Its good for all of us to appreciate just what a high risk, high reward investment is all about. So if that was a progress of technology and super duper engineering challenges that had to be overcome, a lot of people as you might guess came and went. And it involved multidisciplinary teams of people who did the numerical relativity for computers so thats new in the first gravitational wave was detected. And what the source was, that was two colliding black holes that were in a postbinary system. The most recent gravitational wave detection to neutron stars emerging. So its, but it was a very long tail. There are many many directors, many and its a Program Officers involved National Science board, they changed over large number of times during that interval and had to improve all the funding and that of Course Congress of course was the ultimate arbiter of appropriations and making the decision to continue an investment but nobody was quite sure what would have a result so how risky is that . We all knew that einstein had and upright so we could expect that accelerating mass somewhere in the universe would produce Gravitational Waves when the calculations were done, the difference, the little jiggles that the earth experienced were just a fraction of a second, it was so very small that who would have guessed 100 years ago when einstein predicted this happened that we ever have the technology to find something so incredibly technically challenging. So sense the observatory, we have two widely separated in the us, one in the states of washington. And third, one in the state of louisiana in livingston and now theres also another observatory in italy near pisa. That we can now, its narrow down where the locations of the sources are and in order to achieve such a technological triumph, a lot of engineering had to be done in successive waves and all of those have produced outcomes that are now being enjoyed by Startup Companies and others who just had no motivation for going in those particular directions without motivation of trying to nail this effect down. So we dont know where it all will lead in this first exciting moment, but apparently the nobel prize did enough of it to award the prize to just three of the actually thousands of people who had worked on it. Do you know on the latest paper with 3500 authors, so that amounts of print takes up more room than the actual articleitself. I want to introduce the subject of this next session which is this booklet here, transform which is just very beautiful and its about an initiative that intercepts privilege to fund called exploring innovation frontiers initiatives. And i want to give a shout out to promote doctor carney are who is the ahead of our engineering directorate. A few years ago when we made the decision to fund this. And hes gone on to uc irvine where he is chancellor for research. And during this time, there have been several workshops around the country, and ill say a few words about that and you will hear from a few of the people that were greatly involved in those workshops and know more about this. Let me make now that ive introduced the subject of basic research, leading to innovation and leading to engineering applications, let me make some more formal remarks. Ill just begin with a quote from our inspiration meaning the inspiration for the National Science foundation who believed that quote, there must be a stream of new scientific knowledge to turn the wheels of private and Public Enterprises. That amount was a very smart, president person who thought way forward. He was asked by president roosevelt at the time of the Second World War to write up a statement of why it was important to have science engineers involved. They been so successful in helping with the wartime efforts, why it was so important for them to help with the peacetime effort so at that time, as you heard in thisquote , hes talking about the importance of private and Public Enterprises and how there needs to be a new stream of scientific knowledge. That really is the basis of the National Science foundation. Its continually looking to support new discoveries, new discoverers because its people, of course, that make the discoveries. And keeping that going is really the source of all innovation. We heard at some of the workshops around the country, youll hear more about it from the next group about the importance of diversity and inclusion of discoverers and how that was vital to ensuring that we had always a plethora of new advances. And that youre really tapping all the potential that the United States has. So flowing from that founding spirit, funding has resulted in countless advances for us citizens from really worldwide from Doppler Radar to mri scans, from the internet technology, from google to barcodes, from computer aid science systems to engineering. As i go about the country and the world, im always amazed by the number of people that, to me and say thank you. Nsf gave me the first job i ever had and now i got on with the department of energy and ive got funding for my more Mission Oriented work but that very first rap, we were the first originators of gene editing. And i think then bush would be pleased today to see that for the first time this past couple months since we moved to headquarters fromarlington virginia to alexandria virginia , that we have made a statue of mister bush. Its hard to imagine a person who had such an impact on science and technology 70 years ago, that there are no statues of around so we investigated and we found in the basement of an outbuilding of the smithsonian there is one that stands up this tall of ron that was made back in the 1940s with a number of other famous people and the smithsonian wouldnt give it to us so we 3d printed it. It looks just like the real thing. You have to come visit us. The fbi, Small Business Innovative Research program, the ichor, innovation core program which is now all over the country and helps graduate students and undergraduates become entrepreneurs very quickly and are ten big ideas which is our signature vision for the future now. They all signify a longstanding commitment to innovative breakthroughs that have been critical to the nations economy, health into keeping us a global leader. The same entrepreneurial ambitions throughout the creation of the council on competitiveness and indispensable Foundation Purpose to find avenues to robust Economic Growth in the series and the face of serious global challenges. Im going to be speaking later this afternoon at a forum on philanthropy and science and innovation and together with francis, head of nih and matthew of the white house and its being hosted by the science philanthropy alliance, mark castor is the head of that and im going to use the council on competitiveness as a great example of bringing public and private entities together successfully to drive innovation through discovery. Organizations like the council have consistently encouraged the National Climate in which science and engineering discovers have adapted to new changes we continue to thrive in centuries of progress have led us to the verge of new frontiers of discovery. But we still have a lot of challenges and we face all sorts of concerns at home and abroad and of course we have a very big challenge of educating and inspiring future innovators and i think that is why people at the National Science foundation and a lot of people at the council and in this room that is one of our major concerns, how to inspire them and they in turn can inspire the world. We have navigated a lot of Major Barriers in order to come this far so the question is how do we as a nation continue to explore the national frontiers. Our histories have shown that american discoveries and discovers have consistently driven innovation and is the place where discoveries began that is our motto for [inaudible] we know this is the same determination to discover is what we will secure our future. To address this challenge and assess the partner to come up with creative approaches of transformative discoveries that is why this is called transport. Two years ago at georgia tech Deborah Smith joins me in announcing that the National Science foundation had awarded a grant to the council of competitiveness to launch the exploring innovation frontiers and initiatives. The eis i we call it for short was organized as a series of National Dialogs on how to drive us competitiveness in the decades ahead. We had at all of the venues the dialogue from the country presented industry and academia and National Labs and research institutions. Had labor leaders, opinion leaders all gathered together. These let us to examine the transformative innovation models that addressed booming global concern. Dialogs touched on fostering an environment conducive to discovery on ensuring diversity and inclusion in americas future talent based and analyzing specific technologies to help drive innovation in the future. I also had the opportunity to attend the opening dialogue in atlanta. And the final event in st. Louis. I want to take a moment to thank our host George Tech University of california riverside, texas a m university and Washington University in st. Louis and the many people in those areas who worked hard to make it a success. Being a part of those dialogs is why those who are specifically here this morning are very excited about this. Today the council will release this final report capturing insight and recommendation from the last two years of dialogue. Im interested in hearing about the proposal that will keep our nation competitive in the generations to come. This upcoming session should have some enlightening insights for us all. Id like to end with a quote in this report here when perusing it i received the final report yesterday and so its under the summary section it says as a major source of federal research and Development Funding in the science of innovation and active participants in the us system bnsf brings an invaluable perspective on the current stateoftheart in models of innovation, moreover the nfs is the only federal agency unconstrained by subject specific mission and thus is the natural partner for topic is broad is innovation. I really had not thought of it that way before that our strength is in our breath and that we can all areas of science engineering and we do so because you never know where the next great discovery is going to come from. The discovery in order to be at the root of innovation and innovation is nothing without all of our discoverers. Thank you to all who have been a part of this dialogue. Thank you to coc and now please help me welcome our group of speakers who will talk about the specific dialogue and their outcomes. The key very much. [applause] to discuss insight in finding from the reports transform ladies and gentlemen, please welcome the Council President and ceo Deborah Smith. The provost and vice chancellor for Academic Affairs in Washington University in st. Louis, doctor holden corporation and chancellor of University California riverside doctor kim wilcox. Thank you for your remarks in your leadership. We are thrilled that you are leading bnsf and all you do for our country in the world. Thank you so much. [applause] i think we will just jump right in to talk about some of the findings in excitement and energy that came out of the two dialogs that you both posted. Maybe we will start with chancellor wilcox because you went to uc riverside fairly new university and the Famous University system we were really focusing on the talent continuum and how to get more americans into the innovation tourney for our country and not only was everybody excited and thrilled about new models you are creating but i think took those learnings back into our own world and very much reflected in our report. Id like you to start wherever you want to tell us what is unique about your university. We purposely went to uc riverside because you are a new model and share with us some of the findings and where we should go from there. Thank you, debra. Thank you for making this a part of this. Let me give you context and purpose and meaning. I notice in the clarion call one of the top perceived technologies and advancement of fracturing we do and picked university as well and if you want to project a High School Students likelihood of success in college and had to choose one data point, what would you choose . You wouldnt choose high school gpa, you wouldnt choose sat score, act score, numbers of clubs in my school, you choose the families of code in the zip code is simply a proxy for family wealth. Your family is in the upper income of America Today your six times greater likelihood of graduating from college that someone equal abilities in the bottom of income. We cant afford to leave that much of america behind. If youre an africanamerican and you get into college you only have a 40 chance of graduating college. For riverside the lesson is about a lot of Program Changes things we do the real story is deliberateness. Decades ago our university was deliberate about recruiting students from across all sectors and helping them graduate, supporting them in ways that didnt make a difference. The impacts i think are starting to grow in America Today. We are starting to see that deliberateness in lots of places. Theres an American Talent Initiative that have the express purpose of helping students from low income families graduate. The doctor and i are a part of the alliance and we banded together three years ago the express purpose of increasing the number of graduates from college from lower income families and weve increased the number of graduates in our 11 universities bite 25 already in three years. Those are stories about deliberateness. Were not done yet. A place like this for the council is so crucial to combining the efforts of the academic world and the private world and i have a challenge or i guess a challenge for our corporate partners. If you go on the website most of the major fortune 500 countrie s and identify their key partners you will generally see the same list of schools. The one we think of as the elite universities in america and the elite universities are trying to catch the elite. Corporations and you dont see east carolina, you dont see unc greensboro, you dont see cleveland state, you dont see universities that really are embracing the diversity of America Today so were going to change the leadership and were going to really include all of america in the innovation of a coming we have to find collective ways to be delivered. My key lesson from riverside is deliberateness. Well, kim, thank you but what you also share with us what was the magic and what was the strategy that you all developed and deployed at riverside to get women and a huge number of the hispanic population moving through stem and into graduate school. We saw that and everyone was blown away by it actually. I talk about two key pieces. There are a lot of them but two key pieces. One is the simple motion that you can make a Big University small you cant make a Small University big. By that i mean weve taken our 23000 Student University and created a small living and learning communities for students who support them and you feel connected. For families and their student to college and no one in the family has been to college before. Theres a lot of desperate oh my goodness but in a small group you can find your way through it. The other piece of talk about is riverside in much of america we talk about leveling the Playing Field and this is sticking one student under a corner and riverside did it completely in a holistic way. We built the field in a way that all parts, the faculty, staff, student body, everyone is indebted and motivated by the same set of values and its ubiquitous. Each of our pieces fit together in a way that is whole but again thats deliberate. Turning to st. Louis the council had a very exciting activity Washington University in st. Louis soon after our National Innovation initiative was included in 2004 there were many challenges in the city and the region around entrepreneurship, startups, filling the ecosystem but now st. Louis has been named the startup capital and you got Tremendous Energy and momentum and results in driving this entrepreneurial culture that depends on Great University so share about that journey because again the entrepreneurship path washington you st. Louis is ahead in understanding your new models and what is going on in your region. Sure. Thank you for letting us host the event and its an honor to have you and doctor over there is a chance to put together a lot of celebration of the things weve done. I would second everything that was said about second education. I commend you in the clarion call to have a page five that i wish everyone could see that would give frederick that michael was talking about earlier that just shows how much better off people are they go to college and i think the council on competitiveness for helping us get that message out and doing all the things on access that the chancellor was just talking about. As far as st. Louis and ecosystem is concerned were very proud city with a magnificent history in Washington University is compelled to be an important part of that. I think a lot of the things that have happened long before i got to st. Louis, a lot of people in the city came together to create a quick text Innovation District which is where we had our meeting which is come along now to have a lot of different startup in other kinds of parts of the economy and bring back part of the city that everyone wanted to focus on that is strategically located. That is something that came about because 15 years ago some people who really cared about the city sat down and said lets get this and engage the universities and start things. When i came along we were looking to make it a better partner in all of this and universities are called on by the council of on competitiveness to about the innovation economy and to get our discoveries out into the marketplace and we have been doing a little bit of that not nearly as well as we should and some of what we do is to make sure that our policies are doing all of this are as smooth as we can make them and we can do a lot on that but it has also been said that it comes down to the people so one of the things that i have try to do is attract a team of people to work on this with us that both been in the academic world and the world. These two worlds speak different languages and if youre trying to bring people together course you need everything that press corps was said about basic research but as i tell my colleagues who think they have invented a billiondollar drug have to remind them that its not a billiondollar drug until you sold it for a billion dollars and most of my academic colleagues have no idea how to sell billiondollar drug to big pharma. Three people who converge that is incredible because no matter how good your policies are in no matter how excited you are you will have pickups and the only way is to have people who have been on both sides. The other thing that we have done that has been really good is attracting the cic and there is talk about that in the report and they do a great job but we were very lucky in that the very first place they came cic which is one of the great places where lots of startups can get going but the first they chose to come was st. Louis after they decid decided. We have a lot of new startups going and weve gone enormously up in terms of the number of startups and i tell people who are gung ho about the city and i will remind them its better to have a startup that moves and succeeds then stays and fails and so its important to have a pragmatic sense of that. Want to keep as many startups in st. Louis as we can and not all of them and st. Louis is in the best location for all of them so we hate it when they leave but we want them to succeed and if you are pragmatic about that will end up keeping more Successful Companies in st. Louis in the long run. And you alluded to some of the Regulatory Reform at the university that has expedited this and last night and our dinner the director was telling me that they will be launching a full review looking at [inaudible] and some of the things that need a new look after some 30 years but just what do you thank you did that was very important in changing the status quo and how you do business . For startups something that i really believe in that i put in place into schools is to have what we call at wash u pre negotiated in the banner can come in and if they want to do the start license its determined the equity and royalties and indemnification and all that and theyre all there and rather than spend a year negotiating that agreement and coming to exactly the same place you would come to if you did it this way we present this to folks and give them the opportunity to take advantage of it and almost always they do. I put this in place in North Carolina before i came to wash you and weve gone from having two or three start of the year to having more than ten and i think thats a big part of the reason and its not just that its here to do but its also a symbol that the university and we are willing to give up a little bit of upside that we mightve gone we spent a long time negotiating in order to get things out there and going and partner with the Venture Community and start community. So one thing i want to ask both of you worry run out of time here is this whole challenge from startup to scale up and we have the largest of Venture Capital resources in the world and it tends to be located on the west and east coast and what have you done to change some of the models to attract and grow to enable in your regions and what do we need to be doing Going Forward . For us, were on the west coast in a broad geographic notion but were 60 miles from the coast in between us of the coast is caltech, ucla, usc b and we ironically have a challenge recruiting the capital that much further east than 60 miles and so weve taken a very holistic approach to centers that have faculty mentoring and peer support in the industry and Venture Capital participation and created our own little ecosystem in a sense in riverside from the university to attract the Venture Capital but just as doctor murphy of companies who the investors will invest in the company if we move at 80 miles to san diego because they dont want to leave word is because they live in san diego. There is still a challenge even if the coast for the money is. So geography matters. Its the same thing in st. Louis. We have helped Venture Community in st. Louis produce capital that can be used for our country and we prefer a model where we invest in the university invests in Venture Capitalists and we let them decide what investments they will make. We think that makes sure the market is providing the kind of discipline it can so we helped a number of Venture Capital sources in the region so that they have the money that they can use to develop companies to stay in st. Louis. As i said before, yet blend, some Silicon Valley investors who invest in us and some of those may just as kim said may move in our case a little further than they what they were living riverside but some will stay in st. Louis and some of our local investors can invest in companies in st. Louis and we hope those will stay but capitalism dictates where Successful Companies are going to be you cant buy that. To do as much as you can to try to increase the odds that will Keep Companies in st. Louis we do that by helping the Venture Capital sources also partnering with Venture Capital terms all around the country. And the largescale big global companies. Absolutely. Yet, whenever we talk about transfer we is that the focus on startups because that is the glitzy thing but of course, for most life revenue that comes to the University Comes from licensing to large corporations, big pharma, at companies, Technology Companies and so that part of tech transfer is very important as well. We have to make sure that savings, policies, the way we deal with corporations in the inside is done nationally as he can. From the time we have left like to ask you to view building on what we accomplish in the dialogue that you so kindly hosted at your universitys and Going Forward what issue would you really recommend the council double down on as we move forward the next platform for national and Regional Innovation and Wealth Creation and operation and having that thriving curve Going Forward in america. From the engagement side id offer this. Too many High School Students in America Today Technology Means coding it simply Running Software which is ubiquitous and have to have software but theres a whole bigger world out there. We have to collectively and i think this is a public, private role as well. To help the students appreciate all the technology. As i look at my friends from john deere and what were doing in the world of plants and were the nano tubulars that call your cell phone when they detect explosives in the soil because plans are sensitive to things in the soil. That is technology and yes coding is important but thats Rail Technology and so we have to help the students of america see that opportunity for innovation space. And move beyond the socalled app economy but solving real problems. Both of your universities interestingly are very much the forefront of this merger of biology and agriculture decision and all of that was very exciting for dealing with the issues. Yeah, i would say similar things but i think focusing on the talent protection and helping america realize that Higher Education is producing the challenge the corporations need startups need weve heard so many encouraging things from other Corporate Leaders at this meeting about how much they need our talent and weve got a huge challenge in the country and Higher Education has to own part of it just as michael crow said this morning. Had to make sure people feel welcome and want to engage with us and understand what we are doing so we can explain it to them and i think the most important thing for the innovation economy . The universitys producing startups and technology but making sure the people that are coming to campuses with all of the different backgrounds is making sure those people are starting according to the metrics its very and really pointed out to make sure to engage with their professors and they have a mentor in the university has taken an interest in them helping us promote that. That is by far the multiplier effect. We can do stuff in st. Louis and riverside want to multiply the whole country is to make sure the people who are coming to our universities are on fire lately that was over ten years ago in the world is completely different so what are your thoughts and ideas from moving forward around this imperative . I think people dont realize how economic competitiveness and economic success does contribute greatly to social change and social success. These are powerfully interconnected things. As the World Economy has grown to the point now where you got world gdp at the highest level, world. Per capita gdp is unbelievable and is moving forward like never before that means for the first time we have a truly Global Competitive market on all levels in all things and that means that 70 years of advantage that the United States has had since world war ii and we just immense benefits but has put us in a position now where we have to settle and bring everyone together from labor sector to the industrial sister to the education and where we have competing technology with ubiquitous connectivity with all the things that we didnt have two years ago that we definitively did not have 40 years ago and all of the strategies that work in the past are insufficient for what is needed in the future. At this exact moment when we have felt the effect of the Great Recession maria felt the impact of social media and where we felt the impact of the new generation, new millennials coming on and all the things coming together. Like was talked about the need to advance all her food, energy, water system, sustainable is a core objective in all of this is coming together in the old models, the old simple corporate structures, the old Simple College and university structures, the old views of labor and the way labor might be the world those are old and no longer adequate so it is time for a new playbook, new plays, running new place, new assessment, new measurements, everything and this is a perfect time for renewal. We do have to find a way as powerful as the economy is apparently performing at the moment that powerful enough and we need 4 sustained Economic Growth year after year with some years at six and some at seven if possible and there are large countries that are able to pull that off. We cant pull that off to try to be difficult to secure the level of resources necessary to drive up standard of living for the entire population as opposed to the actions of the population. To do that requires a reconceptualization and we need to not be overly selfconfident or selfassured that we have a 20 trilliondollar economy and we can wipe our hands and be done with it and move forward. Theres no reason why we cant drive all the potential of the American People the highest level. Just that the old design to run their course. As always, i agree with michael on this and let me come at it from two directions. One is we think historically linear progression and when we project out of what we need to get done five years, ten years from now and the reality of it is the future is not a solution for the past. The trajectory is completely different and looking at the past and analyzing it is helpful but extrapolating it will get you in a completely wrong place. Thats the first thing. The second is when i went to medical school as an example there was medicine and biology and engineering and it was rare that the engineering students ever talk to the manufacturers because they make fun of each other settle on the faculty of an permit talk. Move forward 30 years. Most of the moment going on in Life Sciences are actually happening because the physical science and most of the problems other than big engineering and mathematicians are working on are in the life science arena and irony of it is the last hundred years if you go back and take a look at what the top challenges for humanity security, water, access to food, health, hundred years later, guess what it is . Same issues. The difference in what we are looking at is we havent made progress but of course we made progress but today were dealing with in those categories brandnew tools that will have to leverage capability, multiple institutions from multiple backgrounds in the convergence of that talent where we uniquely can do now is bring that convergence to bear. I think this opportunity is one more vote that helps people wake up and say dont sit on different sides of this. You will have to convert your thoughts, resources and no one company is beginning and frankly, no one country has the resources to solve most of these issues. The last hundred years weve not been able to really solve them to Work Together. I am thrilled that you use the word convergence and i want to talk a little bit about that and how we elevate that theme and platform for the commission. I want to take one second to quote from the transformer for because while we think that we cant learn from the past we have to think of a new way for the future this is very interesting and something we forget and i quote american entrepreneurs and venturing investors leverage the convergence of rail, oil, steel, and electricity to drive american industrialization, agriculture, propelling changing the country and ushering in a new era of Us Industrial might and jobs in the 20th century. Convergence in the 21st century, digital, bio, nano, cognitive and how will we address that in the context of this commission and ensure that we have inclusive participation of our citizens in creating this new age . It will be challenging because the historical and last time you mentioned rail, steel, et cetera those were all at a sony and industries and they were built on trial by error, inventors, unbelievable knowhow is brought to bear and they were generally not scientifically based. All of the ones you just mentioned are scientifically based and each are based on fundamental mathematic, but a mental physical science, fundamental physical biology in the old model of that convergence of the past is easier for the general operation to grasp and understand because you can see them participate and you can make it happen, pilot, beat it, grow it, it was easier for the general population so i have been arguing for some time that in the new economy while the things converging at the moment it is necessary a substantial resistance to this that everyone has to get to a certain level of scientific and technological literacy. They dont have to be scientist or engineers but they have to be literate in understanding what these things mean in the gap were having people question basic science theories and fundamental thousand yearold accumulation of knowledge about how certain things work that is a sign of this is not an area where we will see alignment without substantially re engaging the educational process rather than retreating from i think i School Graduates and im hearing this now high School Graduates in the future dont need to know algebra and they give up on it and it is too hard. Are you kidding me . Its not about algebra or about the literalness of algebra its about teaching people to solve for unknowns in complex settings and that is what algebra is about. Not arguing that everyone has to become a scientist or engineer but i would argue that convergence in economy on science driven technological platforms requires a reconceptualization of how we educate everyone and these are almost impossible for everyone in this room to understand what used to be the case that people sat in a room and argued about whether or not people should be literate and whether or not it was worth the investment to drive people to understanding and have to read. Imagine that. That is a true moment in history. Likewise Going Forward we will have to now rethink how to build a modern rapidly changing technologically driven scientifically underpinned society and that will require a different level of educational underpinnings. Im going to build on that but gives an industry perspective and i want to raise two points. One is and i say this having spent 20 years of my career on academic science. I think scientists have got to put their arrogance between the. I think there has been this tradition because im the expert in x, y and z and have this knowledge you are not good enough to engage in of not suggesting district youre not. I cannot agree with you more. Im the ivory tower and so people have felt left out of the conversation. It isnt just the feeling of left out but we have missed opportunities. We have to not only ask ourselves can we do this and i meant for a lot of my own in the country you have to ask the questions should we do this and what are the consequences of this and all too often scientists left on their own will start to work on things without and ill give you a quick example. I had the opportunity of looking at a project where someone said we could take a crop that is grown around the crater and we could actually transform it genetically into much healthier and much more resourceful crop and i asked the question and i said that sounds great and we can solve the problem from this crop and what you think will happen if every rain forest in the world that we unlock that [inaudible] . That is the question of should we do it. What is the alternative which we working on . Some of this convergence in my mind is not Just Technology but convergence of the thought process and the thinking of the different squares of the stakeholders could come and prioritize and we dont have indefinite resources and what should be working on and how should we be working in the stakeholder is at the table. Without that we will perpetrate and repeat the problems with pad in society will not give us the license to operate. Let me augment that and agree with that whole heartedly and this has been one of the errors that academia and separation from understanding and thinking through the impact of what is done when we started a couple of years ago the school future of innovation we brought together a couple dozen faculty members who were trying to put forth the intellectually based philosophically based notion of [inaudible] as an outcome of everything we do. Not to cut off for science goes back to make certain your conscience over were going in that were always connected to the people that were needing to be connected to. Theres a philosopher that said any amount if youre going to sidetrack to philosophy and invasion announcement but a man at columbia wrote science, truth and democracy and said the science without moral purpose is in fact the purpose by itself is an immoral act and hes not saying that scientists are immoral but he saying that there has to be some purpose to what one is working toward so he reached that realm were now are driving businesses are driving technology is underpinned we dont have everyone connected to this and we dont have every understanding of where were going. To be more successful will have to figure that out. Thank you and when we look at convergence as we build out the ethics and values i think will be very important and i know our time is running out but i wanted to ask both of you if you can forward five years and even less what do you hope will be an outcome of the work that we are lot teaching under the National Convention in terms of the future of our country in a role in the world . From my perspective we need alignment about what it will take to drive an economy forward that doesnt leave half the population behind, disconnected, in deeper in deeper realms where people are arguing to maintain jobs in roles that arent economically viable and that requires us to rethink everything and to Work Together in ways that the council really provides for where industry and national and labor unions and other kinds of educational institutions and work organizations can come together and we need alignment and we do not have that alignment right now. I would say we have for the first time in history Wealth Creation from job creation. This is the first time that that has ever happened. We have the brains and the capability to figure this out and there are lots of application necessary which means to me will happen in the next five years. We should leverage all our technical knowhow to bring to bear and focus on multilateral problems which are impacting not one country and this is not a case of us versus them but multiple countries and no one is in isolation. I always remind my environmental scientist we all breathe the air the same environment better protected together. This is not about their problem, our problem. Most of our challenges will be global, not single country challenges. Do we have the wisdom to come together . I will say one thing because i often get pushed back about constraint and control and somehow you lower Economic Opportunity but it turns out if we can figure out how to build this collective way of thinking the Economic Opportunities are far greater than anything weve seen up to this point. We have been economically limited by thinking in these more separate boxes then we should be. So we think about convergence and these tremendous challenges and our core mission at the council of competitiveness is really how to raise the standard of living of our citizens to be leaders of the world so inclusive, sustainable, competitiveness will be an outcome of the work of the commission and i want to thank you, both of you for assuming the leadership for industry and all of you who have an interest. We look forward to working with you and are very excited and we will team with the National Governors association and other leaders to build this out as an platform for the future. Thank you so much and the work will begin next year. [applause] the latest collaboration between the council and deloitte explores the tremendous disruption and opportunities in the next generation of manufacturing technologies. To share insight from the study please welcome the chairman of deloitte, mr. Mike f you cc i. [applause] thank you for having me here. Its been fascinating to listen to everything we see and hear in this world and its backed up by a lot of the research we have done. You can tell it works well. Deloitte has enjoyed an incredible partnership with the council for competitiveness for the last decade. We believe we have a very deep synergistic relationship because we kind of have the same vision and we believe in the whole concept of the future around talent in making our country competitive and adding more jobs. I think it is because of that and we go back over the last decade in did i do . I missing the slides but okay. Over the last decade we have collaborated on a number of important initiatives. First in 2010, 2013 and again in 2016 we surveyed Senior Executives and ceos around the world around what is competitiveness mean around the manufacturing standpoint. The study that we did sought to define excellence in manufacturing and through the implications for manufacturing in the competencies required to develop and sustain the new competitive landscape. We also had a chance to conduct facetoface interviews with ceos to gain perspective around what will be critical to improving the competitiveness through everything we do. We have produced something called the ignite series so we have ignite 1. 0 which is the output of what i just said was and weve also worked the second piece about what was working with American University president and the third was with American Labor unions. Over the past six years or so we have looked at producing research over across different spectrums which all support the area of competitiveness. It is no surprise that there is a lot of similarities across all three including actionable recommendations about the right steps for the country. As a result of our research the basis for we believe the basis transformational change throughout Many Companies in the Manufacturing Industry started and were proud of that and i think it helped raised the game on how some Companies Look at the future around competitiveness. In our 2016 Global Manufacturing competitive syntax we conducted with the council manufacturing ranked nations in current and future competitiveness and one of the things that was amazing about the results here was that for the first time the us is projected by the end of the decade to be the number one country taking over from china around competitiveness which is a fantastic result for us. It also was an Important Note that ten of the 15 most competitive nations in the future are based in asia. Two very, very important facts that came out of this whole concept of what we are seeing in the future. What are the drivers of manufacturing competitiveness . With our collaboration with the culture we have explored the key drivers through a competitive landscape. Manufacturing is again cited talent as the top needs. Here in the last couple of panels and my background is in practice so as i said for many years that talent does drive strategy and it was great to see that is still the number one concern. Imagine the availability of the skilled talent we need with the skilled workforce. In areas like engineering and manufacturing the aging workforce is not getting replaced with enough Skilled Laborers so the Biggest Issue out there and we totally agree with that is affected talent and mismatch of having enough Skilled Labor in those areas. Second was called competitiveness and i think people would agree that that was up there in a more sluggish Economic Growth and hitting cost and increasing productivity is important to boost profits. It is critical that fat stay is one of the most important things that we continue to work on. Third is workforce productivity and are continuing to move forward to higher value and more sophisticated process and workforce productivity is the third thing that came on the list of things that are important. The other thing that was interesting was the traditional developed nations manufacturing such as the us, germany and japan want a high Labor Productivity they seem to be winning again in the eyes of global consecutives. There is a consistency in the part of the world where the productivity is leading. These nations are back on top on level manufacturing competitiveness and we expect them to remain there through 2020. With that said and again when i heard earlier we are rapidly evolving. The landscape is changing and if you want to stay as an employer of choice you need to realize that what you did to retain, create talent is of the same things that will happen in the next ten years. Its a much much more difficult task. Walls falling down in countries are coming together and globalization is a lot more difficult to maintain and retain and maintain and create the talent that we were able to do years ago. And because of that talent will be fierce so most companies it will be difficult to get exactly the talent you need in building it will be cheap. And just the latest clarion call i totally agree that the exact phrase was technology to treat skills there is no issue in which to Council Members in united and a desire to progress on talented, Diverse Workforces. We seen this in our research and we seen every day. And the concept of talented workforces that is really key. When we talk about diverse the concept of diversity to me is diversity of thought as well as diversity of ethnicity and gender. Its a broad base in a different way of thinking. I think that will be the key in my estimation to have company succeed over the next decade is to how to get a Diverse Workforce in diversity of thought. The other thing were seeing in the research approved is the concept of ecosystems will be very important. In developing everything yourself will not be the way of the future. We see it here at deloitte and we see it in our clients where Everything Technology is going to travel amount of partnerships and ecosystems developed and that will be the way of the future is even with Product Development therell be more teeming with Technology Firms and other types of firms so the development of the ecosystem is key to the next decade. For in the Fourth Industrial Revolution and with that the landscape is changing. If you look at technology the word we like to use right now is in Exponential Technology and in the report talk about is really around the concept of what got us to what we are today is not going to get us in the future because of technology. I like to use this analogy. A world will not experience 100 years of progress in the 21st century and at the rate its going today it will be like 20000 years of progress in the next 100 years. If you actually believe that a lot of people dont believe that but if you do believe that that is what we think it will go for the next decade. Manufacturing is not about just making physical product anymore. Consumer demand is changing in the marketplace is changing and the nature of the product is changing so when you put that together that is what we call an exponential increase in development. Again, we agree and support many elements of the clarion call including that fundamental notion that innovation driven productivity is the foundation for a growing, vibrant economy. Interesting there is a Company Called Singularity University done a lot of work with along with the council and i took our deloitte board through a day at singularity about three months ago or so to talk about the concept i call governing over disruption. Its hard enough to manage instruction and how do you come in and i will tell you spending a day there was interesting because i left there almost in an uncomfortable state because there were so many concepts that were talked about for the next ten years can look like that i left everything at how would we govern stuff that were hard to manage. It did leave me with a couple of sleepless nights for a couple of days as i thought. But i looked at it and said we all have to look at this as not telling us why it will not work but assume it will be this way and if we do that it will be the key to how success happens. They like to use disruptive, deceptive or digitized, democratize, the monetize andy materialize. I think those are a catchy and thats the concept of the Exponential Technology, but the future looks like. Singularity university does a really good job of picking that forth. Talk about the study that is underway right now expansion initial technology and manufacturing brings together the Council Deloitte in singularity as well as broader manufacturers and Technology Ecosystems take a fresh look at how our Current Technology is transforming the future. If you believe what i said about earlier about ecosystems the way of the future and think about it as being a Partnership Among lots of different organizations that is the way of thinking about it. That is what were doing in our study. Our objective is to focus on how Global Manufacturing companies can best happen to the transformational shift involved and to grow into. Help manufacturings assess and utilize the future technologies and capture value. That study is underway right now and we are doing this internally at deloitte so i always believe in giving to see it yourself before you talk to others about it and we have been using things like Robotic Process Automation and analytics enough to the Core Services we provide to our clients. I actually believe that if you believe that we have seen amazing change in success in that over the last couple of years. What have we seen it so far . Military service is thoughtful, engaged leadership and a lot of people engage in this conversation and hear it but it will take resources from each manufacturer to believe this and invest in it. Taking resources and putting them on the journey here not just talking the talk but walking it. Know what problem youre trying to solve. Theres a lot of hype about advanced technology and know which ones make the mark for you directly. Its not just everything here out there is Amazing Stories read every day and you see in the news and you Read Research on but everything will not be effective. Its overwhelming technology. How many days do you get a request for new password to be on the phone and some will make sense and some will not. Im a big believer in entrusting small teams and people heard the term over the edge it really is protected group of people to actually innovate and not worry as much as the immediate pain and ill for that progress. If you allow innovation on the edge and then bring in we see that is one of the ways in which companies will be much more successful. I think this would make sense but it is hard to do in an economic. For you are trying to manage earnings. But it is something we see coming out of the survey. Operate outside of the traditional walls. Keep your thinking broad. Dont say why say why not sometimes and i think thats another thing coming out. This concept of looking at it with a different paradigm. Lastly, raise the National Dialogue on this. Be an enabler. We are hearing it a lot and the more people talk about it the more people see this is the way of the future. I think each of us would go back to her daytoday jobs remembering that how we operate or how we operate to get to this point we may have to operate differently in the next decade so with that i thank you for being here and i appreciate it. Mac. For almost a decade the United States has seen an unprecedented surge in both nonrenewable and Renewable Energy resources. It turns what was once an economic and National Security weakness into a strength created to discuss whether we have leverage this opportunity for Us Manufacturing and federal, state and local levels to maximum effect, please welcome mr. Sam allen, chief executive officer and Chairman Council of competitiveness. The honorable rebecca blank, President University of wisconsin radisson. Doctor walter, undersecretary Standard Technology Us Department of commerce and director National Institute of Standard Technology, mr. Steve, founder and ceo and member and board of governors Argonne National laboratory and mr. Bill bates, executive Vice President and chief of Staff Council on competitiveness. Weirdo going to talk a little manufacturing for the next 25 minutes or so. And we touched on a lot of the topics that i think we are going to get to in the next session but looking through it specifically through this lens of manufacturing is an important step to take, particularly as this is something the council has been so focused on over the last decade of work. Back in 2009, the council issued a report that concluded energy is everything. Its the lifeblood of the us economy. Three years later we issued another report specifically on manufacturing. While we were doing that report, the entire landscape of the Energy Situation in the United States changed. And we went from discussing Energy Scarcity and security to talking about lowcost Energy Abundance and even independence. This was due largely to the proliferation of the tracking movement and it was something we wanted to explore as an organization, the implications that would half across various sectors of our economy. Over the last couple years if you look at the aerospace sector, energy, advanced materials, biosciences, agriculture to understand whats happening out there and the question has always pervaded our work has been are we leveraging this tremendous opportunity that we have with lowcost, Abundant Energy to capitalize on americas manufacturing mark i have a terrific panel with me today to get that question, looking at the specifics within that scope. What id like to do maybe is start with you, becky because weve talked a lot about talent over the last couple panels here but now i want to look at it specifically thinking of the manufacturing stage. And over and over again in each of these sessions whether it was agriculture or bioscience or aerospace, it comes up that we are not ready, we are not finding the talent we need and weve heard some of the discussion about the need for diversity, expanding the pool are you seeing this as well in your sphere and are we doing the right things about it, looking at the manufacturing opportunity . We have absolutely gotten demand for engineers, computer science, a broad variety of areas in the manufacturing state and i regularly hear from employers saying we should turn out more, we need more. I should note that of course this is the very diverse pipeline that goes everything from where people trained in different Technical Skills to be asians in the jin junior through various biotech. Theres not a onesizefitsall answer to this and if youre going to grow theinternal pipeline, i think michael crow noted earlier, its a long project. So a couple things. First of all, and i know the council has done this several times in the past. It will take time to expand the pipeline inside the United States and the only alternative to that is buying abroad. Im not going to say anymore about it but in intelligence immigration, policy has got to be number one on the list because thats the only nearterm solution to some of the shortages that we are experiencing. The lowercost issue of course, theres a reason to stay here that we have together. Let me talk about those pipelines internally. Theres one thing i think is on all of us, its to make manufacturing and the science and technology that goes into it a little more exactly in the public conversation. I hear regularly from people who are in the business pools or even Engineering School and they dont say what they think of as old manufacturing as you well know. Everyone in this room knows youve gotten very much oldline manufacturing left in the United States. Most of it is like to manufacturing, that is the edge of where Us Manufacturing grows and remains. Students dont understand and the parents dont understand. And they get very little exposure to the manufacturing sector. Most of their parents have worked in it or they been in a town where its suppressed so we have a lot of students coming in who take issue and think about careers in science and engineering. They can lead to great jobs in manufacturing they say why would i want to do that . Thats a Marketing Media campaign and i know that there are a number of Companies Look at the ads for trying to do that but its some fundamental level, we have to do more of that to attract more people in a junior in high school. This is a pretty fixing thing to do. Having said that, once i get to college, the number of things we need to be doing and one of the most important is the information that you give to freshmen and sophomores when they become majors. I think we do good job of that in our school in engineering. I dont know if youre in business but most schools, that includes us in the past. Some have done a lousy job with the majority of our students four degrees and looking around and not sure what their major is going to be. I have no idea what they can do with a major in mathematics or what they can do with a major in physics or social sciences or communications that can lead them into interesting jobs that we are trying very hard to push career related information, bring in alumni. Bring in local pennies so its not an infringement and sophomore years of college to try to get people there. Two of the last comments, one has been we regularly talk to manufacturers about the fact they need to come in and advertising in campuses early. You cant show up when people are graduating. Its a great company, growing company, and lots of unity. In oshkosh wisconsin, theyve never heard of them. No idea. Theyre not going to know that when there at the end of their senior year. The company has to be in some of the departments and rules in wisconsin. Really getting their name out, sponsoring competition, doing internships and thats on the company. The last comments, a number of others have made it. If we want to keep a pipeline going, weve got to have this sort of federal dollars, particularly high and talented researchers. The vast majority of federal dollars are spent in training and in Exchange Students to be part of Research Projects about how they learn and thats how they end up being innovators that we are going to keep high tech manufacturing in this company and as i said and as your documents here says in front of you, weve got to keep the dollars in basic science which is so crucial not just for invention but also for the pipeline as well. Are you seeing challenges in hiring upanddown the skill sector from phd to entrylevel, are you having trouble finding people all up and down and if so, weve had quite the time at the heightened skill level that weve been talking about. For us, thats more engineers and we certainly have found it in a number of different areas but now, as we ran back up production, our supply base, the number one thing that has talent for our manufacturing operation, we all have a hard time getting people into these jobs so its definitely challenging, thats accurate. Steve, maybe i can turn to you. Another issue to come up repeatedly in our meetings across all the sectors of the economy has been the ability of startups, entrepreneurs, even small or midsize businesses to get back to the capital. To be able to get the idea out of the lab, to get the Small Business scaled up to a midsize business. Whats your perspective on how does this look right now . Out of the Capital Market as far as central manufacturing . Im actually optimistic for a number of reasons. One of them for example is the fact that historically, Silicon Valley has seen information Technology Companies dotcoms but if you look at the last several years they been moving towards other sectors such as manufacturing, for example the air traffic sector which is one that i follow closely, just in the last several years, Silicon Valley firms have funded 22 Aircraft Companies in 350 million and a lot of that stems from Silicon Valley companies such as huber elevate, google going into those sectors and the Silicon Valley funds sort of follow them. So i think this trend continues, its going to be a force multiplier to manufacturing. The other thing, also because of the last couple decades of investment by Silicon Valley into, one of the things that you see thats interesting is that the sort of social media and infrastructure has made it easier for companies, Small Companies to access and find investors. Through social media sites like linkedin that can reach out directly to an investor or someone who can introduce them to investors. Someone who can help them place their product. Outstanding for example where you can say they want to manufacture this and ill give you a discounted price if you down a deposit that i can use to manufacture the product. So thats another interesting , the other thing thats happening is there has been a proliferation of sort of infrastructure. So i alreadymentioned crowdfunding book for example accelerated , theyre everywhere now. My university in chicago for example now have the largest accelerator in the midwest. And theyve invited National Labs to join so argyle national lab is part of it. Army lab is part of it. Other universities such as university of illinois with their Engineering School has become part of it and whats interesting here is that even for example the military has gotten into the game. They opened up offices in Silicon Valley, the Army Research lab just opened. An office of the university of chicago accelerator and even large fortune 500 companies aremore and more ventures. And so for example, in the energy space, you now have demand for energy ventures. So an entrepreneur somewhere in the us can access money in saudi arabia and china and so forth and then the final point thats interesting to me is over the past three years in a row, Venture Capital funds are raised over 50 billion each year and the reason thats important is that size makes it easier for Institutional Investors to now start to participate more and thats going to add a lot more fuel and growth as well. Im pretty optimistic as far as how we view the access gap. Tom and debra made a point earlier about focusing on the quick shortterm need. Your optimistic there is the money there for the longer term actual product making things. Thats correct and even things such as for example crowdfunding allows smaller investors so even a Broader Investor base in that way as well. You still have to sell someone on your product to get an investment but it easier to find investors nows wall, representing the entire federal government on the panel. Whats your perspective on the role that this obviously which you are the director of control. The federal role in enabling advanced manufacturing and trying to create the right environment and rules of the road that are going to accelerate this area . Thank you, its great to be back and thank you for the work you do and your advocacy for the role of government in driving innovation and driving manufacturing advance. Its doing well but theres so much more to be done. The Competitive Dynamics of our world has shifted dramatically and so whether we look at the advanced manufacturing institutes now through manufacturing usa, this was the only area in the previous several clariion calls that actually got an a grade and so thats a wonderful thing. This of course, some of you know is the lead on the advanced Manufacturing Initiative for the nation and has a role to really coordinate the Public Private engagement, the engagement with leading industry. The engagement with the entrepreneurial community, with academia anddriving workforce development. And thats an ongoing theme. So these manufacturing institutes, the leverage of the manufacturing extension partnerships as had a tremendous focus on bringing capabilities from publicly funded research into direct use and prototyping access to user facilities through our federal complex. Its a great leverage that we provide for the nation and is pleased to preside over the 50th anniversary celebration of the National Center for neutron research. Which have been used in advanced materials optimization and studying biological systems in particular to optimize biological drug manufacturing and systems control. So we really see ourselves at most as a convener within the federal government to bring all of the federal sectors together with stakeholders in the public side as well as in corporate america. As well as within academia. I believe that we see ourselves as the Nations Laboratory for industry. And so addressing all market verticals, ive had i think some great conversations with folks within the hightech sector. They basically saidwithout the metrology , by the creation of the internet infrastructure we have today and looking to the future of 5g and wireless and other standards, this nation would have been a decade behind the rest of europe, for example in the development of those capabilities. And so ive had folks from corning and intel and hewlettpackard, to me and say thank you for the work youve done in the federal sector to help drive Us Innovation and manufacturing and Technology Transfer. Debra mentioned earlier in her comments that tech transfer is one of the many tools that we have access to. Its enabled so much innovation in this country. But as a representative of the federal Laboratory System and from the department of commerce, weve also identified opportunities to enhance this for the nation. I would challenge the council to engage as we kick off a national initiative. Under the next authorities for the bible act and federal Technology Transfer of funds, is going to be time for us to revisit where we are today and how we can move forward in increasingly connected worlds, we have copied the bible. They have copied the National Manufacturing infrastructure that we have. We just had a major delegation from china who said specifically they come to benchmark this to see how they can replicate that in asia. So we have i think an opportunity for challenging us competitiveness as a network and i look forward to engaging with all of you. Thank you very much. If there were two issues that came up in every single one of the sector discussions that we held over the last two years, they would be talents which we talked about and the other one would be the implication of the Internet Things to the manufacturing process and it came up in two ways. One was the tremendous potential efficiencies of knowing the amount of energy, the amount of water that you are using in the process and the other was the downside. The potential for cyber attacks. And manipulation by outside entities of these new centers. Just be curious and i know were with everyone at once but this issue cuts across industry, academia, government. So i open it up to the panel for any thoughts on how do we capitalize on the good side of that and minimize the back . Ill just kick that off. As some of you may know, i missed with apple because of our leadership in the National Cyber Security Framework as well as in systems interoperability to take a look at theinternet of things on behalf of congress. This is , its a huge upside and Risk Management through the driving the framework and testing the interoperability and vulnerability of systems and open transparency but also industry sensitive ways. That is critical, for example we have as our National Cyber Security Center of excellence, we tested for the smart grid and for advanced manufacturing to be able to have the leaders of industry, technology to be able to Work Together but then also to privately understand what their systems are doing, how they Work Together and what are the vulnerabilitiesthat they experience. So we really see that this is an area thats going to need probably top level leadership in this nation to drive the awareness and then also the creation of a new workforce in addition to new standards to enable our countries to advantage and harness the opportunities around the internet of things ill just say that we said a lot of time with our students talking about they have to be careful about how they use certain Current Media and both the internet of things is going to create an enormous need for universities for everybody who works with younger people who got into the workforce to be aware of how all the devices with which they live can be used in ways that can harm them and the harm their families, their places where they work and increasingly, i know we are Training Staff about all sorts of issues and how you are careful with regard to Cyber Security and i know a lot of countries are doing that as well. The internet of things takes it to a whole other level and most of our staff and certainly students are completely unaware of the risks that they run. I would just echo what already has been sent. Our view, were in the process with the internet of things of connecting every part of our value stream from the customer back through the dealers, back to our factory all the way back through live aid, secondtier service level. Tremendous upside opportunity with this and as indicated by others, our number one threat we see everywhere is cyber. And its a risk that you have to manage if youre not going to get away from it. So better resources to it, the better to stay on top of it. Its here and the only way youre going to mitigate its is to stay on top and watch it. Absolutely. The only quick comment i was going to add is i think the Block Chain Technology thats driving bitcoins to to live at the bubble level is also going to be a big part of that solution. Fantastic. Interestingly or importantly, to topics as cyber, bitcoins, the cashless economy are on the afternoon agenda so i hope i sound like we are talking about the right thing. This is been a terrific discussion. I appreciate it and i asked for a round of applause, please. [applause] thanks for having me. My name is fiore and im glad to be here. Im here to talk a little bit about my book called the bodybuilders inside the science of being human and some of the trends i review. Its funny to be here because i left dc. I just to cover capitol hill about 20 yearsago. I left and i was never coming back. But i covered congress for a newspaper in new jersey and i left in the middle of the scandal. My job was to stand off and explore