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tv   Book Discussion on The Smartest Places on Earth  CSPAN  April 23, 2016 6:00pm-7:21pm EDT

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senior fellow here and it's my privilege to kick off the event. i say our event and today is that for self reasons. for one thing it'ses t to welcome and launch a book into the world. given that it's a red letter day for antoine and fred complengt new book is just out, and if i do say so we shall rush to pick up a copy. i think we have some beyond the back so on the way out please do that. today's is two experienced
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economic observers focusing not on the standard inside the beltway u stuff. not on the usual spin cycles, but on some of us think that it is the most fundamental ailment of national well being. r&d and stem worker intensive advance ranging through reare nubble energy. customer clusters and technology equal systems, critical and that's part of their had focus, and then cities. and the collaboration it is that they accelerate. the fact that cities and regions themselves can become incubators of growth. antoine traveled the world for decades. now come back to embrace the local, the granular and the micro. i find this a welcomed corrective to the disembodied economic debates that we specialize in here in washington.
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and none get what is the most aspect of this morning's session which is the fact that antoine and fred have actual good news. imagine that, good news but i think it is true and this is a thoughtful settled brand of good news,s it'ses true. at a moment when many commentators have surveyed the global and concluded that america r or at least industrial tear t tier is down and it it is declined. dlifn by low cost mass production in china. antoine and fred reinvention being driven by specialized rust belt city, increased focus on high technology. others have tracked the collapse of mass production, of tires and steal antoine and fred, chronicle at the center of
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palmer research and all of these growing stature in nano technology and hopelessness, fretted, and antoine have identified a reinvention playbook in which transitioning regions turned local. universities into open innovation hubs, and business civic alliances have belt promising new central strategies in regions. they have traveled america in europe and return with an optimistic view that dozens of faded old places are becoming launch pads for the new. i find that extremely excited. clearly this is a welcome calendar to the scary decline ism that is dominating presidential campaigns for example . in a deep given that antoine is a man while working at the world bank in 1981, coying the turn emerging markets, and in a previous book declared the onset of the emerging century.
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at that time he wasn't saying it was the beginning of the american century. with a different century, now he's back with a somewhat different view as you'll see. so with that i would like to introduce two esteem authored will also participate in a panel discussion that will be moderated by my colleague working centennial scholar bruce caps and introduce the panel after antoine speaks. for now let me introduce antoine who will present the book story, and then fred bocker coauthor who will sit on the panel and you'll meet him shortly. antoine, and then a booking trustee and senior advisor at the advisory firm and principal, founder and ceo and investment firm for specializing in emerging markets. i should note that he's also a supporter of both the metro
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program and the office of centennial scholar here at brookings for until recent retirement was a journalist specializing in monetary, financial affairs with a prominent outlook dubbed for short the financial times of holland. he lives in the wonderful city of amsterdam. but enough let's hear from antoine -- [applause] thank you i'm glad they could actually hear this. [laughter] let me start by saying that we could not have written this book without brookings. brookings not only help us protect the presentation, give us this forum, but for the past couple of years, it was really
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influential in our thinking. brookings and i'm talking here about bruce, amy, mark, really did the task breaking work on all of this. and it has been very good work and we shoot that we've been standing on your shoulders in making all of this possible. so thank you for that very much. now, when you listen, let me take this thing here. so when you listen to the -- to some of the political candidates on the left and on the right. don't you get depressed? i mean, when you listen, it sounds like this country is run out of steam on innovation that our best times are behind us. and that all we have is problems. as mark already said, that's not
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what we found. now, let me start by saying if you look in the rear-view mirror, yes, things look bleak. use employment, down. 7 million people although people don't write about the fact that there are 10 million jobs now in high it can industries, and 4 million jobs were created during this exact -- 4 million jobs in that period. as good as a you can see that line at the end is starting to reverse. and it was not just competition from my emerging markets. [laughter] it was also information that means that we were doing things much more productively, and, of course, it was the devastating impact of the 2008 crisis that we're coming out of. but this bad news we found is
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not the whole story. and this book really started when i went off to asia and fred an his travels had a similar experience. i went to asia meeting with many and i've been doing this for 30 years. with many -- entrepreneur, ceos and what do i hear? i hear them complain about american competition. now i nearly drop out of o my chair. i can't heard that in 30 years. and why were they complaining? yeah, sure labor costs were going up. our shell gas was cheap. but the most important thing was they couldn't keep up. with american innovation. and so -- we ask for this trip, in which we visited a dozen cities all over o northern europe and potentially the united states.
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and there's my daughter. we came to a very different conclusion. the american and by the way, northern european colonies are not on the decline, no, they are, in fact, regaining competitiveness. why does a new paradigm for the last 25 years -- we have been trying to compete on the base of making things as cheap as possible. losing battle -- [laughter] certainly against china and emerging markets. we have learned particularly after 2008 crisis that it's much better to compete on making things as smart as possible and here we're really good. we have great universities. we have this -- this freedom of thinking that
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promotes thinking u out of the box that is basis for all real innovation. we have a great legal system, and so smart innovation is beginning to replace cheap labor at the key competitive edge. now, this is resting on two pillars. the first is, what we call sharing brain power. what is that? this is collaboration among university departments, but also among universities that are climbing out of their ivory towers, and small startups, and all legacy businesses, and you've seen this all over the country. what does it mean? well, in the past things were done on the very hierarchal business not official. now we learn it and do it by
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whipper snappers in silicon valley, and cambridge. but not limited to that. we have learned to do things in a college way it is in your own thing but open innovation. it's no longer siloed. no. today's problems require multidisciplinary solutions. one of the trustees of brookings taught me an important lesson. i went to see shirley jackson welcome the president of polytechnic institute and she said nothing is being invented it is between academic departments. importantness, it is no longer talked down but brought them up. it's no longer alone in your garage. no, it's done collaborative and
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finallies it's no longer done in isolated research centers or government tbus done in vibrant, urban, innovation districts that's where young researchers like to work as we've seen. that's one pillar. second pillar is -- we are creating a whole new branch of the economy. we have this old expertise at the base but we have new production metsds, new materials. new discoveries. and on top of that we have u stuff that we're really good at, information technology, information technology and the ability to -- we didn't have that ability before to u use big data and analyze big data to help this, and all of that is connected through a tiny, tiny little
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chip, the connector here, and that is the center. now, that makes various things possible that never were possible before. the future is all about connecting and connectedness. take the self-driving car. this will be a resolution in transportation. whoop -- my picture here disappeared. the self-driving car -- wearkt devices. this will be incredibly important to the future of health care you caa wear them and you can ingest them. the smart grid. smart farming. fred can tell you a lot about
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this, vrgdz at it. all of this is now possible and wases impossible before. this is the smart economy. this is the combination of the physical and the digital economy. now, you might think okay, this is nice but we have lost all of these industry. well, think again. we now have new production methods. we have this brought me books for example of m.i.t. was a -- second generation, very good at this. joe from -- north carolina who invented a way to make 3d precincting a thousand times fast so you can use not in protype but in production. dr. chang of m.i.t. who found a new way to make batteries. all of this will make it possible to bring back industries like socks.
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shirts, shoes, i talked to phil, and they said we're already making olympic shoes. so this is one thing. the other, really interesting thing we found is that this innovation that we talked about is collaborative innovation is no longer limited to places like silicon valley and cambridge. it has spread all around the country to be exact more than 30 -- 30 brain belts we call them in the united states to more than 15 brain belts in europe. so let me illustrate that one example. all of you have heard of akron but what you have thought is one of the smart pest places on earth maybe not. now, what did we find? you had the four old tire companies.
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gum, practically overnight. it was the loss of a lot of jobs. a life-threatening challenge and by the way, with all of what we see is always based on the life-threatening challenge. then you've got the second element that you find everywhere, a connector in this case is president of the university it be, two got people to t together who got people to collaborate because they have no other choice. and what staying in akron didn't change is the research gibb us like contact lens it is that change color when you have diabetes. tire it is driving on all kinds of road conditions and needed for self-driving carries. i can give you a hundred inventions like that that they did. they have now a thousand companies that have more people
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working for them before old tire companies that's what i mean by changes, and so you have a life-threatening situation. university, it is university centric each of these places, brain belts, have universities with world class research. they're dealing with the problems of our century. they're no longer simple problems. they're complex expensive challenges that wire multidisciplinary approaches. there's an openness forced by reality and necessity to share brain power. they have a connector. and they have an infrastructure that attracts and retains them and by the way that infrastructure includes the affordable housing. that's why people move from let's say silicon valley to other places like pittsburgh or akron or whatever.
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so -- and finally, of course, you need access to capital. these are the key characterizes. now we have, albany new york, did you know in albany, new york just outside of the technology complex, and on the leadership years of former christian was a fighter from lebanon by the way who became a great physicist. they are at the forefront of silicon connector research. next you have founders with thousands of employees working in one of the most modern plants. i was in that room, and that machine there cost a billion dollars. [laughter] it's the most modern machine in albany, new york. not in the park or but in albany, new york. the research triangle, is here. let me tell you story of the sidelines with the old factory. no more secrets there now now
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it's an incubator and port land, oregon, you see gave 500 million dollars and that brought together the university of which you have intel that was already there and together they they coo things they couldn't do alone, and now you have basically a university brought back to -- from the mountain to the city trendway and to make my dutch heart warm, bicycles. so to the world smartest city as it was called you see the old flip, and now you have the technical university that became really an open innovation platform. we'll talk about that later. so -- 30 places over o 30 places from all over the world two-thirds of them former rest belts, and in europe 15 of them as well.
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and we describe in detail ten of those in our book. rust belt cities are building on forgotten strength. now, we couldn't be at brookings without some policy of recommendations otherwise this -- so let's go through them. i'll just talk about two but there are a whole bunch more. the first is this, we have a 21st century economy. i've become convinced we are measuring it with 20th century statistics. we have to stop doing this. we are mismeasuring our productivity. no, google map or google search is not the statistics. we have to fiend batter way to do this. second point is -- terribly important. why is there are these job mismache and number of people cannot find jobs after they lose in this new -- world. we have to develop programs of
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training for jobs that are based i think, on a really good model which is german work study model. it is a great model we could to it. and we can to it. and i think we probably will. we have to reward sharing brain power through et friends that we gi and support an build innovation district and build support from basic research. they do two-thirds of the research in the worlds but we have to keep doing it otherwise we lose outs, and finally since you have leeway not to make profits the next day because they invest in social media, but in -- a more leeway to invest for the longer term. so in conclusion, as you can see, fred and i are optimistic. we think that university and northern europe has a very good future. innovation is not that, competitiveness is not that. in fact, we are regaining it.
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maybe the best way to sum it up, is if you look outside it is no longer winter in america. [laughter] spring is coming back. thank you. oh, yeah. >> welcome up -- our colleague. >> so i'm bruce cap, from brookings, it is absolute how does that work i'm just playing around -- [laughter] absolute pleasure to moderate this panel. it is an absolute pleasure in this season of despair. to be optimistic about the future of our country. and the future of many similar cities in europe.
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fred and antoine have done all of us i think a great service. i mean, this is almost like a book, it takes two dutchman antoine has been here for a while to come to america to remind what you say we have. right, so we're very hopeful. we have two other people on this panel that i think i'll just give a brief introduction. they are two of the top economic development thinkers and practitioners in the united states. rebecca bagley is vice chair of the partnership at the university of pittsburgh. she took several of us on a tour of upitt last week, if you want to feel optimistic about america go ton a tour with rebecca at upitt worked for northeast ohio, worked in pennsylvania state government, i may have a question about that. [laughter] and then bob is head of the research triangle park.
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really iconic science park in the united states prior to that he worked with north carolina state. so these folks are really at the cutting edge. but i want to talk, start tbred. so about four years ago, mark and i took a trip to netherlands. a tough job right, and you took us to antovin never heard of that before, and neither had mark, and we had a remarkable day where we saw a turnaround story, a city that filled up electronic at the heart of that city and lost tens of thousands of jobs to asia but within about 15 yearses, this is a city that is basically voted one of the most innovative cities in the world. what happened? i shall -- a long story. but --
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originally it was built around two companies one you mentioned phillips and now a sub city of portland based company, and they came and big trouble in the mid-1990s. the phillips announced that they would shift their manufacturing to local countries, and that it was have 30,000 job losses. and in the same year, doc church went broke. so that was a horrible scenario for him only for the net or lands as well. because phillips is phenomenon in harlem. we're proud of that company. we're critical but we have proud. >> dutchman are always critical but they are also proud, and so -- that was trauma for that region
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but there were people who stood up -- and they -- thought of a very ambitious plan -- to make from that region antovin high-tech hot spot on a specific item that's building high-tech machinery. and -- but how do we do it and tell you that technology is too complex on your own. so people knew that you had to collaborate. and -- but in sharing brain power, as we call it, and in you need teams but there was a problem at that time, of course, the companies and university and the city of antovin nearby
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communities were all siloed. close, particularly organized. and if you want to build that -- those disciplinary teams, you have to break them up. and there was not one connection. but there were three connectors. early this century, and to start with one that was a ceo of phillips. an he took courageous o steps to open up the silo close research lab, a lab that is similar to -- was similar to the lapse and he had much resistance from his own employees and from people around phillips. but he -- opened it up and he did something more. he invested a lot of money in building an open high-tech campus. and he put his own research team
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on that campus. opened up facilities for startup. lavatory clean rooms and invited foreign companies to put part of their research on the campus as well. and what does he now -- research for all of the world working on that campus. that's the first connection. the second connection was president of the technical university, and he and his colleagues went out to the companies and interviewed them. what are the skills that our students needs to get those jobs that you're getting? and so with -- the information he got from those enterprises, he built that were able to break through those silos that were also inside those universities. and that step, mistaken by mayor
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because it was not him alone anymore. but there were 21 other communities where companies like -- ace and l an flim doing their research and manufacturing, and so instead of fighting each other -- he confided them to stay up to stop the foundation which almost 22 communities. and so they decided that the mayor would be the president of that foundation. and they had a brilliant name, and that says it all and that happens in a relatively short period of time. and there was one other thing
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that these -- remarkable for the region tonight see in all of the other places that was the change that took place in the supply chain. from all of those little companies that were -- in that region. and initiative of h and l early in the century, and it is a -- semiconductor machinery makeup. it is world leading now, after a day companies like canon, but they art their suppliers for earlier century still delivering components on strict prescription from h and l and they asked those companies to
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put their rnt in those components. so that they changed this supply chain into that, and they stayed very, very unique. but let me -- >> you're a journalist. [laughter] >> no -- >> a question -- >> change you up. because mark and you and i were in -- antovin at the end of the day we back to airport, and can you -- this is a story of a dutchman. about a dutch situation, but can you tell me what you remember of that feeling when you left the city and drove with me to the airport? >> or actually i'll tell you two things on the way into antovin i
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thought you were nuts. [laughter] this is -- >> you're not the only one. [laughter] this is a city how many have heard that have? oh, my god it shall that's because you read the book. but on the way into this city, describe to me amsterdam is the airport. this is the brain port, and i'm going right, okay that's a great brand. but by the end of the day, i have to say what was the biggest take away. was we went to see the mayor. we went to see the head of the business chamber and went to see the top investor and a et it can call institute, we went to see the high-tech campus. everyone was almost completing each other's sentence and that was almost scary. have you ever seenstep ford wives it was almost like a step ford wife kind of moment where everything was saying literally the same thing.
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unified narrative. unified vision where as when we go to many parts of the united states, i don't really go see one of these actors, and then they'll tell you oh, when you u see so and so half of what they're saying isn't right so this was what the biggest surprise to me was -- what you now call sharing brain power. but almost frightening way. [laughter] how much there was a consistency of focus and vision. and by the way, the high-tech campus in antovin that we know from antoine and fred's book in 2014 had 50% of the patent in netherland but the synergy and innovation is really working so that's what my main take away was. bid end of the day you had convinced me, antoine you coin the term merging markets. you must be receiving a lot of -- kind of e-mail from former
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colleagues. so what happened? describe the transformation. >> what i always say is i quote who said we're all entitled to our own opinions. we're not entitled to our own facts so when i look back at the emerging market century ting that we live in emerging market century because the center of gravity of the global economy continues to go toward emerging market it's no longer the american, but emerging. i had a third point in my book and that was competitiveness is shifting to emerging markets. that's where i've changed my mind because i think actually competitiveness as i told you earlier is shifting back. yeah with some people don't like that been but you know, facts are the facts i'm an analyst. leak you're an analyst. and you call it as you see it.
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but >> another question in in terms of the acceptance of this perspective both in the netherlands and in other parts of europe, you know, you're an observer of the american political scene, on a reality tv show. to what do you foal that either local policymakers, national policymakers, broader sort of networks of civic and university business leaders accept this either in the netherlands or in some other country. and it depends on the party you look at, and understand it, and they also see the challenges. >> right. >> our whole social system is. so one of the main conclusions for me is that -- the situation
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we describe is bottom up, or some development. and all of the policies of the past 30, 40 years are vertical and you see in the renal that that is not working anymore. someday talks with people of the capitol city to change that. that's one thing. and that's a positive thing. the question of strength. but you see that same in europe as here in the united states that globalization is felt by certain groups of people who find scary developments and they feel threatened and they're politicians who are -- who are -- well who are --
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put a finger on it. a picture, a future in which we can go back or close our borders, and become. we are in the process of uniting in the eu, and people think of the old days that we have a sovereign government. we have have deutsche mark and people have lost, they're not yet a new identity. and they're looking for that new identity, and growing group is thinking that turning back to old days is the solution, and i have completely disagree. but -- >> first i want to add something
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to that. because i live in washington, and hear everybody bash washington and we describe this process as really a process that is bottom up. people are not waiting for washington. anymore -- but, but -- this is a little known secret. the environment that makes all of this possible, all of this collaboration possible was created by washington. 1980 the dole act said you can take research that is funded by the federal government and universities and researchers can use this and profit from it. well, they did. and that is what made silicon valley possible. where did google come from? originally from a 700,000 dollar national science foundation grant. how did we get to the moon, by an earlier form of collaboration. so the government has a part of it, and then who is the most
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innovative -- venture capitalist in the united states? it's darpa why do we have a self-driving car because they did a competition that allowed stamford to participate and then quickly -- google bought the whole team. so here you see this collaboration, collaboration is often by buying and stealing. [laughter] and then collaborating, but places like darp and intel are important, and this act was absolutely critical importance. >> immaterial to come back to that and bring rebecca and bob into this situation so if you listen to antoine and fred and words they're using, connections, connectors, connectedness, brain sharing, in many respects the institutions you work at now are almost the this. we really with a part of group of isolated companies out in 7,000 acres of pine forest.
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right that was carved out. >> pine trees and possums and university of pittsburgh and upsc and carnegie academic transition that described as breaking down and the discipline staying within the discipline. so is this shift to open innovation and collaborate is this happening in your institution and how is it manifesting itself? start with rebecca. >> short answer, it is happen hadding. i think it's interesting because the connected network that we've been talking about, they have been, in fact, in the industrial time of pitts pittsburg you know when it was large and that top down that you talked about so there was 15 guys or 25 guys who got in a room and decided what the critical things to the community were. they were in competition but this pittsburgh important for them to collaborate and lay that
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out. one of the big changes is the complexity of the economies which is a good thing. you know, has created a need to really look at connectedness and look at opportunities very, very differently. one of the thingses that pittsburgh did with the crash was steal and economy basically overnight fell apart was they have the foresight to bring together the university, leadership, the government, the industry altogether. instead of just looking to century or o looking to one sector bairvegly to solve it and that was through the conference at the time. and so they really we invented the economy through that time now we're in an accelerated rate of transportation of pittsburgh and actually it's a moment in time where our connectors are
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sort of networks are shifting have dramatically really overt last year are and a half. where we're seeing an influx of young people and google has most people outside of silicon valley located in pittsburgh. ├╝ber moved there, autonomist vehicle work there, so there just was an explosion of company that are thinking of neighborhoods pushing out so places you cannot go into ten years ago have -- the dynamic technology hub, and so i think that's where, you know, antoine with your slide about what it used to be like and what it is. i think we have broken down some of those barriers and we're really in this accelerated, again transforms stage and universities have a critical role i mean there's 1.2 billion dollars in research and pith going on in pittsburgh, and by
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the institution that really needs to benefit not only. but i think that other evolution we're going through is need to be accounted. and if we have global and bonds and we have global connections and we really need to both take advantage of that for a region. and we have to share that knowledge with the group. >> from your perspective. so like with rebecca said about her region it was a very deliberate decision in north carolina the 1950s. very deliberate public policy decision to develop a research triangling pack and it was described at the time very audacious because not only were we 49th out of the 50 states but we didn't have any comparison. stamford research park was only a couple of years old when we opened rtp, but there was a deliberate and conscience sort of agreement that was structured where the government would fund infrastructure and education.
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the private sector would lead the foundation. we have operate od as a private not for profit. with a public mission to search education, create work and lift up the people of north carolina that's our job. and then there were the universities who were basically instructed to, you know, educate a work force. and what we're seeing today i think this is where creative energy and i think it is more energetic than anything else. it is a shifting away from that -- that top down or more directed approach. >> rights. >> to one that is wildly more organic and hard for people to let go of that in some ways with we're beginning to see that in tp itself taking a 7 acre site that's half of the size was island of manhattan. we don't have a starbucks anywhere in rtp it was never think about that may be only 7,000 acre site in the world --
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but we were not designed to be that way. and so there's sort of this interesting idea of well, how much do we master plan it and fight plan it and how structured can it become? in many ways most exciting things we're doing is open it up for wild interpretation and letting creators create their own play, and that is becoming very exciting. it's very innovative in terms of changing the old o model. it's disruptive by creating the great opportunity for amazing convergens and in a park like tp that is not a biopark or an ag like park or net, we have all of those j its, 60% of the companies in rpt 20 employees or less. so you have this great big pot of things going on and now when you start connecting them,
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convergence opportunities are huge so it is really about letting go of that older structure, and letting it be much more organic. so just let's follow-up on that point and antoine and fredz should comment because it seems like as we move towards this open innovation space, which res collaboration which requires people to really engage see mostly with each other, where sort of reenforcing and validating cities in a way. right, i mean proximity, density, authenticity, you know, i was in pittsburgh last week, i can see the whole part of the okayland neighborhood and beyond change from fortress to karen gi to upmc to something that really looks like a city. you have a much bigger challenge out now in the park. right? >> yeah. >> how do you think about place making as it reenforces
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innovation? >> well, so yeah we're sort of a hole in the donut because we have a great city in raleigh and determine and sort of a village of chapel hill. but we have got this dynamic growing. : we're going to get a tweet -- [laughter] >> they're proud of their village in there. but we have a dynamic growing region, you know, all around us. so i was just at m.i.t. last week at the future of suburbia and the whole conversation is yeah, we love what's happening in our cities. cities were dead 30, ho 40 years ago. reason it was so successful is everybody was leading city. they didn't want to be a part of that. so what we can't let the cities -- the suburbs now have to be reinvented we have to rethink the way they work, and so i think that there are three things that are going. i mean, i think one matters that
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it createsling places that are fun, engaging and a lot of social activity. but if you look at silicon valley outside of san francisco, you have a lot of suburbs. but there you have tremendous amount of culture around risk taking. wild risk taking it's okay to fail and startover. one of my favorite places that i did in the last few years was imagine studios of walt disney and picked out in 2006. highly innovative in terms of the products they deliver. but what draws them is not for vnty but it's brand. the people who work for disney would have worked for disney korntion wouldn't have mattered where it was. so you have to think about your own space, what is it that you can embrace, is it your brand? is it your vanity? is it your culture? the weather it's suburban or urban ultimately you have to
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embrace what it true and authentic and genuine to you and really celebrate that. and i think the place making is so important. but it's not important to void the people. respond to what the people want. give them a chance to shape it and own it, and you will be amazed what will happen. and that's something we can do in america. and in western europe that's not as easy in a lot of other cultures in the world and that's why i think our great optimism lies and our future and our economy that sense of freedom and the sense of exploration and that dynamic nature that is, you know, part capitalism and part democracy i think are things that can't be duplicated but strong economies not necessarily the most innovative places. >> bruce we've done it before, what was bsh bill that was fantastic --
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meshing and really friction of brain power, and you you know, w did we get the jet engine, get to the moon? it's always collaboration. we sometimes forgot about collaboration and i think if we make that focus aside you are very much doing now i think it will make a real challenge. if not will, it is making a change. i think one of the things too that came up i think last time in pittsburgh was relationship and transactions and this is what we were thinking about this, you know, there's a relationship that you get through the synergy and through the work that are built on relationships but there's also a lot of things that you can do doally right now. so the human you know, example of that somebody that gave meaning was if i needed a prescription quick, i use to call the doctor that i knew about and go on ipmc and e-mail
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any doctor and they'll write me the prescription assuming it's within my medical plan. so you know, at this side he didn't have to use that relationship anymore. right, so i also think that an overlay of l all of this is not necessarily topped out but one of the systems that you're putting over that to enable not only the region or o place making but the global connectivity. i think we need to not only think about these collaborative bump into spaces but how do you create the system for gail. >> by the way, if y'all visit upmc, have been open heart surgery, i mean -- i'm still recovering. [laughter] i was going to ask -- after the statement of the
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innovative spaces in the world today, and then you look at your state government today which seems to be -- >> thanks for bringing that up. [laughter] >> i think we know what's happening in north carolina. if not just look at the "new york times" this morning. perhaps we don't need to dwell on that. i would like one last question before opening it up to the audience. does all of this innovation and collaboration and openness work for a broader segment of our citizenry from employment and jobs particularly in the core cities because if you go most of these innovation hubs and walk five blocks you're in an area of high poverty, high depravation so are those connections being made? do we have the right tools, do we have the right systems? how do we think about that? >> so i think there's a whole series of exciting policy opportunities around that. because i think that, in fact, the heart t hardest thing for
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universities and for cities and people in economic development is how do you measure that? because it's so organic and dynamic and most of the institutions only get rewarded based upon a more specific set of data points so one of the things like institution like universities need and others is how do you begin to evaluate whether or not you're seeing success out of that. that's sort of a whole set of policy question withs i think. i think we've also looked at economic development in the fast as really sort event orr yentsed structured our government and others to celebrate the singular event. you know the 400 new jobs, 500 new jobs. the truth is whole economy we live is far more dynamic companies will grow and lose employment and doesn't necessarily say anything about the place you live. and economic development is less about specific events. but much more about a longer term process.
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and so how you react to new pieces and policies that you need both in cities and in universities and in government to really take advantage of that process oriented approach. >>bruce clearly the answer to yr question is not yet. >> yeah, right. >> clearly a lot of people feel left behind and they have good reason to feel left behind. because there is this -- we are no longer in an era of job losses. that's the past. that's the rear-view mirror. >> right. >> because just as we lost 7 million jobs, we created 4.4 million jobs. there are ten million jobs now in the success tore. brookings research has shown these are not just jobs for ph.d.es and college graduates although that employment has grown. no, half of those jobs nt if i
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remember numbers mark you did that research are people with post and secondary skill. the prop goes to those who have less than post secondary skills. i mean, we need to activate and in doing that for example, the community colleges to go back to what they were founded for. not to get you into college that if you can, fine. but work together with corporation and work together with the government and finally there's going to be for those left behind in the end had is not an economic issue. in the end this requires a -- political solution. do we as a country have the guts and the sense of -- solidaritied it that and that at the moment very an open questio. >> i think in economic development we really embraced
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rising it shall all of those for many, many years, and i think over o the year too. there's been a real recognition and i think it's still evolving and changing but that's actually not working i mean that is lifted some boats but it did not with votes. so dedicated strategy and connect the communities where you can kengt to the new economy and a lot of work that i've done were leveraging the work and use current example we have a special work program. connecting that and leveraging it and bringing opportunities for next economy were appropriate. i think that's an incredible way as a university that we can tie that in. so i think working with the people that are already working in those neighborhoods and figuring out how work force
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development, you know what are the needs, educating parents, so that they're, you know, counseling their children in a way that leads towards opportunities in the economy. so those are some of the things that we've been working on. but i think that's definitely recognition that lies and doesn't necessarily have with dedicated strategies to move that. >> sure. >> to add something to remarks of antoine about solidarity and the way it is organized i think that is a big difference between university and europe. but in europe -- in this point local communities, companies are -- have set up programs, work study programs. that's more part of our culture and our structure.
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as we look at these innovation hubs in the united states and increasingly latin america, asia, they are not just platforms for economic project innovation. what we see happening is social innovation. community colleges are co- locating. pre- k opportunities for people in the community. it is much more substantial social efforts going on than
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i think is well understood, and we are at the early end of that. i think we will open it up. start over here, state your name and provide a question, not a statement. and then there are folks on twitter who may want to send thoughts, as well. >> thank you. rick rybak. thank you very much. learned a lot. great panel. as i understand it, the collapse of our manufacturing industry cause land value to collapse, in part creating an opportunity for startups who are risk averse and don't have a lot of cash. to what extent, now that the innovation economy is taking off, is there a danger that land speculators will move in, jack up rent and kill
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the goose that lays the golden egg? >> that is an interesting challenge. we have rising housing costs in pittsburgh. i do think -- someone said earlier, i think, affordable housing will be key to make sure that it is sustainable. we still have a lot of opportunity to work in certain neighborhoods, housing situations that i think could be both very affordable and help with life in the neighborhoods. it is -- a lot of the neighborhoods have been developed, but there is a lot more development that needs to happen. that is, of course, very high cost problems i have for a city that has been declined, and we are not at that point, in pittsburgh, where we will have that problem.
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>> well, one of the exciting things that the suburbs have to offer is, if you look at rtp, the foundation purchased a hundred acres about two years ago, and on that about half a million square feet of 1980s buildings. the 1st thought was to tell them all down. my wife and i thought why not take one of them. the criticism is you are not allowed to yarn people back in. so we opened the space, called of the frontier, all the pioneers back, dreamers, believers to my creators, made the whole 1st floor completely open. i always say the day of marble, friends command fountains is done.
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keep it flexible and affordable.affordable. so we open it up. we did fun things in the lobby. the space is completely full. over 30,000 people use it over the last year. it is completely open to anyone who comes in the door. so what happens is, we have teachers mixing with artists mixing with startups, a bunker, created a shared newsroom cooperative for journalists and bloggers and freelancers, and it has become one of the hottest co- working spaces. i think it does not take anything away from our urban. but let's be honest, we have all these buildings in the suburbs. we cannot tear them all down. the question is, how do we do that but connect all the things that everyone wants in terms of services. i think it is a fascinating challenge and is one opportunity for suburbs to play a role.
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>> transportation always. >> i must say, coming from a small country like all and, i am always impressed by how fast the spaces are. and then, as a businessman i learned, 1st effects what needs to be fixed and then worry about what can go wrong ten years from now. >> university city in philadelphia, a hundred 30 square miles versus one square mile in midtown and downtown detroit. we have so much to do. people and jobs flew out of the cities. no more trump towers. [laughter] >> no. >> thank you very much. i'm paula stern. congratulations to the authors. the gig economy, did not hear it once. i think about the jobless
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match, which you talked about. how do we fill in the blanks , besides affordable housing, forhousing, for those who are in the gig economy and move around? also, i would love it if you would address places like portland, maine, that does not have a large university. and -- >> preapproved. >> and very attractive from all the other demographics he described here today. they better hurry up unless you have some other answer, and that is what i am asking. >> on portland, 1st of all, phil gave 1st of money and and and 500 million. >> asked about maine. >> zero, i don't know enough about portland, maine.
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you're not going to turn every little town into one. there is lots of work to be done and lots of different places. but to know that we have gone from basically two spots where things were happening to already 30 spots where things are happening is already a very big change, and so this will grow. talking about batesville, mississippi because the mississippi state university has such great research on also new materials. then you see that this will spread and spread. that is what i hope and believe. >> look, and north carolina we have a rural economy that struggles tremendously. there is no way they can carry the whole state. so when we meet and talk one
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of the things we talk about, the colors are tremendous. the university system has an obligation. it does not have to be physical. we haveyou have got the virtual world. you can connect. take advantage of that. now, that is 50 years old. what you really have to do is go back to leveraging your own assets. what is it wonderful about your community. sadly, to many of our communities over the last 20 years that have fallen to the walmart and suburb approach with their starting to look like everyplace else, you have to look back and define the character of your location and embrace it not every entrepreneur in the world wants to live downtown. some would love to live in small towns, great places to
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eat, but are connected to the world, but brookings and other policy places can help provide tools to small communities, a set of something to strive for, the measures they could reach four. many of them made those kinds of metrics and tools and resources, we can make a difference for some. >> one other example, kind of the small town. i moved from oakland ohio year ago. and overland has really interesting jobs. really leveraging their reputation of sustainability , you know, a liberal town into entrepreneurial co- working spaces, sustainable focus, and so that might be something to look at. >> i. >> i think portland maine is one of the great entrepreneurial communities.
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it does not have the space. literally. no state government and the state of maine. >> so, high. great panel. when i thinki think about the geographic features, archetypal rust belt cities in america, sufficiently high elevation, access to fresh water, to what extent do you think rust belt cities can leverage their resilience to climate change to compete now and in the future with the coast and the sun belt? >> so, a huge opportunity hearkening to my cleveland experience. you know, to really leverage the assets there. there is a path for the great lakes states, the governor on climate change in climate issues. i mean,, it is a challenging issue because there is a huge manufacturing region. a lot of the old industry.
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you really must figure out how to bring policy together that can both embrace that because you can't get rid of it. that is the bread and butter of a lot of those regions. while youcan take advantage, as you are saying, the assets like freshwater and other assets, i do think. and the other thing is, you know, we talked about this, i think that these cities are cool. the history started the movement in about an industrial lock,industrial lock, you know, and feel and the renovated spaces, some of these newer towns just could never capture that. >> i noticed, obviously not, nowhere near the ocean. we don't have a port. but if you look at the part, one of the things our
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community is interested in, organic food, natural growth. we look at climate change. how do you take better advantage of the land we have? so within our research park where asking, all that green grass,grass, can we turn that into a garden and make it part of the moving experience. can the food that goes into the restaurants come out of the park? there are a series of things in this gets back to regulatory issues that do not necessarily give communities the ability. and i think that is where we can do some work as well locally to make it possible for us to be more creative and imaginative within our friends of urban spaces. >> we could have subtitled the group's two other cool spots of the nation. >> i have some twitter questions here.
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>> this is a question from laura, staff writer at industry week. will the new jobs in the city's approach the number of jobs lost off shoring innovation? >> i think again, brookings has done more research on this, but will it? yes. has it? no. this take time. we did a lot of outsourcing, a lot of damage. to repair damage, you don't do it overnight. we have an economy now that is 10 million of high-tech jobs such an advance industries in startups. that is a lot of jobs. when we run around. there are lots of anecdotal examples. in portland, oregon, for example, you go to a place, renovated places, about 350
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people working there gone, empty. now it's a spiffy new building's, lawyers, small companies, everybody sharing brainpower, and there are now 400 people working. that is the kind of thing you willyou'll see, but it takes time. >> to build on that question, you know, let's talk about the elephant in the room, china. is this changing our relationship with china? you talk to me last night about this interesting partnership and how that is beginning to evolve. are we now talking about a new collaborative relationship with chinese countries and industries? >> i think we can have an incredibly cooperative relationship.
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we have a deep history of the university of pittsburgh , helped the university actually start their medical school. so we have at any one time 20 to 40 medical students on campus working with our researchers. that is the relationship created, the opportunities are now have technology commercialization and transfer discussions. we signed in mlu just a few months ago with the related venture park. and our tech transfer office to be able to really connect opportunities that need to fight because a lot of our workers, when he deployment markets in china, talk about whether consumers are in the regulatory environment slightly different. and also chinese companies
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entering the us market. a lot of synergy between the two command we are talking about leveraging that relationship more to really create this viable connection. those relationships that can be creative, that can have a connected role across the globe can really help us leverage. >> just as we said in the book, don't count out the old economies. not saying don't count out china. thischina. this is an important country for the future and will remain so. but what i found interesting was when we had the book ready and went to the frankfurt book fair, and andfair, and the publisher call me excitedly and said, i've never seen this. on the 1st day the book was brought for translation by the chinese. they got it.
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they have the manufacturing center in the world. they get this.this. i mean,, they know deep down in their heart that they are very, very good, i mean much better at we are -- much better than we are at thinking inside the box. 's and then believe me, i have seen this transformation.transformatio n. they will catch on fast. >> last question. right over here. sorry, twitter sphere. >> thank you very much for great presentation. former world bank intelligence community and state department person. you did, idid, i think, mentioned driverless cars and the current issue of the economist magazine, an article on china's progress' and pioneering driverless cars.
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china has also very good at biotechnology. what does this kind of competition offer to rust belt centers? >> the sands of competition shifts all the time. i read that article. there beginning to develop expertise. 's the group is noted for the last ten years or so. >> when it comes to really smart products united states and to some extent various european places have an anonymous headstart because of this' sharing a brainpower. what we sometimes forget is that political revolutions are noisy and bloody. this is what's happening now. 's i just don't get it yet.
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live with your smart phone, your library to look something up in a book. now. he doing right in your pocket. so it's a revolution. >> working in research triangle park you have people say all the time, what do you think about what they're doing in china, boston, silicon valley. >> what do you think? >> teddy roosevelt said it best, comparison is the defeat of joy. 's you consider and then obsess about that. just get on with it. get on with doing stuff, make a difference, work with people. make things happen. i am a great optimist, and i
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just believe that have faith in the people and the effort stands for science and technology. >> they came up with this fictional federal's policy or set of initiatives that probably everyone in this room would support and build directly out of this book. and then they pulled this fictional program. what were the poll numbers? >> incredible. >> off the charts. 's innovation, science, technology, economic prosperity. university research, the commercial engine that could get those things out an intermediary organizations.

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