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

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 doing incredible innovation. some will succeed. others will not. these people, however, will succeed no matter what

. >> the innovation economy, the ability not just to research and blood pressure but to research andmercialize. where are we in of your assessment of the american economy in terms of our capacity to innovate institutions like ucsf? >> on the i know ovation front, it's an amazing time. seriously, a time like no other in science. the kinds of deep understanding that we are able to make from everything from mitochondria to how the human body works is amazing. where we are snuck my opinion is to efficiently, meaning rapidlyly and predictbly translate that deep understanding into better health. >> you understand translation in an interesting way, sort of an inverse, you were originally at ussf but we want to genentech, partnered with stanford university, the first biotech company in the united states. you have an understanding of what that translation is about and the jobs created and the opportunities. where are we on that scale of innovation and translation in said of the economy that we are in the lack of federally funded research and development in terms of the if you hadding we have

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

from the governments here in the valley, sacramento, or in d.c., that would strengthen the innovation economy? >> i could go on about immigration and corporate tax policy reform, but i am a researcher, so i will not. >> and we have seven minutes. >> mayor lee said it perfectly. the fundamental thing that companies are looking for is to be engaged in the process. we use a term in computing called agile. we look for more ability and the possibility to work with us, iterate in the process, rather than what we often see as we call the waterfall, take-it-or- leave-it. flexibility and agility is what is most important. >> mayor lee? >> i have always thought of our city as being the gateway to the rest of the world. i have often talked, with companies, i want to be with you when you turn the corner. we want to be the city that treats international markets for your products. i do not know if you know this but we have 70 counsel general offices in san francisco, the highest number outside of washington, d.c. we want to make sure that our companies know we are not just in it for san francisco, the regi

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

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 inll

is grappling with the transition from being again a sweat shop economy to being more of an innovation economy. that's a very difficult transition. that's part of what's the challenge in china. >> similarly, the obama campaign, let's do a little fact-checking on that. this is their new ad out today attacking the romney campaign for outsourcing. >> what a president believes matters. mitt romney's companies were pioneers in outsourcing u.s. jobs to low wage countries. he supports tax breaks for companies that ship jobs overseas. president obama believes in in-sourcing. he fought to save the u.s. auto industry and favors tax cuts for companies that bring jobs home. outsourcing versus in-sourcing. it matters. >> so we're talking about the whole bain attack. they think it's working. the polls seem to indicate it's working. but the reality of that? >> certainly if you look at the bain record during romney's time there, it had big successes and some failures. i think this is sensible for the obama campaign to promote. also, it's true that during the last year or two of president obama's watch, manufa

there's no point making the investment and getting away from the innovative economy we've had. e are parts of the economy which are doing quite well. let's sustain that. which means let's not do this on the backs of taxing the rich at the rates we used to tax in the past, 91% of marginal income. increase taxes a little bit, but make sure the tax system works better. tax reform across the board makes sense. broadening the base, increasing taxes a little at the top, but don't make all the spending go to the people at the top which creates a whole set of new problems that we don't want to deal with. at the same time, there's a lot of room for cleaning up the way we spend, making it more effective. it's not true that every education worker that we have is useful. it's not true that every teacher we hire is doing a good job in the classroom. we need to get more money for the dollar that we spend and so spending reform has to accompany tax reform. and that i think would put us on a more even keel. >> chrystia, what's the disconnect? listening to ragu sounds so obvious, if he were runn

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

and the way to do that is invest in the things that have always made our economy grow. innovation, research, development, infrastructure, and education. >> are you looking at the folks behind the vice-president, did it not look like a hostage tape. you've got a government spending more than a trillion bucks on jobs and bang for those bucks and now he wants to spend more of your bucks on jobs. so we're asking this morning, what the buck? and charlie gasperino, dagen mcdowell and dr. payne. >> if that was, communist russia would be the most powerful in the country. >> a lot floating around d.c. these days. >> might want to be careful-- >> and to express this little faith in american citizens, they go out and knock ambition and denigrate success, it's ridiculous. >> i thought the audience was stepford audience. >> neil: look at the crowd behind him they look delighted to be there. adam, you're looking this, hearing this, watching this, i mean, you must even be saying, come on, enough of this? >> well, neil, i'm delighted to be here, just to say, just to get that out here. no, i under

the way to do that is invest in the things that have always made our economy grow, innovation, research, development, infrastructure, and education, and education. ladies and gentlemen -- and have a tax system where everybody, everybody pays their fair share. [ applause ] ladies and gentlemen, my republican friends disagree when i say that is wealth envy. wealth envy. ladies and gentlemen, think about this. in the jobs bill we had, we broke it out in constituent pieces, there was a part that would put 400,000 teachers, teachers' aides, cops and firefighters back to work and the way we paid for that is we said we'll pay five-tenths of 1% on the first dollar you make after your first million. according to the polling data, even the millionaires thought that was fair. millionaires are just as patriotic as poor people. the very wealthy are just as noble and patriotic as the middle class. but nothing has been asked of them in this horrendous recession. and it's time we just ask. [ applause ] let me conclude by saying that when i talk about the middle class, a lot of the economists -- not a l

and the way to do that is invest in the things that have always made our economy grow. innovationsearch, development, infrastructure, and education. >> are you looking at the folks behind the vice-president, did it not look like a hostage tape. you've got a government spending more than a trillion bucks on jobs and bang for those bucks and now he wants to spend more of your bucks on jobs. so we're asking this morning, what the buck? and charlie gasperino, dagen mcdowell and dr. payne. >> if that was, communist russia would be the most powerful in the country. >> a lot floating around d.c.

it is americans dreaming, building, creating, entrepreneurs, innovators that drive our economy. and that put us ahead of europe and the great populated nations of asia. this economic freedom was envisioned by the founders. they said that the constitution -- excuse me, they said that the creator endowed us with our rights not the -- [ applause ] >> and those rights of course were protected through the constitution. among those rights that they described in the declaration of independence, were life and liberty and the pursuit of happiness. that phrase, pursuit of happiness means that in this country people would be free to pursue happiness as they choose. not as government directs. not limited by the circumstance of the birth. it's the nature of america to have free people pursuing their dreams. and dreams -- and dreams are being crushed when taxes go up and up and up on job creators and business creators. when regulations becoming overwhelming and burdensome. when the people in the government treat you like you're the enemy instead of the friend. if i'm the president of the unit

the only thing that is sustaining our economy is the innovative portion of our economy. whether it is creating content, whether it is in terms of creating products and services. the ip element is core the and dna for the unted states. that is the only thing that is keeping us moving. if you look at other countries that have emerged, they have emerged because of natural resources. they have a marriage because of they have emerged because they are structuring their government in a certain way. there are different ways for countries to compete. as a principal for the united states, ip is going to be our value add. it is going to be important to western and the kids from bell in terms of sustaining growth, adding value. we are not going to be the low- cost provider. we are not about taking our labor rates them to $1 a day. i would say that this is important for trade. i think it is important for other countries. as they evolved and developed their own forms of ip. >> a lot stake two questions together. there is a hand -- let's take two questions together. there is a hand in

chocked full of innovation, and dramatically improved foul economy without giving up anything in size or speed. and the last piece of the puzzle is great financing for them in the autos. great rates and great availability. >> during the crash everybody kept making their car payment. it's the number one payment. it's a good, safe secure loan. you put it together. genuine need, exciting new products, great financing, that's driving the oolt business. >> you talked about fuel economy. are consumers, now that we're seeing gas prices come down, going back to buying trucks and suvs again? >> well, this is the big change from '08. the last time there was $4 a gallon there was a stampede to spall cars. we were taking cadillac escalades in trade for smart vehicle. >> you can get the same size vehicle with the same performance with a 20, 25, 30% improvement in fuel efficiency. and the interesting thing is the technology supporting that is not the hybrid, not the electric. it's an interesting small segment of the marketplace. but it's breakthroughs in existing technologies, whether it's turbocha

as we confront the challenges of an innovate economy we must be careful not to undermine the economy itself. now, madam president, it's well known that we continue to have discussions amongst various parties, senator kyl, senator whitehouse, senator lieberman, senator collins, sometimes the crowd is large, sometimes it's not so large, and i think that we have made some progress. i think that there is a better understanding of both the different proposals that are before us. i do believe it's important, i do believe it's very important that businesses, large and small, in the united states of america, whether they be the utility companies or whether they be the most high-tech sectors, be represented in these discussions. we have tried to do that. i believe that we can make progress. i believe that we can reach an agreement. i also know that we have had several meetings and have not had extremely measurable progress, but i am committed to doing everything i can to see that we reach that agreement before we conclude the consideration of this legislation. i would also like to point out t