Universities in a Flat World Implications for Global Strategy Pradeep K. Khosla Dean, College of Engineering Dowd Professor and Director, Cylab

2 Changing Landscape – A Flat World  Companies have transformed from doing business globally to being global enterprises – thanks to Computing and Communications technologies!  Manufacturing of products globally  Industry supported Research and development is going global  Availability of trained human resources and more effective on a cost basis  Ability to solve problems and develop products of local interest  IP provisions in foreign countries are more attractive to companies 50% of respondents to a 2004 Industrial Research Institute study indicated that they are funding research at foreign universities.

3 American companies have recognized and embraced this transformation Source: Council on Competitiveness

4 Talent Pool is Global  10 years ago about 40% of Engineering work hours were within the US  By 2010 about 10% of the Engineering work hours will be based in US  India and China graduate a total of about 15X more engineers every year compared to about 65,000 in the US  The cost of an engineering work hour in India/China is between 10%-20% of that in the US  Routine engineering jobs are being outsourced at a very fast pace  Downward pressure on salaries will continue

5 Foreign Governments Investing in R&D  Foreign governments are investing in R&D  Lack the strong and dominating culture of R&D in the US (at least for the next years)  Increased competition for UG and Grad students from other countries (Australia, Singapore, Europe, etc)

6 Universities Stuck in the Old World  The 21-st century university is still local  Education is local, not scalable, and relatively expensive  Research is performed locally; Issues with IP provisions (Bayh-Dole, Tax free bonds etc)  Students from all countries come to campus  current geo-political issues indicate and predict a decrease in the number of international graduate students due to ITAR regulations and VISA issues  What will be the future of Engineering graduates in the US?  Carnegie Mellon is taking a leadership role in defining a new curriculum Engineers will be required to operate in a global (multi-national and multi-cultural) environment and must appreciate the needs of the people where products are manufactured and sold

7 What is the Real Issue?  The Real issue is not that other countries are graduating more students, but  By when will these countries have the culture of US that integrates research, education, economic development in a cohesive strategy and compete head-to-head with the US success model  By when will foreign universities establish more economically affordable models for delivering education within the US and to US students within foreign countries  Since this will happen, how should a university respond to this threat?

8 Implications of A Flat World for CMU Engineering College  Rethink how to educate our undergraduate and graduate students so that they are able to compete, succeed, and lead in the new global business environment – Rethink Education to create the ‘Carnegie Plan for a Flat World’  Managing Innovation in a Global multilingual and multicultural environment  Holistic Education  Take the culture of CMU graduate education and R&D to foreign countries by creating a collaborative and scalable research and education infrastructure  Capitalize on the R&D investment of foreign governments and industry  Offer opportunity to graduate students and faculty to operate globally and in diverse cultures  Strategic Goals for Globalization  Create more visibility for Carnegie Mellon  Global partnerships greatly enhance competitiveness for corporate research by U.S. companies  GOAL – ”CMU as a global research and education partner.”

9 Carnegie Mellon International Strategy  Strategy currently focused around CMU`s key strengths – CyberSecurity and System-on-a-Chip technologies  Cybersecurity and IT  CyLab Athens – Offer MSIN degree thru INI  CyLab Korea – Focused on research with investments in Korea and Pittsburgh  CyLab Japan – Offer MSIS-IT degree in Kobe Japan  SoC  ITRI Mellon -- focused on research  Carnegie Mellon Qatar Campus (CS and Business)  Carnegie Mellon Heinz School Campus in Adelaide, Australia  Several Others examples within CMU

10 Carnegie Mellon International Strategy － Implementation  Global Programs integrated within Carnegie Mellon – not just foreign branches  Programs are mainly MS degrees (except 2 UG programs)  Students are Carnegie Mellon students  Conferred degree is indistinguishable from a degree in Pittsburgh  Faculty either hired by Carnegie Mellon or given adjunct status  Carnegie Mellon has veto on ALL student admissions and faculty hires  Collaborative experience for students (joint research, design, or project experience)  Constant Assessment (both at the course and program level) ensures that the quality of education and student performance is statistically indistinguishable

11 Thank You