As Prepared for Delivery
Thank you President Daniels,…Dean Ferrari, students, faculty, friends, thanks for the opportunity to share some thoughts with you this morning. We wanted to come here to the Carey School as we launch our “jobs and opportunity tour.”
To those of you who are currently pursuing your business degrees, I hope this will be just the beginning of an ongoing conversation.
Whatever your goals in business and life, we want you to stay in Maryland. And as you visualize where you will be in five, ten, fifteen years from now, we hope that you see yourselves in our State. “America in Miniature.” Home to a beautiful diversity of geography, culture and people. Home to the #1 schools in the United State of America and therefore to one of the world’s most highly skilled workforces. Home to 27 business incubators. Home to the Port of Baltimore. Home to the U.S. Cyber Command, the National Institutes of Health, NASA Goddard, Wallops, Aberdeen Proving Ground, Fort Meade,… and Johns Hopkins University.
Because of places like Johns Hopkins, because of our workforce, because of our geography, because of our federal assets, Maryland is at the epicenter of a revolution in technology, discovery and healing – a fundamental reinvention of the ways in which we are feeding, fueling, and healing this changing world of ours.
And you have a unique opportunity to be a part of this revolution.
You see, the great irony of our times is that the very immensity of the challenges we face with respect to climate change, terror, resource scarcity, energy security, and health – what one might call “big scary globals” – the immensity of these challenges is actually driving innovation in every sphere of education, technology and life sciences.
That’s where you come in. There is an axiom in business that if you don’t have a competitive advantage, you shouldn’t compete. Our competitive advantages in Maryland are the answers to the challenges I just mentioned – the life sciences, clean-tech, green-tech, health care, information technology, cyber security, space, aerospace, global trade, and advanced manufacturing.
Our schools and laboratories are producing discoveries and technologies that are remaking our world. But these technologies do not transfer themselves into the market for job creation and innovation (on their own). In the past few years, we’ve successfully moved from #37 to #20 in new business creation. We need your help to be #1. And considering that we’re #1 in education, #1 in research and development per capita – and even, according to none other than the United States Chamber of Commerce, #1 for innovation – we ought be able to get to #1 for new business creation as well.
There is no progress without jobs, and in this changing global economy, the states, countries – and yes companies – that succeed in leveraging innovation for job creation, opportunity and growth, will be those who succeed in making their children net winners. That’s our greatest economic challenge.
I want to use our remaining time this morning to share a few thoughts on how we get there. In Maryland, we have a three part formula:
Strengthen the economic and entrepreneurial connections to our Innovation Assets in order to maximize job creation from science and technology.
Strengthen Maryland’s workforce through public education, skills training, and more affordable college.
Make the smart public investments necessary to enable, spark, and accelerate job growth.
Maryland’s Innovation Sectors
The ability to pull from highly skilled, highly educated people with diverse perspectives is what can allow us to create the next wave of innovation, and therefore the next wave of job creation.
Maryland is uniquely positioned to be a world leader in science and technology innovation – how we heal the human body and other living systems of this earth, how we reach new heights in space exploration, expand the reach of global trade, and manufacture the products of the future. We are also positioned to lead in security innovation; cyber security, information technology, aerospace.
Imagine going to the doctor and knowing that he or she will be able to determine with precision how your own body will react to specific medications so that they can avoid prescribing treatments with harmful or painful or unnecessary side effects – all while maximizing those that work best within your own personal genetic make-up.
The research and discovery that will make this possible is happening right here in Maryland. In fact, all kinds of exciting things are happening all over our State. At MedImmune, Marylanders created the first no-needle H1N1 vaccine, which is easier to administer to children,… At Novavax, Marylanders are producing the next generation flu vaccine that is able to adapt to changes in the strains of virus that can occur anywhere in the world,…. Here at Johns Hopkins, Marylanders are working on the first synthetic dividing cell,… and at the University of Maryland School of Medicine, Dr. Robert Gallo is leading a team researching a promising new HIV vaccine.
We are the “home of the Genome;” the home of the second largest per-capita cluster of biotech companies in America – companies that provide good paying jobs. More than 43,000 of our fellow Marylanders work in biotech jobs that pay an average of $95,000 a year. Jobs in our Medical Device Technologies sector alone pay 40% more on average than jobs in other sectors.
Therefore, over the next decade we plan to invest $1.3 billion in biotech – including the $400 million we’ve invested so far. Through the Biotechnology Tax Credit, which we expanded, we’ve helped businesses leverage $80 million for innovation and job creation. We’ve also extended the R&D Credit and invested $87 million in life-saving Stem Cell Research.
The success of our biotech sector is also connected to the success of sectors like advanced manufacturing and global trade. Consider the example of Marlin Steel in Baltimore City. They transitioned from making bagel baskets to making baskets for life-science companies. And they market them to companies across the world, from China to Ireland.
With our world class workforce, an upgraded Port of Baltimore, and all the advantages of our geography, we are in great position to increase our global leadership and competitiveness in trade. And we are. Last year we increased our exports by 7%. Through the Maryland Export Initiative we’ve helped 38 Maryland small businesses create 200 jobs and increase export sales by an estimated $75 million. That’s quite a return on a $305,000 state investment in this export initiative.
With our cluster of some of America’s best hospitals and health companies, and our work – currently underway – on digitizing medical records and building out a statewide health exchange, we’re well positioned for job growth in this sector as well.
And with America’s 4th largest percentage of workers employed in green-tech jobs, we’re putting Marylanders to work in this sector as well. As an example: Five years ago, Maryland’s solar industry was virtually non-existent. Today, we’ve put 2,000 Marylanders to work in solar sector jobs.
I recently visited Nexus EnergyHomes in Frederick, which was recognized as national “Home Builder of the Year.” They build net-zero homes at market prices – energy efficient, affordable homes, that are completely energy independent. How cool is that? And they estimate that by the end of next year they will have created 240 Maryland jobs.
If you look at our space sector, 15,000 of our fellow Marylanders work in space-related jobs that pay an average of $99,000 per year. Nearly 1.2 billion in procurement dollars flow into Maryland businesses every year from NASA Goddard alone.
We also benefit from our very promising emerging space businesses on the Eastern Shore. We are teaming with the Greater Salisbury Committee to position the NASA Wallops Flight Facility as a premier spaceport for light and medium lift launches.
These are all examples of successes in our science sectors. We’re also creating jobs in security sectors like cyber security and aerospace.
Fifteen of America’s top 20 aerospace and defense companies have operations in Maryland.
On Monday, I attended the ribbon cutting in Howard County for the new North American headquarters of an Israeli company called “Elta.” They are creating 100 jobs in Maryland making the radar systems that power missile defense.
The National Governor’s Association has cited cybersecurity as the weakest link in our nation’s infrastructure security,… Enter Maryland. With the U.S. Cyber Command located at Ft. Meade, your State is now the clear national epicenter for cybersecurity.
Through CyberMaryland we’re engaging in strategies like increasing technology transfer, strengthening skills training, creating a public-private partnership jobs network, and finding a permanent Maryland home for the National Cybersecurity Center of Excellence – all with the overarching goal of maximizing job creation in this sector.
Ultimately, our success in leveraging the potential of any and all of these sectors on depends on the strength of our workforce,… and the strength of our connections and synergy with Maryland’s federal facilities. We are using every tool available to harness the job creating potential of these assets,…
One such tool is Career & Technology Education, or “CTE.” Thirty-nine percent of new job openings in Maryland will be for skills that require two years or less of college or a trade-recognized certificate. CTE can fill this skills gap with job opportunities for lots of kids who can’t or won’t go to college right out of high school. CTE is therefore good for the graduates, good for employers needing better skilled workers, good for the economy, and therefore good for all of us.
Another tool is modern investment,… investments that have allowed us to build the best public schools in America for an unprecedented four years in a row, so says Education Week magazine.
Modern investments are only possible with fiscal responsibility. In fact, there is no progress without fiscal responsibility. Over the last six years, we’ve therefore chosen a balanced approach of spending cuts, targeted modern investment, regulatory reform, and yes – balanced revenues. Today, we are one of only 8 states which earns a Triple A Bond Rating, certified by all three rating agencies.
But balancing budgets, cutting spending, reducing the size of government – all of these things are an important means to a much larger end. If we’re going to grow jobs, opportunity, and prosperity, we have to be willing to choose.
To create jobs, a modern economy requires modern investments: educating, innovating, and rebuilding for our children’s future,… That’s not a Democratic or Republican idea; it’s an economic and historic truth. It is an American truth. It was true for our parents, it was true for our grandparents, it is the truth that has built our country, and it is the truth that will build an economy to last.
And so in Maryland, even as we’ve cut – and the record will show we’ve made more cuts to state spending than any previous administration – we’ve chosen to make important, strategic, targeted investments in education, innovation, and rebuilding Maryland’s infrastructure.
The modern investments we’ve chosen to make in public education – even at the height of the Bush recession – are the largest investments we’ve ever made together in public education. Why? Because Maryland’s economy is an Innovation Economy, and in an Innovation Economy, our greatest competitive assets are the talents, skills, creativity, ingenuity, and education of our people.
The Milken Institute calls these investments our “human capital” — education, the capacity of our people to innovate and create. One of the reasons Milken ranks us in the Top 2 for science and technology is that they say we’re #1 for investing in our human capital.
What are the returns on those investments? Our elementary school students are achieving their highest reading and math scores ever in state testing. Our middle school students are setting records on their state math exams. And our high school students are achieving the greatest success in America on their Advanced Placement, AP exams.
We’ve also invested to make college more affordable for more families, freezing tuition for four years in a row (also at the height of the recession) while other states were raising it. In fact, the College Board recently reported that in recent years, no state has done as much as Maryland to keep the costs of tuition down.
Today, Maryland has the most PHD scientists and engineers per capita of any state in America. We want to be able to say the same thing in 10 years. So in addition to investing to make college more affordable, we’ve set a goal of graduating 40% more students in the STEM disciplines of science, technology, engineering and math by 2015. We’re currently about half way there.
Taken in tandem with our STEM strategies at the K-12 level, we have a major statewide push underway to make our students more competitive with students not just in other states, but other countries.
There is a dichotomy across our country between unacceptably high unemployment and businesses which cannot find adequately skilled workers.
Therefore, we are investing in those opportunity generators known as community colleges,… and we’re teaming with community colleges on skills training initiatives like Pathways to Cyber Security, a partnership between state government, Baltimore City, Anne Arundel, Carroll, and Howard Counties –made possible by resources from the Obama Administration.
Investments & Choices
As we invest to educate, we’re also investing to innovate. A great example is InvestMaryland. It’s the largest single shot of venture capital we’ve ever pumped into our State’s economy. Why did we do it? Because seed and early stage money had all but dried up in the national recession. We didn’t want to sit back and watch the next great American company being created in North Carolina, California, or Massachusetts. We want it to happen right here in Maryland.
Our goal was to raise $70 million. So far we’re at $84 million.
We’re also investing to rebuild Maryland’s infrastructure. Over these past six years we’ve made some very real progress, with record investments in school construction, upgrades to our clean water infrastructure, forward progress on the ICC and Red and Purple Line light rail, and statewide broadband, the lynchpin of a 21st century cyber infrastructure.
Government that Works
To get the most out of every dollar we invest, we relentlessly strive to make government work more efficiently, transparently, and effectively – with performance measurement and regulatory reform that’s eliminating hundreds of pages of unnecessary red tape.
In 1999, Baltimore was the most violent City in America. Today, Baltimore has achieved the largest reduction of crime of any major city in America over the last ten years.
Government is not the private sector; but, without a properly functioning government, the private sector cannot grow.
Therefore, we openly set goals and measure the performance of our public institutions and collective efforts. The widespread advances in internet access and geographic information systems has made it easier than ever from a practical standpoint to broadly and publicly share information about our joint pursuits. The ultimate shareholders in this shared endeavor – the modern information-age citizens that we serve,… that we are – expect their executives to manage for results in this high-stakes competition for jobs, for opportunity, and for our children’s quality of life.
Public and private collaboration is one of the highest forms of human innovation – and the key to making our State more prosperous and more competitive in this emerging new economy.
We entered into a ground-breaking public-private partnership to prepare the Port of Baltimore for the new business potential created by the widening of the Panama Canal,… it’s allowing us to create 5700 jobs.
By investing and collaborating with GM to build their next generation electric motor in Maryland instead of Mexico, we’re supporting more than 800 jobs in Baltimore County.
By creating a Small Business Loan Guaranty Fund we’ve helped small businesses leverage $86 million in capital and create more than 1,100 jobs.
And by partnering with Johns Hopkins, Morgan State University, and the University of Maryland’s campuses, we are positioning ourselves to create more jobs as we work toward the goal of transferring 40 technologies out of the lab and into the market for job creation through the Maryland Innovation Initiative.
As I close, let me share just one story of Maryland Innovation and Entrepreneurship — it is the story of my friend Steve Dubin’s company, Martek Biosciences. Martek found a way to extract life-sustaining Omega 3 fatty acids from algae. Omega 3’s are key ingredients in both dietary supplements and baby formula. Not only has Martek marketed their product domestically – it’s actually used in most American baby formulas – they are also successfully marketing it overseas. In India, for example, with its large population of vegetarians, there is a particularly strong market.
And their innovation just might indirectly help the health of the Chesapeake Bay by easing the demand for the over fishing of the Menhaden — the tiny feeder and filter fish that are not only a source of Omega 3′s for human consumption but also provide the critical base of the marine food chain in these Chesapeake waters.
One of the really neat parts of Martek’s story is that the company was “incubated” at the University of Maryland’s Mtech Incubator. They also made use of a state initiative called the “Maryland Industrial Partnerships program.” Martek was sold for over $1.1 billion in 2010. At the time, it’s product was used in more than 75 countries.
We believe in Maryland that progress is a choice, and job creation is a choice. We haven’t recovered everything we lost in the recession, but we’re moving forward. In 2011, we created 34,000 new jobs–the 9th fastest rate of job growth in the nation. And our private sector has just achieved their best July to July of new job growth since 2004-2005.
I leave you with the words of Pope John Paul II, who wrote: “many goods cannot be adequately produced through the work of an isolated individual; they require the cooperation of many people in working towards a common goal.”
Our hope is that you will continue this dialogue with us through the years, and that you will join the ranks of Marylanders throughout our State who are working toward the common goals of healing, of hope, of discovery, of innovation, of job creation, of growth, and of opportunity.