Has the kind of discipline, the kind of intellectual rigor to unpack the complexity of the industries and then figured out what the Public Policies needs to flow from. My question is this. I used left fairly often and what i find depressing is often the guy thats driving is very highly qualified but hasnt to me the operationalization of what youre talking about here is how to get people educated with the right tools so they dont become to janitors in West Virginia but they become contributors to this new economy. Have you thought about that i have come its called the most important job youll ever have and the most important job youll ever have is being a parent. I wouldnt pretend to be a parenting guru and my children here today would remind me. But what i do is take the voices and perspectives of the people in the book and i ask them all the same questions what will todays kids need to make it in tomorrows economy so theres a full treatment of that. Now that of course doesnt relate to todays driver. For todays driver for people in the workforce but who do need to be retooled, my observation is that humans are not as easy to update as software. Market forces can be ruthless. In the face of the forces we have to have similarly ruthless Public Policies that tidbit people to what will b watch wily substantial areas of job creation and Wealth Creation in the future which you can read about in the industries of the future. But thank you all. If you have additional questions come up for the book signing now. I want to thank politics and prose again and remind you all to buy my books but also buy by another book while you are here. Thank you. [applause] the reason i am at this convention is because i want to make sure that mr. Trump becomes our nominee because i feel hes the only one i can make the country great again and we need him as our president so im honored to be a delegate for mr. Trump. The most important issue that has come up i believe is education. We dont have a Strong Enough policy and i think we need to concentrate more making sure that our kids are educated and also there is some type of a release they shouldnt be paying for them for the rest of their lives. The most important issue to me is that people are thoughtful and ask the question what will the candidate bring to our country and i think that obama has presented a wonderful roadmap and i want it to continue. The issue that is most important to me is what has been brought up and the way we pick our candidates. The closed primary and the open primary, a lot of the primaries were over and. I think they are happy to be working in the town because of the wonderful opportunity to show all the wonderful things going on in cleveland these days i think its an important moment in history and im glad its taking place here and i think that there will be a great time for our city to shine. Good morning, everyone. I am delighted to welcome you all here in thought and those of you out on twitter, this event is being webcast and we will be taking questions later. Use the hash tag smartestplaces. I am the senior fello senior fet the metropolitan policy program and its my privilege to kick off todays event. I see today is auspicious for several reasons. For one thing, to welcome help launch the book is excellent new book the smartest place on earth is just out and if i do say so you should rush to pick out a copy. I think we have some out in the backs along thback so on the wao that. Today also finds experienced dot on the standar standard adult wf were the usual spin cycles but they think they are the most fundamental elements of national wellbeing. R d and stem worker industries ranging from the materials into the renewablandthe renewable end Regional Technology cluster is it ecosystems critical thats part of their focus and then the cities and collaborations that they accelerate. There is the granular and the micro. I find this to the disembodied economic debate that we specialize on here in washington. None of this gets at the most auspicious aspect of tonight which is the fact that ant one and fred have actual good news to deliver. Imagine that, good news. But its absolutely true and this is a thoughtful settled brand of good news. Its true at the moment many commentators have surveyed and contemplated that america or its industrial tier is done to flip the narrative where the conventional system is driven by lowcost, mass production and they see the reinvention being driven by a specialized increased focus on hightechnology. They chronicle the reemergence as a center of Polymer Research. They see hopelessness and fred and antoine identified the reinvention playbook which transition the universities to the innovation hubs. They returned with an optimistic view that the places are becoming launch pads for the new. I find that extremely exciting. This is a welcomed and countered the decline that is now dominating the president ial campaigns for example. And indeed this is especially noteworthy given that while working at the world bank in 1981 he coined the term emerging markets and in a previous book declared the onset of the emerging markets century. At that time he wasnt saying that it was the beginning of the american century. It was a different century and now hes back with a different view as the wealthy so i would like to introduce our two esteemed authors who will participate in a Panel Discussion that will be moderated by my colleague scholar bruce who will introduce the panel but for now let me introduce antoine and then fred, the coauthor who will sit on the panel. Hes been a brookings trustee and advisor t of the public advisory firm. He is the principal founder ceo of the Market Management and investment in the emerging markets. I should note that he is also a supporter of both the Natural Program into the office of centennial scholars here talking. Until his recent retirement he was a prominent european journalist specializing in monetary Financial Affairs with the prominent outlook for short the Financial Times of poland. He lives in the wonderful city of amsterdam, but enough. Lets hear from antoine. [applause] thank you for that introduction. Let me start by saying that we couldnt have written this book without brookings. They helped us prepare the presentation and get at this for but its really influential in our thinking. Brookings, and im talking about bruce, amy, mark its been very good work and we have been standing on your shoulders making this happen. So thank you for making that happen. When you listen to some of the political candidates on the left and the right dont you get depressed . I mean, when yo you listen it sounds like the country has run out of steam that that the bess are behind us and that all we have is problems. And as mark already said, thats not what he found. Let me start by saying if you look in the Rearview Mirror yes, things look bleak. Although people dont write about the 10 million jobs now in the High Tech Industries and 4 million jobs were created in the period you can see that line at the end is starting to reverse. And it wasnt just competition from the emerging markets. It was also the automation which meant they were doing things much more productively and it is the devastating impact of the 2008 crisis that we are coming out of. We have this freedom of thinking that is the basis for all real innovation. We have a great legal system. And so smart innovation is beginning to replace cheap labor as the key Competitive Edge this is collaboration among University Departments but also almost universities that are climbing out of their ivory towers, and small startups and all legacy businesses, and we have seen this all over the country. What does it mean . Well, in the past, things were done on a very hire, aial basis. We learned his from what call the whippersnappers in sill don valley, and cambridge. But its not limited to that. Its no longer closed innovation, your own thing, but open innovation. Its no longer siloed. No. Todays problems require multiply disciplinary solutions. One of the trustees of brookings i went to see shirley jackson, the president of polytechnic institute. She said nothing is being invent anymore within academic departments. Its all between academic departments. An important lesson, its no longer topdown. Its bottomup. Its no longer alone in your garage. No. Its done collaborative. And finally, its no longer done in isolated Research Centers of corporations or the government. No. Its done in vibrant urban innovation districts. Thats where young researchers like to work, as we have seen. So, thats one pillar. The second pillar is we are creating a whole new branch of this in economy. We have all this industrial expertise at the base, but now we have added new production methods. New materials. New discoveries. And on top of that, we combine this, we integrate the stuff youre really good at. Information technology. Wireless information technology. And the ability to we didnt have that ability before to use big data and analyze these big data to help us, and all of that is connected through a tiny little chip, the connector here, and that is the sensor. Now, that makes various things possible that never were possible before. But the future is all about connecting and connectedness. Take the selfdriving car. This will be a revolution in transportation. But my picture here disappeared. The selfdriving car. Where are all the devices . This will be incredibly important in the future of healthcare. You wear them, you can even ingest them. He smart grid. Smart farming that fred can tell you about because holland is very good at it. All of this is now possible and wasnt possible before. This is the smart economy, the combination of the physical and the digital economy. Now, you might think, okay, this is nice. , but we have lost all the industries. Well, think again. We have new production methods. We have robots. Rodney brooks of m. I. T. With a Second Generation robot. Very good at this, joe desimown from North Carolina who investmented the way to make 3d print alaska thousand times plus faster so we can use it 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, shirts, shoes. I talked to phil, he said were already making olympic shoes with robots. So this is one thing. The other really interesting thing we found is that this innovation that we talked about, the collaborative innovation, is no longer limited to places like Silicon Valley and cambridge. It has spread all around the country. To be act to more than 30 brain beltes, we call them, in the United States. To more than 15 brain belts in europe. So let me illustrate one example. All of you have heard of micron. Thought this is one of the martest places on earth . Maybe not. What did we find . We had the four old tire companies. Gone practically overnight. A loss of a lot of jobs. A lifethreatening challenge, and by the way, all of what we say is always based on the lifethreatening challenge. Then you got the second element you find everywhere. The connector. In this case the president of the university who got people together, who got people to collaborate because they had no other choice. And what is key in akron, was the world class Polymer Research that hat given us things like contact lenses that change colors when you have diabetes. And i can disyou a hundreds more like that. They now have a thousand little Polymer Companies that have more people working for them than before all tire companies. Thats what i mean by changes. And so you have lifethreatening situation, universities, its always universities centric. Each of these rust belts, becoming brain belts, have universities with worldclass research. Theyre dealing with the problems of our century. Theyre no longer simple problem. S. Theyre complex, expensive challenges that require multidisciplinary approaches. Theres an openness forced by reality, by 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 Affordable Housing. That is why people move from, lets say, Silicon Valley to other places like pittsburgh or akron or whatever. So, finally, of course, you need access to capital. These are the key characteristics. Did you know that in albany, new york, outside of the Nano Technology complex, and under leadership of a former christian militia fighter from lebanon, who became a great physicist, they are at the forefront of Semi Conductor research. Next do you, thousands of employees working in one of the most modern plants in the world. I was in to clean room, and that Little Machine there cost a billion dollars. Its the most modern machine to make Semi Conductors, in albany, new york. The triangle is here. Let me tell you a story on the sideline of the research park. The old lucky strike factory. No more cigarettes being made there. Now its an incubator and a lively place. Portland, oregon, you see the ol waterfront. They brought together the university, ohsu, with intel, that was already there, and together they could do things they couldnt do alone. Now you have basically the university brought back from the mountain to the city, with tramways and to make my dutch heart warm, bicycles. So, in holland, froth light bulbs to the smartest city, you see the old phillips, and now you have the Technical University that became an open innovation platform. Well talk about that later. So, 30 places, over 30 places, from all over the world. Twothirds of them former rust belts, and in europe, 15 of them as well, and we describe in detail ten of those in our book. These rust belt cities are building on forth forgotten strength. Now, couldnt be at brookings without some recommendations. Otherwise so lets go through them. Ill just talk about two but there are a whole bunch more. The first is this. We have ha 21st century economy. Were measuring it with 20th 20th century statistics. We have to stopping too this. We are mismeasuring our productivity. Google map Google Search is not we have find better way to do this. Second point is terribly important. Why all this anger in the company . Theres joblessness. People cannot find jobs after they lose in this new world. We have to develop programs of training for jobs that are based, i think, on a really good model, the is the german work study model. A great model. We could do it, and we can do it. And i think we probably will. We have to reward sharing of brain power through the grants we give. We have to support and build innovation districts. We have to build Political Support for more basic research. The United States does twothirds of the basic research in the world. We have to keep doing it, otherwise we lose out. And final lyrics venture capitalists should not make profit this next day because then they invest in social media. And more leeway to invest for the longer term. So, in conclusion, as you can see, fred and i are optimistic. We think that the United States, northern europe, has a very good future, innovation is not dead. Competitiveness is not dead. In fact we are regaining it. Maybe the best way to sum it up, its no longer winter in america. Spring is coming back. Thank you. [applause] ill welcome our colleague. Im bruce capp from brookings. How does that work . Absolute pressure to motte mod moderate this panel, and its great to be optimistic about the future of our country and many similarly situated cities in europe. Fred and antoine have done all of us a great service. It takes two dutchmen to come to america and remind us what we have, right . So very, very helpful. We have two other people on the panel that i think i will just give a brief introduction. They are two of the Top Economic Development thinkers and practitioners in the United States. Rebecca bagley is the vice chance lore for economic partnerships at the university of pittsburgh. She took several of us on a tour of upitt and upms. You want to feel optimistic, go on a tour with rebecca. She works in Pennsylvania State government. And then bob heel is head hoff of the Research Triangle park. The iconic science park in the United States. Prior to that he worked for clemson, North Carolina state. So these folks are really at the cutting edge. I want to talk start with fred. So, about four years ago, mark and i took a trip to the netherlands this is a tough job took a trip to the netherlandses and you took us to i had never heard of einto bein before, and we saw a turnaround story, a city that had built electronics at the heart of the city, had lost tens of thousands of jobs to asia, but within 15 years, this is a city that is basically voted one of the most innovative cities in the world. What happened . I shall give the short version. Its a long story. Iontobin was built around two companies. Phillips, and a subsidiary of the portland, based company. They came in big troubles in the mid1990s. Phillips announced they would ship their manufacturing to lowcost countries and it was 30,000 job losses. And in the same area, dock trucks then broke, so that was a horrible scenario for our city and not only for the city but for the netherlands as well. Because phillips is a phenomenon in hollande. We are proud of that. We are critical but proud. Dutchmen are always critical, but they are also proud. And that was a trauma for that region. But there were people who stood up, and they thought of a very ambition, to make from that region, eintobin hightech hospital on a specific item that building hightech machinery, and but how do we do it . And antoine already tells you that technology is too complex to do on your own so people knew you had to collaborate. And that in sharing brain power, as we call it, you need collegial teams but there was a problem at that time because the companies and the university and the city and its nearby communities, were all lost. Critically organized, and if you want to build that multidisciplinary teams you have to break down. And in the city there was not one connector but three connectors. And to stop this one that was the ceo of phillips, and he took the courageous step to open up the siloed, closed, research lab, a lab that is similar to was similar to 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 hightech campus. And he put his own Research Team on that campus. Opened up facilities for staff, laboratories, clean rooms, and invited Foreign Companies to put part of their research on the campus as well. And what does he now . 6,000 researchers for all over the world working on the campus. Thats the first connector. The second connector was the Technical University president , and he and his colleagues went out to the companies and interviewed them. What are the skills thatunder students need to get those jobs you are creating. And so with the information he got from those enterprises, he built were able to break through the silos that were also inside the university. And the third step was taken by the mayor of the city. It was not the city alone anymore. There were 21 other communities where companies, like civil health care, were doing their research and manufacturing. So, instead of fighting each other, he invited them to start a foundation with all those 22 communities. And they decided that the mayor of the city would be the president of that foundation, and they made a brilliant name. That tells it all. That is what happened in a relatively short period of time. And theres one other thing that is remarkable for the region, was didnt see in all the other places that was the change that took place in the supply chain. All those little companies that were in that region, and it was the initiative of early in the century to ask now is a Semi Conductor machinery maker that is the world leading now after they have beaten Companies Like nikon and canon. But they asked the suppliers, who were earlier this century still delivering components on strict prescription from the company, and they asked those companies to put their r d in those components. So that they changed the supply chain into a and thats very unique. But let me youre a journalist. Let me change up. We were in the city, at the end of the day, we drove back to airport, and this is the story of a dutchman, do about the dutch situation. But can you tell me what you remember of the feeling when you left the city and drove with me to the airport . Well, ill tell you two things. On the way into the city i thought you were nuts. This is nor not the only one. This is a city that how many people in the room have heard of it . Oh, my god. That because you read the book. But on the way into this city, fred is describing to me, amsterdam is the airport, rotterdam is the seaport. This is the brainport. Right. Thats a great brand. But by the end of the day, i have to say was the biggest takeaway, was we went to see the mayor. We went to see the head of the business chamber, saw the top investor, saw the technical institute, the hightech campus, and everyone was almost completing each others sentences and that was almost scary. Have you ever seen stepford wives. Everyone was just saying literally the same thing, unified narrative, a unified vision. Whereas when we go to many parts of the United States youll see one actor, and then theyll tell you, who, when you see so and so, half a of what theyre saying isnt right. So the Biggest Surprise to me was what you now call sharing brain power, but in almost a frightening way. How much there was a consistency of focus and vision, and by the way, the hightech campus in the city that we now now know from antoines and freds book had 50 of the countrys patents but the synergy and the open innovation is really working. Thats what my main takeaway was. By the end of the day you had convinced me. Antoine, you coined the term emerging markets. You mulls be receiving a lot of emails, phone calls, from some of your former colleagues. So what happened . Describe the transformation. What i always say is that pat moynihan said were all entitled to our own opinions. Were entitled to our own facts. I still think we live in the emerging market century because the center of gravity of the Global Economy continues to go toward the emerging markets. Its no longer the american but the emerging consumer that is king. I had a third point in my book and that was competitiveness is shifting to emerging markets. That is where i have changed my mind. Think actually competitiveness, is a told you earlier, is shifting back. Yes, some people dont like that, but facts are the facts. Im an analyst. Like youre an analyst, and you call it as you see it. Another question in terms of the acceptance of this perspective, both in the netherlands and in other parts of europe. Youre an observer of the american political theme, reality tv show. To what extent do you feel that either local policymakers, national policymakers, Broader Networks of universities and business leaders, accept this premise, either in the netherlands or some other country . Depends on the parties you look at. The established parties understand it and they also see the challenges. Our whole social system is siloed as well, and one of the main conclusions for me is that the situation we describe is bottomup development, and all the policies of the past 30, 40 years, are vertical. So, you see in the region that it is not working anymore. They are people in our capital city to change. Thats a positive thing. Theres a question of strength. But you see that there is the same in europe as here in United States. Thats globalization is felt by certain groups of people who find that scary developments, and they feel threatened, and there are politicians who are well, who try to picture the future in which we can go back and close our own borders and become we are in the process of uniting in the european eu, e think of the old days we have a sovereign government, we have the kilder and not the euro. We had the deutsche marks marksd the french franc and theres not yet a new identity and theyre looking for the new identity, and a growing group is thinking that turning back to the old days is the solution, i completely disagree. Bruce, i want to add something to that, because i live in washington. And you hear everybody bash washington, and we described this process as a process that is bottomup. 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, is created by washington. 1980, the dole act says 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 . 700,000 National Science foundation grant. How did get to the moon . By an earlier form of collaboration. So the government has a part of it and then who is the most innovative venture capitalist in the United States . Its darpa. They did a competition that allowed stanford to participate and then quickly google bought the whole team. So, here you see this collaboration, often by buying and stealing and then collaborating and places like darpa, and this act is of critical importance. I want to come back to that and bring rebecca and bob into the conversation, because if you listen to antoine and fred and the words theyre using, connections, connectors, connectedness, brain sharing, in many respects the institutions you work at now are almost the antithesis of this. A group of isolate companies out of 7,000acres of pine forest. That was sort of carved out. And university of pittsburgh and upnc and Carnegie Mellon, a tradition and it was breaking down. So is this shift to open innovation and collaboration, is this happening in your institutions and how is it manifesting itself . Start with rebecca. Well, yes, its the short answer, its happening. I think its interesting because the connected network we have been talking about, they really have been in the industrial time of pittsburgh, when steel was large. It was just that topdown that you would have it. So there was 15 guys or 25 guys who got in a room and decided what the critical things for the community were. They were in competition but when it came to pittsburgh it was very important for them to collaborate. And laid that out. I think one of the big changes is the complexity of the economy, which is a good thing. It has created the need to really look at connectedness and look at opportunities very, very differently. One of the things that pittsburgh did with the crash of steel and when the economy basically overnight fell apart, they had the foresight to bring together the university leadership, the industry altogether instead of looking to industry or looking to one sector basically to through the allegheny conference, and so they really reinvented the economy through that time. Now i think were in an accelerated rate of transformation, and pittsburgh and actually its a moment in time where our connectors are networks are shifting very dramatically. Really over the last year and a half. Where were seeing an influx of young people, seeing google has the most people outside of Silicon Valley in pittsburgh. There was a ton of vehicle work there. Just was an explosion of Companies Moving in, of neighborhoods pushing out, so places you could not go into ten years ago, have Dynamic Technology hubs and thats where anthoine you talked to about what it used to be like and what it is, we have broken down some of those barriers and i think were in this accelerated transformation stage over the networks. Think the universities have a Critical Role in that. Theres 1. 2 billion in research between carnegie melon in pittsburgh. We cant keep that inside the institution. It needs to benefit the other revolution is were globally connected. We have global influence. We have Global Connections and we really need to take advantage of that for a reason and also to be able to show the knowledge of the globe. From your perspective. Well, like rebecca said about her region, it was a very deliberate decision in North Carolina in the 1950s, very deliberate Public Policy decision to develop a research park, and it was described at the time as very audacious because not only were we 49th 49th out of the 50 states but we were we didnt have any comparison, Stanford Research park was only a couple years old when we opened. But there was a deliberate and conscious sort of agreement that was structured, where the government would Fund Infrastructure and education, the private sector would lead the foundation. We have always operated as a private, not for profit. With a Public Mission to serve education, create miningful work and lift up the people of North Carolina. Thats our job, and then the universities were basically instructed to educate a work force. And what were seeing today i think this is where the Creative Energy it is more energetic than anything else a shifting away from that topdown or more directed approach, to one that is wildly more organic and its hard for people to let go of that in some ways, and i think were beginning to see that in rtp itself. Were taking a 7,000acre site half the size of the island of manhattan we dont have a starbucks anywhere in rtt. We may be the only 7,000acre site in the world but we were not designed to by that way. And so theres this interesting idea of, how much do we master plan and it site plan it and how structured can it become . In many ways the most exciting things were doing is opening it up for wild interpretation and letting the actors create their own play, and that is becoming very exciting. Its very innovative in terms of changing the old model. Its very disrupted. But its also creating the great opportunity for amazing convergence, and in a park like rtc that isnt were not a bio park. 60 of the companies have 20 employees or less0. So you had this great big pot of things going on, and now when you Start Connecting them, the convergence opportunities are huge. So it really is about letting go of that older structure and letting it be much more organic. Lets follow up on that point. Antoine or fred should come in. It seems like as we move towards this open innovation space, which requires collaboration, which requires people to really engage seamlessly with each other, were reinforcing and validating cities a way. Density, authenticity, vie bran si. When i vibrancy. When i was in pittsburgh i could see the whole part of the oakland neighborhood and beyond really beginning to change from fortress upitt to fortress Carnegie Mellon to something that looks like a city. You have a much bigger challenge in the park. How too you think about placemaking as it reinforces innovation. We are a hole in the doughnut. We have a great city in raleigh, durham, chapel hill, but we have probably get a tweet from chapel hill. Theyre proud of their village in chapel hill. But we are this hole in the doughnut so we have this dynamic, growing region, all around us. So i was just thinking about the future of suburbia. The cities were dead 30, 40 years ago. The reason why rtt was successful in the 1950s and 60s is because everyone was leaving the city and didnt want to be part of that. But we cant let the suburbs have to be reinvented and we have rethink the way they work. Three things going on. Urbanity matters because they create spaces that are furnish and engaging in 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 risktaking. Its okay to fail and start over. One of my Favorite Places was the imagination studios of walt disney which irstill in the same studios he picked out in 1956. Theyre highly innovative but what drives them is brand. The people who, who for disney would have worked for disney corporationwouldnt have mattered where. So you have to think not your own space what is it that is the way you can embrace . Is it your brand, your urbanity, your culture . Whether its suburban or urban, ultimately you have to embrace what is true and authentic and genuine to you and really celebrate that. Think the placemaking is so important but its not important devoid of 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. Thats something we can do in america. In western europe. Not as easy in a lot of other cultures in the world and thats whereunder growth great optimism lies. That sense of freedom and the sense of exploration and that dynamic nature that is part capitalism and just part democracy. I think are things that cant be duplicated in some places of the world that have strong economies but arent necessarily the most innovative places. Bruce, we have doesnt it before. What was bell labs . It was fantastic meshing and really friction of brain power, and how did we get the jet engine . How did we get to the moon . Its always through this collaboration. We sometimes forth got about collaboration, and i think if we make that a focus, as you are very much doing now issue think it will make a real change. Its not will. It is making a change. I thing one thing that came up in pittsburgh was relationships and transactions, and this is kind of we were thinking about theres those relationships that you get through the synergy and the work and a lot of things are built on relationships and also a lot of things you can do transactionally. The human a silly example somebody gave at the meet was if i northeasted a prescription clip i used to call the doctor. Now guy on my upmc and email any dar doctor and theyll write me a prescription, assuming its in my medical plan. So i just thought he didnt have to use that relationship anymore. So, i also think that an overlay of all of this is not necessarily topdown but one of the systems that youre putting over this to enable not only the regional or the placemaking but the global connection, and we not only need to think about these collaborative spaces but how to create the scale. Great point. By the way if you visit upnc eric its not for the faint of heart. I had open heart surgery and still recovering. I was going to also question maybe one of the most innovative spaces in the world today and then you look at your State Government today, which seems to be thank you for bringing that up. I think we all know whats happening in North Carolina. If not just look at the New York Times this morning. Dont need to dwell on that. One last question before opening it up to the audience. Theres all this innovation and collaboration, and openness, work for a broader segment of our citizenry, from employment and jobs, particularly in the core cities. If you go to most of the innovation hubs in the United States and walk five blocks youre in an area of high poverty. So, are brain connections being made . Do we have the right tools and systems . I think theres a whole series of exciting policy opportunities around that, because i think that in fact the hardest thing for universities and for cities and traditional people doing development is how to measure that. Its so organic and so dynamic. Most of these institutions only get rewarded based upon a more specific set of data points. So, one of the things institutions and universities and others need is how do you begin to evaluate whether or not youre seeing success out of that . Thats sort of a whole set of policy questions. I think we have also looked at Economic Development in the past as eventoriented and structured our governors and others to celebrate the singular event. The 400 new jobs 500 new jobs. The truth is the whole economy we live in is far more dynamic than that today. Well see Companies Grow and lose employment and it doesnt necessarily say anything about the place you live. Economic development is less about specific events. Its much more about a longer term process. And so how you react to those new pieces and the policies 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 your question is, not yet. I mean, 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. Thats the past. Thats the Rearview Mirror. Because just as we lost seven million jobs, we created 4. 4 million jobs. There are ten million jobs now in this hightech sector, Brookings Research showed these are not just jobs for ph. Ds and college graduate, although that employment has grown. No. Half of the jobs. The numbers, mark you did the research are for people with post secondary skill. The problem is those who have less than post secondary skills. We need to activate and in durham youre doing that the Community Colleges to go back to what they were founded for, not get you into college. If you can, fine. But to Work Together with corporations, to Work Together with the government, and finally there is going to be for those left behind, in the end, this 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 solidarity to do that . And that is at the moment very much an open question. I think we really embraced rising tide lifts all boats for many, many years, and i think over the laos year or so theres been a real recognition, and i think its still evolving and changing, thats actually not working. It certainly lifted some boats but did not lift all boats. A lot of the work ive done, were leveraging the work that already happened at the university of pittsburgh. We have a social work program. We have pharmacy program. Dental programs. Theyre all working in these communities. Connecting that, leveraging it, and bringing opportunities for next economy, where appropriate. Think thats an incredible way of a university that we can tell that in. So i think working with the people that are already working in those neighborhoods, and figuring out how Work Force Development what are the needs, educating parents, so that theyre counseling their children in a way that leads towards opportunities in the next economy. So i think those are the things that we have been working on, but i think theres definitely recognition that rising tide does not necessarily lift all boats and you need dedicated strategy to do that. To add something to remarks of antoine about solidarity and the way its organized, think thats a big difference between the United States and europe. In europe, in this point, local communities, companies are have set up programs, worker study program. S and thats more part of our culture and our structure. And that doesnt mean that people are not feeling left out. Thats the same in europes well. So we have to put a lot of effort in it. Thats a very important middle class group that is needed, and that must not be left to its own. What antoine said is, as we look at these innovation hubs in the United States and europe, increasingly latin america, asia, theyre not just platforms for economic, technological product innovation. What we see happens in these places, social innovation. The Community Colleges are collocating. Labs are opening. Opportunities for people in the community are being launched. This is much more substantial social efforts going on than i think is well understood, and this is early end of that. I think were going to open it up. Well start over here. Just state your name and then provide a question, not a statement, and then there are some folks on twitter sphere who may want to send their thoughts as well. Start over here. Oh, sorry in the middle there. Thank you. Rick ryebeck. Thank you very much. I learned a lot. Its a great panel. Question is a understand it the collapse of our Manufacturing Industry in the urban flight from our cities caused land values to collapse, and in part its created an opportunity for startups that are risk averse and dont have cash. The cheap rent was probably pretty key to all of this happening. To what extent, now that the innovation economy is taking off, to what extent is there the danger that land speculators will move, in jack up rents and kill the goose that lays the golden egg. Thats an interesting challenge. We have rising housing costs in pittsburgh, and i do think its somebody said earlier that Affordable Housing is a key element to making sure that it is sustainable. We still have a lot of opportunity to work in certain neighborhoods, housing situations that i think could be very affordable and could help with some of the blight going on in the neighborhoods. We still have its a lot of the enableds have been developed but still a lot more development that needs to be happening. So thats of course a very highclass problem to highcost problem to have for a city thats been in decline and were not quite, at least in pittsburgh, at the point where were going to have that probable policemen really, really soon, although were seeing in the more coveted neighborhoods a very high prices going up. I think its one of the most exciting things, in fact, that the suburbs have to offer. If you look at rtt. We purchased a foundation purchased 100 acres two years ago, and on that was about half a million square feet of old 1980s buildings. They wanted to tear them down. But my wife and i and give credit to my wife she said take one of them. One criticism about the park is youre not going to get young people back. Why dont you open up the space and see what happened. We called it the frontier, weaved back in all the new pioneers this dreamers, believers, creators, made the whole first floor of the space completely open. Theres Nothing Precious about it. Say to people in the real estate business the days of marble, ferns and fountains i done. Kind it flexible and affordable. We did some fun things in the lobby but the space is completely full. We have over 30,000 people use it over the last year. Its completely open to anybody who comes in the door. You dont have to have membership or anything. We have teachers mixing with artists, meeting with startups. We have the bunker, which is an Entrepreneur Group in there. We shared a news cooperative for blogger and journalis and its one therefore hottest coworking spaces. So i think it doesnt take anything away from our urban, so lets be honed. We off all these build little in the suburbs we cant tear them all down. We have to think of recycling them. Now, the question is, how do we do that but also connect all the things everybody want inside terms of services. Most of these are located on islands. I think its a fascinating challenge and an opportunity for urban areas to and transportation. I must say, come from a very small country like holland, im always impressed by how vast the spaces are. And then as a businessman i learned, first you fix what needs to be fixed. Then worry about what can go wrong ten years from now. University city in philly, 138 square miles, University City is one square mile. Midtown detroit and downtown detroit, 70 square mild, the city is 130 square miles. We have so much to do because people and jobs flew out thereof city cities. So the day of marbles, ferns and fountains are done. No more trump towers. Oh, no. Thank you very much. Im paula stern and congratulations to the authors. The gig economy. Didnt hear it once. And i think about the jobless match which you talked about. How do we fill in the blank besides Affordable House for those in the gig economy and move around. I also would love it if you would address places like portland, maine, that doesnt have a large university, and great food, though. Exactly, and very attractive from all the other demographics you described here today and doing a lot of the same things. They better herup unless you have some other answer and thats what im asking. Answer the gig. On portland, first of all, phil knight gave oregon. I asked about maine. Oh, i dont know enough about portland, maine. Youre not going to turn every little town into a brain belt. So theres lots of work to be done in lots of different places. But to know that we have again from basically two spots where things were happening to already 30 spots where things are happening, thats already a very big change, and so this will degree if you see talking about batesville, mist, and Mississippi State university dead great reresearch, and then youve see this will spread and spread. Thats what i hope, and believe. Look, in North Carolina, we have a Rural Economy that is struggling tremendously. There is no way that the success of the Research Triangle region in charlotte can carry the whole state. So, what we need and talk to a lot of these communities, one thing we talked about is, one, leveraging your Community Colleges. Theyre tremendous. Number two, our Public University system has an obligation to serve the state. Connect to them. You it doesnt have to be physical. You have the virtual world. You can connect. The universities would love to do more connection, take advantage of that. Number three, if you want to create an rtt, thats 50 years old. What you really have to do is go back to leveraging your own assets. What is it that is wonderful about your community . Sadly, would say to many of our communities over the last 20 years, have fall ton the walmart and suburb approach. Theyre starting to look like everyplace else. They need to look back and see what defined the character of your location and embrace that. Not appear entrepreneur in the world wants to live downtown. Some would love to live in small towns with bicycles and great places to eat and connected to the world, and i think brookings and other policy places can help provide tools to small currents, set of things to strive for. What are the measures they can reach for . Many of them need those kind of metrics and tools and resources but we wont get to everybody but we can make a difference for some. This does have a one of the examples of that leveraging kind of smalltown i moved from a small town to pittsburgh, and really interesting job. They dont have a Research Institution but a strong university, but i really leveraging their reputation of sustainability, liberal town, into entrepreneurial coworking spaces, sustainable focus, and so that might be a model to look at. I think portland, maine is a great creative entrepreneurial areas of the state. The problem is theres no State Government, literally. No State Government in the state of maine. Question over here. Its a great panel. When i think about the geographic features, archetypal rust penalty, theyre inland, 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, i think its a huge opportunity. Harkening to my cleveland experience, we started the Cleveland Water Alliance to really leverage some of the assets there. Theres a path for the great lakes states that the governors on Climate Change and climate issues and really aligning definitely a challenging issue because its huge manufacturing region, theres still a lot of the old industry. You really need to figure out how to bring policies together that embrace that. Thats the bread and butter of a lot of the regions. While you can take advantage of the assets like fresh water and other assets that we have. But i do do think the other thing it, i think these cities are cool. They have a history that industrial look, and feel, and rennovated spaces. Some of these newer towns just can never capture that. So just as quick side note. And rtt were obviously nowhere near the ocean, we have some lakes but we dont have a port there. But if you look at the park, one of the things interested in is organic food and natural growth and we look at Climate Change and how to take better advantage of the land we have. So within that 7,000acre research park, were asking of all the green grass we hey before mowing, we make that part of the living experience . Can that food that goes into our restaurants come out of the park . So theres a whole series of things. This gets back to as well a lot of regulatory issues that dont necessarily give communities the ability to be that flexible. And i think that where is we can do some work as well locally to make it possible for us to be more creative and imaginative within our urban and suburban spaces. We should call the book not from rust belt to hot spot but cool spot innovation. I have some twitter questions here. This is a question from laura, a staff writer at industry week. Will the new jobs in the cities approach the number of jobs lost to offshoring and auto make . Want to take that . I think brookings has done more research on this, but will it . Yes. Has it . No. This takes time. We did a lot of outsourcing. We did a lot of damage, and to repair damage you dont do overnight, but as i said, we have an economy that is 10 million, 10 million of hightech jobs. In advanced industries. And thats a lot of jobs. And when he went around there are lots lots of anecdotal exams inch portland, oregon, you go to a place that one of these rennovated places. Used to be a factory that made ropes for the boats, and there were 350 people working there. Gone. Empty. Now its a spiffy new building, lots of lawyers, small companies, everybody sharing brain power, and there are now 400 people working in that building. Thats the kind of thing youll see, but it takes time. Just to build on that question, lets talk about the elephant in the room. Is this changing our relationship with china . Rebecca you talked to me last night about this very Interesting Partnership that you have and how thats beginning to really evolve. Are we now talking bat new collaborative relationship with Chinese Companies and chinese industry . I think we can have an incredibly cooperative relationship, and we have a deep history at the university of pittsburgh in 2011 helped a university in china, which is like the m. I. T. Of china, actually start medical school. We havent at any one time 20 to 40 medical students on our campus, working with our Research Labs and researchers and for that, thats a relationship created the opportunity that now have Technology Commercialization and transfer discussion so we just a few months ago with the and tech park, related venture park, and with our tech transfer to be able to really connect opportunities that need because there are a number of our working in the Life Sciences so we need deployment markets in china, talk about where the consumers are, right . On the regulatory environment, slight live different. And then also theres Chinese Companies, entrepreneurs entering the u. S. Market. So theres a lot of synergy between the two were talking about really leveraging that relationship, even more, to really create this global biohealth connection. Think those relationships that you can look for that can be creative, that can have your connector role, not just in your community but across the globe, can really help us leverage bruce, just as we said in the book, dont count out the old economies. Dont count out china. This is a really important country for the future, and will remain a really important country for the future. What i found interesting was that when we published our when we had the book ready, it went to the Frankfurt Book Fair and at the publisher called me very excitedly and said, ive never seen this. On the first day the book was bought for translation. By whom . I thought i hoped it would be the dutch. No. The chinese. They got it. They got it. They have the Manufacturing Center of the world. Now theyre just a Manufacturing Center of the world. They get this, that they know deep down in their heart that to theyre very, very good. Excellent, much better than we are, at thinking inside the box. They now see a threat from thinking outside the box and have a glass ceiling. So believe me, ive seen this transformation. Mayll catch on fast. Last question. Right over here