we are, indeed, fortunate, from san jose to san francisco, to be part of the innovation economy. we are finally seeing once again california's innovation is leading us out of the last three years of recession. i do not know about you but i am pretty tired of the recession. i made a statement several years ago that it was about time for an adjustment to the economy, things were too expensive, overheated. two years after that, i regretted making that comment. it was great to hear jim say when you look at education, you look at the programs, traveling around the world, that there is one constant. there are people and technology that say this is a place they want to be. entrepreneurs say this is where they want to be. when companies like facebook are started at an institution like harvard and a pier, you start to recognize why this is so special and fiber and why innovation is a bleeding heart economy. so let me try to give some brief introductions about our panel today. i have to confess, i only just met one of our panelists, lee said dyson, the ceo of coverity. she got a ph.d. in p

it is for innovation economy, ceo's in this region to join at the leadership group basically for free. because we want to capture in the them to the dna that david packard, our founder had, which was a balance of running, brilliance, dynamic companies while, at the same time, being deeply engaged in your communities and in the quality of life of your employees. that is the scale that we want to raise up in these incredibly innovative young entrepreneurs. we have about 20 of them here in the audience today. i want to just mention three of them and embarrass them. they do not know i am going to do this. all of these at this in common. they have less than 40 employees currently. their business has been around for less than four years. and, like me, they are younger than 40 years old. [laughter] why are you laughing? [laughter] let me introduce the ceo of snoozie. stand. [applause] the ceo of good joe. [applause] and the ceo of sylvantex. [applause] a lot of these start-ups

it is for innovation economy, ceo's in this region to join at the leadership group basically for free. because we want to capture in the them to the dna that david packard, our founder had, which was a balance of running, brilliance, dynamic companies while, at the same time, being deeply engaged in your communities and in the quality of life of your employees. that is

economy. the second -- we have to happen through innovation. whether it is the space program or tax credits for renewable energy. all that is important. we have to keep that going. that will get hard because we will face is demographics. that is my 74th birthday on april 7. i am aware of the and aging population which i have become and we are an aging population relative to what we were. luckily, we have millions of fresh arrivals that are younger and are energetic and they come from all over the world. we have to make sure our education system lifts them to their highest aspirations. when the society ages, it tends to -- it declines. that is the big demographic imperative. i was reviewing one of my favorite books on the roman republic. how did this village on the tiber grow to be the absolute leader of the known world in a few hundred years? it expanded its territory by plunder, by what ever. details. it was not pretty. [laughter] it added people, it kept getting bigger and incorporated the people and to roman citizenship. it became very conso

congress membership and this is important because we're in the 21st century needing to be an innovation economy and information economy, we do more than half the private sector rnd. so we're passionate about education and science and technology and innovation and the leading voice to be the leading economy in the world to be a voice for job creation. in march we put out a plan in taking action for america and a ceo planned for jobs and economic growth and we want these companies, virtually all of whom are headquartered here to be growing and to have an investment climate where you look to the united states and say, boy, this is where i want to invest. are there global companies so they're in china, they're in south america, they're in africa and they're in other parts of asia, and they want to be ---er mo of them want to be in russia. with russia pnt, with the permanent and normal trade relations with russia. we welcome listeners on coast to coast, our coast is john engler, former head of the national former association of manufacturers and now the current head of the business roundtable. mel i

of the obama administration's push to establish a broadband foundation needed to support the innovation economy in the united states. we are looking to produce better and new jobs and position to ensure that america remains at the forefront of the economy in the 21st century. we are working to ensure that all americans have the resources and the skills necessary to fully share in all of the possibilities, civic, social, and economic. all of these made possible by the internet. that is one of the reasons we are here today. he discovered for the administration is the broadband technology opportunities program or btop. this program was established in 2009 by the american reinvestment and recovery act and is administered by ntia. we have nearly $4 billion invested in roughly 230 projects across the country, all aimed at expanding broadband access and adoption in the country. and i want to tell you a little bit about the programs and then tell you about why we care so much about this issue. so, we have the btop for infrastructure projects. these are building broadband networks in areas that are curr

that is not just innovation in technology and our economy, but innovative approaches in the health field, curing diseases, cleaning the air and water, and dealing with social justice. there is no better start than here. we are the gateway to the pacific rim and asia. to the west, the booming economies of latin america and brazil. we are the international destination are rhumba world -- around the world. you, class of 2012, are part of what makes san francisco brand. you represent new ideas, new frontiers, new beginnings. that innovation is perfected in your university's new marketing campaign. "change the world from here." some of them definitely make you smile. academics covering the world from north beach? funny. the one that struck me the most -- "there is no moral compass app." so, i say to you as well, don't lose yourself and your values. don't forget where you came from, even amid the success you may achieve. some of you know the chinese zodiac for 2012 is the year of the dragon. dragon is the only mythical animal in the chinese zodiac and the most powerful. the year of the dragon

innovative companies create jobs. today's economy depends more on innovative fields like high tech manufacturing and intellectual property. we can use tax measures to put research and new technologies on a more level playing field with existing technologies especially in the energy sector. finally we need to promote opportunity. tax deferment can boost sustained growth and make our society more of a meritocracy. many tax benefits including education currently give the most help to those who already have the most opportunities. tax reform should refocus these benefits to help those who started out with fewer opportunities. we shouldn ensure more students get more education, not just college but vo-tech and community colleges and special training. americans are the most creative and the most driven people in the world. education is the key to unlocking our potential. it's one of the best investments we can make as a nation. a college graduate working full-time earns nearly $1 million more over his lifetime than a high school graduate,

economy. the innovation and energy economy are doing just fine. >> let me kind of give the flip side. david made, i know this is a shock. he made one good point and that was about the gas prices. by the way i'm waiting for obama to bring in the speculators and ask them. >> where are they? >> stick to your point. >> we should -- >> stick to the point. >> the point is everyone thought gas prices are going to go to $5. now, they might go to $. the same rationale that everyone things nothing good can come of greece and spain and yet all it takes is one good thing to turn arounded and people to say oh, my gosh it is not as bad as we thought it going to be and all of a sudden things get rolling and momentum going and all of a sudden we see the dow moving back up again. >> jonas, you think we are going to flat line but there are two issues that make people feel richer and that a it the stock market and the home market. neither one of those seems to be picking up so where does that leave us? >> the stock market is still a lot higher than it was a few years guy. because of the recent crisis in

forward to working with you to figure out how we create san francisco as the capital of innovation and the new economy. before i joined the board of supervisors, i started a web 1.0 company. what makes our city special is that everyone of you have ideas that will change our city and change the world. our mayor is responsible for managing the 50 plus executive- branch departments that will be interfacing with many of the policy areas you impact. scott and i and our colleagues are in charge of legislating and adapting to new technologies you have that are changing the way we all live. one thing we like to say at city hall is that as goes san francisco, often times so goes the rest of the country. as goes the rest of the country, so goes the world. i believe we're starting something special today that will do that for the entire planet. thank you for being here. i am looking forward to working with you. [applause] >> welcome. my name is ontario smith. i volunteer is a member of the board of directors. i would like to welcome you for the dialogue on the shared economy. spur is a non-profit organization. w

that is something that some economists that are strong supporters of the innovation economy -- they sayey should be poured into research and development and new ideas. we poured too much money into housing. that created the illusion he calls fake jobs. the construction jobs were tied to the real estate markets. we were not growing at a lot of other jobs. we were left with revealing this slow growth in the jobs out some of the housing sector. one of the policy initiatives that a lot of people believe is that we should be doing more to create jobs that are not tied to housing. being led out of recession by innovative companies that are coming up with new ideas and new industries. there is some reason to believe -- there are all kinds of things happening with technology -- cloud computing which makes it easier for people to start businesses. expensive have to buy mainframe computers. there are all kinds of technological things that could create new jobs. host: do we have a work force trained for those jobs? guest: will we have people willing and able to do those jobs? look when the interne

innovative approach to work. the problem with government involvement in the economy is that it does not go through the same process of innovation and sometimes failure that exist. none of us will allow government to fail. what would occur in most private organizations and institutions, failure followed by defunding, simply doesn't happen here and i was delighted to hear congressman van hollen's approach that maybe it should given and that is a place where i think there is huge common ground. if programs don't work, defend them and allow for others to come in their place or not exist at all. i want to return to the rational behind some a process. this is not about making government more efficient, it's been making government a smaller part of our economy. we have to ask ourselves whether the status quo and expensive and unaffordable status quo is the best way to address the problems that congress has set itself up to solve and i believe that there are many better approach toes that and i thank the committee for its attention to these issues and look forward to answering your questions. >> thank you. mr. edwards. >>

the innovation system is what keeps our economy humming. our businesses competitive and hiring, our manufacturers producing, our standard of living improving, and our wages and benefits high. very simply, if we want to spur a strong and sustainable recovery, america must ignite the innovation boom again and still further. we must start by developing and attaining world-class tall loept. because human capital is the primary driver of innovation. first, we need to develop the hometown talent. it's no secret that america's k-12 schools in many places are falling far behind our global competitors. what's most alarming is that our primary area of weakness is also the most vital to innovation, and that's science, technology, engineering, math, or s.t.e.m. it's estimated that half of the k-12 students are being taught science and math by teachers who, by necessity or accident, are not proficient in those skills. so we need to reform our k-12 education system. embrace technology-driven learning and innovative teaching technologies. and we've got to

the fact that a lot of workers now have competitors in bangalore, the financial innovations which helped sink the economy in the last decade. the financial innovations produced enormous income gains at the very, very top, increased technology. and this whole idea of a winner take all society where the earnings at the very, very top, the top performers get humongous payouts compared with people who are almost as good. i think when you look at the data on labor supply, you look at the data on savings and how it responds to taxes, the real response to taxes appear to be very, very modest. lebron james would not decide to sit out the finals if we raised his marginal tax rate. he still would want to play, because his next best option is not going to pay him all that much. corporate ceos want to be the people earning the very top, top incomes. they're not going to decide to work a little bit less because their marginal tax rate goes up. so bob was making a valid point, but i think probably deliberately overstating it. i think the rise in inequality, the rise in inequality is really an issue. that if all of the

economy that was given out in large portions. this is money that is being used to buy famous that the government needs desperately and going to the most productive and innovative sectors in the economy in the process and those of the companies that are being mobilized and put to work. the automobile industry and the others. the second thing to keep in mind is this involves a new labor force for wartime production. and not just african-americans. 1 million move from the south to industrial centers to work at the chrysler tank arsenal. and the work force which is incredibly mobile. people were free to go where they need to go to make this kind of -- chase after the wage. something like twenty million people leave their home to go find work in wartime factory -- drawn by conditions and better pay and opportunity these kinds of work and industrial surge would be able to create. mobility in waiver. people could go where the jobs are where the productivity is based. unlike the soviet union or britain no one tells american workers where to go. no one even until the end of the war although washington was worried about this until the end of the war, the same is true --

one of the areas that is clearly crucial in linking science and technology and innovation to the economy is the translation of discovery from laboratories and research universities and our great national laboratories, accelerating the translation of those discoveries into commercial products and services and new processes and there the american manufacturing partnership, the turls gene only initiative and the start-up america initiative are all aimed at accelerating and making more efficient the processes by which we turn scientific and engineering advance into economic advantage. >> so -- because we are increasingly on the cutting edge of science and there are intersections of multiple disciplines. what are the challenges that you face involving different federal agencies, academia and industry in the efforts of our country to go forward with science and technology? >> thank you for that question. >> let me answer it in two parts. first is the interagency engagement and coordination and there as mentioned in some length in my testimony, ostp has the responsibility and i have the respons