Audio Clips of Governor Engler
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Governor John Engler
January 20, 1998
Message on Jobs
and Technology
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Today, I come to you via fiber-optic networks, silicon chips and powerful
communications software developed by a growing information technology industry. We have
enjoyed success in Michigan in being part of that industry. For example, we developed the
Internet that delivered this e-mail message and are at the forefront of research to create
the next generation of the Internet -- Internet 2 -- but there is more we can do to help
this critical industry grow in Michigan.
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With 1,500 software companies operating in Michigan today, 100,000 high- tech workers,
a 300% increase in venture capital and tremendous research and development resources,
Michigan is already a high-technology hub. We are perfectly positioned to make Michigan
both a national and international leader in high technology.
In fact, the auto industry spends many times more on research and development than the
computer industry does each year. Since nearly 90 percent of auto research and development
is in our state, Michigan can already be classified as a high-tech center.
Just look at the amazing features of the dozens of concept cars on display at the North
American International Auto Show -- advanced navigational systems, crash avoidance systems
and intelligent communications systems.
In fact, there are more advanced computer applications in those concept cars than in
the average computer sitting on your desk.
The fact that I'm able to send my remarks to you electronically, with both text and
audio, reflects how far technology has advanced. I can even see a day, not too far into
the future, when speeches like this one will not be printed on paper at all. So don't be
alarmed if one day you open your e-mail and a hologram of me pops up in front of you.
If you haven't yet, please take a few moments to play the attached audio file. It is in
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state government's GroupWise system can just double click on the little music note icon
shown here.
We're all familiar with the old saying that the only things that are certain in life
are death and taxes. It's time to add another item to the list -- a positive item -- the
forward progress of technological change. With Michigan or without us, technology will
move forward into the 21st century. Together, we can keep Michigan in the forefront and
make our state the Information State.
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One hundred years ago, Michigan was a leader in putting America and the world behind
the wheel of an automobile. Now, as we approach a new millennium, Michigan must be a
leader in developing new technologies -- not just for automobiles, but in a wide range of
industries from medical devices to information management.
I should also note that technology is a critical element in efforts to improve our
environment. Indeed, it will be advanced technology that allows our economy to grow, our
quality of life to improve and, at the same time, enables industry to reduce the amount of
pollution released into our water and air.
For example, every automaker in the world is working on new technologies to replace the
conventional internal combustion engine. Just to highlight one automaker -- GM has
announced that, by 2001, it will have a hybrid electric vehicle on the road that gets 80
miles per gallon. Chrysler and Ford have competing efforts to improve fuel economy and
reduce emissions. Improving technology is critical to all of these projects.
Michigan cannot simply sit back and assume that these developing technologies will be
developed here. We must take action to remain a technological hub -- the center of
activity in an industrial transformation of historic proportions.
Michigan is in the midst of an unprecedented economic boom unmatched in any other
state. We have transformed our economy from one where Michigan was the poster state for
the Rust Belt into one in which we are an economic leader, with low unemployment and high
job growth. Look at our record:
- Unemployment for 1997 was 4.2 percent -- the lowest level since 1969.
- Since 1991, Michigan companies have created more than 530,000 jobs.
- The number of expansion projects and new factories has grown more than tenfold from less
than 50 to more than 500.
- Our workforce development system has been rated the best in America.
- And 24 tax cuts have put more than $8.6 billion back into the pockets of taxpayers,
including both individuals and businesses.
Keeping the record pace of growth and achievement going will not be easy. Of course,
improving our schools is critical to our long-term strategy and education reform remains
my top priority. Improving our ability to be on the cutting edge of technological change
must also be part of our strategy.
While Chrysler, Ford and General Motors "define" Michigan in the minds of
many, high-technology market-leading firms like Compuware, National Tech Team, CBSI and
others are growing through a creative mix of people and processors, disk drives and
determination. This creates an opportunity for our people and our economy that is
unprecedented in Michigan's history.
Our technological base has never been stronger, and our economic growth provides new
resources to help the industry grow beyond its current potential. As a state, we must
accomplish two basic objectives:
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1. Facilitate the creation of more high-tech jobs now by better investing the millions
of dollars spent each year by the state to support technology-based projects that increase
the competitiveness of Michigan businesses; and
2. Establish a legacy for expanded job creation in the 21st century by better
leveraging our enormous private, public and university science and technology capability.
Over the last seven years, we've solved seemingly intractable economic problems. Today,
Michigan displays the raw material to emerge as a world-class center of knowledge-based
industry. Our economic house is in order. Our budget is balanced and our savings account
is at a record high.
Our industries have reinvented themselves to make Michigan a world capital of advanced
manufacturing. Our emerging, entrepreneurial businesses are developing new markets well
beyond the traditional industrial base.
Just as important, our internationally pre-eminent scientists are increasingly drawn to
advance their knowledge through collaboration with the corporate world.
Yet, much work needs to be done to make sure that Michigan stays on the cutting edge in
the Information Age. Our strategy must allow us to bring along the best of what we have
learned as America's manufacturing powerhouse and build upon that record to make us the
technological and information powerhouse I know we can be.
Certainly, government's role in all of this is limited. We can be a catalyst, a
partner, a help in coordinating and focusing efforts to bring together ideas and
investment capital. It's not the job of government to pick winners and losers or decide
that one technology is better than another.
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To be successful, we need a strategy that maximizes our technological strengths, builds
partnerships and provides the resources technology industries need to reach their full
potential. All the building blocks for success are within our reach. What we need to do is
put them in place.
That's why today, I'm proud to unveil a new technology strategy to promote the creation
of these new jobs. It's a five-point plan that will go a long way toward keeping Michigan
in the forefront of technology-driven jobs.
This new strategy fits with the natural progression of my economic development
strategy. Our first goal was to retain our existing businesses. Our second goal was to
keep the expansions of those businesses here at home in Michigan. And the third goal was
to attract out-of-state businesses to Michigan.
Now that we have accomplished all three goals, we are ready to move ahead with this new
initiative to attract industries that traditionally have not looked at Michigan as a
potential home:
1. Michigan Technologies, Inc.
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The first point in my plan is the creation of Michigan Technologies, Inc. Over the last
decade, Michigan has spent nearly $150 million on high-technology projects, with other
federal and foundation dollars increasing that total to nearly half a billion dollars.
That funding was divided among more than 20 different organizations, reducing the ability
of any one group to leverage those resources to make major change happen. Clearly, more
coordination is needed if Michigan is to maximize the jobs created by these investments.
Michigan Technologies, Inc., will become the state's new, technology-based, economic
development board of directors. It will be an independent, private, not-for-profit
organization led by the state's most capable technological and business leadership from
the private, education and public sectors.
Today, I'm pleased to appoint that Board of Directors. I think you will agree that it's
a dynamic group.
The CEO of the Michigan Jobs Commission, Doug Rothwell, will chair the group. His
oversight will keep the focus on high-tech job creation, not whimsical investment in
whiz-bang technology.
Representing the private sector financial industry is Richard Snyder. A computer
industry pioneer and visionary, he was president of the computer company Gateway 2000
before moving back to Michigan to launch Avalon Investments -- a new, $100 million venture
capital company.
Representing the private sector from a corporate perspective, particularly automobiles,
are John McTague of Ford and Dwight Carlson of Perceptron. They understand the critical
role research and development and the resulting technology can play in capturing market
share and in creating jobs.
Representing the private sector utilities is William McCormick from Consumers Energy.
Utility companies have long been strong advocates of economic development, and the growth
of these new, high-technology jobs will be no exception.
Representing the private sector from a fast-growth company is David Brandon from
Valassis Communications. His company has been growing rapidly through increased use of
advanced technology, a phenomenon we hope to repeat over and over again in Michigan.
Representing the private sector from high-tech companies are Peter Karmanos of
Compuware and Rick Inatome of Inacomp. These two companies are successfully turning
high-tech ideas into high-value profitability, so I am very pleased they've agreed to join
the Board.
Of course, we need representatives of Michigan's world-class universities, where so
much of the innovation takes place in the first place. First, a leader who knows a little
bit about being number one, the President of the University of Michigan, Lee Bollinger.
I'm also pleased to appoint the President of Michigan State University, M. Peter
McPherson; the President of Wayne State University, Irvin Reid; and the President of
Michigan Technological University, Curtis Tompkins.
It's also important that the Michigan Legislature be involved so that they can observe
firsthand any legal or policy changes that need to occur in Michigan for this industry to
continue to grow. As a result, I'm leaving two vacancies on the Board for designees of the
Speaker of the House and the Senate Majority Leader.
Finally, of course, when he or she is named to the post, the president of Michigan
Technologies, Inc., will sit on the Board as well.
This Board is charged with coordinating Michigan's technology resources in order to
create a business environment that will better enhance the formation, expansion and
competitiveness of our companies.
I'm asking MTI's Board to create a results-oriented organization that will:
- communicate and coordinate the strategic direction of the state's science and technology
organizations;
- coordinate the in-state and national marketing of Michigan's science and technology
strengths;
- serve as the liaison between our technology industry and state government, including the
Legislature; and,
- Develop performance-based criteria for awarding funds to both existing and new science
and technology initiatives.
Now that the Board has been named, MTI must carry out the second and third planks of my
technology plan.
2. Consolidate and Coordinate Technology Centers
Under the leadership of MTI, for the first time ever, Michigan will create a single
organization to develop premier technology-based business retention and expansion services
that can be delivered in coordination with the Michigan Jobs Commission and other local
economic development agencies.
Many of these services exist in Michigan today and have helped many companies, but MTI
will be best able to oversee and improve the state's contribution to high-tech job growth.
The goal will remain the same: making sure Michigan companies have the technical
assistance they need to continue to grow within our state. Making that system more logical
and easier to utilize is the challenge for MTI.
3. Enhancing Entrepreneurial Growth
The third plank of my strategy is to enhance the entrepreneurial growth of our small,
high-tech companies. Today, I'm directing MTI to work to attract more private funds to
Michigan to finance worthy projects in high-tech industries.
Already, with the infusion of more than $300 million in new venture capital over the
last year alone, we were able to vault Michigan from 37th in the nation to 15th in risk
capital available for investment. We helped bring two new, major venture capital firms and
their staffs to the state. Now we need to concentrate on recruiting what's called
"seed" and "pre-seed" capital -- money for those smaller start-ups
with explosive growth potential.
This money should continue to be driven by the private sector and be invested with a
realistic sense of market opportunity. With this market-based approach, there is no reason
why these resources shouldn't, in time, be as available here in Michigan as they are in
Silicon Valley, so that good ideas, and the jobs that ultimately come from them, never
have to pack up and leave our state because they cannot find financing.
Together, these first three planks will help us facilitate the creation of more jobs
now. The remaining two components of my plan will allow Michigan to create a legacy for
job creation in the 21st century.
4. Governor's Innovation Forum
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As the fourth item in my technology strategy, I'm announcing a year-long Governor's
Innovation Forum. Through this series of meetings, Michigan universities will discuss with
Michigan high-tech industry ways in which we can redefine the policies, guidelines and
activities that make possible education and research excellence.
To be successful, we need strong networks that link our premier institutions of higher
education with industry and government. These networks facilitate the exchange of ideas,
reduce business risk and create exciting and leading edge technology and research
environments.
I'm asking the state's universities to work with the Michigan Jobs Commission and
several private foundations to take the lead in this effort. The Governor's Innovation
Forum will allow the universities to gain a better understanding of the needs of our
state's high-tech businesses and help high-tech businesses gain a better understanding of
the needs and capabilities of universities.
These forums will also examine the changing roles and opportunities for Michigan's
universities in technological and scientific collaboration with industry. I believe a
university-based economic development strategy can be developed that will complement the
core teaching, research and service missions of our state institutions. In addition, a
portion of this forum series will spotlight some of the collaborative success stories that
have already emerged at our universities.
5. Comprehensive Technology-Based Education Innovation Plan
Finally, as the fifth component in this strategy, I will implement a comprehensive
technology-based education innovation plan. Technology can be a tool to substantially
improve learning at all levels in Michigan if the infrastructure is built through wise
decision-making and if schools have the incentive and the ability to put it to good use.
Just as this first-ever cyber-speech is a new way of doing things via technology, so
can our state's schools develop exciting new ways to teach. This can broaden our
understanding of complex subjects and improve learning for both students and teachers.
While computers and technology are not a cure-all for improving our schools, their
creative and thoughtful use can help us continue to raise test scores and graduate more
successful students.
Certainly, we have the resources to accomplish this goal. For example, the Durant
settlement alone provides a $1 billion infusion of cash -- money every school can use to
improve the way they teach their students. In addition, Proposal A's historic millage
reduction has allowed schools to raise their level of investment, and the Universal
Service Fund is providing even more money schools can devote to technology -- both to
teacher training and to infrastructure.
In the coming weeks, I will announce several new initiatives that build on our already
successful record as leaders in technology-based education and training.
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By implementing this five-part strategy, Michigan will benefit in many ways. For the
first time, we will have strategic, performance-driven oversight of all our
technology-based economic development expenditures. We will improve the image of
Michigan's economy, both in-state and throughout the nation, as one with a
state-of-the-art economy and widespread Information Age job opportunities.
Finally, we'll create more high-paying, high-demand, high-technology jobs, further
diversifying and stabilizing our industrial base -- now and in the 21st century.
Thanks for taking the time to read -- and to listen to -- this historic cyber-speech. I
look forward to seeing you in person when I deliver the State of the State address on
January 29. The full text of these remarks, along with additional audio files, are posted
on the State of Michigan's website at http://www.migov.state.mi.us.
Thank you.
Go Back to the Speeches
of the Governor Home Page
http://www.migov.state.mi.us/speeches/tech/jmetechspeech.html
updated 01/20/98 |
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