FAST FORWARD, READY OR NOT

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FAST FORWARD, READY OR NOT

• January 12, 2005

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CHANGE IS THE NEW REALITYA World Constantly
Remade
1984
Nuclear War / Japan Inc. China, India, USSR not players
8 U.S. PC Penetration MacIntosh introduced
0 Internet users
The only jobs our kids will get are selling McDonalds hamburgers sweeping up around Japanese computers.
8MHz CPU, 2,500
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CHANGE IS THE NEW REALITYA World Constantly
Remade
1984 1994
Nuclear War / Japan Inc. China, India, USSR not players Oklahoma City / NAFTA
8 U.S. PC Penetration MacIntosh introduced 24 U.S. PC Penetration
0 Internet users 2 Internet users Mosaic brand new
The only jobs our kids will get are selling McDonalds hamburgers sweeping up around Japanese computers. NAFTA will create a giant sucking sound of all our jobs leaving for Mexico.
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CHANGE IS THE NEW REALITYA World Constantly
Remade
1984 1994 2004
Nuclear War / Japan Inc. China, India, USSR not players Oklahoma City / NAFTA Terrorists / Benedict Arnold CEOs
8 U.S. PC Penetration MacIntosh introduced (8MHz CPU, 2,500) 24 U.S. PC Penetration 58 U.S. PC Penetration (2.66GHz, 600)
0 Internet users 2 Internet users Mosaic introduced 160M online US gt 650M online worldwide
The only jobs our kids will get are selling McDonalds hamburgers sweeping up around Japanese computers. NAFTA will create a giant sucking sound of all our jobs leaving for Mexico. From a superpower to a third world country, the U.S. is in rapid decline.
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THE NEW DRIVERS OF CHANGECyclical AND Structural
Changes
2000
2001
2002
NEW ENTRANTS China, India, Eastern Bloc enter
global economy
Corporate Scandals / Iraq War
Bubble Collapse
Global Recession
Terrorist Attacks
NEW PRESSURES Pressure to innovate, customize,
be first-to-market blue white collar work
NEW TECHNOLOGIES Digitization and networking
create productivity revolution, any job anywhere
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THE NEW DRIVERS OF CHANGE...Combined with Better
Global Competition

• Shrinking Share of
• Global RD
• SE graduates
• Global patenting

Japan has the worlds fastest super-computer
SOUTH KOREA 1 IN BROADBAND over 70 citizens _at_
gt1Mbps
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THE NEW DRIVERS OF CHANGE Are Coming At An
Accelerating Pace
Years to 25 U.S. Adoption
Source McKinsey
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THE NEW DRIVERS OF CHANGE And Will Come Even
Faster
Disruptive Technologies
Convergence
There will be more change in the next 30 years
than in all of the 20th Century.
Globalization
Rising Competitors
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COPING WITH CHANGECreating New Opportunities
Challenges
Consumer Acceptance
K-to-Gray Learning Environments
Evolving Business Models
Regulatory Flexibility
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COPING WITH CHANGECan We Move Fast Enough?
It is not the strongest of the species that
survive, nor the most intelligent, but the ones
most responsive to change. Charles Darwin
WORKERS / COMPANIES / REGIONS /
NATIONS
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COPING WITH CHANGE How Do We Pick Up The Pace?
HELP PEOPLE TRANSITION
ENGAGE THE WORLD
Promoting American Competitiveness
MAXIMIZE OUR COMPARATIVE ADVANTAGES
IMPROVE EDUCATION
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WHAT DO WE DO ABOUT IT? Help People Transition
Better

• Improve and fund retraining adjustment programs
• Credits for proactive investment in human capital
• Encourage Saving
• Explore wage insurance health care portability
• Improve systems for Lifelong Learning

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WHAT DO WE DO ABOUT IT?Engage the World

• Fight for Market Access
• Protect IPR globally
• Prevent Non-Tariff Trade Barriers
• Expand the Pie

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WHAT DO WE DO ABOUT IT? Reinvest in our
Comparative Advantages
America must never compete in the battle of who
can pay their workers the least.
INFRASTRUCTURE
EDUCATION
INNOVATION
ENTREPRENEURSHIP
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WHAT DO WE DO ABOUT IT?Improve Education
Grow, Attract Retain the Best Brightest
TEACHERS ABLE TO INTEGRATE TECHNOLOGY
IMMIGRATION STUDENT VISAS
K-TO-GRAY LEARNING ENVIRONMENTS
TECH-LITERATE WORKFORCE
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THANK YOU
ARE YOU READY?