Michael M. Crow Executive Vice Provost Columbia University Greater Phoenix in the knowledge-driven economy Greater Phoenix 2100 Workshop April 2-3, 2001

The new knowledge-driven economy Knowledge is our most powerful engine of production (Alfred Marshall, 1890) Why is knowledge becoming more important? Extraordinary progress in information and communications technology Increased speed of scientific and technological advance Increased global competition Changing demand

Positioning the region: Trends in science and technology Movement away from a silicon-based electronics economy Increased rates of technical advance and revolutionary breakthroughs in molecular scale manipulation Wave of technology integration and societal transformation (nanotechnology) Expansion of science through field integration and subsequent new field and new technology development Genetically-modified everything

Sustaining economic growth Sustaining economic growth through knowledge communities Producing knowledge vs importing knowledge Positioning Phoenix to be a net producer of knowledge Producing knowledge Advantages in speed and diversification Multiple large- and small-scale fundamental science enterprises Capacity to incubate knowledge enterprises Setting conducive to establishing knowledge networks Ready providers and brokers of financial and knowledge venture capital

Diversifying the economic base The cyclical patterns of gain and pain in science-driven regional economies will be a function not only of rapidly accelerating market maturity curves (i.e. CISCO) but also, and more fundamentally, of the rate of change in technological advance.

Requirements for science-driven economic diversification Broadly-scoped regional innovation system Markets conducive to risk taking Policies conducive to the development of fundamental public investment in research and development infrastructure –Universities –Computational technology –Networking infrastructure –Early-stage venture financing

Science and natural capital Natural capital is an essential element of the Greater Phoenix production function Science inputs (maintaining or enhancing natural capital) are essential to the long- term utility function Note: There is a low probability of sustaining economic well-being through unchecked growth

Equitably distributing the costs and benefits of science Educated policy-makers and leaders in science, technology and economic development Enhanced technological literacy for the general public Focused public investments in outcome- driven science

Enhancing the overall quality of life in Greater Phoenix Sustaining economic growth Diversifying the economic base Managing fragile natural capital through new mechanisms Equitably distributing the benefits and costs of science