Why are you engaged in this work . Are you engaged . We are really excited about this project. We have joined women to promote and advance. It opens a number of possibilities for us. How can we use these Digital Technologies and learn fm them to change education on our alone campus. What weighs will we see based on the experience of these mass courses. How can that transform in cambridge and boston. Secondly, we see it as a way to get harvard ideas and harvard teaching out to a broader world and way to accumulate a lot of data that can be an extraordinary resource for anybody who like to use that material to ask questions about the nature of human learning and how it ought to be structured. On the point about spreading learning to the rest of the world, i have a very moving reaction to one bit of data. One of the pilot courses. When i was in india, i met with people in india who were wanting to interact with harvard. There is a need for engagement with our schools public health. We have enormous challenges in that area. I was talking to these individuals about what kind of courses we might involve them in. This online course that i described steele has overall more than 40,000 students and 9000 of them come from india. Last january i was thinking how can i put people together and what programs onemight we run . This is dazzling. I would like to get a map of where they all are in india. I do know based on another conversation last week that 150 of these people in mumbai got together last week and said we do not want to be a virtual undertaking. We want to talk with each other. There is a flash mob of epidemiologists as they came together. A different type of flash mob. Theres so much talk about s. T. E. M. And the growing number of students. The market run normally are you optimistic that well get more and more students given harvards experience . Or is there something we should be doing more . Of both things are true. Were seeing many more students interested in science. Were seeing the doubling of the engineer concentrators within the last three years. 29 that enter this fall were concentrated on Life Sciences. We have been were he on how to teach science, getting kids involved in research early. That is one way to get them engaged. They are engaging in persisting in science. Then there are questions about how do they understand there opportunities . Going back to this area a basic research, as we look at funding. How do they think about this life of going after in list uncertainty about whether the life of a researcher is possible. I worry about the choices they will make. We are doing a good job getting them up. Are also questions about how they sort themselves out into careers and have a huge that region and how they use that knowledge. He asked every day about how they use that knowledge. You asked about k12. If we do not have science teachers in k12 some small percent actually have training. A lot of our students are going in to teach for america. Im going to ask one more question and then turn it over to the audience. My last question will be on immigration. You have spoken on the need for the dream act. Can you talk about that . What first drew my attention was my first year of president a group of students came to see me, about 12 of them. They were all undocumented. They said we want you to support the dream act. They describe to me their lives. I was just stunned by their stories of growing up usually in the southwest or the west in families where they had no idea they were undocumented. Then there came a moment with the needed documentation and they realize they were not citizens. Suddenly they were thrust into this awareness of a whole nother world of not flying on planes to get back from vacation or not going home for vacation at all because they cannot travel are not being able to imagine medical school because they needed documentation to do that. I thought this is awful. Do you come to this question as a human rights or as an Economic Development . Both. Here are these extraordinarily talented students who ought to take on the world and they worry that when a car comes near them that they are thought to be picked up and deported. I thought this is horrible. The world seems to be speaking out on the dream act now. I hope we will see Real Progress in this area. Students are worthy of this. It is a human right for them. It is so important to have a welcoming immigration policy. That is what built our strength. We see the contributions of immigrants make to the innovation in economy. Something like 40 of the fortune 500 companies were children of immigrants. There are all these ways in which innovation and immigration have been tight. We need to support that. We did a report recently that demonstrated it to be 329. A lot of that is because people would feel free to engage. With that were going to turn over to questions. We have a few moments and then we will be ready for our next panel. If you could provide your name and try to make it a brief question that would be great. I am a sociologists. Ive worked and higher education. I question has to do with finances. What are the challenges you face . In an economy with challenges, how can young people from non affluent Families Afford College . It would be good to hear some of your thoughts and how we can enable it. We look at what a variety of different institutions can do. We have made significant progress on the price of undergraduate education with a financial a policy we have introduced over the last decade. 60 of our undergraduates are on financial aid. Society has to ask questions about what is the public nature of the educational enterprise. We have taken are strong universities and significantly reduced in their support for public higher education. If we look at our public right now, around 10 comes from the state. What are the implications of that for our society . I think this society ought to increase education as a public good. We have been backing off for that at a time when the Competitive Forces have only expanded. This greatly disadvantaged is the United States. That is part of this a question of what are the students needing to do. The industry is well aware that this great resource at the university. Universities have been clobbered it to an extent. There also dangers. I wonder how harvard policy toward these arrangements with industry has evolved. He mentioned the public. They do not have the resources harvard has. What suggestions do you have for the nature and extent of cooperation . I see it as related to the reports. He urges that the industry must invest more in higher education. I had a conversation with him saying we are free riding a bit. I think that is terrific. I welcome the attitude. You have pointed to something important. One set of this has been to encourage the transitional aspects, to set up a transfer office that is much more engaged into marketable products to connect our faculty with opportunities to commercialize this more directly. Then there are institutional partnerships. We need to negotiate how we move into this territory. This is a New Territory for many of us. We have principles of Academic Freedom that we wish to sustain. Industry has a need to process for its investment. We need to figure out what the overlapping is. Is it buying complete control . I think that would be a hard one for universities to swallow. One of the things we are wondering, the property we own over the river, one of the commitments we are making is to an enterprise zone where we hope to have some private endeavors side by side, maybe even sharing harvard scientists. That creates an ecosystem of sharing and translation. You are right. There are certain aspects of contrary missions we need to resolve. Industry needs us. We have time for one more question. This will be the last one. We have been talking a lot about s. T. E. M. This morning. Your background is in the humanities. If you look at funding from the 1970s compared to funding today, proportionally if we were at the same level as it were in the 70s the budget would be over 1. 2 billion. What does the national disinvestment do to the humanities . I went around with a filmmaker who was at various venues. People want to talk about the ideas. There is a huge appetite for what is war . How do we understand this . I felt this was an example vacation for me as to what the humanities can be and do. I embrace what you say. I worry about the decline in humanity concentrators even in institutions like ours. There are some places where the humanities are expendable when we have to constrained resources. I think we do ourselves a terrible disservice as a country. It does not focus on how to get where it needs to go but knows where it ought to be going. That is a fundamental obligation. A great ending to a great panel. Thank you. [applause] im now going to invite al hunt to come up and introduces panel. In the last session i said Gene Sperling would be joining us after this discussion. At the same event, a former adviser said resulting fiscal cliff situation is of utmost importance right now. His comments came during a forum titled investing in the future. This is 55 minutes. That is a really tough act to follow. I am al hunt. I am delighted to be here. Let me tell you one quick story about our host. When i met neera when she was policy director for Hillary Clinton and barack obama, i did a column or i refer to her as the sugary ray robinson. He was a pound for pound the greatest boxers. She was the Sugar Ray Robinson of policy record. Everytime i see here i say hi, sugar. When my younger reporters heard this and it to a colleague it is just a different generation. I am sorry, sugar. What im glad you explained that. It is terrific to be here. What a great panel. Glenn hutchins is the founder of silver lake. He is a tremendous asset at harvard as a great adviser. His real claim to fame is he is the part owner of the boston celtics. If we start to in any way need to but the more we will talk about that. Jonathan teaches at the university ebbs pennsylvania. He has written 150 books. I say about pat moynihan that he had written more books than most senators have read. I am dazzled by that. He is also a Senior Adviser at the center for American Progress. Hes very interested in the subject. Susan, we have to stop meeting like this. We have done more seminars. Susan has been a rock star since you used to yell at me over the crossfire. The think it is and the only past seven years. She rose to leadership. She left a real mark. She runs googles washington office. Shes always been on the cutting edge of things that really matter. Let me start off by saying i do not think there is an anti innovation caucus. I do not think there is anybody who is opposed to innovation. It is a little bit like apple pie or rg3. Let me ask you all to describe what we really mean by innovation. What are the two or three priorities we ought to really be talking about . Glenn . Lets start on that side. I thought youd start on that side. I go to my right first. There are three types of innovation. One is scientific innovation that allows the second innovation which is the technology innovation, to take the underlying discovery and commercialize its, turning it into a product that can be used for consumer customers. What is equally important is how you can then take a discovery, it turned into a technology, and you can deliver it in a way that allows you to build a business that gets you a margin that can support the business. Basic science innovation, technology innovations, and Business Model innovations are the ones we think of. Google is a good example of all three. I was on the board of a company [inaudible] they had about 13 billion in revenue. That revenue came from products that were 120 days below last told. They have to reinvent nearly 13 billion in revenue in 120 days. Disk drives are the file drives on any technology you have. The innovation has to curb at all three levels for it to continue to deliver. One of the major reasons these devices are so small a powerful is because of the process. In storage, the rate of change is to double every nine months. The point is in the Technology World to have to think about the companies. You have to think about the companys to stay ahead of the curve. Do you want to pick up on this . Not fair. I do not know how to innovate. What strikes me about innovation richard virus turned into an understanding of hiv aids. Think of the internet it turned into the web. There is a myth about americans that we only care about innovation. The founders had innovation in the dna. The articles of confederation required standards of weights and measures. The most undervalued industry is the embodiment of this requirement. We need to have government investing. The founders understood that. Hamilton was in favor of prizes for innovation. Some of it is about money. An open society in which we can exchange ideas. Standardization. What are we talking about when we talk about a fundamental measure of a basic material that is going to be part of technology . The money is very critical. We have a problem with respect to an old model in the Life Sciences and applied sciences. This is a problem. I am on a panel for emerging technologies. Advanced technology developments. This was news to me. It is not about hardware but about systems and components. Industry has something to learn from what is happening in the way the Defense Department is mulling the development of new technologies from basic sciences. I have been working for google for the last eight years. Larry and sergei were brought together to create google. Private industry. Google is the epitome of the with the forces come together to create what i think is an innovation now. One thing you have to learn is he wants you to have a healthy disregard for the impossible. That is something that took me quite a while to shift my brain to work that way. I want to bring back to what president faust was talking about. What concerns me greatly because of the house the disregard for the impossible and working with educational institutions, i have great concerns for where were going as a country and i will give two statistics. Some of the numbers i have learned the United States is ranked 52nd in terms of the quality of the math and science education. Thats something i think we need to focus in on. We are still numberone in innovation. I do not know we can say we need to focus only on stem, though clearly we do and especially for females. If i thought the congress was male dominated, im sometimes one of the only females in the room. What i think of innovation is a healthy disregard for the impossible. Once we get to higher education, we are not in the situation. I do think if you talk about a healthy disregard for the impossible, you need that early attitude in the Grammar School and Elementary School level in the humanities if they are going to have that healthy disregard to promote innovation. You have to learn to think outside the box. We want to talk about what role government can play to facilitate and not impede innovation. How important is that to businesses and job creators to get this issue resolved, or is this indigenous washington and it doesnt affect those groups much . Being in washington is being in a town with it healthy disregard for the possible. [laughter] i set you up for that. What government can and should focus on is things in their control and are important to get done. Outside of government control even though it is important to get done. The most important thing right now is selling the fiscal cliff. There is nothing more important today than doing that. I have met with the president to talk about that. I am involved in this issue. There are huge market consequences if we dont get that done. Now i will move on. If it is done necessary but not sufficient. I have never been with bain capital. [laughter] i will give you some reflection. I just came back from a week in brazil. The u. S. Would have just grown faster than brazil in the most recent quarter, 2. 4 . I raise this because you go down there and talk to Business People about why it is. We could have made little more taxes here and a little more regulation there and cost of labor there and a fair amount of uncertainty about what well do in the future. They have taken the steam out of it. This is a fragile and requires government to facilitate rather than layer cost and uncertainty on top of it. With that uncertainty and a very aggressive regulatory agenda which has caused Uncertainty Around Health care costs. You add that up and you have a period in which American Business is operating under a huge weight. Government rates the conditions where businesses and scientists can have the freedom to get the work done. That is an important thing to think about. Government can create the conditions under which the cost is listed to allow businesses to innovate. If i could follow up. I thought this was amazing. U. S. Firms spend 36 to comply with regulation than larger firms. The small startup and that is what we are looking for as we look for the next debate economic Success Story. That is the startups. We look at what a web presence can do. The regulatory barriers have such a depressing impact on the ability to get the job done. It doesnt have any impact in terms of the cost. Let me fill in the blanks. There is a clear agenda that is in front of us. I think well have the conditions with the fiscal cliff behind us. The first will be immigration where we can solve the whole immigration problem. People say, how do we compete with china . We can have the entire world at our disposal and start businesses. Then we have to focus on tax and the Corporate Tax reform to get a system that is simpler and makes it easier for businesses to compete in the world. That will be enormous. There is an Infrastructure Investment that needs to be made. This is important with the budget deal Going Forward. We have to think about what our values are. We can spend money on infrastructure to make investments in the future rather than having shortterm spending. Support for basic research and for higher education, as drew ta