Gains in washington because of that next generation doesnt the that you will see those gains retreat millenials live in a much stronger in the private section so maybe they will see more gains in that sector there much more upandcoming like Silicon Valley or even in Hollywood Taylors with saying what my recognition or Jennifer Lawrence i want equal pay theyre finding their voices that are very powerful but there are so very few millenials with bin in public life. I think they in general especially College Students that is why i think there is of fundamental shift for those that are interested which i think is encouraging but stay involved and volunteer on campaigns because if you get the bug early you will be hooked and you can make a difference. I thoroughly enjoyed to be here with all of you. Thanks for coming tonight it was great to have your insight. [applause] [inaudible conversations] good morning. What i am delighted to be with you here and also those of you out in twitter this is also web cast and we will be taking questions later they can start coming in now use artist places so fire up your smart phones. And the senior fellow here at brookings and it is my privilege to kick off todays very auspicious event i think that is for several reasons but to welcome end help launch a book into the world is a red letter day cruz excellent new book is out and if i do say so we should rush to get at copy so on the way out please do that also with the canada eggs observers with this standard inside the belt way not the usual spin cycle but they are the most fundamental elements of the national wellbeing. This debt market is intense in this industry with aerospace or materials and Renewable EnergyRegional Technology custers blunder Technology Ecosystems are critical that as part of their focus and the collaborations that they accelerate. The fact that they themselves can be incubators of growth traveling the world foredeck aids and to embrace the klay regular and the micro this is often to the disembody eve debate base and the most auspicious aspect and big news. And it is true. That least it is done in to flip the narrative to see a decline and then to see reinvention with the increased focus on technology. End of tires and steel is the polymer of nanotechnology. And with the reinvention playbook will be have to turn local universities and open innovation in to have a promising new strategies to return with an optimistic view that old places are launch pads for the new i find it extremely exciting. This is a welcome counter to the scary decline that has dominated the president ial campaign and especially noteworthy given that antoine while working at the world bank in 1981. The term emergingmarket its and declared the onset of the emerging markets century. At that time he did not say it was the beginning of the American Century but it was a different century now he is back with a somewhat different view so i would like to introduce our to esteemed authors the you can see from the agenda will also participate in a Panel Discussion that we have moderated by my colleague. Preference our introduce Antoine Ben Fred Bakker who is his coauthor and youll meet him shortly but as a brookings trustee and Senior Adviser the Public Policy advisor referred to recently the principal founder and ceo of the emerging markets management specializing in emerging markets by should note he is also a supporter of the office of centennial scholars here at brookings and for his part the recent retirement fred bakker was european journalist specializing in monetary Financial Affairs that was dubbed the Financial Times of holland living in amsterdam for right now we will hear from antoine van agtmael. [applause] thanks for that wonderful introduction am glad my wife is your to hear this. [laughter] i will start to that we could not have written this book without brookings they give us this forum in the presentation but for the past couple of years was really influential with our thinking. Brookings and bruce and mark did the task of breaking work on all of this and it has been very good work and were standing on your shoulders to make this possible so thank you for that. When you listen to some of the political candidates on the left and the right right, dont you get depressed . When you listen is outside the country has rand run out of steam on innovation and all we have his problems but as mark said that is not what we found out i will start by saying if you look in the Rearview Mirror, yes famous look bleak Youth Employment is down 7 Million People there are 10 million jobs in Hightech Industries and 4 million were created during this time and you can see that line at the end is starting to reverse and not just competition from my emergingmarket its but also we were doing things much more productive the and of course, a devastating impact from the 2008 crisis were coming out of but that is not the whole story and this book started when i went to asia and fred had a similar experience with his travels i have been doing this 30 years and i met with many an entrepreneur and ce0 and i hear them complain about american competition i did not grow up here and i have not heard that in 30 years and why were they complaining . Labor cost goes up and gas was cheap but they could not keep up with American Innovation so we visited one dozen cities all over the United States. We came to a very different conclusion the american and european economies are not on the decline. No. They are regaining competitiveness why does the new paradigm for the last 25 years we have been trying to compete on the basis to make things as cheap as possible. That is a losing battle. Certainly against china or other emerging markets for the we have learned after the 2008 crisis it is much better to compete to make things as smart as possible here were very give me a great universities and a freedom of thinking that promotes thinking of the box basis for all real innovation with a great legal system so smart innovation is beginning to replace cheap labor as the key Competitive Edge so now first people a sharing brain power. What is that . Collaboration among the University Departments barrasso universities climbing out of their ivory towers and small startups and all legacy businesses and we see this all over the country in the past they were done on the hierarchical basis not very efficient and we learned this from though whippersnappers in Silicon Valley and cambridge we learn things to do things in a collegiate way it is no longer close to innovation but open innovation is no longer siloam todays problems require multi Disciplinary Solutions one of the of trustees of brookings i went to see Shirley Jackson from the Polytechnic Institute and she said nothing is being invented everything was already invented between academia it is now bottomup youre not alone in your garage but collaborative flee and no longer in isolated Research Centers of the government but in vibrant urban innovation that is worthy young researchers like to work second is we are creating a whole new branch of the economy the expertise and now we have added new production of its in materials and discoveries and on top of that we integrate with what we are really good at of Information Technology and the ability we did not have that before coming to use big data to analyze this to help us and that is softer a tiny chip and that is the sensor that makes things possible that were never possible before the future is all about connecting and connectedness. Take the selfie driving car a revolution in transportation. My picture disappeared and wearable devices. This will be incredibly important to the future of health care you can wear them or even in jest them less smart grid for farming and fred can tell you about that of this is now possible not possible before this is the smart economy the culmination of the physical and the digital you might think this is nice to we have lost these industries. Think again we have new production methods look at Rodney Brooks from m. I. T. Secondgeneration robots look at North Carolina that invented to read the printing 1,000 times faster and only in prototypes but in production and dr. Chang and found a new way to make batteries and to bring back Industries Like socks and shirts and shoes ive talked to fill 90 severe already making shoes. We also found this Collaborative Innovation is no longer limited to places like Silicon Valley and cambridge but has spread to more than 30 greenbelts to more than 50 greenbelts in europe so i will illustrate with one example which you thought one of this is the smartest places on earth . Maybe not the we had four old Tire Companies gone practically overnight with a loss of a lot of jobs and a lifethreatening challenges all of these are based on lifethreatening challenges then the second element the president of the university who got people together and to collaborate because they had no other choice and was stayed in akron didnt disappear was worldclass Polymer Research giving us things like contact lenses that change color with your diabetes and tires that drive on all types of Road Conditions in haiti that whistled driving cars and making give you hundreds more but now 1,000 Polymer Companies that have more people working for them than before all Tire Companies that is what i mean by changes. You have a lifethreatening situation in the university it is always university centric each westervelt that is becoming the greenbelt to use worldclass research the problems with our century are no longer simple they are complex and expensive requiring multiple canary multiple this plenary approaches to share brain power if they have a connector in the Infrastructure Projects and retains anticly includes Affordable Housing that is why people move from Silicon Valley to pittsburgh or akron. And finally access to capital these are the key characteristics we have albany new york do you know, just outside of the nanotechnology complex a former christian militia fighter from lebanon is a great physicist is at the forefront of Semiconductor Research next door you have thousands of employees working on the most modern plants in the world i was in the clean room and that Little Machine cost 1 billion the most modern machine to make semiconductors in albany new york let me tell you a story on the sidelines the lucky strike factory no more cigarettes now it is an incubator and important organ giving 500 million that brought together the university with what was already there doing things they cannot do alone and now the university brushback to put the city bicycles so now from labels to the most murderous cities now you have the Technical University that was open innovation so over 30 places from all over the world twothirds are former rust belt and we described in detail than of those in our book their building on the forgotten strength we could not be out brookings about some policy so lets go through them the first is a 21st century economy measuring with Twentieth Century statistics weirdness measuring our productivity Google Search we have to find a better way to do this and second why are is all this anchor because there is a job mismatch people cannot find jobs after they lose them in the new world we have to develop programs of training for jobs better based on a very good model of the german work study model is a great model we can do it and i think we probably will and share their brainpower to support and build the innovation districts in support for Research United states still does twothirds of basic research but we have to keep doing it or we lose out Venture Capital should have the leeway not to makeay or they invested in social media and invest for the long term so in conclusion we are optimistic and think the United States and Northern Europe has a fairly Good Future Innovation and competitiveness is not dead in fact, we are we gaining it may be the best way to sum it up if you looked outside it is no longer winter in america spring is coming back. [laughter] thank you. I am from brookings the other is an absolute pleasure to moderate in the season of despair to be optimistic wrote the future of our country in many similarly situated cities in europe fred and antoine have done a solid Great Service to takes to dutchman to come to america and tell us what we have we have to other people on the panel that i will just give a brief introduction but two of the Top Economic Development thinkers and practitioners in the United States rebekah is the vice chair for economic partnerships at the university of pittsburgh and if you want to feel optimistic about america won a tour with who were her she works for nortek and Pennsylvania State government and bob his head of the Research Triangle arms the iconic part prior to that he worked with them so theyre really at the cutting edge but i will start with fred about four years ago marcan i took a trip to the netherlands and you took us to where we have never heard of before and we had a remarkable day where we saw a turnaround story that electronics up part of the city lost tens of thousands of jobs to asia but in 15 years this is a city basically one of the most innovative cities in the world and what happened . The short version, it is a long story but it was originally built around two companies they came in big troubles estate announced they would shift the manufacturing. Hightech hot spot on a specific item thats building hightech machinery. 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 the university and the city and nearby communities were all followed close, particularly organized and if you want to build those disciplinary teams, you have to break them open. And there was not one connector, but there were three connectors early this century, and to start with one that was a ceo of phillips and took the courageous step to open up the silo, Close Research lab, a lab that is similar to were similar to the bell lab and had much resistance from his own employees and people around phillips. But he opened it up and did something more, he invested a lot of money in building a hightech campus and he put his own Research Team on that campus, opened up facilities for for startups. Laboratory, clean rooms and Foreign Companies to put part research. 60,000 research all over the world working on that campus, thats the first connector. He and his colleagues went out to the companies and interviewed them, what are the skills that our students need to get those jobs that you are forgetting, and so with the information he got from those enterprises he built that were able to breakthrough those silos that were also inside those universities. And the first step was taken by the mayor and, of course, it was not him alone anymore but there were 21 other communities where companies were doing research and manufacturing, so instead of fighting each other, he fighted them to come up with this proposal to start a foundation which all those 22 communities, and so they decided that the mayor would be the president of that foundation, and they gave it a brilliant name, red board, and that says it all. That was what happened in a relatively short period of time. Theres one other thing that is thats remarkable for the region what we cant see in all the other place that is was the change that took place in the supply chain from all those middle companies that were in that region and the initiative of h l to ask their supplies h l is a Semiconductor Machinery makeup that is world leading now after they have beaten Companies Like canon. But they asked their suppliers who were earlier this century still delivering components on strict prescription from h l and they asked those companies to put their r d in those components, so they change it had supply chain into a chain and that is very, very unique. Let me youre a journalist. [laughter] when mark and you and i were at the end of the day, we drove back to airport and can you because this is a story of a dutchman about the dutch situation and its suspicious.