Economic Development Administration – June 2006 – Page 1 U.S. Department of Commerce ECONOMIC DEVELOPMENT ADMINISTRATION The New Realities Ben Erulkar Deputy Assistant Secretary of Commerce for Economic Development June 2006

Economic Development Administration – June 2006 – Page 2 Positive Economic Outlook 5 million + new jobs since October % unemployment rate. 3.5% GDP growth in % GDP growth last quarter. 18 straight quarters of solid economic growth. Record levels of home ownership.

Economic Development Administration – June 2006 – Page 3 Positive Economic Outlook 5 million + new jobs since October % unemployment rate. 3.5% GDP growth in % GDP growth last quarter. 18 straight quarters of solid economic growth. Record levels of home ownership.

Economic Development Administration – June 2006 – Page 4 Positive Economic Outlook 5 million + new jobs since October % unemployment rate. 3.5% GDP growth in % GDP growth last quarter. 18 straight quarters of solid economic growth. Record levels of home ownership.

Economic Development Administration – June 2006 – Page 5 Positive Economic Outlook 5 million + new jobs since October % unemployment rate. 3.5% GDP growth in % GDP growth last quarter. 18 straight quarters of solid economic growth. Record levels of home ownership.

Economic Development Administration – June 2006 – Page 6 New Reality #1 We are in a truly global economy The World is Flat - Thomas Friedman

Economic Development Administration – June 2006 – Page 7 New Reality #1 Globalization Pop Quiz or

Economic Development Administration – June 2006 – Page 8 New Reality #2 The pace of change will continue to accelerate

Economic Development Administration – June 2006 – Page 9 New Reality #2 Pace of Change to Accelerate Time to Reach 25% of Americans Automobile – 55 years Telephone – 35 years Personal computer – 16 years Cell phone – 13 years Internet – 7 years I Pod – ???

Economic Development Administration – June 2006 – Page 10 New Reality #3 Components of competitiveness can no longer be pursued separately.

Economic Development Administration – June 2006 – Page 11 New Reality #4 Collaboration with the private sector is more critical than ever.

Economic Development Administration – June 2006 – Page 12 New Reality #5 America WINS in the 21 st Century.

Economic Development Administration – June 2006 – Page 13 President Bush’s American Competitiveness Initiative Double Federal funding for basic R&D. Permanent private sector R&D tax credit. Improve math and science skills (K-12). Triple the number of workers getting job training. Attract and retain the world’s best and brightest people.

Economic Development Administration – June 2006 – Page 14 The “New Realities” We are in a global economy. Pace of change will increase. Components of competitiveness cannot be pursued separately. Collaboration with private sector critical. America is positioned to win in the 21 st Century.