Its Not Your Grandparents Labor Market Anymore: The New Environment and New Roles for the 21st Centu

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Its Not Your Grandparents Labor Market
AnymoreThe New Environment and New Roles for
the 21st Century Marketplace
NGA 2003 Workforce Policy Forum December 5, 2003

• Paul Shirley
• Chairman
• Next Generation Economy
• President CEO
• Qynergy Corporation

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Session Questions

• Session Questions
• What do individuals, companies and government
  need to know to hold onto jobs or get new ones?
• How does globalization affect business decisions
  and the labor market?
• My Answer
• That for USindividuals, companies and
  government, business leaders and members of the
  workforceto succeed as part of a global economy,
  WE must understand and harness the dynamics of
  INNOVATIONmanage themfor the good of America
  and, ultimately, the world.
• The greatest opportunity for US to not only
  survive but flourish, is by Creating
  Opportunities and Hope through an Innovation
  Based Economy

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SVSThe Vision
Provide A High Technology Environment Where
Everyone Can Have Fun, Make A Difference, And,
Oh By The Way.Make A Profit
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From SVS to Boeing SVSGrewSurvivedAnd Had
Fun!!!
History Founded January 7, 1993 Boeing Merger
July 9, 2000

• People
• From 3 _at_ Founding to Over 270 Today
• and Still Growing!!!
• Skilled, Multi-disciplinary Staff
• Ranked as Tops in Job Satisfaction Throughout The
  Boeing Company Since Merger

• Economics
• 3 Founders Invested 1,000 each (1992)
• 79,000 Gross Revenues (1993)
• 50,000,000 Gross Revenues (2003 est.)
• Average Salaries 67,500 per year

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My ExplorationSabbatical 2000-2001

• Have Fun, Make a Difference, and Oh by the
  WayMake a Profit (It Can Work!)
• To Create Opportunity (HopeJobs) It Takes
• People
• Passion
• Competence
• Culture
• Community
• Trust
• The Rise of the Creative Class (Richard Florida)
• Talent, Technology Tolerance
• Transforming Work The Five Keys to Achieving
  Trust, Commitment, Passion in the Workplace
  (Patricia Boverie Michael Kroft)
• The Seeds of Innovation (Elaine Dundon)
• Ripples from the Zambezi (Ernesto Sirolli)
• Passion, Energy, Imagination Resources of
  People
• The Right Mix gt Innovation

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INNOVATIONOne Definition The profitable
implementation of strategic creativity

• Its a fascinating subject. How it happens, where
  it happens... and why.
• Many people like to cite Edisons famous
  prescription 1 inspiration and 99
  perspiration. And the 99 part is something we
  feel we can address, right?
• But what about that 1? We tend to treat that as
  if it were simply magical -- not subject to
  guidance or nurturing, much less planning. Its
  just human genius, popping up whenever and
  wherever it will.
• However, if we study history, we know that thats
  simply not true.
• There are times and places and certain conditions
  under which innovation absolutely flourishes.
  Sometimes, its appearance is explosive, with so
  much creativity packed into a short span of time
  that it changes global society and the course of
  history itself.

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Benefits of Innovation

• Spawns new industries
• Fuels economic growth
• Creates countless high-value, high-paying jobs
• Raises the standard of living for people around
  the globe

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What Has Made The U.S. An Engine Of Innovation?

• Ready access to natural resources and labor.
• The skills and work ethic of American workers.
• Strong capital markets, a long tradition of the
  rule of law, a deep commitment to property
  rights.
• And finally, the U.S. has benefited from a unique
  sort of cooperation and collaboration among the
  federal government, national and military labs,
  private-sector RD efforts, research universities
  and entrepreneurs.
• As well, historically we have encouraged and
  rewarded risk takers
• America was created by people who decided to pack
  up, get on a boat and sail to a new world in
  search of something better.
• Go West Young Man
• Our push to put Man on the Moon

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We Are At A Critical Moment

• What if the US falls out of step with the new
  realities of Innovation?
• The innovators risk takers would go
  elsewherebecause they can.
• What New Realities?
• New mood in the country that puts us at risk of
  creating a hostile environment for business
  investment and the creation of new businesses
• Why innovate here when it may be easier to
  perform offshore?

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The Innovation Challenge

• Right now, the greatest challenge we face is that
  the very nature of innovation itself is changing.
  
• Innovation is not the same as invention.
  Invention is the starting point -- important, to
  be sure. But true leadership requires a focus on
  the pull for innovation, not merely the push of
  invention.
• We understand the importance of RD, of raw
  invention. But we also know that today,
  invention alone is no longer sufficient to
  deliver value -- or to win.
• Example New Mexico is a leader in invention but
  lags significantly in the creation of wealth and
  high paying jobs.
• Innovation occurs at the intersection of
  invention and insight. Its about the application
  of invention -- the fusion of new developments
  and new approaches to solve problems.

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The Transistor Example

• The transistor was an invention -- an invention
  actually to amplify sound over long-distance
  phone lines. But then many people, companies and
  institutions took the transistor and applied it
  in many ways.
• Texas Instruments and Fairchild Semiconductor
  applied transistor technology to put whole
  circuits on a chip of silicon... the first
  computer chip.
• That made possible electronic mainframes,
  servers, PCs, the Internet.
• Those advances, in turn, were applied to
  business, education, healthcare, national
  defense.
• All of this was made possible -- not just by the
  invention of the transistor -- but by its
  application and exploitation across multiple
  industries, and by the intersections of invention
  and the needs of business and society.

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Council on Competitiveness (CoC) StudyTopic
Global Employment

• The study aggregated job data from national and
  international sources and made projections based
  on industry-specific and global economic trends.
• The 42 industries represented on the CoC
• Will create 12 million jobs worldwide over the
  next two years.
• Will generate nearly 100 million jobs worldwide
  over the next decade.
• CoC Belief The preponderance of those jobs will
  be created as a result of innovations that are
  occurring, and will occur with increasing
  frequency, around the world.
• One Industry Example -- Information Technology
• Will create 1.5 million new jobs over the next
  two years.
• Much of that job creation will occur in the
  industrys most innovative segments -- high-value
  services, middleware, Linux and open
  standards-based systems.
• IBM major IT player-will need at least
  10-thousand new positions in key skill areas next
  year alone. They are committing 200 million
  dollars to train and educate 100-thousand
  existing employees to compete for these new
  high-skill jobs.
• So, by any measure, across all of these
  industries, we are talking about millions and
  millions of jobs.

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To unleash the next wave of innovation, we need a
definition of innovation for the 21st century.

• How can we go beyond traditional notions of RD
  , invention and intellectual property and
  identify and nurture the intersections that lead
  to innovation?
• Are there ways to drive innovation at the
  intersection of services and manufacturing, such
  as the intersection of life sciences, healthcare
  delivery and IT? Or similar intersections of
  invention and insight in energy,
  telecommunications and the public sector?
• How do we stimulate innovation across all
  services sectors -- an imperative in a
  services-driven global economy?

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What about metrics?

• How do we measure innovation?
• How do we identify the technologies,
  applications, disciplines, investment and
  training strategies that are most supportive?
• How do we measure success?

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Education?

• What does the changing nature of innovation mean
  for skills?
• What skills are needed in life sciences, energy,
  new materials or nanotechnology?
• Are U.S. universities adapting to the changing
  environment?
• Can we stimulate them to be more proactive versus
  reactive?
• Are they nurturing and creating the new
  disciplines that will likely emerge -- not from
  within an established field, but from
  collaboration across industries, professions and
  fields?

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Role of Government?

• Government has a unique role, but does it have
  sufficient focus on innovation, not just basic
  research?
• What can governments do to nurture strategic
  partnerships among the private and public
  sectors, universities and labor?
• Are we building the national infrastructure
  necessary to participate in the global innovation
  ecosystem -- so that developments created
  anywhere in the world can be capitalized on in
  the U.S.?
• And what about government itself? What are the
  implications -- and opportunities -- of a new age
  of innovation for the ways we are governed?

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Investment?

• And finally, investment -- how do we finance
  innovation?
• How do we make the best use of tax dollars
  earmarked for innovation?
• Can we rekindle private sector RD investment?
• How can we strengthen our venture capital markets?

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Summary Conclusions

• Innovation is the best way to spur job growthit
  will be the engine
• In the long term, our efforts will help preserve
  and extend Americas innovation and economic
  leadership, as well as this nations equally
  impressive record of creating high-paying,
  high-skill jobs for American workers, and
  providing them with rising standards of living
  and ever-improving quality of life.
• Our tradition of opening up new possibilities and
  new frontiers offer hope. Hope not just to the
  residents of this portion of the New World, but
  to citizens of the whole world.
• Support the Council On Competitiveness Innovation
  Initiative

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My Thanks

• General acknowledgement to the Council On
  Competitiveness for providing the supporting
  information for this briefing
• My specific acknowledgement and appreciation goes
  to IBM Chairman and CEO Sam Palmisanoco-chair of
  the Council on Competitiveness Innovation
  Initiativefor his visionary leadership