Globalization of the Engineering Enterprise C. D. Mote, Jr. Regents Professor & Glenn L. Martin Institute Professor

1. Globalization of the Engineering Enterprise C. D. Mote, Jr. Regents Professor & Glenn L. Martin Institute Professor of Engineering NSF Engineering Globalization Workshop May 16-18, 2012 Arlington, VA

2. Context • Cold War Era – pre 1990 – pre “Globalization Period” • Idea:control information & innovation to protect advantage • “Isolation and secrets” • nationally focused – protect national advantage • global forays for national benefit • Few: national players • separated by distance, oceans, information, facilities, technical capabilities – Iron Curtain – isolation was good • Strategy: win by playing defense • control information to stop others from advancing (scoring) • you score less but win by stopping adversaries from scoring

3. Context • Post-Cold War Era – post 1990 – Globalization Era • Idea: utilize advantage to accelerateinnovation - because information cannot be controlled • “partnerships and engagement”globally • global access (markets, talents, manf.. ) for partnership advantage • global forays for partnership benefit • Many: national players and wanabees globally • connected by Internet, information, high quality facilities, talent, advanced capabilities, communications • Strategy: win by playing offense • “score as fast as possible” for others can’t be stopped from scoring • prepare to move on as others catch up – cannot protect advantage • 180O paradigm shift from Cold War strategy

4. Predicting the Future • Predicting the future is a futile process. • “The great thing in this world is not so much where we stand, as in what direction we are moving.” • - Oliver Wendell Holmes • We are already on that road.

5. Mega-trends • Mega-trends are driven by • Critical enablers like Internet & communications • Outcomes & Drivers like globalization and a connected world • Enablers form the foundation. • Drivers are routes to the future – to the Outcomes.

6. Global Drivers of Engineering • Globalization • Innovation • Partnerships and Engagement • Expanding opportunities & increasing demand for talent • Expanding access to higher education • Great Global Problems

7. Mega-trend for Engineering • Globalization Era to ~ 2050 • More level playing field among nations • No nation or group of nations will dominate S&T • U.S. share global S&T will decrease • U. S. share of global S&T productivity • 26 % in 2005 down to 18% by 20501 • Awareness of global trends and advancements - Up • Technology forecasting and data mining - Up • Balance the need for information control with the benefits of open S&T communications. 1 Coffey and Ramberg, “Globalization of S&T: Key Challenges Facing DOD,” Center for Technology and National Security Policy, National Defense University, February 2012.

8. What’s changing with Globalization? • Global focus is increasing monotonically • Increasingly broad global distribution of significant researchers, innovators, opportunities and advances • Publicationsin Science show internationalauthorcollaborationsUp: 20% in 1980 and 55-60% in 2010. • Growing global collaboration: global character of challenges; distributed expertise and facilities; massive data being generated; cost sharing • Global connectivity accelerates cooperation for both developed and developing countries. • Global major challenges - terrorism, water, food, pandemics, natural and man-made disasters, nuclear, . . . . . . .

9. Engineering & Innovation • Industry v. government: the conundrum - • Industry has global focus • past “outsourcing” – looks externally more than internally • Industry invests, recruits, researches, creates, designs, manufactures and sells globally – wherever it makes sense • Few “national companies” remain anywhere • Governments have constituent focus – “all politics is local” • Pressed to look internally not externally • Look externally to serve internal purposes • Refers to local industry as “our” companies • Outcome – Gov & Ind talk past each other

10. Engineering & Innovation • Universities have a foot in each camp – global and national • Must operate on a global platform while serving local (national/state) constituents • Private universities have freer global hand than public ones • Universities are still finding their way with many global experiments

11. Mega-trend for Engineering • Talent (“high quality” workforce): • Sir Francis Bacon said “knowledge is power” - Today “current knowledge” is especially powerful • Globalization of people driven by the demand for talent • Global talent in short supply but high demand – this is everyone’s problem

12. What’s changing with Globalization? • Innovation – the global rage ticket to the market economy Accelerating change Compete on quality, productivity, value added, markets Engineering tools: IT services, software, networks, reliability Business tools: supply chains, distributed suppliers and subsidiaries Communications, teams, systems, cyber Innovation requires global partnerships

13. Mega-trend for Engineering • Partnerships and Engagement • Pre-globalization: advantage gained through “isolation and control” of information for innovation control. • Playing Defense • Post-globalization: advantage through forming “partnerships and engagement” for innovation creation. • Playing Offense

14. Mega-trend for Engineering • Global partnerships and engagement • Accelerate creation of innovation • Assemble talent, resources and capabilities • Limited-term partnership with focused purpose • Must engage, have impact and do it today • Key to playing offense

15. What’s changing with Globalization? • Trust – the under appreciated foundation of every partnership • Most important precondition of any partnership • Especially in global partnerships – no common cultural base • Trust takes time • Trust is everything  absolutely everything. • Culturedetermines competitiveness and achievement of goals1 • Ensure trust before agreements or prepare to regret not doing so. 1S&T Strategies of Six Countries: Implications for the U.S., NRC, 2010, ISBN 10:0-309-15571-1

16. What’s changing with Globalization? • Education – broad, flexible and continuing Talent & current, in-demand expertise are the coin of the global realm Commodity talent in plentiful supply and cheaper elsewhere Special talents in high global demand Life-long learning in new fields is likely essential Flexibility, agility and team skills in demand

17. Mega-trend for Engineering • Great global problems: • National and great global problems have merged • environmental degradation, climate change, …… • Universities becoming more globally focused • Isolationist sentiments are down, though not out. • Connectedness has steeled linkages to global problems

18. Concluding Summary INNOVATION Globalization of the Engineering Enterprise --> profound • National prosperity & innovation  essentially in every country • National engineering competitiveness  global companies and focus • Personal engineering careers  flexibility & currenttalent • Engineering contributions to quality of life, prosperity, and security  mandatory

21. Concluding Remarks • Impact of Globalization on Engineering - profound • National Prosperity – focus on innovation • National Engineering competitiveness –> global companies • Personal engineering careers – competition & current talents • Contributions of engineering to quality of life, prosperity and security • Culture of engineering

22. Mega-trend for Engineering • Globalization • Flat World • Connecting people, universities, countries, businesses • Trickle-down & trickle-up values • Countries build global alliances • Businesses build global alliances (supply chains, manuf . . .) • People build global alliances • Research universities either engage globally or get left behind

23. Globalization of Engineering • RESPONSE TO THESE TRENDS • Individuals, governments, corporations and universities • Individuals • Increased responsibilities and opportunities • Engage globally for opportunity and quality of life • Talent is in short supply and great demand • To have talent is to have opportunity • Education is growing everywhere.

24. Globalization of Engineering • RESPONSE TO THESE TRENDS (continued) • Corporations: • Global companies – no longer national • Access to markets, talent, favorable cost considerations and other incentives encourage global expansion of multinational corporations. • Not free of problems like IP and property protections, local business practices

25. Mega-trend for Engineering • Universities are natural centers of innovation • services for and beyond campuses • U.S. business and engineering school experiences • Students start create entirely new lines of business - think: Apple, Microsoft and Google. • expand university-wide culture of innovation • extend support to community and beyond

26. Globalization of Engineering • RESPONSE TO THESE TRENDS (continued) • Universities (continued): • Global partnerships brought to undergraduate education and development of communities. • Aid developing higher education systems. • Expectation of capacity building.