1. The Global Innovation Economy: Well-springs of Modern Economic Growth World View Community College Global Education Symposium Maryann Feldman November 9, 2010

2. New Environment for Higher Education ¤ New technology platforms from Science m Biotechnology m Information and Computer Science m Material Science ¤ All industrial activity has higher knowledge content ¤ Greater budgetary uncertainty m Government funding m Rising costs ¤ Formalized in U.S. Bayh-Dole Act 1980 m Many countries emulate ¤ Third mission of economic development

3. Changing Role of Higher Education ¤ The winner in the Knowledge Economy ¤ That means more than market domination ¤ Stewardship m Largest employers in many places m Many places are pinning their hopes on institutions of higher education

4. Economic Development Defined ¤ Sustained increase in income m Higher standards of living m Greater accumulation of wealth m Greater productivity ¤ Processes and policies by which a nation improves the economic and social well-being of its people

7. National Debt

8. The Paradox of Globalization ¤ Growth is local & grounded m Predicated on face to face interaction m common meaning and language m Characteristics of knowledge ¤ Firms benefit through strategic location Not by relocation but by investing ¤ Its all about Innovation

10. Wellsprings of Growth ¤ Recognition that growth is local m Not about the geographic concentration of production m Local as locus of innovative activity Innovation as cognitive, contextual process –Predicated on face to face interaction, common meaning and language Firms benefit through strategic location –Not by relocation but by investing ¤ Higher Education’s role m Certainly part of the Tech-Based Cluster story m Knowledge input supplier/convener

11. Research University Redux ¤ Necessary but not sufficient m Every great tech region has at least one great research university, BUT great research university DOES NOT yield a great technology region ¤ Reasons m Different Missions & Cultures m Different ability of local economy to absorb graduates m Consider the structure of a company Depth in the labor force Diverse Skills required for innovation ¤ Requires supporting higher education institutions

12. Lead to the Desired Outcome? ¤ Privatization of Knowledge m Public good argument diminished m Changing justification for public funding m Can output be effectively evaluated by private metrics? ¤ Rankings, Ratings and Beauty Contests m Emphasis will shift to the measurable m Assessment force conformity Drives out diversity and experimentation ¤ Knowledge as a Means to What End? m Greater purpose than profit m Is competition the correct metaphor?

13. If Innovation is the Desired Outcome ¤ Focus on Education m Broad-based education m Ability to think creatively, write and analyze m Different from training Noted problems with MBA education ¤ Focus on Basic Research m Big ideas yield/build new platforms m Long time horizons, important small steps m Focus on applied R&D yields more incremental ideas ¤ Focus on local problems m Then scale to global markets

14. Policy Recommendation: How to Promote Local Economic Growth ¤ No universal solution ¤ Consensus on Desired Outcome m Maximize local wages, local wealth m Viable, vibrant communities ¤ Designing economic development strategy may be the ultimate local innovation m History is important m Context and Culture matter

15. Reflective Conclusions ¤ Creativity & innovation are about doing things differently m Will we force conformity & kill the desire outcomes when we think about teaching innovation and creativity Focus on measurement m You can’t teach innovation & entrepreneurship at a B- School m North Carolina’s growth strategy ¤ Innovation to what end? m Amelioration of disease and human suffering m Time for a new golden age

16. THANK YOU