Statement of Position

American Electronics Association

Oregon Council

A higher education agenda for Oregon

(Approved by the AeA Oregon Council Executive Committee, October 12, 2000)

(Endorsed by the Software Association of Oregon, October 2000)

T

he Oregon Council of the American Electronics Association (AeA) sees high quality education and lifelong learning inexorably linked to the past and future growth and prosperity of our industry and our state.

This prosperity begins with our children’s K-12 experience, which shapes boys’ and girls’ openness to pursue a later career in math, science or software. It is linked to their crucial higher education experience. And finally, it depends on creating lifelong learners who continually update obsolete skills and knowledge in our fast changing technology world.

Certainly our industry’s lifeblood, and indeed our state’s, is the availability and access to the highest quality local education possible. The availability in Oregon of the highest quality educational experience, and the continued creation of high wage jobs here, will keep our kids in Oregon and ensure that more of them have fulfilling jobs. Our vision for educational change is not something that benefits only the technology industry and our state. It is true today, and will be more so in the future, that technology, especially software and information technology, impacts every business and every industry in Oregon. Those businesses that don’t adapt or harness technology won’t be competitive with businesses that do, and nearly every business here needs more high quality technical graduates coming from Oregon schools.

It is our fervent belief that substantial changes and funding enhancements are required in Oregon’s educational institutions to continue our industry’s growth and contributions to our state. Our industry has created a higher education vision and we are already pursuing it with excitement, commitment, and money from individuals, foundations, and our companies. We ask the state to work with us to help us fulfill this vision for Oregon. The educational changes we require will benefit virtually all industries in Oregon due to an increase in the availability of high quality technical graduates and the creation of critically needed new programs which will help diversify our economy.

The high technology industry’s contributions to our state are many: the continued creation of high wage jobs; the continued contribution of substantial employee state income tax receipts; the continued contribution of corporate income taxes; and exports that help balance trade. The high tech industry is now the leading industry contributing to these crucial outcomes (See AEA’s “Oregon Technology Benchmarks State of the Industry Report 2000”). Continuing to benefit from the growth and prosperity of the high tech industry will require a commitment to the future, especially in providing expanded educational opportunities.

We also believe the state must and can act decisively to further diversify our economy from the inevitable economic and industry swings by expanding into the biosciences arena. The high tech industry agrees that a unique moment in time, resources, and talent currently exists, and we urge the state to join us in investing in two biosciences initiatives that should help catalyze a brand new clean industry in our state. Innovations in the biosciences promise to augment many of Oregon’s established industries, including agriculture, health care, wood products, and environmental remediation. The experience of California, Washington, and Massachusetts, among other states, illustrates how excellence in biosciences research and education in the university system can generate a major improvement in the prosperity and health of a state’s citizens and local industries.

It is imperative to seize this moment in time by pursuing bold initiatives in higher education. Our vision for higher education is articulated through three initiatives shown below. We have helped shape their creation and now endorse them with the time and money of our companies and our individuals. We believe these initiatives must be supported as a group and not pulled apart. We are asking the state to partner with us on a truly exciting era for Oregon. The initiatives which support our higher education vision for Oregon are:

q Immediately and Dramatically Increase The Number of Engineering Degrees

Increase undergraduate degrees in engineering, computer sciences and software engineering by 85%, and graduate degrees by 40%, both by 2005, through a cooperative effort involving Oregon’s top public and private higher education engineering institutions (Oregon State University, Oregon Graduate Institute, Portland State University, Oregon Institute of Technology and others) (Know as the “2X proposal”)

A formal proposal, including state participation during the biennium starting July 1, 2001, and backed by substantial industry contributions, has been endorsed by the Oregon University System Board and is strongly backed by the AEA, SAO, and the balance of the high tech industry. See www.oregonetic.org

Accelerate Creation of a Portland Area Top Tier Biosciences School

Build upon existing departmental excellence at Oregon Health Sciences University and Oregon Graduate Institute to create several new “interdisciplinary biosciences spires of excellence” achieved through a powerful merger of the two institutions fully capable of leading our state to excellence in the biosciences. The newly to be named OHSU -- Oregon Health and Science University -- which will include the OGI School of Science and Engineering as an integral part, is highly committed to accelerating its education and research impact in support of our current high technology industry, as well as helping birth a new biosciences industry in Oregon.

Formal proposals have been made as follows:

a) a multischool (Oregon State University, University of Oregon, and OHSU/OGI) biosciences initiative (“bioscience spires of excellence”), endorsed by the OUS Board, to begin during the biennium starting July 1, 2001 biennium;

b) major investment of state funds, possibly through bonding, in OHSU/OGI, to create biosciences faculty support, research, graduate courses, and degrees, and laboratories.

c) Legislative approval of the merger of OHSU and OGI to focus their combined efforts on dramatically enhancing the quality of health and the sciences through research and graduate education in Oregon. OGI, as the school of science and engineering at OHSU, will increase support of the current high tech industry as well as help birth, with OHSU faculty, a coordinated effort in the biosciences. See www.ogi.edu

q Work Aggressively to Build a Top Tier Engineering School in Oregon

Substantially enhance Oregon State University’s national ranking and quality in engineering and facilitate an OSU engineering presence in the Portland metro area. The College of Engineering at OSU contains Oregon’s single best opportunity to attain a top ranking, achieved through a substantial focused industry and state investment.

This top ranking is essential to keep the best and brightest in Oregon whether for college or refreshment of their knowledge. It will help our Oregon high tech companies continue to grow employment in Oregon due to the attractiveness of a top ranked engineering school that is accessible and affordable.

A formal proposal has been written which details the metrics, funding, outcomes, and money matches that could catapult OSU into becoming a top ranked engineering school by 2010. See www.oregonetic.org

Conclusion

Our industry strongly believes that all three initiatives must be accomplished together if we are to continue to enjoy the fruits of economic success and the necessary additional diversification of our currently vibrant Oregon economy. We can, by working together, greatly accelerate the progress of all our industries and hence the health of our state.

Our high technology industry stands ready to work with the OUS Board, the Governor, and the Legislature to help ensure an increased standard of living and quality of life for all our citizens in this new century.

Fact Sheet on Funding the Existing Proposals

Immediately and Dramatically Increase The Number of Engineering Degrees

The current proposal from the Engineering and Technology Industry Council includes $30 million in state investment during the 2001-03 biennium to be matched by an industry contribution of $17 million. See www.oregonetic.org.

Accelerate Creation of a Portland Area Top Tier Biosciences School

*** state funding for the multischool biosciences spires of excellence program has been proposed at $12.5 million from the 2001-2003 biennium.

*** a funding proposal for the major investments for the OSHU/OGI initiatives envisions state bonding of $200 million with a $12-15 million annual debt service matched by $300 million in private funds.

Work Aggressively to Build a Top Tier Engineering School in Oregon

An investment of state funds of $60 million over five years ($22.5 million in the 2001-03 biennium) would be matched 2:1 by private and industry funds. For full details on the investment plan, see www.oregonetic.org.

______________________________________

Allen Alley

CEO Pixelworks

Chair, AeA Oregon Council

Mohan Nair

COO, ABC Technologies

Don Van Luvanee

CEO, Electro-Scientific Industries

Jim Johnson

Oregon Site Manager, Intel

Dick Knight

President, Sarif

Scott Gibson

Gibson Enterprises

Duane Schulz

VP, Xerox Office Printing Business

Mark Falconcer

Public Affairs Mgr., Hewlett-Packard

Bob DeKoning

CEO Decision Point Systems

Joe Laughlin

CEO, Laughlin-Wilt

Les Fahey

Partner, KPMG Peat Marwick

Alan Dishlip

Partner, Utah Ventures