THE ROLE OF EDUCATION IN INNOVATION

1. Jay Noren President, Wayne State University June 16, 2009 THE ROLE OF EDUCATION IN INNOVATION

2. Science literacy among 15-year-olds: • U.S. rank – 21st of 30 wealthiest nations • Math literacy among 15-year-olds: • U.S. rank – 25th of 30 wealthiest nations The National Academy of Sciences recently reported:

3. Where are the engineers? 6% 12% 20% 40%

4. Inflation-eroded gains in NIH funding 28.2 26.7 ( Dollars in Billions ) 7.3% loss in purchasing power since 2003 24.8 Note: BRDPI is the Biomedical Research and Development Price Index

5. 7.7% per-student decrease from 2002-2007 (inflation adjusted) • Dependence on tuition revenue has increased from 20% of total revenue in 1980 to 40% today Decrease in state appropriations to higher education

6. 33 30 U.S. technology transfer and business incubators have lagged 17 -24 ( $ BILLIONS )

7. Road map to tomorrow • National Defense Education and Innovations Initiative, Association of American Universities (AAU) • Science as a Solution: An Innovation Agenda, AAU • Rising Above the Gathering Storm: Energizing and Employing America for a Brighter Economic Future, The National Academies • Innovate America — National Innovation Initiative, The Council on Competitiveness • A Commitment to America’s Future: Responding to the Crisis in Mathematics & Science Education, Business Higher Education Forum • Benchmarks Of Our Innovation Future II, Task Force On The Future Of American Innovation • AAU Policy recommendations to President Obama, December 2008

8. Restructure system into Pre K-16 education • Extend length of education day and year • Expand public education to 14 years rather than 12 • Increase K-12 teacher compensation • Establish national standards in math and science education Revitalizing America’s K-12 education for innovation

9. Increase bachelor’s degree attainment levels through increased student financial aid “The economic benefits from expansion in access to higher education could be substantial. Increasing the nation’s average level of schooling by one year could increase economic growth by 6% to 15% -- adding some $600 billion to $1.5 trillion dollars to U.S. economic output.” National Bureau of Economic Research Higher education initiatives

10. A new National Higher Education Trust Fund to stabilize funding for higher education President Obama’s American Opportunity Tax Credit--$4,000 per student per year Implement the initiatives suggested by The National Academy of Sciences and other national organizations Higher education initiatives (cont.)

11. The Obama administration’s major new innovation acceleration initiative - $ 1 billion • Create collaborative partnerships among research institutes and universities for enhanced R&D and tech transfer (e.g., URC - MSU, UM, WSU) • University-industry-government partnership through business incubators • Joint private foundation efforts (e.g., Michigan NEI/Kauffman Foundation initiative) Technology transfer and business incubation

12. “The post-World War II basic research partnership between the federal government and universities has been a fundamental reason for American leadership in science and technology. This leadership has been critical to sustained long-term economic growth in the U.S. But recent developments threaten this unique partnership, undermining universities’ ability to conduct important research on behalf of the federal government and the American people.” Conclusion AAU