The Global Innovation

Economy: Well-springs of Modern Economic Growth

The Global Innovation

Economy: Well-springs of Modern Economic Growth

World ViewCommunity College Global Education Symposium

Maryann Feldman

November 9, 2010

New Environment for Higher Education

¤ New technology platforms from Science Biotechnology Information and Computer Science Material Science

¤ All industrial activity has higher knowledge content

¤ Greater budgetary uncertainty Government funding Rising costs

¤ Formalized in U.S. Bayh-Dole Act 1980 Many countries emulate

¤ Third mission of economic development

Changing Role of Higher Education

¤ The winner in the Knowledge Economy

¤ That means more than market domination

¤ Stewardship Largest employers in many places Many places are pinning their hopes on

institutions of higher education

Economic Development Defined

¤ Sustained increase in income Higher standards of living Greater accumulation of wealth Greater productivity

¤ Processes and policies by which a nation improves the economic and social well-being of its people

National Debt

The Paradox of Globalization

¤ Growth is local & grounded Predicated on face to face interaction common meaning and language Characteristics of knowledge

¤ Firms benefit through strategic location

• Not by relocation but by investing

¤ Its all about Innovation

Wellsprings of Growth¤ Recognition that growth is local

Not about the geographic concentration of production

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 Certainly part of the Tech-Based Cluster

story Knowledge input supplier/convener

Research University Redux¤ Necessary but not sufficient

Every great tech region has at least one great research university, BUT great research university DOES NOT yield a great technology region

¤ Reasons Different Missions & Cultures Different ability of local economy to absorb

graduates Consider the structure of a company

• Depth in the labor force• Diverse Skills required for innovation

¤ Requires supporting higher education institutions

Lead to the Desired Outcome?

¤ Privatization of Knowledge Public good argument diminished Changing justification for public funding Can output be effectively evaluated by

private metrics? ¤ Rankings, Ratings and Beauty Contests

Emphasis will shift to the measurable Assessment force conformity

• Drives out diversity and experimentation

¤ Knowledge as a Means to What End? Greater purpose than profit Is competition the correct metaphor?

If Innovation is the Desired Outcome¤ Focus on Education

Broad-based education Ability to think creatively, write and analyze Different from training

• Noted problems with MBA education

¤ Focus on Basic Research Big ideas yield/build new platforms Long time horizons, important small steps Focus on applied R&D yields more

incremental ideas¤ Focus on local problems

Then scale to global markets

Policy Recommendation: How to Promote Local Economic

Growth ¤ No universal solution¤ Consensus on Desired Outcome

Maximize local wages, local wealth Viable, vibrant communities

¤ Designing economic development strategy may be the ultimate local innovation History is important Context and Culture matter

Reflective Conclusions ¤ Creativity & innovation are about doing things

differently

Will we force conformity & kill the desire outcomes • when we think about teaching innovation and creativity• Focus on measurement

You can’t teach innovation & entrepreneurship at a B-School

North Carolina’s growth strategy

¤ Innovation to what end? Amelioration of disease and human suffering Time for a new golden age

THANK YOU