It's a pleasure to speak here today. Saint Paul chamber and it's terminal Joel Neal should be commended for recognizing the important the important to agriculture plays the opportunity to review a comprehensive plan can work together in a Statewide effort to expand economic activity create more job, especially in rural Minnesota design of the comprehensive and job creation program, spring has been an evolutionary process which commenced in 1982 and it takes into account that Minnesota broadly speaking has three economies one is defined roughly by the counties around the Twin Cities in Rochester II. Is Northeast Minnesota on the Iron Range and the third is essentially? The rest of the state is Twin Cities Rochester conomy is characterized by high level of economic activity in a low rate of unemployment. The other two levels of come you cannot make a the other two by lower levels of economic activity and much higher unemployment. And Northeast the major problem is decreasing industrial activity in or and Forest Products processing. And the rest of the state has preponderantly. And agricultural based economy affected by persistent serious Farm problems. And even though the Twin Cities Rochester economy is relatively strong today this area to needs to expand Innovation and improve productivity in order to create new jobs to replace those being lost to foreign competition and strengthen a competitive position of local companies in World Markets, especially Lisa V, Japan, and of course, the other areas need summer activities, especially Innovation directed and more viable farms and the creation of new businesses. Because there's not nearly enough existing industry to provide the degree of expansion required. Therefore new companies and industries must be established along with an increased number of viable Farm. Are Wellspring plan for a comprehensive approach to Economic Development and job creation responds appropriately to those needs it also takes into account the threat of our Studley a roading competitive position in World Markets or stating its seriousness is difficult since over 70% of the US domestic Market is open to foreign competition. In other words. The United States is in a global contest. The competition is fierce, and we're losing on many fronts. I want dominant position and technology has been deteriorating for many years as other countries, especially Japan have accelerated their development an application of advanced technology. Clearly the greatest progress and advancing and exporting technology has been made by Japan and targeted Industries for the Japanese government has promoted cooperation among the industry members at the base technology level as a key ingredient for Success automobile steel shipbuilding consumer electronics with the principal Japanese Industries targeted for development in the generation after World War II Japanese successes in these areas are widely evident, microelectronic computer electronic instruments lasers Optical Communications robotics biotechnology. Telecommunications and Aerospace our current charges and he's going the way of automobiles deals shipbuilding and consumer electronics, consequences for check play unemployment will be disastrous it good perspective of the foreign competitive challenge with cuts across the breadth of American industry is in the report issued by the president's Commission on Industrial competitiveness report concluded that the ability of American industry to compete is eroding an industry of the United States is losing world market share even in high-technology Industries. The United States has lost market share in 7 out of 10 sectors Electronics posted an overall trade deficit with Japan in 1984 and our bilateral trade deficit with that country in this area is likely to surpass our deficit in automobiles. Loss of Market leadership in high-tech Industries results not only unlock dollars of trade and jobs by high tech companies. They're also adverse effects outside of the night Tech sectors because our products such as electronic equipment are used to improve performance lower costs and improve quality of products processes and services in other Industries and other Industries can be out of competitive disadvantage. If they do not have the same access to the most advanced high-tech products as their foreign competitors and with the high degree of vertical integration in large, Japanese car companies. The risk is high that it will happen. Laughing review of the number of significant factors taken into account in the design of the plan for comprehensive Economic Development a job creation on August Drive the approach based on the following premises first. There must be a fast increase and technological cooperation to more efficiently use scarce resources to expand Innovation to create that we need a new job and I would remind you that Innovation, which is the source of most new jobs is the process of creating and utilizing technology to make improvements in existing products services and processes are creating new ones and getting them into the marketplace. The Innovation cycle starts with research which is followed by product development production and marketing. Efforts to work together must include technological cooperation among large companies between large and small companies along industry universities and government and at the community level among all sectors in addition State Farm regional organization to promote technological cooperation among themselves. And with foreign countries are important for Banning Innovation to stimulate Economic Development and create new jobs and second well-established firms should provide the leadership and helping to initiate and successfully Implement cooperated programs. Primarily this is done. Not because of philanthropy or social responsibility considerations, although both are important but it sounds profitable long-term business Investments and 3rd, Special emphasis must be placed in assisting the small business sector because it is a major source of new jobs and 4th Economic Development must be embracing both Agriculture and business. Unfortunately for too long policies and programs for agriculture have been treated separately from those for business as if a farm isn't a business relationship between farms and smaller cities have not been adequately taken into account, which is a major reason why many rural areas are experiencing severe economic deterioration. And fifth there might be a vast Improvement in the quality of Education and Training. If we are to remain competitive in world markets and maintain our leadership in technological innovation. It is essential that we begin at the grade school level by providing students with the most advanced computer based technology to Aid in their educational development. And the sex life promise is that a structure must be established in every Community to facilitate cooperation among all sectors to expand Economic Development and job creation primarily by helping small businesses and family farm start up and operate successfully. The structure is called a job creation at work. And I like to describe it and explain how it functions in providing support to small businesses and Family Farms. First with respect to small business. There are three major elements of the job creation that work for helping small companies get started and operating operate profitably cooperation office the capital fund and a Business and Technology Center operation office is a nonprofit organization is financed by state and local government private contributions client fees and funds generated by Investments and client company its board of directors consists of local leaders from major sectors of society and that's been or has an idea for a new product or service and cooperation office helps to shape a business plan and obtain financing. I'll throw extranar if you want to start a company but like a technology on what's the basic or assisted in locating one? The permit staff is small but the cooperation office drawers on the volunteer advisory panel find us Engineers marketing specialist and executive for the specific expertise required to help prepare and evaluate business plan and because these plans or expertly conceived the chances of receiving adequate financing and achieving economic viability are substantially increased. Equity financing is often not available for new company through there and I doing their initial formation and early development stages from Banks Venture Capital funds and other conventional sources mainly because of the higher resting bowl there for a source of state capital is needed and it's going to be provided in the number of ways for example several state and local governments have provided the part of the financing for seed Capital funds and the third element of the job creation network is a business and technology Richard laboratory manufacturing and office facilities and other services to facilitate the startup and growth of small businesses and economies of scale make it possible to provide better on a small companies nearby with needed facilities are much higher quality and considerably lower cost than any would be capable of obtaining or providing for itself. Job creation Network consisting of the three major elements are just described provides the most important types of support needed by small companies to be successful networks for supporting small businesses are being widely replicated many places are considering is that which month of such net worth the largest and most aggressive programs at present or in the states of South Carolina in Illinois eat your well along toward implementing 5 here in Minnesota to Arden place and parcel implementation has recently come in on screen more. Next I'll describe how the job creation network is augmented for supporting family farm. And essentially it consists of the local agriculture extension office in the cooperation office pulling resource in appropriate manner the availability of more knowledge. I just technology for achieving viable small and medium-sized Family Farms in a source of financing for qualifying Family Farms job creation network is supporting family farms in the slide major source of knowledge will be the Family Farm Technology Consortium and before presenting the rationale for it and come in and briefly on financing. Let me know. Unless longer-term programs are started now to improve the viability of family farm and help young people get into farming many rural communities in America will have suffered Much Greater Detroit auction by the time the 21st century arrives furthermore many Economist and other experts argue that the Family Farm is an anachronism and those who Advocate support Florida to move it and I'm motivated more by nostalgic then Die Hard reality. Yep, a careful analysis taking into account. All factors will show that it was nuts Direction in the development and application of Technology on the one hand and misguided federal policy on the other that were mainly responsible for undermining the family farm. Therefore with the proper technology and appropriate Governor government policies the Family Farm can't be revitalized. What is needed is the development of models of Family Farms which are integrated and diversified Enterprises size for efficiency requiring minimum capital investment and environmentally protect accordingly an effort is under way to establish a Family Farm Technology Consortium in cooperation with universities corporations and other organizations under the Aegis of the Midwest technology development Institute, which I'll describe later the Family Farm Technology Consortium would develop and Implement models for viable Family Farm in addition appropriate federal and state policies would be recommended and for those Farmers not to farm models designed by The Institute affordable financing would be available again as what's the seed Fun by a method involving some state government assistance. Do tax credits or other means? I will take time to dwell on the particular form of State assistance the point being that there are satisfactory Network are satisfactory Methods at the same time represent appropriate Investments by state government. Much more could be said about the different parts of a job creation Network are only ad but given the dedication required because it is not easy to implement a job creation work effectively asset small business in other words, it works. The record of the Minnesota cooperation office attest to that it was Farm seven years ago the MC all as we call. It has helped launch 24 companies with presently have a total of 490 employees in front of more the national average of companies that failed during their first five years of operation is 80% horror. The MCO goal is to have 80% of the company's assisted alive and thriving after 5 years. The current percentage is 86% Although not all of the firm's help. That's far have been in business 5 years. At the present level of operation the MC always been able to every for net new businesses started for year that number will be higher in the years ahead because of experience. However, using a conservative number of for businesses form per year over the next 10 years 40 additional companies would be launched in conjunction with the 24 already started the total 10 years hands would be 64 cos tonight. But these companies will have create a 20,000 new jobs 10 years from now. Density pharmacist as part of a combination cooperation extension office has yet to be fully implemented. I can't report on results and helping family farm however with education and support describe. I'm just a certain today of success in that area. As I was seven years ago when the first cooperation office was launched. Before leaving the subject of the job creation at work there two additional functions. I don't want to mention one is that it can help to gain a better understanding of the critically important role of technology in society, especially the fact that most new jobs result from the application of Technology by the process of innovation. Most people do not know where jobs originated know how terribly difficult it is to create them that low level of understanding can easily accommodate the belief that the stork brings jobs all over the bird has been preoccupied with the more traditionally which Pride roll. a network in a community provide a perspective on job creation that can be widely understood because of local participation in the process. In other words that's is the way that the culture of Technology must be implanted at the Grassroots of the Friday in order to get the broad base of public support necessary to vastly expand innovation. And the other function is out of expanding foreign trade by helping to establish joint ventures between small companies in the United States with those in other countries. And today the only options that usually available to a small company for expanding its business overseas are through the licensing or engaging a trade representing neither approach is very desirable, but a joint venture with a small company overseas can be a much more beneficial arrangement for both parties for several reasons and major one is at the marketplace determines the value of the technology involved which ordinarily is the only way that this can be done which is fair to both parties. Also a joint venture provides a means of direct and enduring participation and an overseas markets both with respect to profits earned as well as continuing knowledge of Market requirements, which can be translated into changes and improvements in the product. And last but not least for comment was respected Community level is the need to include K-12 public schools in comprehensive economic development in job creation programs because they not only provide the basic education and training that provides the underpinning for a skilled Workforce. But they're also a major source of jobs in many rural communities dependents of schools Family Farm in their economies through one of these components without regard after the others will result in a failure to gain the fully conomic potential of the community and furthermore such efforts must be carried out cooperatively and clearly the productivity quality and availability of primary and secondary education must be substantially improved. And to achieve these objectives will require the use of technology in the teaching process and progress has been much too slow by schools in adopting technology, achieving the most effective utilization technology. Also requires New Management processes. In fact in the light of improvements attainable and productivity quality and availability with technology and New Management processes. The financial squeeze on many district can overtime be elevated financing equipment required may call for financing sources not normally used by district one potential Source, maybe a local company, which is established for the purpose of financing equipment in managing. Another could be a partnership made up of concerned citizens for Suffolk plate form for that purpose with buys equipment and makes it available on a monthly lease bases. This should be an attractive approach to all members of the community including those without school-age children because of the schools importance in helping to maintain a viable local economy and show the local cooperation office. Google's going to get the assistance needed to move aggressively with the use of technology in teaching and in devising creative ways to finance it. Having reviewed cooperation at the community level which includes K12 school and a structured buy a job creation Network to most efficiently Provide support to small businesses in Family Farm. I'd like to briefly discuss technological cooperation among large companies and the outstanding example of successful cooperation is a micro electronics and computer technology corporation or MCC which was established about 3 years ago and is located in Austin, Texas and then slay there were 11 participating companies from the US computer and semiconductor industry. This number has grown to 21 and he's shown by the slide MCC represent to develop base Technologies for used by members who will each add their own value and continue to compete with products and services of individual conception and Design. Prosthetic leg for Control Data. We have calculated that for our commitment of 14 million dollars to several MCC research programs. We will have over a three-year period access to research results important to us costing some 120 million. Most other MCC numbers will realized similar return not a bad bargain for us for them and for society and equally important technology created by MCC will be licensed on reasonable turn the small companies in the last point to mention about MCC is that every industry needs one or more Cooperative efforts of this type? The enormous potential of cooperation between larger and small businesses can be better understood by noting a few relevant factors about both. And first despite the great importance for small business as the leading Source the new jobs the environment for small business has been deteriorating. And this is manifested by over-regulation increasing competition by a large company insufficient management and professional expertise inadequate availability of technology and scarcity of capital and at the same time the technology management professional expertise and financial resources are found in Genesis and are underutilized and by making available, it's under youth technology and ideas and by offering is professional the management of specimens to a smaller company a larger company can realize additional income from past investment. Also large companies can gain more economically access the new products in Market to equity investments in R&D contract with small companies. Such actions accentuate the strongest attributes of both large and small Enterprise small companies, which are inherently more creative and frequently develop new markets products and services sooner for Less cost or as larger companies with greater resources can provide efficiencies in marketing and production. 5 years ago control day to start of transferring selected Technologies to small startup companies in such as the materials processing Corporation as well as making an investment and some of them and placing R&D contract and during that time Control Data has developed relationships with more than 70 companies and we're very pleased with the results summer activities by a few other large companies could be sighted over the point. Is that the potential for the practice is much greater than his being realized. To stimulate greater participation well-established and Cooperative activities and it has the objective of still dating the process whereby established companies assess in the start-up of smaller Enterprises assistance takes the form of Technology spin-off management and professional Consulting and or Equity investment. The first program was launched about two years ago under the age of the Minnesota Business Partnership, and it's planned that larger companies Minnesota will assist in the start-up of two companies eat and a smaller companies will assist in the start-up of one company 33 companies have committed to participate and that's far Darko is we call it program has helped launch 12 companies. And while that is a commendable achievement. It's far far short of the potential. Suggested the Saint Paul chamber become a sponsored Arco with more emphasis on getting company started in areas outside of the Twin Cities and a final point to mention is that all types of companies can participate successfully not just manufacturing companies, but also Banks insurance companies retail company utilities Law Firm offices in Solon. Industry University government cooperation is critically important to more efficiently create and transfer knowledge and the better trained more people. Let's go operation of cars can take many forms one of them and the Family Farm Technology Consortium was mentioned earlier. Another is a micro electronic and information Sciences Center formed in 1980 at the University of Minnesota. And also some funding has been provided by the state of Minnesota and federal research grants. A major part of it has been furnished by large companies. However, this is not for other organizations, especially small Enterprise from having access to the R&D results. And as a result, it is contemplated that many new companies will be spawned. Other industry University government Partnerships could be mentioned. However, the point is that's why we're producing important Technologies most of them require a broader base of support to be most efficient furthermore. The total level of effort is far shorter than need for vastly more Innovation. And these are objectives of regional cooperation and one promising approach to Regional cooperation is the Midwest technology development Institute, which is a group of 10 stylist in response to a Wellspring recommendation. The governor of each member state is appointed for birth or person to the board of directors. The Midwest technology development Institute has the threefold objective of expanding technological cooperation among Midwest universities and Industry to increase the efficiency of research and commercialization of the result of extending technological cooperation to include universities in foreign country and providing a mechanism to increase the availability of technology to Industry, especially small businesses and to achieve a transfer of Technology between the Midwest and foreign country. And while there's been some cooperation Among Us universities in selected research areas. It's not nearly at the level required and research must be taken one step for the the technology in the midwest technology development Institute will promote Cooperative technology development through the establishment of technology, which is significant to The Midwives bills on strength of participants and has potential for commercialization of result will make available to the participating University through cooperation resources that are not within a single institutions ability to provide. They'll also established Cooperative technology development programs with institutions oversees. The process has been started for selecting a Cooperative development programs by first analyzing a number field as will be showing their on the slide. Federal state and private sector funds will be used for financing Cooperative technology development program. And one of the first Cooperative efforts to be established will be the Family Farm Technology Consortium mentioned earlier. Each member state will decide how it wants to participate that is why there so it's State University or another organization. Minnesota has opted for a new organization Minnesota Family Farm Institute as an independent nonprofit corporation and its board of directors will include farmers and representatives the world organizations Banks bonuses churches and educational institutions a major objective of the Minnesota Family Farm Institute integrative approaches for viable Family Farms in Minnesota. And it will emphasize Cooperative technology development and the application of those Technologies on working farm the process of organizing The Institute as well along and the door should open by the first of May. How much more can be sad about the Family Farm Technology Consortium however time to conclude and rather than summarizing my remark. Let me make a number of observations about cooperation comprehensive Economic Development and job creation. Every Community should be part of the job creation at work to benefit from cooperation. Not all sectors are standing ovation by assisting small businesses and family farm and 2nd at the broad sweep of cooperation outline is essential to achieve the vastly increased Innovation necessary to provide jobs needed in the future in all parts on Minnesota and third suggest that Minnesota legislators look at how to relieve the over-regulation with stifles small goodness. It's even difficult for big corporations to comply with the burden for small companies. And forth that those Metropolitan corporations with resources in one or more of the areas of technology management professional and financial must reach out and Cooperative program in rural Minnesota in order for the total resources of the state to be used most efficiently for everyone's benefit such long-term Investments would be profitable through the corporation Economic Development would be expanded and jobs created which in turn would increase the tax base and lessen the burden of unemployment a win-win-win situation for Metropolitan companies local communities in the entire state. And finally that the approach. describe provides no shark Phone Solutions to the serious problems facing Minnesota. Unfortunately, there aren't any significant short-term Solutions there for all of us to dedicate ourselves to The Cooperative action. The better use the resources that we have today. In a structured program which will provide significant benefits in the years ahead. And without such cooperation the risk is greatly increased and suffering the consequences of chronic and higher unemployment throughout the state in the years ahead. Thank you.