Deep Competitiveness Perpetual Innovation The Edge of Newness

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Deep CompetitivenessPerpetual InnovationThe
Edge of Newness

• Michael M. Crow
• President, Arizona State University
• 2007

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(No Transcript)
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The Nature of the Competition

• Investments in infrastructure
• Investments that support RD
• Investments in RD
• The resiliency required by ongoing technological
  change

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Deep Competitiveness

• Embedded
• Infrastructural
• Cultural
• Sustained
• Networked

Deep competitiveness requires vision and
commitment
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Arizona in Global Context
PER CAPITA GROSS PRODUCT SELECTED GEOGRAPHIC
AREAS Levels of GDP per Capita, US States and EU
Regions, 2003/04 (US 000s)
Arizona
Source Forfás Calculations Groningen Growth
Development Centre, Total Economy Database,
March 2006 Eurostat, General and Regional
Indicators, 2006 online United States, Bureau
of Economic Analysis, 2006 online
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Arizonas Trajectory in Context
PER CAPITA GROSS PRODUCT IRELAND, UNITED STATES
AND ARIZONA, 1995 TO 2005 (Constant 2005 Dollars
Adjusted for Purchasing Power Parity)
Note This table presents per capita GDP in U.S.
dollars PPP (purchasing power parity) in 2005.
PPP adjusts for relative cost of living and
inflation as well as exchange rates. Source
Figure 1 for Ireland and the U.S. Department of
Commerce, Bureau of Economic Analysis for the
United States and Arizona.
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Dispersion of Greenfield RD
Greenfield RD projects set up by Companies in
developed countries
Projects set up in developed nations

• US majority owned affiliates have been investing
  twice as fast in foreign countries as they have
  been in the United States during most of the past
  decade.
• Of the 1,773 greenfield RD projects set up
  between 2002 and 2004, more than half (953) were
  from companies in developed countries
  establishing projects in developing nations with
  70 of these in China and India.

Projects set up in developing nations
Projects set up in China and India
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Patents
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Foundational Elements
LITERACY SELECTED COUNTRIES AND
REGIONS Scientific, Mathematical and Reading
literacy of 15 Year Olds, 2003
Source OECD, PISA Database, 2003 Source
Reprinted from Forfas, Annual Competitiveness
Report 2006, Figure 4.50.
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Arizonas Assets
EDUCATIONAL ATTAINMENT ARIZONA AND THE UNITED
STATES, 2000
Source U.S. Census Bureau, 2000 census.
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Arizonas Investment Profile
RESEARCH EXPENDITURES AT INSTITUTIONS OF HIGHER
EDUCATION AS A PERCENTAGE OF GROSS PRODUCT
INDUSTRY RESEARCH EXPENDITURES AS A PERCENTAGE OF
TOTAL RESEARCH EXPENDITURES AT UNIVERSITIES
Source Calculated from Forfas, Annual
Competitiveness Report 2006, National Science
Foundation, and U.S. Department of Commerce,
Bureau of Economic Analysis.
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• What if, when you lose your
• Edge
• Network
• Ecosystem
• you cannot easily recover it?

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Competing not for Companies, but for Networks

• If the United States were to lose a company such
  as Boeing, the nation likely could not rely on
  market forces, even a dramatic drop in the value
  of the dollar, to later recreate a domestic
  civilian aviation industry. To do so would
  require recreating not just the firm, but its
  complex web of suppliers, professional
  associations, university programs in aviation
  engineering, and other knowledge-sharing
  organizations.

We must embrace the importance of place
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Understanding Ourselves
Jobs Location 1991
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Knowing our Trajectory
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Facing our Challenges Urban Heat Island
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Facing our Challenges Noise Predicted from
traffic development patterns
Martin Rumberg and Ariane Middel, TU
Kaiserslautern
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Facing our Challenges Water Groundwater
overdraft from population growth
Decision Theater, Arizona State University
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What is Required?
Edge of Newness constantly striving to create
new ideas, new products and new services that
yield substantial economic value.
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Knowledge Infrastructure

• Invest in science and technology
• Build better infrastructure
• Boost education

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Institutional Innovation

• Create new research partnerships
• The government needs to envision and implement
  new models of innovation partnerships.

Institutional innovation is one of the key
lessons of the 1980s and 1990s
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Vision Send clear, consistent messages that
Arizona business, government functions and
education systems must be on the cutting
edge Investment Support bigger and bolder
investments in the human resources and
infrastructure required to be a key player in
science and technology research and
development Backstop Urge state government to
create a revolving fund of at least 50 million
to provide the cash match required by many large
public and private RD funding opportunities Spee
d Encourage legislators and other government
officials to act fast in support of Arizona's
proposal to win major awards Non partisanship
Embrace, newness, innovation, and
creativity as drivers for creating a rising
tide for the state regardless of political
philosophy
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www.asu.edu