1. High Impact Implementation for an Innovation-Driven Economy The Texas Industry Cluster Initiative

2. Engines of the Texas Economy “This cluster initiative is important because for the first time in the history of this state, we will have a coordinated, market- driven economic development strategy that focuses on areas where we have the greatest growth potential and focuses on fostering that potential.” Rick Perry, Governor of Texas Advanced Technologies and Manufacturing Nanotechnologies and materials Micro-electro-mechanical systems Semiconductor manufacturing Automotive manufacturing Aerospace and Defense Biotechnology and Life Sciences Information and Computer Technology Communications Equipment Computing Equipment Information Technology Energy Oil and gas production Power generation and transmission Renewable / Sustainable energy sources Petroleum Refining and Chemical Products Texas’ Six Target Clusters 1

3. Shifting Demand for Skilled Workers While the need for engineering talent persists, the critical demand for technically skilled workers is shifting such that as many 60% of the jobs in the Biotechnology and Life Sciences Cluster will require only a high school diploma or a two-year degree or certification. The Cluster Initiative emphasizes that high wage, high skill jobs are accessible if students are adequately prepared upon high school graduation. – Dr. Mae Jemison, Founder, BioSentient and Chair, Texas Biotechnology and Life Science Cluster 19501997 Percentage of Unskilled, Skilled, and Professional Jobs in 1950 and 1997 (Source: National Summit on 21 st Century Skills for 21 st Century Jobs)

4. We Defined Communities of Innovation as “Relational Businesses that Supply a Competitive Advantage” Commercialization Texas: Globally Competitive Texas: Globally Competitive Knowledge Creation Knowledge Creation Technology Transfer Technology Transfer Clusters & Networks Clusters & Networks Licenses Patents Incubators Research & Development Innovation Venture Capital Angels Clinical Trials Business Planning Regulatory Approval Job Creation Product Development IPOs Product Pipeline Workforce Training Academic Curriculum Development Marketing & Sales Industry Alliances & Partners State Funding Federal R&D Supply & Demand Ultimately, the only way to sustain a competitive advantage is to upgrade it. ― From “The Competitive Nature of Nations”, Michael Porter, Harvard Business Review, 1990

5. Developing a Workforce of Knowledge Workers Recognize Texas’ strength (compared to US averages) in our youth and population growth, our diversity, and the age of our workforce. [Source: The Greystone Group] Collaborate with industry partners to develop a workforce delivery system that is responsive to the needs of the marketplace and opens opportunities to a broader group of Texans Align industry skill and competency requirements with workforce training, public and higher education Articulate programs to ensure accessibility for a broader range of students Communicate an outreach strategy that highlights the career opportunities of the cluster industries to recruit students to STEM programs, attract and retain talented researchers and research dollars

6. How Will We Achieve That Vision? Texas Workforce Commission →Skills Assessment → Skills Gap Assessment ** → Skills Development Fund → $12 Million in WIA Grants Texas Education Agency →STEMS →ACHIEVE TEXAS →Dual Enrolments ** →Articulation Agreements ** →P-16 Councils **

7. How Will We Achieve that Vision? Con’t.  Texas Higher Education Coordinating Board →Dual Enrollment ** →Expanded Research →Skills Development Fund →Articulation Agreements →P-16 Councils ** Collectively →Collaboration →Communication →Implementation

8. Website Link for the 2005 reports of the Texas Industry Cluster Initiative www.twc.state.tx.us/news/ticluster.html