It was this realization that led the Employment and Training Administration to create Workforce Innovations in Regional Economic Development, our WIRED Initiative. WIRED is built on the belief that the critical geography in today's economy is not towns or states but regions, and that an integrated economic and talent development strategy at the regional level can drive transformation.

We have invested in 26 regions around the country as a part of WIRED. These are regions experience and requiring a significant transformation in their economy as a result of, for example, reliance on a single industry domestically impacted by trade, a natural disaster, or a defense realignment. We are asking each region to participate in a 5-step process. Briefly, those steps are to:

1. Define the regional economy by identifying the surrounding communities that share common characteristics;
2. Create a leadership group that represents the major assets in the region;
3. Conduct a regional assessment to fully map the area's assets and identify the strengths, weaknesses, opportunities, and risks;
4. Develop an economic strategy and corresponding implementation plan that focuses on talent development and identifies specific goals and tasks; and
5. Identify resources from a wide range of public and private sources to support the plan.

This is not a linear process, but a cycle where different industries require different regional definitions and different assets. And it requires a strong leadership group, constantly challenging traditional systems and structures to change and putting their own "skin in the game".

I believe that colleges and universities have two unique characteristics that can add tremendous value to this process.

First is your innovation capacity. During this WIRED Initiative, I learned about something called the Innovation Lifecycle. The four main stages of this process are knowledge creation, technology transfer, commercialization, and development of clusters and networks.

In the past, the first two stages of this lifecycle were the province of big companies like GE, Westinghouse, and AT&T. Today, it is universities. When you look at the hot-spots in today's economy - Silicon Valley, Research Triangle Park, Boston - they all have one major thing in common - several major universities driving the innovations that are creating tremendous growth.

Other regions from around country have seen the success of these examples and are now looking to their colleges and universities to provide similar benefits. Independent researchers are taking note too. I recently participated in the Milken Institute's study of technology transfer capabilities around the life sciences sector. It was clear from their study that broad university commitment to technology transfer and economic development, not just patent acquisition, leads to greater benefits to the university and to the business community that grows around it. The report was called Mind-to-Market and that really is a perfect way to describe what the Innovation LifeCycle represents.

While the engineers and computer guys are creating these new technologies and new ideas, the leadership of colleges and universities can play an equally important role in this WIRED conceptual framework. Quite simply, you can be leaders.

Colleges and universities are often seen as already representing a region. They command a certain respect that can bring other regional leaders to the table. This role of honest broker is often one of the hardest to find particularly when we are accustomed to be suspicious of one's motives. Think of it as the "are-they-after-my-money" syndrome.

There are two great examples from our WIRED regions where universities play this role. In Mid-Michigan, where the cities of Flint, Lansing, and Saginaw have been century-old rivals for General Motors jobs, Michigan State University brought leaders from these three rivals together around a common economic vision. They know their economic fates are linked and are now working together to restore jobs and growth to that struggling region.

Just south of there, Purdue University has taken on a similar role for North Central Indiana. Long the home of auto parts suppliers and amber waves of grain, today, Purdue's Center for Regional Development hopes to launch the newest innovations in Advanced Manufacturing, Advanced Materials, and Agribusiness. Their role as leader led naturally from their role as innovator.

Of course, colleges and universities still can play a critical role in a region beyond leader and innovator. Montana State University has established a training program to provide the technicians and engineers needed for a new bio-diesel and bio-lubricant economy; UMKC has been a driving force in the biotechnology and animal health strategies of Greater Kansas City; and private institutions like the University of Rochester and RIT have partnered with the Finger Lakes region to develop the next generation of imaging and photonics technology, along with the workforce to support it.

While individual regions seek to engage their area colleges and universities, we at the national level have established a relationship with the National Association of State Universities and Land Grant Colleges. Some of the activities that we are looking to partner on include:

• Connecting research and development and technology transfer efforts to venture capitalists and other regional assets to support business creation;
• Developing and expanding the availability of business incubators;
• Increasing entrepreneurship training and mentoring;
• Defining the role of colleges and universities in serving the continuing education needs of adults;
• Improving economic data collection and analysis for regional economies;
• Conducting asset mapping for regions; and
• Providing leadership and being a catalyst for strategic partnerships in regional economies.

I am thrilled that NASULGC and the colleges and universities that they represent are interested in these activities.

It is an exciting time to be a part of higher education and a once-in-a-lifetime opportunity to reshape the role of your institutions. I am happy that so many of you are participating in this organization and are here today.

Thank you very much for the opportunity to speak today I'd be happy to answer any questions that you may have.