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No Hiding PlaceBrian Dabson, Rural Policy Research Institute
ECOP Leadership Advisory Council
Denver, ColoradoMay 22, 2006
May 22, 2006 RUPRI 2
“The world is being flattened. I didn’t start it and you can’t stop it…But we can manage it for better or for worse…”p.469
May 22, 2006 RUPRI 3
Three Friedman themes
May 22, 2006 RUPRI 4
1. The Triple Convergence
1. New playing field: Internet allows sharing of knowledge and work in real time –ignoring geography, distance, language.
2. New plays: Emergence of new business practices, new occupations, new habits.
3. New players: from China, India, Russia, Eastern Europe, Latin America, Central Asia – 3 billion more
May 22, 2006 RUPRI 5
2. Three “Dirty Little Secrets”
1. The Numbers Gap: US stock of scientists & engineers shrinking – retirement, fewer students, fewer immigrants
2. The Ambition Gap: not a race to the bottom (low wages) but a race to the top
3. The Education Gap: foreign workforce not only less expensive but better educated
May 22, 2006 RUPRI 6
3. The “Untouchables”People whose jobs cannot be outsourced
1. Specialized workers: knowledge workers whose skills are in high demand and leading edge
2. Adaptable workers: able to change as jobs change – adopt new skills
3. Anchored workers: tied to a specific location, face-to-face contact with customers, patients
May 22, 2006 RUPRI 7
“Flatism” Policy Responses1. Political Leadership – explain and inspire, instill
sense of urgency – the next moon shot.2. Lifetime Employability and portable benefits –
lifelong learning, higher education, health care, multiple skills
3. Safety Nets for the casualties – re-engagement of the displaced
4. Corporate Social Responsibility – countering the excesses of corporate power
5. Parenting – raise expectations, US and its citizens have to earn their place in the world
May 22, 2006 RUPRI 8
Indian Institute of Technology Bombay
IITB Bombay –200,000 applicants per year for 700 places –undergraduate to post-doctoral –science, technology, engineering
May 22, 2006 RUPRI 9
Indian Institute of Technology Bombay
7 institutes created across India since1950s. But don’t be fooled by the decaying concrete…
May 22, 2006 RUPRI 10
Indian Institute of Technology Bombay
Midnight tutorial with Master’s level science & engineering students studying entrepreneurship
May 22, 2006 RUPRI 11
International Students in the United States
0
100
200
300
400
500
600
700
1994 1999 2004
000sStudents0
100
200
300
400
500
600
1954 1964 1974 1984 1994 2004
000s Students
Over past 50 years, numbers have increased from 34,000(1.4% of total enrollment) to 565,000 (4.0%). Peak was in 2002: 586,000 (4.6%)
Source: Institute of International Education opendoors 2005 Fast Facts
May 22, 2006 RUPRI 12
Countries of origin of international students
0102030405060708090
India
China
Korea
Japa
nCan
ada
Taiw
anMex
icoTu
rkey
German
yTh
ailan
d
2004-5
Source: Institute of International Education 2005
May 22, 2006 RUPRI 13
States with most international students
01020
304050
607080
CA NY TX MA FL IL PA MI OH MD
2003-42004-5
Source: Institute of International Education 2005
May 22, 2006 RUPRI 14
States with mostinternational students
Over 40,00020,000-39,99910,000-19,999
Source: Institute for International Education & RUPRI
May 22, 2006 RUPRI 15
US Students AbroadIn 2003-4 over 191,000 students participated in study abroad (1.4% of total)Fourfold increase since mid-1980s, but still one-third of foreign students in US.
Source: Institute of International Education 2005
020406080
100120140160180200
1985 1987 1989 1991 1993 1995 1997 1999 2001 2003
May 22, 2006 RUPRI 16
Leading destinations for US students
0
5
10
15
20
25
30
35
UK IT SP FR AUS MX GER IRE CH CR
2003-42004-5
Source: Institute of International Education 2005
May 22, 2006 RUPRI 17
US Student Geographic Literacy
Roper poll for National Geographic 200670% have not traveled to another country in past three years38% can speak another language fluently11% correspond regularly with anyone outside US22% have a passport80% have been online in past month27% use Internet for news (up from 11% in 2002)
May 22, 2006 RUPRI 18
The World is Spiky?Richard Florida, Atlantic Monthly, October 2005
May 22, 2006 RUPRI 19
The World is Spiky?Richard Florida, Atlantic Monthly, October 2005
The modern economic landscape:1. City regions that generate innovations – capacity
to attract global talent, create new products & industries
2. Places that manufacture the world’s established goods, take its calls, support its innovation engines
3. Places with limited or little connection to global economy and few immediate prospects
May 22, 2006 RUPRI 20
The World is Spiky?Richard Florida, Atlantic Monthly, October 2005
Major structural challenges:Greater concentration of wealth and power in economic innovation leaders, but new players change established orderMajor transitional shifts in second order industrial/commercial centers – some adapt and grow, others decline painfullyThe unconnected fall behind – social strife, mass migration, global instability
May 22, 2006 RUPRI 21
A Spiky America?
R. Florida Top 20 Creative Regions
May 22, 2006 RUPRI 22
An “Untouchables”Policy?
Specializationasset-based, stewardship
Anchorageplace-based, regional collaboration, local engagement
Adaptabilitypeople-based, education for untouchability
May 22, 2006 RUPRI 23
Specialization and Anchorage: Regional Competitiveness
Economic regions are basic unit of global competitiveness (Porter)
Innovation and entrepreneurship in a regional context are the engines of job creation, growth, prosperity (SACI Committee)
Competitiveness (Council on Competitiveness)$ sustained productivity growth $ regional prosperity≠ exploitation of location, natural resources, low cost labor= converting assets into intellectual capital, added valueDepends on productivity of all industries and assets; productivity based on continuous innovation
May 22, 2006 RUPRI 24
Regional CompetitivenessInnovation (Council on Competitiveness)
Transformation of knowledge into commercial products, processes, servicesCan drive productivity in every sector
Creativity (Florida)
Emergence of creative class and growing economic cleavageSuccessful regional economies have assets that attract creative people -- 3 ‘Ts’ of Talent, Technology, Tolerance – certain metropolitan areas
May 22, 2006 RUPRI 25
Rural CompetitivenessRural competitiveness is critical to regional prosperityInnovation and entrepreneurship are the keys to rural competitiveness Three key principles for rural entrepreneurship development
RegionalismSystemsAssets
May 22, 2006 RUPRI 26
Education for “untouchability”?
Basic global understanding and experiencesGeopoliticsLanguagesCultural awareness
High level skillsProfession/discipline-specific skillsKnowledge managementCreativity, Innovation and Entrepreneurship
Personal adaptability skillsCritical thinking, problem-solving, reasoningCommunicationCommunity and Public Service
May 22, 2006 RUPRI 27
Brian Dabson
Rural Policy Research Institute
www.rupri.orgRUPRI Center for Rural Entrepreneurship
www.energizingentrepreneurs.org(573) 449-5060