From 20-23 July 2007, members of the
Canada-United States Inter-Parliamentary Group attended the 2007 Annual Meeting
of the National Governors Association in Traverse City, Michigan. This report
summarizes some of the major themes at the plenary and select concurrent
sessions of the meeting, which was focussed on innovation.
OPENING PLENARY SESSION: FOSTERING INNOVATION
THROUGH EDUCATION AND INVESTMENT
Randall Stephenson, AT&T
Øinnovation is the key for driving productivity, which drives job
growth, which drives economic growth
Øthere are several pillars for driving sustained economic growth,
including:
§a system of affordable and efficient
communication for the masses – the velocity of commerce should be increased in
order to grow the economy, and communications are needed to accelerate
commerce; the greatest catalyst of communications is telecommunications
§free, open markets where capital flows freely
without unnecessary regulation or restraints – healthy capital markets are
needed to ensure investments in telecommunications infrastructure; investment
flows are higher where regulatory burdens are lower; the needs of rural America must be considered
§a well-educated workforce – sustained growth
requires well-educated workers; at present, there is an inadequate number of
qualified workers in some fields and in some regions; the U.S. education system
is not meeting the demands of the global economy, and there is a particular
need to demand more from students in the areas of mathematics and science;
performance-based rewards for education should be considered
ØIndia has done well on the three pillars
for driving sustained economic growth; whereas employers historically went to India for "cheap labour," they now go there for “cheap brains”
Øthere are two fundamental questions that must be
answered:
§are we incenting more or are we incenting less
investment in telecommunications?
§are we giving our youth the best possible chance
in the global economy by requiring a lot from them?
Dr.
Eric Schmidt, Google
Øinformation technology should be thought of as a
way in which people can change their views of government
Øat 50-60% penetration, broadband is about to cross a “tipping
point”; nevertheless, continued broadband expansion should be encouraged
Øworldwide, people want the same things: a family, health,
prosperity, a high standard of living and quality of life, jobs, etc.
Øthere is a human need for information
Øbuilding and maintaining trust in the internet is an important issue
Øthe next generation of children will process information differently
than the current generation
Øthe “classroom” must be transformed into an “internet classroom,”
and fundamentally different methods of teaching must be adopted
Østudents need to learn how to think, search, analyze and apply
Øthe United States is at the forefront of a revolution in education
and accessing information
SPECIAL SESSION: FROM POST-SECONDARY
EDUCATION TO INNOVATION
Patrick Callan, National Center for Public Policy and Higher Education
Øwhile the baby boomers are the largest, best-educated population in
the history of the United States, the rest of the world has a well-educated, younger
population
Øit is expected that, as the baby boomers retire, the average
education level in the United States will decline
Øit is not the case that the U.S. is doing worse; it is
the case that the rest of the world is doing better
Øalthough the United States has a
disproportionate share of the best colleges and universities in the world, the
education level is falling
Øin the U.S., access to education has levelled off, educational
completion rates are poor relative to the rest of the world, and the
affordability of education is a problem
Øan incentive structure, rather than an institutional maintenance
structure, is needed
Øthere are six considerations to keep in mind:
§the states must be prepared to articulate a
“public agenda”
§the public agenda must be connected to the
appropriate funding and regulatory structures
§the entire “education pipeline,” beginning with
kindergarten through to post-secondary education, must be considered, and
curricula must be developed to ensure that graduates have the skills and
competencies that are needed
§business leaders, higher education trustees and
representatives of all levels in the education pipeline must be included in the
dialogue
§consideration must be given to how the system
will operate during economic downturns, when state budgets may be relatively
tighter
§market signals for higher education may be
inconsistent with the needs of states
Aims McGuinness, National Center for Higher Education Management Systems
Øthe nature of the problem must be clear, and the nature of the
problem as it is specific to each state must be articulated; in particular, the
future of the state, as well as its population, its quality of life and how
education supports it, must be considered
Øsince different regional economies – with varying needs – exist
within any given state, it is somewhat difficult to develop “state-level needs”
Øin developing solutions, both the “demand side” – businesses,
economic development agencies, etc. – and the “supply side” – educational
institutions, etc. – must be consulted
Øin developing an “innovation agenda,” it must be recognized that
some states have regulatory frameworks that date from the 19th
century
Øthe issue is not “regulation” per se but – instead – “good”
regulation that supports the agenda and the goals
Øthe relationship among appropriations, student aid and tuition must
be considered
Øthe most important issues are sustainability and continuity
Øinitiatives cannot be led by the Governor alone; other legislators
and all key stakeholders must be involved
ECONOMIC DEVELOPMENT AND COMMERCE
COMMITTEE: PRODUCTIVITY AND COMPETITIVENESS – CREATING CONDITIONS IN THE STATES
FOR GLOBAL SUCCESS
Rey Moré, Motorola, Inc.
Øthe “recipe” for achieving competitiveness in today’s global economy
is elusive
Ø“what it takes” to be competitive is constantly changing
Øthe “speed” of competitiveness has doubled in the last five years
Øif you measure it, you can improve it; if you do not measure it, you
cannot improve it
Øsuccess should be measured objectively and against standards
Østates should create an environment where businesses want to locate
and grow
Øthree key areas where businesses should ask questions are:
§customers – do you know who your customers are?
do you know how your customers feel about your product? do you know whether
your customers prefer you to your competitors and, if so, why?
§costs – do you know what the cost of waste is in
your organization?
§the future – do you have the tools to measure
how you are doing in respect of your customers and your costs? do you have a
strategy to improve in respect of your customers and your costs?
Øthe pace of competition is quickening and the world is becoming smaller
Øin the view of business, government decision-making should be
characterized by speed, crispness and clarity
Øbusinesses also need infrastructure, a stable
and safe environment, and a workforce that is tailored to the future rather
than to the past and that is able to work in a team
Øyouth need to be provided with incentives to study science,
technology, engineering and mathematics; every school should have a football
team as well as a robotics team
Mark Peterson, The Proctor & Gamble Company
Øincreasingly, firms are looking externally, since it is not possible
to do everything well; organizations need to identify good ideas, whether they
arise from within, or outside of, the organization
Øsome organizations will go anywhere in the world and will partner
with another organization – even with competitors – provided it makes sense
from a business perspective
Økey business questions include:
§where should you “play”?
§how can you win?
Øone of the greatest difficulties with university-private sector
research is the treatment of intellectual property rights; organizations may
sign collaboration agreements with domestic universities as well as with
universities in other countries
Robert Heard, Cimarron Capital Partners, LLC
Øinvestments should be made in organizations that have the capacity
to grow large and be profitable; in identifying these organizations, there are
several key questions to consider:
§is the organization serving a large, or
potentially large, market?
§does the organization have a great team of
managers?
§does the organization have a strategy for
solving a big problem?
Øsince the globe is the market, organizations should see themselves
as global players
Øsince the globe is the lab, organizations should search worldwide
for needed technologies
Øsince the globe is the bank, organizations should attract capital
from many different sources
Øevery organization that wants to grow rapidly needs to have a
foreign dimension to its game plan
Øorganizations may have difficulty accessing capital if: their
quality is poor; or they are looking in the wrong place
Øinvestment happens in communities that are rich
in “the culture of entrepreneurship,” which tends to be local and is derived
from family and community; people need to: feel good about taking risks; not be
afraid to fail; and want to solve big problems
Østrategies for mobilizing investment capital for entrepreneurs
include:
§training – provide training to entrepreneurs and
to those who support them; search worldwide for applicable business development
strategies
§networking – ensure that everyone knows each
other – both domestically and globally – and work peer-to-peer
§investing – states should invest, and should
import knowledge of business-building into communities, since it is possible
for communities to change their culture to one of entrepreneurship; every state
has wealthy individuals who have made money building companies and who want to
be angel investors, and states should attract seed and venture capitalists in
order that every entrepreneur with a worthwhile idea can see that idea come to
the market
LUNCHEON: WORDS THAT WORK
Frank Luntz, Luntz, Maslansky Strategic Research
Øpolitics is not just about words; politics is also about visuals,
and words cause visualization
Ølanguage and labels matter
Øchange the label in order to change the impact
ØAmericans pay attention to pop culture, not to what happens in
politics
Øsince Americans have lost faith in the ability of governments to
deliver on their promises, politicians should not use such terms as “promise”
or “pledge,” since voters have heard those terms before and the promises and
pledges have not been realized; people want politicians to say what they mean
and to mean what they say
Øpoliticians are perceived to be out of touch, and voters want
politicians to relate to, and empathize with, them
Øfor people, candor is the most important attribute
Østanding behind a podium creates a barrier
Ømen want more money while women want more time
Øpeople access the media in which they believe,
rather than the media that informs
ØAmericans think that their standard of living is declining and that
their quality of life is worse than their standard of living
Øachieving financial success defines the American dream
Øfor most people, developing an agenda for the education, health,
etc. of children is far more important than an agenda to address climate change
Øpeople are more hostile to wasteful spending than they are to taxes
Øeach message should be repeated three times
Ø“innovation” is a powerful word, while “infrastructure” is not;
instead of “infrastructure,” use “roads and highways”
Øthe term “capitalism” has highly negative connotations, since there
are winners and losers, while the term “free market” connotes opportunities
Øpoliticians should speak in terms of “American issues,” rather than
“federal/state/local issues”
Øvoters want politicians to focus on results rather than on process;
tell them the result that you are seeking, rather than how you will get to that
result
Øofficial flag pictures should be eliminated; people want action, not
staging, and listening, not talking
Øthe ten commandments are:
§use simple language
§be brief
§establish credibility
§be consistent
§be novel
§use sound and texture
§speak aspirationally
§visualize
§pose a question
§provide context
Øwords/phrases for the 21st century
include:
§imagine
§hassle-free
§lifestyle
§accountability
§results/can-do spirit
§innovation
§inspiration
§efficient and efficiency
§the right to …
§patient-centred
§renew, revitalize, rejuvenate
§investment
§consequences
§independent
§peace of mind
§certified
§all-American
§prosperity
§spirituality
§balanced approach
§restore, rekindle, re-invent
NATURAL RESOURCES COMMITTEE:
GUBERNATORIAL POLICY TOOLS TO ADDRESS CLIMATE CHANGE
Honorable Stephen Johnson, U.S. Environmental Protection Agency
Øair, water and land quality are better today than they were ten
years ago
Øclimate change is a global challenge that requires a global strategy
ØIndia and China will soon surpass developed
countries in their greenhouse gas emissions
Øthe U.S. is committed to being a good “global neighbour”
Øthe transportation sector accounts for about one-third of greenhouse
gas emissions in the United States
Øcoal must be burned more efficiently and with fewer emissions; U.S. coal reserves are large enough to meet American energy needs for at least the next two
centuries
Øenvironmental responsibility should be seen as everyone’s
responsibility
Øglobal, national and local collaboration are essential
Thomas
Peterson, Center for Climate Strategies
Øthe greenhouse gas problem is persistent, and is
growing far more rapidly than population growth
Øurgent action is needed for a sustainable future
Øa portfolio approach to solutions is needed,
since one size does not necessarily fit all; customization for each state is required
Østates have a long history of leadership, and the federal government
has adopted some state programs
Jonathan Schrag, Lenfest Center for Sustainable Energy
Øclimate change is a long-term problem
Øcosts must be assigned to private parties based on their emissions
Øa main problem is that fossil fuels are super-abundant, while the
ability of the atmosphere and the oceans to absorb emissions is super-limited
Robert Donkers, Delegation of the European Commission to the United States
Øinternational actions on climate change are needed
Øthe European Union climate change program has existed for a number
of years, but past actions are only now bearing fruit; since results often take
time to become evident, urgent action is required
Øenergy use must be decoupled from economic growth
Ødeveloped countries must take the lead in respect of climate change;
while developing countries must also act, their need to pursue economic growth
must be realize
Øtechnology transfers to developing countries should occur
Øalthough emissions trading schemes are not a panacea, they should be
part of the toolkit
Øwhile much can be done using technology,
individual action must also occur, including in such areas as energy
conservation
Respectfully submitted,
Hon. Jerahmiel Grafstein, Senator
Co-Chair, Canada-United States
Inter-Parliamentary Group
Rob Merrifield, M.P.,
Co-Chair, Canada-United States
Inter-Parliamentary Group