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Compete Newsletter Winter 07 Council on Competitiveness, Newsletter Winter 2007–2008 ISSUE 2 Compete. “ Regardless of your business, we all operate in a world today that demands differentiation, and there’s little question that innovation is a critical driver in a competitive global marketplace.” Robert W. Lane, Chairman & CEO, Deere & Company Future of American Prosperity Uncertain Inside in Modern Global Economy 1 Future of American Prosperity Council challenges public and private sectors with Uncertain in Modern Global Five for the Future Economy With each approaching New Year, the past will not sustain a competitive 2 President/Chair Statement it is customary to take stock of edge in the years to come. The Council 4 Five for the Future what has been accomplished and believes innovation is one of the keys what lies ahead. The United States is to maintaining U.S. economic leader- 5 Landmark COMPETES Act Sets the preeminent economic force in the Vital Innovation Agenda ship and prosperity. Since convening world, but this country faces an increas- the National Innovation Initiative (NII), 6 Thriving in a World of Challenge ingly uncertain future. The triple deficit, the Council has been at the forefront of and Change—Impact of the energy issues, global labor arbitrage, a the charge to build a strong innovation National Innovation Initiative de-linking of corporate success from agenda for America in the 21st century. individual success and ongoing educa- 8 Initiative Roundup Led by NII Principal Committee co- tion challenges pose potential obstacles Council Focuses on Private Sector chairs Samuel J. Palmisano, chairman to U.S. competitiveness. At this year’s to Drive Demand for Sustainable of the board, president and CEO of IBM annual event, the Council on Competi- Energy Solutions Corporation; and G. Wayne Clough, tiveness issued a challenge to public and president of the Georgia Institute of 9 Department of Commerce Partners private sector leadership to energize with Council to Bolster Regional Technology; the NII has benefited from U.S. competitiveness with Five for the Development the participation of a truly exceptional Future, a roadmap for competitiveness membership. During the course of Council’s Global Initiative in the 21st century. Establishes Strong Ties the NII’s work, private sector leaders Throughout Americas Whether American citizens and busi- such as William R. Brody, president of nesses will thrive in the rapidly chang- Johns Hopkins University, and Craig R. 10 Council: Modern Age of Turbulence ing global economy depends largely Barrett, chairman of the board of Intel Demands Enterprise Resilience on the ability to understand and act Corporation, served as co-chairs on the 11 High Performance Computing upon the prevailing forces of change. NII Leadership Council. Both Palmi- Expanding Programs The policies and business models that sano, Clough and the NII ensured U.S. economic leadership in 12 Council 2007 Sponsors continued on page 4 2 Welcome Council on Competitiveness Susan Hockfield Board Massachusetts Institute of Technology CHAIRMAN Charles O. Holliday, Jr. Shirley Ann Jackson DuPont Rensselaer Polytechnic Institute As the Council on Competitiveness prepares to close D. Michael Langford out another great year, we are delighted to share INDUSTRY VICE CHAIRMAN Utility Workers of America with you the success and progress we experienced John B. Menzer in 2007. We saw tremendous validation of our past work and Wal-Mart Stores, Inc. Richard T. McCormack Merrill Lynch & Co., Inc launched new initiatives aimed at securing America’s competi- UNIVERSITY VICE CHAIRMAN Edward J. McElroy tiveness in an increasingly globalized economy. G. Wayne Clough American Federation of Teachers Georgia Institute of Technology The Council continued its outreach to the Administration and Samuel J. Palmisano Capitol Hill to make innovation a top-tier, national priority. We LABOR VICE CHAIRMAN IBM Corporation Douglas J. McCarron witnessed the impact of the public/private sector partnerships United Brotherhood of Carpenters James M. Phillips not only in the President’s American Competitiveness Initia- and Joiners of America Luminetx Corporation tive, but also the National Governors Association “Innovation CHAIRMAN EMERITUS Michael E. Porter America” initiative and the America COMPETES Act that F. Duane Ackerman Harvard University President Bush signed into law. This historic, bipartisan piece BellSouth Corporation Luis M. Proenza of legislation is rooted in the spirit of the National Innovation PRESIDENT The University of Akron Initiative report, Innovate America®, and is a significant step Deborah L. Wince-Smith James H. Quigley forward to implementing a national innovation agenda. Deloitte Touche Tohmatsu The Council’s flagship publication, Competitiveness Index: Executive Committee Ian C. Read Where America Stands, made it clear that the U.S. economy is Pfizer Inc Gene D. Block strong, but our long-term economic leadership is not guar- University of California, Patricia F. Russo anteed. Following up on the Index’s conclusions, the Council Alcatel-Lucent Los Angeles recently issued a competitiveness call-to-action at the 2007 Erskine B. Bowles Kenan Sahin Annual Meeting. Five for the Future urges policy makers and TIAX LLC The University of North Carolina private-sector leaders to secure the future prosperity of all William R. Brody David E. Shaw Americans by enhancing innovation in the areas of science and Johns Hopkins University D. E. Shaw & Co., Inc. technology, energy, education, economic resilience and global Jean-Lou A. Chameau William L. Walton engagement. The United States must strategically create the California Institute of Technology Allied Capital Corporation platform for America’s future competitiveness. The Council Richard T. Clark Lawrence Weber will continue to advance this agenda as we present Five for the Merck & Co., Inc. W2 Group Inc. Future to the presidential candidates, members of Congress Jared L. Cohon Robert J. Zimmer and the media leading up to the 2008 elections. Carnegie Mellon University The University of Chicago Consistent with the findings of Five for the Future, the Council John J. DeGioia worked hard to leverage its unique private sector networks, Georgetown University Distinguished Fellows its thought leadership and its initiatives to achieve a new level Robert C. Dynes Erich Bloch of success. University of California The Washington Advisory Group John M. Engler • The Council launched its newest initiative—Energy Secu- Daniel S. Goldin National Association of rity, Innovation and Sustainability (ESIS)—which reflects The Intellisis Corporation Manufacturers the importance of energy security and sustainability as Alan P. Larson Marye Anne Fox competitiveness drivers in the 21st century. ESIS seeks to Former Under Secretary of University of California, San Diego drive a private sector demand for sustainable policies to as- State for Economic, Business, William D. Green and Agricultural Affairs sist the creation of new industries, technologies and jobs. Accenture Thomas Ridge • Treasury Under Secretary Robert K. Steel addressed the James Hagedorn Former Secretary Department of Council in May to launch Secretary Paulson’s U.S. Capital The Scotts Miracle-Gro Company Homeland Security Markets Competitiveness Initiative. The initiative seeks Sheryl Handler to tackle critical barriers to global competitiveness by Ab Initio strengthening financial reporting and creating a more sus- John L. Hennessy tainable and transparent auditing profession. Stanford University John A. Hillerich IV Hillerich & Bradsby Co. News from the Council on Competitiveness Winter 07–08 3 • The groundbreaking report, Transform, released at the first ever Resilience Day on Capitol Hill, highlighted the impor- tance of enterprise resilience to the security and long-term prosperity of our nation in a world of growing risk. • The High Performance Computing Initiative partnered with the international supercomputing conference to produce a series of CTO discussions that showcased successful industry uses and competitive advantages of supercomputing. • The Council collaborated with the U.S. Department of La- bor’s Workforce Innovation in Regional Economic Develop- ment (WIRED) initiative to provide technical assistance to more than 15 regions in the United States and to create regional innovation ecosystems that will drive growth and prosperity in the global economy. • The Council co-hosted the inaugural U.S.-Brazil Innovation Summit highlighted in the March 2007 Camp David com- muniqué between President George W. Bush and Brazil- ian President Luiz Inácio Lula da Silva. The Council led a senior U.S. delegation of more than 40 public and private sector leaders and their Brazilian counterparts to shape a Call-to-Action to create the conditions for innovation-based growth in the Americas. In 2008, the Council on Competitiveness will continue to drive U.S. competitiveness and productivity, and to raise the standard of living of all Americans. Our success will, in large measure, be built on our ability to understand how the game has changed and to respond with a new set of strategies and capabilities. This demands an environment that supports innovation and Additional Successes anticipates the new dynamics that create competitive advan- tages. We look forward to engaging with you on these critical The Council on Competitiveness forged many strategic competitiveness opportunities in the coming months. relationships in 2007 to advance U.S. competitiveness and promote
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