An Evening with James An Evening with James SheltonShelton

December 14, 2009December 14, 2009

Hosted by:

Transforming Learning: Accelerating and Scaling Innovation in “Education”

Presentation to the Silicon Valley Education FoundationDecember 14, 2009

Source: Organisation for Economic Co-operation & Development

We Are “Not” Falling Behind Our

Global Economic Competitors...

…They are passing us by

3

Recognizing this, President Obama Challenged the

Nation“In a global economy where the most valuable skill you can sell is your

knowledge, a good education is no longer just a pathway to opportunity – it is a pre-requisite…we know the countries that out-teach us today

will out-compete us tomorrow.”

-- President Barack Obama,from Address to Joint Session of Congress, Feb. 24, 2009

By 2020:1)60% of 25-34 year olds will earn an associate’s degree or higher2)U.S. will significantly reduce the gaps in high school graduation

and college access and success

4

We Need to ImproveEntire Education Pipeline

1980 2006

PSE Enrollment Rate PSE Graduation Rate

Source: NCES, NCHEMSNote: PSE Enrollment Rate is graduates enrolling in PSE the immediate fall after graduating high school

HS Graduation Rate

1980 2006

College Ready

1997 2006

2-Year Institutions

4-Year Institutions

5

…Yet We Must Do This With Declining Resources

Nationwide

No Education Cuts

Either K-12 or PSE

Both K-12 & PSE

6Source: Center on Budget and Policy Priorities

• $4.35B - Race to the Top Fund

• $650MM - Investing in Innovation Fund

• $3.5B* - School Improvement Grants

• $650MM – Education Technology

• $300MM* - Teacher Incentive Fund

• $250MM - Statewide Data Systems

* Includes regular FY 09 appropriationsNote: These slides are intended as guidance only. Please refer to the official Notice in the Federal Register.

This Includes a Major Commitment to Innovation in

Education

SFSF$48.6B

FormulaGrants$26B

ARRA Competitive Grant Funding (~$10B)

7

Support Effective Teachers and School Leaders

Improve the Use of Data

High Standards and High-Quality Assessments

Turn Around Persistently Low-Performing Schools

Four Assurances Guide Our Work

Note: These slides are intended as guidance only. Please refer to the official Notice in the Federal Register.

We Have Spent Significantly More

for Incremental Improvement

Note: Scores for years in which no NAEP examination was given are averaged between the two bookending years to smooth the curveSource: National Center for Education Statistics

Constant Per-Student Spending vs. NAEP 4th Grade Average Scale Scores

9

Cons

tant

Per

-Stu

dent

Spe

ndin

g (1

990

= 1)

NAE

P Av

erag

e Sc

ale

Scor

es

Other Industries Turn to “Innovation”

to Get Better and More Efficient

Size of Addressable Market

Cost

/Pow

er

10

Process of Innovation IsConsistent Across Sectors

R&D11

FundingRegulation

Efficacy

Assess

Use

Acquire

IntegrateService and support

Create

Solutio

n

Develop

delivery

Market and sell

Basic research

Application(R&D) Transfer

Field Innovation

Innovation Stages Market Growth

Regulations FundingCultureNeedsR&DCommercializationDeploymentEvaluation

Needs

Identification

Commercializa

tion

Deployment &

Adoption

Research &

Development

4 5

6

7123

4567

123

Barriers to Innovation

Evaluation &

Improvement

8

8

Innovation Faces SignificantBarriers in Education

12

In Some Sectors, Governmental Support of

Innovation Is NormMilitary Science Medicine

13

Three Federal Roles WillBegin to Address Barriers

RegulatorLay the foundation

InvestorPrime the pump

FacilitatorSupport the change

1. Establish standards in key areas that encourage further standardization

2. Develop policies that align incentives for education to be “better and faster” (e.g. competency based credit)

3. Use federal discretionary and formula dollars to drive build ed innovation pipeline

4. Create incentives and vehicles for private investment in education

5. Align and prioritize education RDD efforts6. Encourage information and resource sharing among

stakeholders7. Develop infrastructure for knowledge management

and dissemination

14

i3

EstimatedFunding Available

Up to $5MM/award Up to $30MM/award Up to $50MM/award

Evidence Required

Reasonable – research-based findings or theories

Moderate – either high internal validity and medium external validity, or vice versa

Strong – both high internal validity and high external validity

Scaling Required

Able to further develop and scale

Able to be scaled to the regional or state level

Able to be scaled to the national, regional, or state level

Note: These slides are intended as guidance only. Please refer to the official Notice in the Federal Register. 15

Investing in Innovation (i3) Grants Change Market

Incentives

Online Platform Will Improve Communication Among

Stakeholders

Web Portal

• Convene stakeholders to coordinate efforts, share knowledge, and invest strategically. • Facilitate idea sharing and democratize access to funders. • Highlight innovations in the community and match them with consumer needs.

Foundations Ideas/Innovators Consumers

• Limited knowledge sharing

• Difficulty identifying new ideas

• Lack of coordination between foundations

• Limited access to investors

• Little public feedback• Difficulty identifying

potential partners • Trouble identifying

consumer needs

• Limited diffusion of effective ideas

• Limited resources to invest in new ideas

• Lack of venue to express needs

• Challenge building change capacity

16

Targeted Efforts Will Address Other Specific

BarriersCommon Standardsand Assessments

RewardingPerformance

Evidence-BasedDecision Making

50 States One Nation

Program 1Program 2Program 3Program 4

Program 2

High Performer:

Low Performer: Stud

ent

Perf

orm

ance

17

Ultimate Vision Embeds Innovation Into All ED

Activities

Formula(with requirements and

compliance-based evaluations)

Discretionary(discrete grants without focus on identifying and

scaling success)

TODAY

National Activities

External/PrivateSector Leverage

FUTURE

Evidence Requirementfor Formula Funds

Pure Formula

18

Devel-opment

Validation

Scale Up

Competitive Funds

Public-Private Alignment of Resources Will Increase Size and

Pace of Impact

Foundation

Contributions

SharedResourc

es

Government

Contributions

•Knowledge and “research”

•Key messages

•Leveraged/co-invested financial resources

•Funding early stage solutions and enabling platforms

•Thought Leadership

•Knowledge sharing

•Bringing proven solutions to national scale

•Supportive `context

•Funding and market incentives

19