Rising Above the Gathering Storm

1. Rising Above the Gathering Storm Governor Schwarzenegger’s Commitment that California Continue its World-Wide Leadership in Science and Innovation Confidential

2. California is the World Leader • In 2005, California received more venture capital funding than any other area in the world. • California is the birthplace of the biotech industry and the center for the Cleantech industry. • California is home to 12 of the 20 most inventive towns in America (11 in Silicon Valley). • California has the largest College and University systems in the country and is home to the world’s top research institutions. • Taken alone, California has more Nobel prize winners than any country but the U.S. and U.K. Confidential

3. InnovationDrives California’s Economy “Among California's most important comparative advantages in competing in the global economy are its relentless spirit of innovation and its unrivaled higher education and research institutions. These premier institutions are instrumental in attracting to California the brightest minds and best talent. And they are developing the technology that is driving our innovation economy, luring investment nationally and from abroad, creating new companies and growing jobs." - California Commission for Jobs and Economic Growth Co-chairman Warren Hellman “California has flourished through its ability to turn innovation into successful entrepreneurship. Strong investments in science and technology are the sources from which new innovation and thus new business opportunities emerge." - Dr. Aart de Geus, chairman and CEO of Synopsys, Inc. "Collaboration between industry and academia is crucial to deliver on our shared vision for the future of technology and education." - Bill Gates Confidential

4. InnovationDrives California’s Economy • California ranks first in U.S. tech jobs, workplaces, exports, and R&D • The Golden state received nearly $10 billion in Venture Capital funding in 2005. • Over 99% of California companies (accounting for over 50% of non-farm employment) are small businesses, led by entrepreneurs. • Innovation not only supports high-paying jobs in the High-Tech industry, but also in drives California’s national leadership in agriculture, film, and environmental industries. Confidential

5. InnovationDrives California’s Economy "Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It's not about money. It's about the people you have, how you're led, and how much you get it." - Apple Founder Steve Jobs “California today is the world's leader in innovation but we must take every step necessary to make sure we stay on top in this increasingly competitive global economy." - Stratton Sclavos, Chairman, President and CEO of VeriSign "There's no doubt that America today is the global leader in innovation. But it's increasingly clear that this status is not a given and we must enact policies to remain on top. Our global competitors are rapidly catching up to us by investing in education, encouraging entrepreneurship, and making next generation infrastructure a priority. Our policies must further promote innovation-driven global competitiveness, led by a renewed investment in education, research and development, entrepreneurship and next generation infrastructure." - Rick White, President and CEO of TechNet Confidential

6. Governor Schwarzenegger’s Commitment to Science and Innovation • World-leading Emissions Reductions Mandates • Renewable Energy • ‘Million Solar Roofs’ • Hydrogen Highway • Stem Cell Research • R+D Tax Credits • Educational Facilities • Science and Math Teachers • UC Research Grants and Contracts • Career-Technical Education Confidential

7. Governor Schwarzenegger’s Commitment to Science and Innovation • The Governor’s 2007-2008 Budget Proposal contains $95 million for four critical innovation initiatives: • The Helios Project ($30 million) • Energy Biosciences Institute ($40 million) • The California Institutes for Science and Innovation through the University of California ($19.8 million) • Petascale Supercomputer ($5 million) Confidential

8. Helios Project • Four Goals (support AB32): • Generate clean sustainable alternatives to carbon fuels, develop new energy sources, improve energy conservation, and reduce GHG emissions • Committed Research: • Biomass-to-fuel/ Solar-to-Chemical Conversions • Solar-to-fuel Conversion • Photochemical conversion • Photoelectrochemistry • Build market share in Cleantech Confidential

9. Energy Biosciences Institute • $500 Million Grant Competition for the BP Energy Biosciences Institute (EBI) • World’s Preeminent Research Institutes • Application of bioscience and the production of new and cleaner energy, principally fuels for road transport. • Converting fossil fuels to energy with less environmental damage and maximizing oil • Extraction from existing wells in environmentally sensitive ways. Confidential

10. Institutes for Science and Innovation • QB3-California Institute for Quantitative Biomedical Research on the UCSF, UCB and UCSC campuses. • CNSI-California Nanosystems Institute on the UCLA and UCSB campuses. • Calit2-California Institute for Telecommunications and Information Technologies on the UCSD and UCI campuses. • CITRIS Center for Information Technologies Research in the Interest of Society on the UCB, UCD, UCM and UCSC campuses. Confidential

11. Petascale Supercomputer • UC is a High-speed Computing Leader • Universities and Research Institutes in Other States (and Countries) are Challenging • $200 Million The National Science Foundation Competition – hundreds of contenders • California Players: Lawrence Livermore National Laboratory, Lawrence Berkeley National Laboratory, and UC San Diego Confidential

12. Q+A Confidential