counterproductive – simply to intensify current stimuli, policies, management strategies and to make incremental improvements to organizational structures and curricula.”
-Innovate America
National Innovation Initiative
SURA IT Committee July 2005 6
Innovation: the single most important factor in determining success in the 21st century
INNOVATION
High Wage Jobs
Meeting Social Challenges
Economic Growth
Quality of Life
Competitive Advantage
National Innovation Initiative
SURA IT Committee July 2005 7
Innovation – More than Just New Technology
“the intersection of invention and insight”
Improves on the existing way of doing things
Generates value for society
Can come from anyone and anywhere
Can be a product, process, service, strategy, etc.
21st Century Innovation
Faster
Collaborative/ Open
Multidisciplinary
Demand-driven
Global
What Is Innovation?
National Innovation Initiative
SURA IT Committee July 2005 8
The Pace of Innovation Is Quickening
0 25 50 100 125 150
Automobile
75
Years
20
50
100TelephoneElectricity
Radio
Television
VCR
PC
Cellular
Inte
rnet
% P
en
etr
ati
on
National Innovation Initiative
SURA IT Committee July 2005 9
The National Innovation Initiative
National Innovation Initiative
SURA IT Committee July 2005 10
Bring together America’s top minds on innovation
Look beyond the traditional tools for economic stimulus– and develop new innovation metrics, networks and best practices
Sharpen our understanding of how innovation is changing and how it can be harnessed for economic growth, higher living standards, etc.
Advocate a strategic, actionable agenda to create a fertile environment for innovation
National Innovation Initiative Goals:
Why?
National Innovation Initiative
SURA IT Committee July 2005 11
Program Cte.
PR/MediaPolitical LiaisonEvents Mgmt.Tech. Support
21st Century Innovation
Innovation Finance
Public Sector Innovation
Advisory Cte.
40 innovation leaders from industry, labor, academia, govt.
Innovation Markets
Innovation Frontiers
Innovation Skills
W O R K I N G G R O U P S
Innovation Environment & Infrastructure
NII 2004Principals Committee
19 distinguished senior leaders from industry
and academia
National Innovation Initiative
SURA IT Committee July 2005 12
Findings
National Innovation Initiative
SURA IT Committee July 2005 13
Innovate America – Thriving in a World of Challenge and Change
•225,000+ Internet Downloads
Innovate America – Thriving in a World of Challenge and Change
•225,000+ Internet Downloads
National Innovation Initiative
SURA IT Committee July 2005 14
America leads in many areas – but challenges abound…
National Innovation Initiative
SURA IT Committee July 2005 15
Talented scientists and engineers
Strength
Quantity and quality
Weakness
America leads in many areas – but challenges abound…
National Innovation Initiative
SURA IT Committee July 2005 16
Europe and Asia: each producing more PhDs in natural S&E than the US
0
5,000
10,000
15,000
20,000
25,000
1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001
Europe
United States
Asia
Source: National Science Foundation, Science and Engineering Indicators 2004
Natural science and engineering doctoral degrees in the US, Europe, and Asia
National Innovation Initiative
SURA IT Committee July 2005 17
Talented scientists and engineers
Flexible workforce
Strength
Quantity and quality
Health and retirement benefits and Brain Drain
Weakness
America leads in many areas – but challenges abound…
National Innovation Initiative
SURA IT Committee July 2005 18
Most US regions lost young, educated residents in late 1990’s
Source: U.S. Census Bureau.
Note: Rate calculated on a per thousand population basis, using 1995 as base year . Based on data from 318 MSAs.
Net migration of young, single, college-educated people 1995-2000
-600
-400
-200
0
200
400
600
U.S. Metropolitan Areas
Net
Mig
rati
on
Rat
e (P
er 1
000)
National Innovation Initiative
SURA IT Committee July 2005 19
Talented scientists and engineers
Flexible workforce
Interested public sector
Strength
Quantity and quality
Health and retirement benefits and Brain Drain
Diffuse structures and understanding of innovation
Weakness
America leads in many areas – but challenges abound…
National Innovation Initiative
SURA IT Committee July 2005 20
The innovation ecosystem concept shifts the debate
Federal R&D Spending
Offshoring
Entrepreneurship
Workforce Training
K-12 Education
Higher EducationTechnology
TransferBusiness-University
Collaborations
S&E Workforce
Regional Economic
Development
Accounting Rules
Intellectual Property
ManufacturingHealthcare
INNOVATION POLICY
Most Policy Makers See Discrete Issues With Narrow Constituencies
We See a Single Innovation Policy with a
Broad Constituency
National Innovation Initiative
SURA IT Committee July 2005 21
America leads in many areas – but challenges abound…
Talented scientists and engineers
Flexible workforce
Interested public sector
Vibrant capital markets
Strength
Quantity and quality
Health and retirement benefits and Brain Drain
Diffuse structures and understanding of innovation
Short-term focus
Weakness
National Innovation Initiative
SURA IT Committee July 2005 22
Talented scientists and engineers
Flexible workforce
Interested public sector
Vibrant capital markets
Strong intellectual property protection
Strength
Quantity and quality
Health and retirement benefits and Brain Drain
Diffuse structures and understanding of innovation
Short-term focus and cyclicality
Effectiveness of Patent and Trademark Office
Weakness
America leads in many areas – but challenges abound…
National Innovation Initiative
SURA IT Committee July 2005 23
America leads in many areas – but challenges abound…
Talented scientists and engineers
Flexible workforce
Interested public sector
Vibrant capital markets
Strong intellectual property protection
Growing economy
Strength
Quantity and quality
Health and retirement benefits and Brain Drain
Diffuse structures and understanding of innovation
Short-term focus
Effectiveness of Patent and Trademark Office
Growing Deficit — Trade, Federal Budget and Personal Savings … and Unfunded Liabilities
Weakness
National Innovation Initiative
SURA IT Committee July 2005 24
US Twin Deficits:Federal Budget and Current Account
-800
-600
-400
-200
0
200
400
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
Federal Budget International Current Account
(Billions of dollars)
Source: Global Insight, Inc.
National Innovation Initiative
SURA IT Committee July 2005 25
The US has now promised away in PV terms the entire net worth of the country – unprecedented in postwar US history
The Unfunded $45 Trillion Dollar Baby
Source: Federal Reserve, Trustees Report on Social Security, Medicare
0
10
20
30
40
50
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03
$ t
ril
lio
ns
Household Net Worth
Federal Liability (NPV)
1990 and 2003 FederalUnfunded Liability data pointsgiven, the rest are interpolated
National Innovation Initiative
SURA IT Committee July 2005 26
Talented scientists and engineers
Flexible workforce
Interested public sector
Vibrant capital markets
Strong intellectual property protection
Growing economy
Sustained, high productivity
Strength
Quantity and quality
Health and retirement benefits and Brain Drain
Diffuse structures and understanding of innovation
Short-term focus
Effectiveness of Patent and Trademark Office
Triple Deficit — Trade, Federal Budget and Personal Savings
Measuring and capturing contribution of “innovation”
Weakness
America leads in many areas – but challenges abound…
National Innovation Initiative
SURA IT Committee July 2005 27
Talented scientists and engineers
Flexible workforce
Interested public sector
Vibrant capital markets
Strong intellectual property protection
Growing economy
Sustained, high productivity
Performance and reputation as global innovation leader
Strength
Quantity and quality
Health and retirement benefits and Brain Drain
Diffuse structures and understanding of innovation
Short-term focus
Effectiveness of Patent and Trademark Office
Triple Deficit — Trade, Federal Budget and Personal Savings
Measuring and capturing contribution of “innovation”
We are not alone – and we are not young
Weakness
America leads in many areas – but challenges abound…
National Innovation Initiative
SURA IT Committee July 2005 28
Recommendations
National Innovation Initiative
SURA IT Committee July 2005 29
The NII recommendations are based on three platforms
TALENT
INVESTMENT
INFRASTRUCTURE
• Build the Base of Scientists and Engineers
• Catalyze the Next Generation of American Innovators
• Empower Workers to Succeed in the Global Economy
• Revitalize Frontier and Multidisciplinary Research
• Energize the Entrepreneurial Economy
• Reinforce Risk-Taking and Long-Term Investment
• Create a 21st Century Intellectual Property Regime
• Strengthen America’s Manufacturing Capacity
• Build 21st Century Innovation Infrastructures – the health care test bed
National Innovation Initiative
SURA IT Committee July 2005 30
NII Talent Agenda – Selected Recommendations
National “Investing for the Future” S&E scholarship fund Provide tax credits for companies or individuals who contribute
scholarship funds
Portable graduate fellowships Fund at least 5,000 competitive, merit-based fellowships for up
to five years
Expedited immigration process for foreign S&E students Provide automatic work permits and residency status for
foreign students who: a) hold graduate degrees in S&E from American universities, b) have been offered jobs by U.S.-based employers and who have passed security screening tests.
National Innovation Initiative
SURA IT Committee July 2005 31
NII Infrastructure Agenda – Selected Recommendations Federal innovation strategy
Develop an explicit national innovation strategy and agenda led by the President
Perform an inter-agency policy, program and budget review and propose initiatives designed to foster innovation within and across departments
National and regional alliances Create a public-private partnership to advocate for national
initiatives and to build broad public support for the NII agenda
New innovation metrics Track and understand national innovation performance
National Innovation Initiative
SURA IT Committee July 2005 32
NII Investment Agenda – Selected Recommendations Innovation Acceleration grants
Spur radical innovation by reallocating 3% of all federal agency R&D budgets toward investment in novel, high-risk and exploratory research
Long term research at Department of Defense Direct at least 20% of the total DoD S&T budget to long-term,
basic (6.1) research performed at the nation’s universities and national laboratories
More support for R&D in physical sciences and engineering Ensure that the federal commitment of research to all federal
agencies totals 1% of U.S. GDP Complete the commitment to doubling the NSF budget
Continued
National Innovation Initiative
SURA IT Committee July 2005 33
NII Investment Agenda – Selected Recommendations Permanent, restructured R&E tax credit
Extend the credit to research conducted in university-industry consortia
Innovation HotSpotsTM, to capitalize on regional assets Create institutions that foster knowledge transfer, collaboration
and support for start-ups, combining and accelerating the deployment of key elements of the innovation ecosystem
National Innovation Initiative
SURA IT Committee July 2005 34
National policies set the context for innovation, but regions are where
innovation happens
34
National Innovation Initiative
SURA IT Committee July 2005 35
Regional Hotspots™ Initiative:
Fostering Integration for Regional Prosperity
CommunityDevelopment
TM
National Innovation Initiative
SURA IT Committee July 2005 36
Regional Hotspots™ Initiative Objectives
Establish regions as the key geographic unit for economic development efforts; establish innovation as the key economic driver for regional prosperity
Integrate workforce, community and economic development programs into a single regional strategic effort
Create regional groups of public, private, and non-profit sector leaders that will implement strategies regionally and serve as part of a peer-to-peer network nationally
Foster more responsive, flexible, and demand-driven workforce development systems at the national and regional levels
The ultimate goal is to catalyze the development of competitive firms that will expand employment and advancement opportunities for American workers
National Innovation Initiative
SURA IT Committee July 2005 37
Implementation
National Innovation Initiative
SURA IT Committee July 2005 38
We are now in the implementation phase
Leadership Teams
Public Outreach
Federal Outreach
Global/National/Regional Meetings
Public-Private Sector Collaborations
National Innovation Initiative
SURA IT Committee July 2005 39
The NII Leadership Council39
Co-chair Craig R. Barrett, Intel Corporation
Co-chair William R. Brody, Johns Hopkins University
Michael J. Burns, Dana Corporation
John T. Chambers, Cisco Systems, Inc.
G. Wayne Clough, Georgia Institute of Technology
Mary Sue Coleman, University of Michigan
Denis A. Cortese, Mayo Clinic
Robert C. Dynes, University of California System
John M. Engler, National Association of Manufacturers
Robert M. Gates, Texas A & M University
E. Gordon Gee, Vanderbilt University
Sheryl Handler, Ab Initio
Karen A. Holbrook, Ohio State University
Jeffrey R. Immelt, General Electric Corporation
Shirley Ann Jackson, Rensselaer Polytechnic Institute
Martin C. Jischke, Purdue University
Douglas J. McCarron, United Brotherhood of Carpenters & Joiners of America
Clayton Daniel Mote, Jr., University of Maryland
Peter O’Donnell, Jr., O’Donnell Foundation
Samuel J. Palmisano, IBM Corporation
Luis M. Proenza, The University of Akron
Robert L. Reynolds, Fidelity Investments
Kenan Sahin, TIAX, LLC
Carl Schramm, The Ewing Marion Kauffman Foundation
Jeffery Wadsworth, Oak Ridge National Laboratory
Mark Wrighton, Washington University
BOLD = SURA Member
National Innovation Initiative
SURA IT Committee July 2005 40
The NII Presidents Council
Business-Higher Education Forum
National Innovation Initiative
SURA IT Committee July 2005 41
The NII Presidents Council cont’d…
CASC
National Innovation Initiative
SURA IT Committee July 2005 42
We are now in the implementation phase
Public Outreach Over 250,000 copies of Innovate America downloaded
Extensive press coverage of December Summit
Press coverage continues: Fortune July 25, 2005
National Innovation Initiative
SURA IT Committee July 2005 43
We are now in the implementation phase
Federal Outreach Senators Ensign and Lieberman to propose omnibus legislation
based on the NII recommendations
Meetings with Senate Majority Leader Frist, Senate Finance Committee Chairman Grassley and Secretary of Labor Chao
Listening session with Senate Commerce Subcommittee on Technology, Innovation & Competitiveness
Wayne Clough testimony on manufacturing before Senate Commerce Subcommittee on Technology, Innovation & Competitiveness
Testimony by Leadership Council representatives before House Science Committee
National Innovation Initiative
SURA IT Committee July 2005 44
We are now in the implementation phase
Federal Outreach
Draft Omnibus Legislation…some key points Will authorize NEW $$$ in physical sciences (NSF? NASA? DoD?, DOE?)
Recognizes basic research as an investment…not a cost
Embraces innovation acceleration grants
Increases portable graduate fellowships (DOD, NSF)
Executive Focus on national innovation policy (interagency cmte?)
Focus on patent quality
Advanced manufacturing technology language related to the defense industrial base and DOC MEP program
Plan to introduce in September 2005
Continued
National Innovation Initiative
SURA IT Committee July 2005 45
We are now in the implementation phase
Federal Outreach
Draft Omnibus Legislation
Coalition forming to work for passage
Group of NII leadership companies
Council providing policy direction
Contact Bill Bates, Council Vice President for Congressional Outreach Bbates@compete.org
National Innovation Initiative
SURA IT Committee July 2005 46
We are now in the implementation phase
Global/National/Regional Meetings
First Regional Innovation Summit in Atlanta: Symposium on Southern Innovation (Hosted by Duane Ackerman, Wayne Clough and Gov. Perdue) Oct 30-31
http://www.southern.org/main/STC/SI2/symposium.shtml
National Summit on Competitiveness: Investing in US Innovation, sponsored by Rep. Wolf (Chair of the Science-State-Justice-Commerce Appropriations Subcommittee), Council on Competitiveness, AEA, NAM, BRT Dec 2005
Aichi World Expo September 2005
EU Summit April 2005
National Innovation Initiative
SURA IT Committee July 2005 47
Public-Private Sector Collaborations
Innovation Metrics
Innovation HotspotsTM
Healthcare Grand Challenge
Energy Grand Challenge
We are now in the implementation phase
National Innovation Initiative
SURA IT Committee July 2005 48
The (New) Path to Prosperity
The most important sources of prosperity are created not inherited Productivity does not depend on what industries a region competes in, but how it
competes.
InnovationInnovation
Competitiveness(Productivity)
Competitiveness(Productivity)
ProsperityProsperity
National Innovation Initiative
SURA IT Committee July 2005 49
Chad EvansVice President, National Innovation Initiative202.969-3380cevans@compete.org
Randall KempnerVice President, Regional Innovation202.969.3403rkempner@compete.org
Suzy TichenorVice President and Director, High Performance Computing Initiative202.969.3398stichenor@compete.org
Bill BatesVice President for Congressional Outreach202-969-3395bbates@compete.org
Council on CompetitivenessNational Innovation Initiative
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