University-Industry Cooperative Research

Slide 1: Re s e arc h: Ope n Inno vatio n, Ope n Co llabo ratio n, Tre nds , Challe ng e s , and Advanc e s in the Glo bal Lands c ape Wa yn e C . J oh n s o n Vic e P re s id e nt, HP Unive rs ity R e la tio ns Wo rld wid e J a n u a ry 1 0 , 20 0 8 © 2 006 He wle tt-P a c ka rd De ve lopm e nt C om p a n y, L.P . Th e in fo rm a tion c on ta in e d h e re in is s ub je c t to c h a ng e with ou t n otic e

Slide 2: P e rs p e c tive s th a t Ma tte r ~ The State of the World ~ ~ The State of Business ~ ~ State of Research and Education ~ 2 10 J a n 200 8

Slide 3: Th e S ta te of th e World • Standards of Living • Economic Performance Globalization is here to stay, Driving Changes of Equilibrium in… • Educational Success 3 10 J a n 200 8

Slide 4: …th e La n d s c a p e De m a n d s … Globility: Actively seeking attributes that maximize performance and optimize adaptation to evolving global circumstances, including systemic topics of: Glo balizatio n: − Th e te nde nc y of inve s tm e nt funds a nd b us ine s s e s to m ove b e yond dom e s tic a nd na tiona l m a rke ts to oth e r m a rke ts a round th e g lob e , th e re b y inc re a s ing th e inte rc onne c te dne s s of diffe re nt m a rke ts . • Ability: − c om pe te nc e in a n a c tivity or oc c upa tion b e c a us e of one 's s kill, tra ining , or oth e r qua lific a tion. • Capability: − a n a ptitude th a t m a y b e de ve lope d.  lity • Fle xibility: bi − R e s pons ive to c h a ng e ; a da pta b le . • Capac ity: − a c tua l or pote ntia l a b ility to pe rform , yie ld, or with s ta nd; Gl o th e m a xim um produc tion pos s ib le . 4 10 J a n 200 8

Slide 5: Th e S ta te of B us in e s s Indus try Adapts to G lo balizatio n • Explosive Growth (some regions) • Shrinking (others) • Rebalancing + = • Offshoring • Onshoring • Outsourcing • Insourcing • Downsizing • Rightsizing Unrelenting Change 5 10 J a n 200 8

Slide 6: Th e S ta te of E duc a tion a nd R e s e a rc h

Slide 7: Wo rld B a nk – Th e F o u r P illa rs o f Th e Kno wle d g e E c o n om y • Educ atio n & Training An e duc a te d a nd s kille d popula tion is ne e de d to c re a te , s h a re a nd us e knowle dg e . • Info rmatio n Infras truc ture A dyna m ic inform a tion infra s truc ture -ra ng ing from ra dio to th e inte rne t-is re q uire d to fa c ilita te th e e ffe c tive c om m unic a tion, dis s e m ina tion a nd proc e s s ing of inform a tion. • Ec o no mic Inc e ntive & Ins titutio nal Re gime A re g ula tory a nd e c onom ic e nvironm e nt th a t e na b le s th e fre e flow of knowle dg e , s upports inve s tm e nt in Inform a tion a nd C om m unic a tions Te c h nolog y (IC T), a nd e nc oura g e s e ntre pre ne urs h ip is c e ntra l to th e knowle dg e e c onom y. • Inno vatio n S ys te ms A ne twork of re s e a rc h c e nte rs , unive rs itie s , th ink ta nks , priva te e nte rpris e s a nd c om m unity g roups is ne c e s s a ry to ta p into th e g rowing s toc k of g lob a l knowle dg e , a s s im ila te a nd a da pt it to loc a l ne e ds , a nd c re a te ne w knowle dg e . 7 10 J a n 200 8

Slide 8: Knowle dg e -b a s e d e c onomy a nd c a pa c ity b uilding • E c onomic s uc c e s s in knowle dg e - ba s e d e c onomie s de pe nds e ntire ly on th e c a pa bilitie s of pe ople • P rofe s s iona l c a pa c ity building g e ne ra te s be tte r profe s s iona ls • B e tte r profe s s iona ls will ide ntify a nd s olve loc a l proble ms • A c re de ntia le d workforc e a ttra c ts multina tiona l c ompa nie s Te c h nolog y-b a s e d e c onom ic • Opportunity a t h ome e limina te s de ve lopm e nt de m a nds a ‘B ra in Dra in’ h olis tic vie w a nd e c os ys te m m a na g e m e nt s tra te g ie s • S uc c e s s is managing our pla c e in th e g loba l ma rke tpla c e th roug h s tra te g ie s for s us ta ina ble Back c ompe titive ne s s 8 10 J a n 200 8

Slide 9: Worldwide Inte lle c tua l E q uilib rium is C h a ng ing E ng ine e ring G ra dua te s (2004) R e g ion/ a tion Loc Num b e r of E ng ine e ring G ra dua te s C h ina 300,000 India 200,000 J a pa n 104,478 R us s ia 82,409 Unite d S ta te s 59,536 S outh Kore a 56,508 Ta iwa n 26,587 Me xic o 24,184 G e rm a ny 23,196 B ra z il 18,072 R om a nia 6,632 S ourc e : NR C S c ie nc e a nd E ng ine e ring Indic a tors - 2004 9 10 J a n 200 8

Slide 10: S c ie nc e a nd e ng ine e ring de g re e s , 2004 a s a pe rc e nta g e of tota l ne w de g re e s Note s : 2. 2003 for doc tora l de g re e s in s c ie nc e a nd e ng ine e ring . 3. 1999 ins te a d of 1998 for th e S lova k R e public a nd De nma rk; 2000 for P ortug a l a nd B e lg ium . Th e s e four c ountrie s a s we ll a s Gre e c e a nd Luxe m bourg a re e xc lude d from th e c a lc ula tions of E U19 a nd OE CD in 1998. 4. E xc lude s Luxe mbourg . 2003 da ta for th e Unite d King dom . 5. IS CE D 5B prog ra mm e s a re inc lude d with IS CE D 5A/ 6. 6. S h a re of S &E de g re e s a wa rde d to wome n is for 2003. 10 10 J a n 200 8

Slide 11: My Tra ve ls a nd E xpe rie nc e s

Slide 12: E me rg ing Na tions E xa mple – B ra z il • HP e s ta b lis h e d pa rtne rs h ips with unive rs itie s a s e a rly a s 1997 • C u rre nt c olla b ora tions e xis t with 10+ unive rs itie s a nd na tiona l la b s • Inve s tm e n ts of $5M+ (US ) a nnua lly in th e s e re la tions h ips 12 10 J a n 200 8

Slide 13: C h in a E xa m p le s … P e kin g Un ive rs ity • Un ive rs ity doe s a ll R &D • C o m pa nie s pe rform m a rke ting , s a le s , a nd m a nufa c turing • P ro fe s s ors c a n h old e xe c utive pos itions in th e c om pa nie s • S tude nts m ove e a s ily b e twe e n unive rs ity c a m p us a nd c om pa ny offic e s − P rovide s re a l-world e xpe rie nc e 13 10 J a n 200 8

Slide 14: C h in a E xa m p le s … Ts in g h u a Un ive rs ity • Owns th e Ts ing h ua Ho lding s C o. − Ca pita l of R MB 2 billion Yua n ($260M US ) − P la tform for s c ie nc e a nd te c h nolog y de ve lopme nt, c orpora te fina nc ing , re s e a rc h c omme rc ia liz a tion, s ta rtup inc uba tion, inte rna tiona l c oope ra tion − Ts ing h ua Holding s h a s inve s te d in 80+ portfolio c ompa nie s in IT, e ne rg y a nd e nvironme nt, life s c ie nc e , e tc . 14 10 J a n 200 8

Slide 15: Ta iwa n : Th e Hs in c h u S c ie n c e -B a s e d Ind u s tria l P a rk (HS IP ) • 90,000 pe ople e mploye d (c om p a re d to 40,0 00 in R e s e a rc h Tria n g le P a rk, North C a rolin a ) • Ag g re s s ive c orpora te , s h a re h olde r, individua l ta x inc e ntive s prog ra ms • G ove rnme nt inve s tme nt pa rtic ipa tion th roug h th e • E xe c utive Y ua n De ve lopm e nt F und: $8B ; $20 B • C h ia o Tung B a nk: $12 B • G ove rnm e nt Inve s tm e nt < 40% • F oc us e d on e mployme nt a nd we a lth c re a tion 15 10 J a n 200 8

Slide 16: Ta iwa n : Th e Hs in c h u S c ie n c e -B a s e d In du s tria l P a rk (HS IP ) • F o un d e d in 1 98 0 ; a dm inis te re d b y th e Na tio na l S c ie n c e C ou n c il (NS C ) • P u rpo s e : to a ttra c t in ve s tm e n t in h ig h te c h n o lo g y ind u s trie s & s tim u la te lo c a l h ig h -te c h in du s trie s • G ove rn m e n t in ve s tm e nt: $ 5 20 N m m in la n d a n d infra s tru c tu re Tsing-Hua Univ. • P a rtn e rs h ip with C h ia o Tun g Chiao-Tung Univ IT Un ive rs ity, Ts in g Hu a Un ive rs ity R I a nd th e Ind u s tria l Te c h no lo g y R e s e a rc h Ins titu te (632ha.) 16 10 J a n 200 8

Slide 17: Ta iwa n HS IP G ro wth o f C o m p a nie s 350 312 300 289 292 250 272 245 200 165 203 150 180 150 140 137 100 121 105 77 94 50 26 59 17 44 50 37 0 ’81 ’82 ’83 ’84 ’85 ’86 ’87 ’88 ’89 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 17 10 J a n 200 8

Slide 18: S in g a p ore • Th e m o s t te c h no lo g y-inte n s ive na tio n in th e wo rld • S ing a p o re S c ie n c e P a rk: As ia ’s fore m os t a d dre s s fo r R &D − G ove rn m e n t s p on s ore d in itia tive d e s ig n e d to provid e a foc a l po in t fo r th e h ig h q u a lity in fra s tru c ture fo r R &D − 3 00 te c h n olog ic a l c o m p a nie s − P re s tig io us loc a tion fo r s ta te – of – th e a rt re s e a rc h a n d de ve lop m e n t • In 2 00 0 s ta rte d th e a m b itio u s drive to b e c om e th e As ia n h ub fo r b io m e d ic a l re s e a rc h − US $ 2 .7 B in re s e a rc h fu nd e d b y Ag e n c y for S c ie nc e , Te c h n olo g y & R e s e a rc h − Th e B io po lis c om p le x: US $ 1 90 MM p roje c t • Long te rm th inking , g e ne rous ly funde d 18 10 J a n 200 8

Slide 19: S in g a p ore S c ie n c e P a rk Growth of Companies 350 No. of Companies 300 302 278 250 226 214 200 166 150 148 117 100 102 85 67 75 50 40 46 25 1 2 7 9 12 0 82 84 86 88 90 92 94 96 98 2000 year 19 10 J a n 200 8

Slide 20: Da ta from th e OE C D S c ie nc e , Te c h nolog y a nd Indus try S c ore b oa rd 2007

Slide 21: R &D inte ns ity, 2005 Note s : 2. G ros s dom e s tic e xpe nditure on R &D a s a pe rc e nta g e of G DP . 3. Da ta a re a djus te d up to 1995. 4. US D of 2000 in purc h a s ing powe r pa rity (P P P ). 21 10 J a n 200 8

Slide 22: E volution of g ros s dom e s tic e xpe nditu re on R &D, 1995-2005 Ave ra g e a nnua l g rowth ra te , c ons ta nt pric e s Note s : 2. G ros s dom e s tic e xpe nditure on R &D a s a pe rc e nta g e of G DP . 3. Da ta a re a djus te d up to 1995. 4. US D of 2000 in purc h a s ing powe r pa rity (P P P ). 22 10 J a n 200 8

Slide 23: B us ine s s -funde d R &D in th e h ig h e r e duc a tion a nd g ove rnme nt s e c tors , 2005, a s a pe rc e nta g e of R &D pe rforme d in th e s e s e c tors (c ombine d) Note s : 2. Da ta for Aus tra lia a nd S witz e rla nd: 1996; Luxe m b ourg a nd Ch ina : 2000; Aus tria : 1998; a nd S outh Afric a : 2001. 3. G ove rnm e nt s e c tor only. 4. Hig h e r e duc a tion s e c tor only. 23 10 J a n 200 8

Slide 24: Innova tion Ne twork R oundta b le

Slide 25: Inn o va tio n Ne twork R o u n d ta b le – Ins ig h ts & E xp e rie n c e s o f In n ova tio n To da y • E ve nt h e ld in S a n F ra nc is c o B a y Are a / ilic on Va lle y” on 4/ 07 ”S 5/ • Invita tion-only m e e ting ; a pprox. 40 pa rtic ipa nts • Involve d h ig h -le ve l th oug h t le a de rs , s e m ina l th inke rs , C E Os , a nd s e nior le a de rs from m ultiple indus try s e c tors , unive rs itie s , th e ve nture c a pita l c om m unity, a nd from g ove rnm e nt • F oc us wa s on “I dentifying E merging Patterns and D rivers of the N Wave of I ext nnovation” (ne w c om pa nie s , e xis ting c om pa nie s , a nd e s ta b lis h e d e c os ys te m s ) 25 10 J a n 200 8

Slide 26: Innova tion Ne twork R oundta b le – Ke y Ins ig h ts • Multi-dis c iplin a ry a n d m u lti-c ultu ra l a s pe c t to to da y’s inn ova tio n pra c tic e s , n ot s e e n b e fore • In no va tio n is lite ra lly “e ve rywh e re ” – it’s no lo n g e r th e e xc lu s ive pu rvie w o f s p e c ific re g io ns a nd loc a tio ns • In divid ua ls a nd c o m pa nie s a re h ig h ly n e two rke d a c ros s g e o g ra p h ie s a n d c o ntin e n ts , re fle c ting th e g lo b a l e c o s ys te m • Ne w c o m pa nie s – “s ta rt-up s ” a re form ing th e m s e lve s g lo b a l rig h t fro m th e on s e t, e ve n if th e y h a ve a s fe w a s 5 -1 0 e m p lo ye e s • Move d s ig nific a ntly b e yon d th e “b ra nc h o ffic e s in re m ote loc a tio ns ” m o d e ls of th e p a s t, a n d a re we ll o n th e wa y to fu ll in te g ra tio n a c ros s g e o g ra p h ie s 26 10 J a n 200 8

Slide 27: Th e Ne xt Wa ve o f Inn o va tio n … Innovation is Disintermediating! • Fo rm and s truc ture of innovation is c hang ing . • Ways that we innovate , both individually and colle c tive ly, are c hang ing (as s umptions , value s , interco nne c te dne s s ) • Enviro nment and habitat in whic h we inno vate are diffe re nt 27 10 J a n 200 8

Slide 28: P a rtne rs h ip Mode ls

Slide 29: P a rtne rs h ip Mode ls • 1-E le me nt (“g o it a lone ”) • 2-E le me nt: Indus try-Unive rs ity • 3-E le me nt: Indus try-Unive rs ity-G ove rnme nt − S a ba to’s Tria ng le • Me g a Communitie s 29 10 J a n 200 8

Slide 30: Th e P a rtne rs h ip C ontinuum Levels of Strategic Partner Engagement • Executive Activities Sponsorship 3,6 • Joint Partnership 3,5,6 • State Education Sponsorship Lobbying 3 • University Initiative 3,5,6 • Major Gifts Sponsorship 3 • Business Support • Undergraduate Research 2,5 Development Program Support 3 • Student Consultant 4 • Graduate Fellowships 5 • Hardware Grants 3,5 Involvement • Collaborative Research • Curriculum Dev/ABET KEY Program Report 5,3 Awareness • Industry Affiliates/ Support & Fundraising 3 1•Recruiting • Outreach Programs 6 • Career Fairs 1 Advisory Program 3 • Workshops/Seminars 4 2•Education Sales • Research Grants 3 • Support for Proposals for • Interviews 1 • Support Contract 3 Education (NSF, NASA, 3•UR Account Managers • EDU Account 2 • Internship/Co-op etc.) 3,5 4•UR Programs • Student Organizations • Software Grants 3 Sponsorships 3 • BETA Programs 3 5•UR Research • Philanthropic Support 6 6•Other (Philanthropy, Alumni, Executive) • Guest Speaking/Lectures 4 Phase One Phase Two Phase Three Phase Four Phase Five Traditional Engagement Holistic Engagement 30 10 J a n 200 8

Slide 31: C re a tin g th e Ne xt In no va tio n E c o s ys te m Enlightened Self-Interest Academia Sa ba Think Globally, to’ sT Act Locally ria Ecosystem ng Development le Industry Government Think Locally, National System of Innovation Act Globally 31 10 J a n 200 8

Slide 32: Mode l E volution • Ove r tim e , th e h ig h e r-im pa c t m ode ls h a ve e volve d from − 1-e le me nt (g o-it-a lone ), − to 2-e le me nt pa rtne rs h ips , − a nd more re c e ntly to 3-e le me nt pa rtne rs h ips , − a nd fina lly Me g a c ommunitie s 32 10 J a n 200 8

Slide 33: Ve rtic a lly-Inte g ra te d Va lue Ch a ins IBM Ideas, R&D, Circa: 70’s, 80’s for ICTs Products, Technology Services • C los e d va lue -de live ry s ys te m s (VDS ) • E xa m ple : IB M in th e e a rly 70’s • “G o it a lone ” or, “Do e ve ryth ing yours e lf” ph ilos oph y • Little vis ibility to c om pe te nc ie s “ins ide ” th e s ing le VDS • C om pe titive a t th e “e nds ” of th e m ode l (R e s e a rc h , a nd C us tom e r De live ry) • E s s e ntia lly, a “b la c k b ox” m ode l, wh e re s om e th ing wonde rful c om e s out a t th e e nd • Middle note s in VDS re m a in h idde n from vie w, not e xpos e d to c om pe tition, a nd re la tive ly unoptim iz e d 33 10 J a n 200 8

Slide 34: P a rtne re d, Va lue Ne tworks Raytheon Ideas, R&D, Products, Technology Services Circa: late 80’s, early 90’s for ICTs Defense subcontractor • B e g inning of tra ns pa re nt va lue -de live ry s ys te m s (VDS ) • E xa m ple s : R a yth e on, de fe ns e s ub c ontra c tors • S om e outs ourc ing is ta king pla c e , a long with s e le c tive ins ourc ing a nd pa rtne ring (non-c om pe titive ) • P a rtne rs a re s till dis c oura g e d from working with c om pe titors • Mode l is c om pe titive a t th e “e nds ” (R e s e a rc h , a nd C us tom e r De live ry), a nd c o-ope ra tive in th e m iddle • Dis tinc tive c om pe te nc ie s b e g in to e m e rg e • B us ine s s le a de rs s e e k to g a in le ve ra g e on th e c om pe te nc ie s th e c h oos e to ke e p “in-h ous e ” 34 10 J a n 200 8

Slide 35: Th e E me rg e nc e of E c os ys te ms … the Be ginning o f “Ope n” HP, Autodesk Products, Ideas, R&D, Services Technology Circa: late 90’s for ICTs Graphics Companies (ex. nVIDIA) • Optim iz a tion a round dis tinc tive (c ore ) c om pe te nc ie s • E xa m ple s : B oe ing , HP , Autode s k, nVIDIA • Line s b e twe e n “c om pe titors ” a nd “pa rtne rs ” b e g in to b lur • All form s of c oope ra tion a re e nte rta ine d • Mode l is b oth c o-ope ra tive a nd c om pe titive a t e a c h node in th e VDS (“c o- ope tition”) • Dis inte rm e dia tion b e c om e s th e norm ; s pin-offs a re c om m on • C os ts a re drive n down, e ffic ie nc ie s a re g a ine d, a nd th e e nd-us e rs a nd c us tom e rs b e ne fit s ig nific a ntly from inc re a s e d c ontrib ution a t m uc h lowe r c os t • Mode l de c is ions a re m a na g e d a nd optim iz e d on th e 1 s t de riva tive – h ow th ing s e volve a nd c h a ng e ove r tim e (vs . s ta tic pos ition, c om pe titive pos ition of toda y) 35 10 J a n 200 8

Slide 36: “Ope n” Va lue -Ne t b a s e d E c os ys te m s Products, Idea s, R&D, Circa: 2000+ for ICTs Services Technology Olin student mfg. in China • Hig h ly ne tworke d, m ulti-output, m ulti-s ta ke h olde r m ode l • E xa m ple s : Individua l e ntre pre ne urs , Olin s tude nt • “Ope n S ta nda rds ” e na b le ra pid e volution, a nd inte ns e c om pe tition • Ne w va lue node s a re c re a te d a nd de s troye d e a s ily a nd fre q ue ntly • World-c la s s c om pe te nc ie s a re ne e de d, in orde r to s urvive • One c om pa ny’s de fic ie nc y b e c om e s a noth e r c om pa ny’s opportunity • C ros s -dis c ipline , c ros s -indus try c ontributions a re th e norm • C ros s -g e og ra ph y, c ros s -c ultura l “loc a liz a tions ” a re th e norm • E c onom ie s of s c a le a re pre s e nt, th a t a re s im ply not pos s ib le in 36 10 J a n 200 8 oth e r m ode ls

Slide 37: Ch a ra c te ris tic s of a g ood pa rtne rs h ip • R e c og niz e th a t th e re a re oth e r pla ye rs a t th e ta ble • P a rtne rs h ips a re ope n a nd c olla bora tive in na ture a nd th e pa rtne rs a re ope n to working with oth e r pe ople • Don’t h a ve a winne r-ta ke -a ll a ttitude (win-los e ) • Wh a t we s trive for is th a t e ve ryone g e ts s ome th ing (win- win-win) – diffe re nt pa rtne rs g e t diffe re nt th ing s (s ome of th e s e th ing s ma y be proprie ta ry, but not e ve ryth ing ) • Wh e n you h a ve a n ope n c olla bora tion, multiple pe ople purs ue multiple th ing s in pa ra lle l (vs . s e ria l mode ls of te c h tra ns fe r wh e re th ing s h a ppe n a t th e e nd a nd a re obs ole te )  a c c e le ra tion • Ope n c olla bora tion provide s re le va nc e – multiple pe ople g e t to s h a pe th ing s a t th e be g inning of th e c olla bora tion ba s e d on a pplic a tion knowle dg e 37 10 J a n 200 8

Slide 38: P a rtne rs Inve s t Tog e th e r in a n E c os ys te m E nvironme nt • C o s t s h a ring is th e m os t im po rta n t d rive r in c re a tin g a lig n m e n t b e twe e n th e p riva te s e c to r a nd u nive rs ity re s e a rc h (“s kin in th e g a m e ”) − Th e in-kind dis c us s ion is e s pe c ia lly re le va nt to th e IT indus try a nd m os t of th e m a jor c orpora tion m a ke e xte ns ive us e of th is a pproa c h in th e ir s tra te g ic pa rtne ring , e s p. s oftwa re (MS F T, e t a l). • C o s t s h a ring is a ls o th e m o s t im p o rta n t d rive r in de te rm in in g wh e th e r th e ou tc om e s a re m e a n in g ful • C o m p e tition re q uire s a n e c o s ys te m , n ot a po in t-s o urc e c o ntrib ution (s e e J o h n Ka o ’s b o o k “In no va tion Na tion : How Am e ric a is Lo s in g Its In no va tion E dg e , Wh y It Ma tte rs , a n d Wh a t We C a n Do to G e t It B a c k”) • E c os ys te m s p ro vid e s e lf-re in forc ing (a m plifying ) a nd virtuo u s c yc le s • E c os ys te m s a re a live a nd we ll in B ra z il, R u s s ia , In dia , C h ina , e tc . − HP is a c tive ly e ng a g e d in a ll of th e m − Th e diffe re nc e is th a t e ve ryone (G ove rnm e nt, P riva te S e c tor, Unive rs itie s ) is on th e s a m e pa g e (g re a te r a lig nm e nt th a n th e US s ys te m ; we h a ve work to do h e re ) 38 10 J a n 200 8

Slide 39: Ma jor Th e m e s

Slide 40: le te bso O March 8, 2008 40

Slide 41: Th e Knowle dg e P roc e s s of th e F uture Ne w Knowle dg e Ne w Ta le nt Knowle dg e Knowle dg e G e ne ra tion Tra ns fe r Ac a de mia •J oint R e s e a rc h •F a culty •Cus tom e r S olutions •Ne w Ta le nt •Ne w kn owle dg e •Curriculum Ne w Knowle dg e Com pe te nc e & •Knowle dg e Applic a tion •S ta ke h olde r Ne e ds •B e s t P ra c tice s To S a tis fy S oc ie ty Ab ility to Le a rn •Ta le nt S pe c ific a tion •Cus tom e r Ne e ds •Indus tria l Te a c h e r •Cus tom e r F e e db a c k Indus try Knowle dg e Knowle dg e G e ne ra tion Tra ns fe r •Inte g ra te d E nte rpris e s •Inte g ra te d P roduc t/ roce s s De v P •Le a rning Org a niz a tions •E nte rpris e -Wide S up ply Ch a ins S ourc e : Knowle dg e S upply Ch a ins ; A Ne xt-G e ne ra tion Ma nufa c turing P roje c t 41 10 J a n 200 8

Slide 42: Infra s truc ture

Slide 43: Wo rld B a nk – Th e F o u r P illa rs o f Th e Kno wle d g e E c o n om y • Education & Training An e duc a te d a nd s kille d popula tion is ne e de d to c re a te , s h a re a nd us e knowle dg e . • Information Infrastructure A dyna m ic inform a tion infra s truc ture -ra ng ing from ra dio to th e inte rne t-is re q uire d to fa c ilita te th e e ffe c tive c om m unic a tion, dis s e m ina tion a nd proc e s s ing of inform a tion. • Economic Incentive & Institutional Regime A re g ula tory a nd e c onom ic e nvironm e nt th a t e na b le s th e fre e flow of knowle dg e , s upports inve s tm e nt in Inform a tion a nd C om m unic a tions Te c h nolog y (IC T), a nd e nc oura g e s e ntre pre ne urs h ip is c e ntra l to th e knowle dg e e c onom y. • Innovation Systems A ne twork of re s e a rc h c e nte rs , unive rs itie s , th ink ta nks , priva te e nte rpris e s a nd c om m unity g roups is ne c e s s a ry to ta p into th e g rowing s toc k of g lob a l knowle dg e , a s s im ila te a nd a da pt it to loc a l ne e ds , a nd c re a te ne w knowle dg e . 43 10 J a n 200 8

Slide 44: Infra s tru c ture E le m e n t: Inte rn e t B a n d width • Th e US is fa lling b e h in d in g lob a l b ro a d b a n d − In 2001, US wa s 4 th in num b e r of b roa db a nd s ub s c rib e rs pe r c a pita − Toda y, th e US is 15 th • Hig h -s pe e d inte rn e t s e rvic e in c o u ntrie s like J a p a n, F ra nc e a n d S o uth Ko re a is m a n y tim e s fa s te r th a n th e US a nd le s s e xp e n s ive • In s om e As ia n a n d E u rop e a n c ou n trie s , q uic ke r c o nn e c tio ns a re p us h in g n e w a pp lic a tion s , s uc h a s lo w-c os t vide o c o n fe re n c in g , o nline c la s s ro om s a nd te le m e d ic in e • Ve nture inve s tin g in th e US c o u ld s uffe r if E urop e a n d As ia b e c om e th e ne w te s t b e d s fo r e m e rg in g Inte rne t a pp lic a tion s • “… in th e lo ng ru n it th re a te n s o ur e c o no m y, ou r inn o va tion , o ur h e a lth c a re , ou r e d uc a tio n a n d jo b c re a tio n” – R e p . E d wa rd Ma rke y, D-Ma s s , C h a ir o f Ho us e s ub c om m itte e o n te le c o m m u n ic a tio ns a nd th e Inte rn e t 44 10 J a n 200 8

Slide 45: National Nanotechnology Infrastructure Network (NNIN) 100 nm thick shaft 1 µ m t hick mass loading Cornell U (Lead) UW Stanford U Cornell Harvard U Michigan Minnesota Georgia Tech Michigan PSU Howard U Washington Stanford Penn State U NCSU UC Santa Barbara UCSB UNM U Minnesota Georgia U New Mexico Tech UT-Austin U Texas –Austin Harvard U Howard U No. Carolina State U An integrated national network of user facilities providing researchers open access to resources, instrumentation and expertise in all domains of nanoscale science, engineering and technology March 8, 2008 45 http://www.NNIN.org; Est. 5000 users (~14% industry) in 2007, NSF 3,500/ user MC Roco, 11/29/07

Slide 46: Network for Computational Nanotechnology A national resource for research, education and user-facility to accelerate the transformation of nanoscience to nanotechnology through theory, modeling, and simulation and collaboration enabled by cyberinfrastructure Norfolk State U. U.Texas-El Paso NCN (7 nodes) Purdue U. Stanford U. U. Florida No. Northwestern U. U. Illinois-Urbana Champaign Focus: “from atoms to systems”; “same equations for various applications” Date http://www.nanoHUB.org Est. 25,000 users (~10% ind) in 2007; NSF $200 / user MC Roco, 11/29/07

Slide 47: C h a lle ng e s We Fa ce

Slide 48: I S e e Th re e Ch a lle ng e s … • Th e “in nova tion” c h a lle ng e • Th e “dis inte rm e dia tion of re s e a rc h ” c h a lle ng e • Th e “m ode l” c h a lle ng e 48 10 J a n 200 8

Slide 49: Th e In no va tio n C h a lle n g e • In no va tion is e ve rywh e re • I + U + G pa rtn e rs h ip in ve s tm e n ts ove r th e pa s t 3 d e c a de s h a ve p rovide d us with a ne a rly-pe rva s ive in fra s truc tu re to s up p ort in n ova tio n • Th is infra s truc tu re , to g e th e r with th e “fla tte n e d world” h a s e na b le d a lm os t a n yon e to m a ke th e c o ntrib ution s th e y d e s ire ( = g lo b a liz a tion ) • C h a lle ng e s : − How to b uild out th e innova tion infra s truc ture in pla c e s wh e re it h a s not b e e n pre vious ly de ve lope d − How to re fine th e role s of I + U + G with th e h ug e s h ifts th a t a re ta king pla c e in th e world • An d, − To look a h e a d into th e future a nd de te rm ine wh ic h e le m e nts of th e ne xt inno vatio n platfo rm m us t b e put into pla c e toda y 49 10 J a n 200 8

Slide 50: Th e Dis in te rm e d ia tio n o f R e s e a rc h C h a lle ng e • Wh e n ou r re s e a rc h s tru c tu re s a nd o rg a n iz a tio ns a re dis trib u te d a nd “s pre a d ou t”, we m us t a c tive ly s e e k to u nd e rs ta n d − “Wh a t h olds us tog e th e r? ” − “Wh y a re we tog e th e r? ” − And, “Wh a t doe s it m e a n to b e a pa rt of one , g lob a l ins titution or org a niz a tion? ” • On e p o s s ib le a n s we r to th e q ue s tio n s po s e d , h a s to d o with s h a re d va lue s . • An oth e r a ns we r c o uld b e th e us e of c om m on la n g u a g e − One of our g lob a l re s e a rc h c olla b ora tions h a s e s ta b lis h e d a c om m on la ng ua g e for th e ir work s o th a t m ultidis c iplina ry work c a n b e unde rs tood • Wh a t a re e le m e nts th a t h e lp ou r re s e a rc h to b e c o h e s ive , a nd h ow d o th e y s u pp o rt th e m is s io n o f o u r org a n iz a tio ns a nd ins titution s , g oin g fo rwa rd? 50 10 J a n 200 8

Slide 51: Th e Mo d e l C h a lle n g e • B a s e d u po n th e e xpe rie n c e o f in d us try, th e re wo n’t b e on e s ing le m od e l fo r g lo b a liz in g ; th e re will b e m a ny. • E m e rg ing m o de ls will b e b a s e d o n − R a pid g rowth in s om e re g ions , − And ra pid c ontra c tion in oth e rs • In a da ptin g to a g lo b a liz e d wo rld , th e re will b e s ig nific a nt re s tru c tu rin g a lo ng th e wa y, a s th e org a niz a tion s a nd in s titution s a tte m p t to d e a l with ne w fo rc e s , wh ile c on tinu in g to de live r o n th e ir m is s io n • Th e c h a lle n g e will b e to find th e s truc ture s th a t wo rk, wh ile e xte nd in g o ur re a c h , a n d m a inta in in g c oh e s io n , a nd a t th e s a m e tim e a s e n s e o f c om m u nity 51 10 J a n 200 8

Slide 52: S umma ry • Clos e d s ys te ms produc e th ing s th a t a re obs ole te a nd will not be c ompe titive g oing forwa rd – ope n c olla bora tion is th e pa ra dig m of c h oic e for a c c e le ra ting innova tion • G ood pa rtne rs h ips a re h olis tic , ope n, c olla bora tive (win- win-win) • US c ompe titive ne s s – only wa y we will be c ompe titive is if we c olla bora te a nd innova te ope nly • Th e re a re oth e r innova tion e c os ys te ms out th e re th a t a re a live a nd we ll a nd pros pe ring • Commitme nt to e duc a tion g loba lly – e ve ryone wh o inve s ts in e duc a tion g loba lly will win • Commitme nt to infra s truc ture in a n ope n wa y – e ve ryone wh o inve s ts in infra s truc ture g loba lly will win 52 10 J a n 200 8

Slide 53: Que s tions to Cons ide r • How do you s e e oth e r pla ye rs in th e g loba l c ommunity s h owing up in your e c os ys te m? • Wh o a re th e c ompe titors to NS F (oth e r funde rs with $$ (or £, €, ¥, 元 , R $ …) a nd re s ourc e s a t a g loba l le ve l)? • As pa rtne rs , wh a t e ls e do th e y bring to th e ta ble , be yond mone y a nd re s ourc e s ? • Wh a t doe s th oug h t-le a de rs h ip look like in th is s pa c e ? • Wh a t ke e ps you a wa ke a t nig h t? Wh a t do you worry a bout, a t th e h ig h e s t le ve l? • If th e re wa s only one th ing you c ould do in th e wa y re s e a rc h is c onduc te d to a dva nc e th e US Innova tion E c os ys te m, wh a t would it be ? 53 10 J a n 200 8

Slide 54: Th a nk Y ou wa yne .jo h ns o n@h p.c om 54 10 J a n 200 8

Slide 55: 55 10 J a n 200 8