The Innovation Imperative ~ Enhancing Positive Educational Change through Technology

1. The Innovation Imperative ~ Enhancing Positive Educational Change through Technology The Honorable Aneesh P. Chopra Secretary of Technology April, 2008

2. Agenda for Discussion I. The Innovation Imperative II. Three Levers for Reform III. Coda ~ “More with Less”

3. The Innovation Imperative Thriving Technology Sector a Key Pillar of Virginia’s Competitiveness Technology Drives Virginia Economy Virginia Atop the Nation’s States • In 2007 American Electronics Association noted Virginia has the highest concentration of tech workers in the nation • Sixth lowest unemployment rate in the nation (3.1% as of July 2007) • Kaine Administration: 44,329 new jobs and $5.9 Billion in new investment • In 2006, Forbes.com named Virginia the beststate for business • 32% of all new jobs statewide created in the technology sector(year ending June 2007) • Wages in the technology sector represent 29% of all Virginia salaries (year ending June 2007) Employment Growth 2Q06 vs. 2Q07 2.1% 1.0% All Industries Technology Sector Source: Virginia Economic Trends 2Q2007, Chmura and Virginia Employment commission; AeA Cyberstates 2007 Report

4. “Drilling Down” on Anxiety National Indicators Warn of Anxiety with Global Economy CNN/Opinion Research Poll October 2007 Changes in Share of Employment By Occupational Skill WSJ/NBC Survey December 2007 “What do you think foreign trade means for America … an opportunity … or a threat…?" “Do you think the fact that the American economy has become increasingly global is good … or bad …?" 46% 45% 58% 28% Opportunity Threat Good Bad “The Sagging Middle” “There is still strong demand for high-end workers…But…demand is increasing for some workers at the low end of the pay scale: the ones who wipe brows in hospitals, care for kids…and stand guard. The losers? “The sagging middle” – D. Wessel Source: “How Polarizing Job Scene Squeezes Middle,” WSJ 10/12/07; CNN/Opinion Research, 10/07; WSJ/NBC Survey, 12/07

5. Three Levers Working to Ensure all Virginians Benefit in the 21st Century Economy I State R&D Investments II An Innovation Infrastructure III Filling Tomorrow’s High-End Workforce #Investing in Guided Innovation: Support $1.2 billion R&D goal through state funding, incentives to promote corporate research #Universal Broadband: Develop public-private partnerships to ensure access to low-cost high-speed services #‘STEM Education: Strengthen Virginia’s K-12 system by growing tomorrow’s science and engineering leaders SoTech Agenda #VRTAC Reform #CIT Agenda #Workforce Reform

6. Virginia Performs Council on Virginia’s Future Indicators Reveal Strong Performance Source: Virginia Performs Website (www.vaperforms.virginia.gov)

7. Too Many Virginians Left Behind Educational Attainment, Test Scores Affect Our Ability to Compete Educational Attainment Virginia Test Scores and Economic Growth OECD Countries “in today's global economy…too many…kids aren't being prepared adequately for…either… work or college…our standards have not kept pace” – Governor Mark Warner Nation’s Governors failed to achieve 1989 goal to achieve top ranking in science and math by 2000; “had the promise been fulfilled …, our results suggest that GDP would by 2015 be 4.5% greater”–Professor Eric Hanushek, et al. Source: Council on Virginia’s Future; “Action Agenda for Improving America's High Schools,” Mark Warner, February 22, 2005; NGA “Education and Economic Growth,” Education Next, Hanushek, Jamison, Woessman, Spring 2008

8. Filling Tomorrow’s High End Workforce Dual Strategy to Improve Our Finest, Extend Opportunity to All Redesigning K-12 Curriculum Virginia received a $500k grant from the NGA to establish a network of STEM centers built around Career and Technical Education; partnered with NASA to strengthen chemistry, physics core standards and introduce approach to K-12 engineering Promoting AP Results Virginia is one of 14 finalists for the $125M ExxonMobil funded grants to drive up the utilization of AP exams and the financially-reward students for scoring a 3 or greater; requires $2.4M in private matching funds contributed over 5 years Providing Leaders, Hands-on Competition Virginia is home to one of the largest FIRST Robotics regional competitions that draw 1500+ students annually; possible expansion to include additional sites across the Commonwealth to scale up participation “From Competence to Excellence” “Our education goal should be to promote true excellence by moving beyond our focus on competence, as measured by scores on standardized tests of minimum expectation.” Governor Tim Kaine

9. THEORY S K I L L C O M P O N E N T S HANDS-ON Nothing But Questions Theoretical Physics Experimental Physics Addressing the Curriculum Gap Discover languagesto quantitatively describe existing world Discover & describe existing world Design & buildnew systems Fabricate & operate new systems Build or repair existing systems/components Traditional Welding HVAC Electricity Plumbing Electronics Manufacturing (Surgeon 19th C.) A+ Comp Repair Comp Network Admin CISCO Network ORACLE Internet CAD Model & Simulation Algebraist Geometer Topologist Statistician Physicist Chemist Biologist Research MD Astronomer Geologist Aerospace Automotive Chemical Electronics Computer Civil Model & Simulation Research Surgeon Wind Tunnel Aircraft Maintenance Airframe/Powerplant Particle Detectors Integrated Circuits 21st Century Focus on modernizing curriculum (more lab work, emerging technologies) Focus on new curriculum (more applied/case method, career path) 2-yr college/OJT 4-yr College (+) 4-yr College (+) 4-yr College (+) HS with National Certifications CTE Current K-12 “Gap” Traditional Academic Source: Jim Batterson, NASA * Sometimes “Instrument Maker”

10. Career Pathways ~ A Case Study Health IT a High Growth, High Wage Occupation for All Virginians Clinical Codervacancy rate in Northern Virginia 11.5%, with an expected 2,500 FTE demand by 2020 Clinical Data Coding Career Studies Certificate Certified Coding Specialist (CCS) Certified Coding Associate (CCA) • Northern Virginia Community College • Tidewater Community College • Host of Online Programs Average Income 2005 Registered Health Information Technician (RHIT) (Associate Degree) $35.0K $17.4K Registered Health Information Administrator (RHIA) (Bachelors Degree) • DeVry University • Host of Online Programs Galax Per Capita Clinical Coder • George Mason University • (proposal) • College of St. Scholastica • (online) • University of Illinois at Chicago (online) With five years experience, coders can make between $50-75,000 Masters of Science degree in Health Information Management

11. Traditional Curriculum Development Too Slow to Modernize Logarithms for Computation Instructional Presence Source – NASA Langley Research Center, Planning Office

12. Dramatic Pace of Change in the History of Calculations

13. Framework for Reform A Comprehensive Approach to Educational Innovation Online Collaboration Program Re-Direction Traditional Lessons: • Curriculum Development - Wiki • Counting • Idea Sharing Across Regions • History • Reading Buildinga 21st Century Curriculum • STEM Community Networking New Skills to Incorporate: • Innovation • Needs Assessments • Problem-Solving • Invention Incorporating Emerging Technologies • Web-based Games • Instant messaging • Social networking sites

14. Coda ~ “More with Less” Taxpayers Consistent on “Price” Willing to Pay for Government Virginia’s “Price” of State/Local Government Cents/$ Personal Income Beyond “Best Managed State” “Our goal is to be the best managed state, but also to go beyond – to measure state government against the best business organizations. All highly effective organizations regularly review their budgets and procedures, constantly looking for ways to improve and implement best practices. -Governor Kaine July 2007 Budget Memo Despite increased investments needed for education, healthcare, public safety and transportation, Virginia’s historical tolerance for public investments hovers below 15% Additional investments should be funded (at least in part) by savings generated within existing programs – re-allocating under-performing assets one budget tool to consider Source: Public Strategies Group; Governor Kaine July 2007 Budget Memo

15. Public Sector Innovation Adoption Holds Promise to Drive Efficiency Productivity Investment Fund in Brief Technology Adoption Life Cycle chasm Capital: Governor Kaine established $3M fund in January2007 to simplify government operations Goals: In addition to operating cost savings, PIF encourages agencies to lower constituent transaction time and advance the Governor’s key performance measures Competition: Only 25% of all qualified agency applications earned funding Portfolio: Across two rounds, we are expecting a 4-1 ROI on $1.4M invested to fund the following savings initiatives: Gov Population early adopters Time Accelerated Adoption Life Cycle Requirements Gov • Dept of Tax: Image Cash Letter • DMV: Workforce Mgmt System • DMME: Field GIS • Tax #2: Corporate E-File • Tax #3: Eliminate Vouchers • ODU: VIDEO-D-U Population Acquisition x early adopters Time Source: Modified from Crossing the Chasm by Geoffrey A. Moore, 1991

16. Public-Private Partnerships Virginia Actively Courts Private Sector Investment to Deliver Value Health Plan IT-Related Services Initiated Procurement January 16th, 2008 GED On Demand October 12, 2007 Google Site Maps April 30, 2007 Virginia one of 4 states to partner with Google to implement site maps and enterprise search; portal traffic is up 22% as 180K+ URLs, including sex offender registry, loaded by 12/07 Following Executive Order 42, private firm Accretive Care submits an unsolicited PPEA* to provide “navigation” services; competing proposals due April 22nd, 2008 Cox and Comcast began offering GED® ON DEMAND lectures at no additional cost to digital cable subscribers; 39 courses available today across 1MM households *Public Private Educational Facilities Act

17. Entrepreneurs Ready to Dramatically Lower Costs for Public Services Water Filters Hearing Aids Low-cost product to alleviate hearing impairment; 240+million people suffer without treatment; David Green selected as an Ashoka Fellow Low-cost method to remove arsenic from water; 10+ million people suffer without treatment; GMU Professor Abul Hussam wins $1M Grainger Prize Cost Per Device Cost Per Device ~$800 ~$5,000 $60-$210 $40 Market Filters SONO Filter Market Aids Impact 1 Prototype developed within three years of original concept Device requires no energy supply