1. Sustaining America’s High Tech Future Innovation and STEM Competitiveness Presented by Marjorie Bynum Vice President, Globally Competitive Workforce The Information Technology Association of America (ITAA) December 2, 2005

2. America at the Crossroads “..the United States of America is now facing its greatest challenge since the dawn of the Industrial Revolution. This challenge has little to do with business costs and even less with manufacturing prowess…The core of this challenge is what I’ve come to see as the new global competition for talent, a phenomenon that promises to radically reshape the world in the coming decades…Today, the terms of competition revolve around a central axis: a nation’s ability to mobilize, attract, and retain human creative talent. Every key dimension of international economic leadership, from manufacturing excellence to scientific and technological advancement will depend on this ability.” From Richard Florida’s The Flight of the Creative Class (2005)

3. America at the Crossroads U.S. Faces an Urgent, Historic Decision –American Leadership in Science and Technology Challenged Like Never Before –Global Competition Threatens to Break the “Virtuous Circle” Education, Research, Innovation, Entrepreneurship, Capital Investment, Employment, and Wealth Creation –Domestic Talent Pipeline Ebbs and Flows in Response to Short Term Market Conditions –Erosion of U.S. Talent Base in STEM Areas Risks Economic Security –STEM Talent Needed for All Industries, Not Just IT Sector

4. STEM Talent: A National Crisis U.S. Students Rank 24 th Out of 29 Countries in Math Performance Asia Graduates Four Times as Many Engineers Students as U.S. 13 Countries Now Outrank the U.S. in STEM Related First University Degrees Tuition Crisis Forces Students Out of STEM Programs –Only 27 Percent of Undergraduates Follow “Traditional” Course of Four Years on Campus

5. STEM Talent: A National Crisis Foreign Student Enrollment Declining in U.S. STEM Graduate Programs –Between 1994-1998, number of Asian students pursuing Ph.Ds at universities in their own countries nearly doubled U.S. Awards Smaller Share of Worldwide total of STEM Doctoral Degrees than both Asia and Europe About 70% of All Vacant Positions in Science & Engineering Between 2002-2012, or 1.6 million, will be in Information Technology

6. STEM Talent: A National Crisis Newly Declared Computer Science Majors Declined 32% between Fall 2000-2004 Number of Incoming Freshmen Who Expressed Interest in Majoring in Computer Science Has Dropped to 59% in Last Four Years

7. Competitive Advantage At Risk U.S. Current Success as Innovation Leader Depends on Technical Talent –Countries Such as China, Singapore, Ireland, and Taiwan Catching Up to U.S. R&D Investments –Patent Applications from Asian Countries Has Grown Significantly Between 1989-2001 –Federal Funding of R&D Has Declined Over Past Two Decades –Private Sector Funding of R&D Has Declined Steadily Since 2000

8. Diversity Matters Critical Need to Encourage More Women and Minorities to Pursue STEM Diversity Makes Good Business Sense Minorities Are Untapped Talent Resource Percentage of Women in IT Has Declined 21% Since 1996 Participation of African- Americans Has Declined by 8.8%. Percentage of Hispanics Has Risen 5.3% Median Age of IT Worker Has Risen

9. The ITAA Plan A National High Tech Education Initiative Designed to Assure U.S. Industry Leadership and Job Creation into the Future

10. Coalition for America’s High Tech Future Double the Number of Annual STEM Graduates Over the Next Ten Years Sharpen U.S. Competitiveness in Global Markets Foster U.S. Growth in Innovation, Intellectual Property, Patents and Copyrights Fill the STEM Talent Pipeline into the Future

11. CEO/President Level Advisory Panel SAS Northrop Grumman Perot Systems TPI George Mason University University of Central Florida SRA International Business Objects Computer Generated Solutions

12. Program Objectives Develop innovative policy recommendations that will be aggressively promoted to Administration, Capitol Hill, and Other Key Policy Influencers Frame major challenges and opportunities related to U.S. workforce competitiveness Provide significant visibility and credibility to initiative Generate broad support from other key stakeholders to participate in this initiative Work with Other Coalitions Addressing STEM Challenge

13. U.S. STEM Talent Challenge is a National Crisis Technologies Ripple Through Multiple U.S. Industries Standing Still Risks U.S. Economic Health and National Security Foreign Competitors Have Successfully Implemented National STEM Strategies Industry and Academia Must Drive Change Summary and Conclusions

14. America has Risen to National Science and Technology Challenge in the Past STEM Challenge is Well-Documented No Sputnik-Like Event to Spark National Urgency of STEM Challenge Tomorrow’s Economic Prosperity will Depend on Today’s Vision and Action Summary and Conclusions

15. Thank You! Marjorie Bynum, Vice President, Globally Competitive U.S. Workforce - mbynum@itaa.org or (703) 284-5318 mbynum@itaa.org