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 pe