Original Broadcaster Captioning (Enhanced). Treat it as a searchable index of what was broadcast, not a quotation record.
00:00:01TIMES, AND THE FIRST TIME IT LUCKED OUT WAS WITH GEORGE WASHINGTON IN THAT POSITION OF
00:00:04EXTRAORDINARY POWER, WALKING
00:00:06AWAY FROM THE THE ARMY FIRST.
00:00:08AND THAT'S JUST WHY THAT'S IN THE ROTUNDA OF THE CAPITOL.
00:00:12BUT THEN WALKING AWAY FROM THE PRESIDENCY IS AN EXTRA ORDINARY THING.
00:00:15WATCH AMERICA'S BOOK CLUB WITH
00:00:17HEATHER COX RICHARDSON SUNDAY AT
00:00:196 P.M. AND 9 P.M. EASTERN AND PACIFIC. ONLY ON C-SPAN.
00:00:34ALL RIGHT. GOOD EVENING, EVERYONE.
00:00:36THE PROGRAM IS STARTING, AND I AM AMY BRAND.
00:00:40I'M THE DIRECTOR AND PUBLISHER
00:00:43OF YOU OF THE MIGHTY PRESS.
00:00:46AND I AM TRULY DELIGHTED TO WELCOME ALL OF YOU HERE THIS
00:00:50EVENING. WE ARE SO THRILLED TO BE PUBLISHING PRIORITY TECHNOLOGIES
00:00:53AND WORKING WITH LIZ REYNOLDS AGAIN AND ALL THE WONDERFUL
00:00:57AUTHORS THAT SHE BROUGHT INTO
00:00:59WRITING THIS BOOK WITH HER.
00:01:03IF ANYONE KNOWS TECHNOLOGY POLICY, INDUSTRY AND HOW THEY
00:01:06COLLIDE, IT'S LIZ.
00:01:08AND IN PRAIRIE TECHNOLOGY SHE'S GATHERED SOME OF THEM I T SHARP
00:01:12IS MINDS TO WALK US THROUGH SEVERAL AREAS FROM
00:01:17SEMICONDUCTORS TO QUANTUM COMPUTING WHERE THE U.S. SIMPLY
00:01:19CAN'T AFFORD TO FALL BEHIND. IT'S THE KIND OF BOOK THAT MAKES
00:01:23A COMPLEX LANDSCAPE FEEL TRULY NAVIGABLE AND IT COULDN'T BE
00:01:27MORE TIMELY. SO I WANT TO GIVE YOU RIGHT OVER
00:01:31TO LIZ TO TAKE THIS FORWARD, BECAUSE WE HAVE SUCH A WONDERFUL PANEL.
00:01:34AND AGAIN, WE'RE DELIGHTED TO HAVE ALL OF YOU HERE.
00:01:37AND JEREMY. THANK YOU.
00:01:41THANK YOU, EVERYONE. IT'S IT'S WONDERFUL TO HAVE YOU HERE.
00:01:45WE ARE REALLY EXCITED FOR THIS EVENING AND TO BEING ALL
00:01:49TOGETHER. WE HAVE YOU KNOW, I THINK WE HAVE SOMETHING LIKE SIX OF THE
00:01:53EIGHT AUTHORS HERE TONIGHT, WHICH IS AMAZING.
00:01:55AND UNFORTUNATELY, THE ONE THAT WAS GOING TO OPEN WITH OPENING
00:01:59REMARKS SIMON JOHNSON IS FELL ILL. HE'S BEEN DOING A LOT OF
00:02:02INTERNATIONAL TRAVEL AND I THINK IT'S GOTTEN THE BEST OF HIM.
00:02:06BUT IT BEING MIT, WHEN YOU CAN'T
00:02:08GET YOUR NOBEL PRIZE WINNER UP TO THE UP TO THE DAIS, YOU TURN
00:02:14TO YOUR FORMER PRESIDENT OF MIT.
00:02:16AND SO, RAFAEL RIFE, THE 17TH
00:02:20PRESIDENT OF MIT, IS STEPPING IN.
00:02:22AND WE'RE DELIGHTED TO HAVE RAFAEL PROVIDE SOME OPENING REMARKS.
00:02:29RAFAEL.
00:02:33SO AS YOU CAN TELL, FORMER PRESIDENTS ARE RELEGATED TO
00:02:38BACKUP. LOOK, I'M DELIGHTED TO BE HERE.
00:02:41I CAME HERE TO LISTEN, NOT TO TALK. BUT I WOULD LIKE TO JUST SAY HOW
00:02:45EXCITED I AM FOR THIS PROGRAM
00:02:47AND THIS PARTICULAR TOPIC.
00:02:51THINGS THAT I'VE SAID IN OTHER LOCATIONS IN OTHER GROUPS IS
00:02:55THAT THE US HAS BEEN BASICALLY
00:02:58KING OF THE HILL IN SCIENCE, TECHNOLOGY AND INNOVATION FOR
00:03:01THE LAST EIGHT YEARS. WE WE DID EVERYTHING RIGHT AND
00:03:06WE THOUGHT THAT WE HAVE EVERYTHING RIGHT.
00:03:08THE OUR ECOSYSTEM IS PERFECT AND
00:03:10WE HAVE TO THINK CHINA TO MAKE
00:03:12US REALIZE THAT, YEAH, OUR ECOSYSTEM IS QUITE GOOD, BUT
00:03:16IT'S FAR FROM PERFECT. AND CHINA IS ADVANCING VERY RAPIDLY IN SCIENCE, TECHNOLOGY,
00:03:21INNOVATION, AS ALL OF YOU KNOW. SO WHEN YOU HAVE A COMPETITION
00:03:24OF THIS KIND OF TECHNOLOGY
00:03:27COMPETITION, WELL, ONCE YOU DO
00:03:29HAVE COMPETITION IS LOOK AT THE STRENGTHS AND WEAKNESSES OF EACH
00:03:32OF THE PLAYERS. AND IN THE US HAS QUITE A BIT OF
00:03:38STRENGTH. WE HAVE A GREAT UNIVERSITIES SYSTEM. WE HAVE HAD GREAT RESEARCH
00:03:42FUNDING FROM THE FEDERAL GOVERNMENT. WE HAVE GREAT TALENT FROM ALL
00:03:45OVER THE WORLD COMING TO AMERICA IN PLACES LIKE ATLANTA AS WELL.
00:03:48SO THOSE ARE OUR STRENGTHS ON
00:03:52THE WEAKNESS SIDE. WELL, WE ARE VERY SHORT TERM.
00:03:56WE HAVE GOVERNMENT POLICIES THAT ARE SHORT TERM.
00:03:58WE HAVE WALL STREET THAT LOOKS AT THE ECONOMY, SHORT TERM.
00:04:02WE EVEN RISK CAPITAL, LOOKS AT
00:04:05INVESTMENT, SHORT TERM. SO WE HAVE OUR WEAKNESSES. AND I THINK WHAT WE SHOULD DO AS
00:04:09A COUNTRY IS DOUBLE DOWN ON THE STRENGTH.
00:04:13AND THAT MEANS RESEARCH FUNDING
00:04:15IN OF THE SYSTEM, INTERNATIONAL TALENT.
00:04:18IN ADDITION TO DOMESTIC TALENT
00:04:21AND FIX OUR WEAKNESS WHICH IS AN OBVIOUS ONE.
00:04:24LET ME TELL YOU A LITTLE STORY AND I'LL CONCLUDE BY BRINGING
00:04:28THIS BACK AND THE PANEL. IT WAS, I THINK, 2014 OR SO.
00:04:31I WAS IN CHINA, IN BEIJING, AND
00:04:34I WAS THE GUEST OF THE HIGH TECH
00:04:38CEOS AT THE TIME. IN FACT, MOST OF THEM ARE STILL
00:04:41HIGH TECH CEOS, EXCEPT THEIR COMPANIES BECAME MUCH BIGGER.
00:04:44THAT WAS 2014, SHORTLY AFTER SHE BECAME PRESIDENT.
00:04:48AND IN THAT DINNER, THERE WAS ALL OF THEM MAYBE 15 OF THEM OR SO.
00:04:51AND THAT WAS THE ONLY ONE, THE GUEST OF THEM.
00:04:55AND WHAT THEY SAID TO ME AT ONE POINT, ONE OF THEM STOOD UP AND
00:04:58SAID TO ME, IDENTIFY ME AS THE US.
00:05:02HE SAID, LOOK, WHEN IT COMES TO
00:05:04SKILL, DO NOT COMPETE WITH US. HE POINTED AT ME.
00:05:08WE WILL ALWAYS BEAT YOU. THAT MADE ME FEEL UNCOMFORTABLE.
00:05:12I'M THE GUEST. I MEAN, HOW DO I ANSWER THAT?
00:05:14AND THEN HE SAID, BUT WHEN IT
00:05:17COMES TO CREATING LEVITY, WE
00:05:20WILL NEVER BEAT YOU. SO I SAID, HEY, TIME OUT AGAIN.
00:05:25THAT'S 2014. IS IT 2026?
00:05:26THINGS HAVE CHANGED SINCE, BUT I WANT TO GIVE YOU A SENSE OF THE
00:05:30TIME. I SAID TIME OUT.
00:05:33WHY ARE YOU SO ARROGANT ON THE
00:05:35FIRST HALF AND SO HUMBLE ON THE
00:05:37SECOND HALF AND SAY, WELL, LOOK, BECAUSE SCALE, WE ARE A BIG
00:05:41COUNTRY. WE HAVE ALL THE SCALE AND WE KNOW HOW TO DO THINGS THAT SCALE YOU.
00:05:44YOU ALREADY ABANDONED THAT. YOU HAVE. NO, NO, NO, NO.
00:05:48THE CHANCE TO TO COME AFTER US.
00:05:50BUT WITH CREATIVITY, HE SAID, AND THESE ARE THE WORDS HE USE.
00:05:54YOU ARE HETEROGENEOUS. WE ARE HOMOGENEOUS.
00:05:58YOU BRING THE BEST TALENT FROM ALL OVER THE WORLD. WE WILL NEVER DO THAT.
00:06:01SO I GO BACK TO THAT STORY. I'M NOT SO SURE THAT THEY WILL
00:06:04SAY THE SAME NOW. THEY ARE STILL HOMOGENEOUS, BUT
00:06:08THEY HAVE FOUND A WAY TO ADVANCE QUITE RAPIDLY AND CATCH UP TO US.
00:06:12ALL THIS TO SAY WE HAVE TO DOUBLE DOWN ON OUR STRENGTH AND
00:06:15EVEN THEY RECOGNIZE THAT PART OF OUR STRENGTH AND THEY HAVE
00:06:18LEARNED FROM US HOW TO BUILD UP THEIR SCIENCE AND TECHNOLOGY BY
00:06:22INVESTING IN UNIVERSITIES. SO WITH THAT, I THINK WE HAVE
00:06:25LOTS OF ANSWERS TO MANY OF OUR QUESTIONS.
00:06:27SO THIS IS THE MOMENT IN WHICH WE WELCOME LISA AND THE PANEL TO
00:06:31ILLUMINATE US WITH OUR WISDOM.
00:06:36LISTEN.
00:06:44BUT YOU GOT VERY WISE. DO WE GET TO SEND YOU DO GET TO
00:06:48SIT YOUR EXCELLENT. WELL, THANK YOU, RAFAEL.
00:06:51WONDERFUL COMMENTS AND SET THE
00:06:53STAGE, I THINK FOR WHY THIS IS AN IMPORTANT BOOK AT A PIVOTAL
00:06:57TIME. I JUST WANT TO GIVE EVERYONE A LITTLE BIT OF BACKGROUND ABOUT
00:07:00HOW THIS BOOK CAME TO BE, WHICH IS SIMON JOHNSON.
00:07:02AND I LAUNCHED A SEMINAR CALLED
00:07:04THE PRIORITY TECHNOLOGY SEMINAR JUST ABOUT THREE YEARS AGO, AND
00:07:09IT WAS A REALLY INTERESTING GATHERING OF OF FACULTY AND
00:07:13RESEARCHERS AT MIT WHO ARE LEANING INTO TECHNOLOGY, LEANING
00:07:16INTO INNOVATION, BUT LEANING ALSO INTO THE POLICY
00:07:20IMPLICATIONS. AND SO THIS BOOK IS ACTUALLY, I
00:07:23CONSIDER IT A QUINTESSENTIAL MIT
00:07:25PRODUCT BECAUSE IT WAS NOT ONLY THE CONTRIBUTIONS WE SEE HERE,
00:07:29BUT REALLY ORGANICALLY CAME ABOUT.
00:07:31AND IT WAS EVERYONE'S INTEREST
00:07:33IN TRYING TO ADVANCE THIS AGENDA
00:07:37IN THE INTERESTS OF THE COUNTRY.
00:07:39IT'S REALLY THE BOOK IS REALLY A
00:07:41ROADMAP ON HOW THE US CAN GAIN
00:07:43AND REGAIN, IN MANY CASES, ITS
00:07:46COMPETITIVE ADVANTAGE AND GLOBAL LEADERSHIP IN KEY TECHNOLOGIES
00:07:50THAT WE BELIEVE WILL HELP WITH US SECURITY AND SHARED
00:07:55PROSPERITY. AND AS AS RAFAEL SAID, THIS IS A
00:07:57CRITICAL MOMENT IN TIME.
00:07:5920 YEARS AGO, THE US LED CHINA
00:08:03IN 57 OUT OF 64 TECHNOLOGIES
00:08:05THAT WE ARE WE TRACK TODAY.
00:08:09THAT'S REVERSED. CHINA IS LEADING ON A LOT OF THE
00:08:11KEY TECHNOLOGIES AND WE KNOW
00:08:13THAT TECHNOLOGICAL LEADERSHIP IS
00:08:16REALLY CONNECTED TO GEOPOLITICAL COMPETITION, WHETHER IT'S IN THE
00:08:20AREA OF MILITARY DEFENSE OR WHETHER IT'S IN ECONOMIC GROWTH.
00:08:24SO THIS BOOK IS AN EFFORT TO TRY
00:08:26AND FOCUS ON WHAT MATTERS FOR
00:08:29THE COUNTRY, WHAT IS WORKING AND WHAT ISN'T WORKING.
00:08:32IT'S SUPPOSED TO BE. AND I THINK IT IS ACCESSIBLE. SO IF YOU WANTED TO LIKE, YOU
00:08:37KNOW, DIP INTO 25 PAGES ON QUANTUM COMPUTING, YOU CAN DO
00:08:42THAT IF YOU BUT IF YOU LOOK ACROSS ALL THE CHAPTERS, I THINK
00:08:45WHAT WE SEE ARE SOME CONSIST IN
00:08:49THEMES THAT WE'LL TALK ABOUT TONIGHT THAT WE FIND ACROSS ALL
00:08:51OF THESE AREAS THAT SPEAK TO BOTH THE US INNOVATION AND
00:08:55INDUSTRIAL ECOSYSTEMS. BOTH OF THOSE.
00:08:58AND WHAT I THINK BECOMES CLEAR
00:09:00IS WHAT WORKED IN THE 20TH
00:09:02CENTURY AS RAFAEL SPOKE TO OUR
00:09:04STRONG R&D SYSTEM.
00:09:06ARE ARE ENTREPRENEURIAL SYSTEM.
00:09:09OUR VENTURE CAPITAL, ALL NECESSARY TODAY, BUT POTENTIALLY
00:09:13NOT SUFFICIENT. WE'VE SEEN A LOT OF OTHER THINGS
00:09:17COME OUT SINCE COVID THAT HAVE EMPHASIZED SUPPLY CHAIN
00:09:20RESILIENCE, MANUFACTURING, ETC. THAT MEAN WE NEED TO REALLY
00:09:24DOUBLE DOWN IN SOME AREAS, ETC.
00:09:26SO SO WITH THAT, I AM GOING TO
00:09:28ASK EACH OF OUR SPEAKERS TO KIND OF GROUND US IN, GIVE A FEW
00:09:32MINUTES INTRODUCTION TO WHY, WHY
00:09:34THEIR TECHNOLOGY IS A PRIORITY TECHNOLOGY FOR THE COUNTRY AND
00:09:38I'M GOING TO START WITH HIS YOU STILL ALAMO FROM THE DEPARTMENT
00:09:41OF ELECTRICAL ENGINEERING. I THINK IT IS.
00:09:45SO I THINK BY NOW EVERYBODY KNOWS THE STORY OF SEMICONDUCTORS. THERE'S BEEN OVER THE PRESS ALL
00:09:49OVER THE PRESS FOR NOW SEVERAL YEARS. I THINK IT WAS THE PROFOUND
00:09:53DISRUPTION FROM COVID THAT REALLY BROUGHT TO THE FORE HOW
00:09:56RELEVANT, HOW CRITICAL SEMICONDUCTORS ARE IN ALL AREAS
00:09:58OF HUMANITY. IN FACT, PERHAPS THE POSTER
00:10:02CHILD WAS THIS FIELDS OF FINISHED CARS THAT COULD NOT BE
00:10:06SOLD BECAUSE THEY WERE FINISHED. EXCEPT LUCKY ENOUGH, YOU CHIPS
00:10:11AND ALTOGETHER IN 2021 THE CAR INDUSTRY IN THE US LOST IN
00:10:15EXCESS OF $200 BILLION ON MORE THAN $500 BILLION WHERE LOST
00:10:18WORLDWIDE AGAIN CARS FULLY FINISHED, EXCEPT FOR SOME CHIPS
00:10:22THAT WERE REALLY MISSING. SO THIS REALLY TELLS US THAT SEMICONDUCTORS IS TRULY A
00:10:26FOUNDATION OF TECHNOLOGY ALL AROUND US.
00:10:28WE WE REALLY RELY ON ON ON CHIPS, AS I LIKE TO SAY,
00:10:33SEMICONDUCTOR, WHICH ARE THE OXYGEN OF MODERN SOCIETY.
00:10:35WE ONLY REALIZE HOW FUNDAMENTAL THEY ARE THE DAY WE DON'T HAVE
00:10:39THEM NOW, LIKE OTHER FOUNDATIONAL TECHNOLOGY.
00:10:42SEE ALL STARTED IN THE US. THE KEY INVENTIONS CAME FROM THE
00:10:46US. US INDUSTRY WAS DOMINANT FOR MANY YEARS.
00:10:50HOWEVER, OVER TIME FOREIGN
00:10:52COUNTRIES REALIZE THE THE STRATEGIC SIGNIFICANCE OF THESE TECHNOLOGIES AND THROUGH A
00:10:58VARIETY OF OF PROMOTIONAL PROGRAMS, THEY WERE ABLE TO
00:11:02CREATE NATIONAL CHAMPIONS THAT HAVE BECOME EXTREMELY SUCCESSFUL COMPANIES.
00:11:05AND FURTHERMORE MORE THEY WERE
00:11:07ABLE TO LURE AMERICAN COMPANIES
00:11:10TO SET UP AMERICAN FABS OVERSEAS
00:11:12TO THE POINT THAT AT THE
00:11:14BEGINNING OF THIS DECADE,
00:11:18EXACTLY 0% OF A LEADING EDGE
00:11:20CHIPS THE CHIPS THAT ENTER INTO
00:11:22SUPERCOMPUTERS THAT ENTER INTO PROCESSORS THAT ENTER INTO INTO
00:11:26PHONES, THAT ENTER INTO THE MOST ADVANCED COMMUNICATION SYSTEMS.
00:11:300% WERE MADE IN THE US, 100% WERE MADE IN ASIA.
00:11:34MOST OF THEM WERE MADE IN TAIWAN.
00:11:38AND SO THE CHIP SAC HAS BEEN TRYING TO REDRESS THESE NOW FOR
00:11:41SEVERAL YEARS BY CREATING
00:11:43PROGRAMS THAT PROMOTE THE SET UP
00:11:45OF SEMICONDUCTOR FABS,
00:11:48MANUFACTURING FABS ON THE US, WHETHER FROM AMERICAN COMPANIES
00:11:52OR ACTUALLY FOREIGN CORPORATIONS. AND IN FACT, THAT PROGRAM HAS
00:11:55BEEN VERY SUCCESSFUL. WE HAVE TO REALLY GIVE CREDIT TO
00:11:58TO THE CREATION OF THIS PROGRAM. IT'S INVESTED SOMEWHERE IN
00:12:02EXCESS OF $33 BILLION TO FOSTER THE SET UP OF FLOPS ON US SOIL
00:12:07AND MORE THAN $600 MILLION HAVE BEEN COMMITTED IN PRIVATE
00:12:10CAPITAL BY NOW. IN THE CREATION OF ALL KINDS OF
00:12:14FACILITIES ON THE UNITED STATES, INCLUDING THE FACILITIES THAT
00:12:17ARE NOW FABRICATING THE LEADING EDGE CHIPS THAT I WAS TALKING ABOUT.
00:12:21A FEW MINUTES AGO. NOW, IT'S IMPORTANT TO REALIZE,
00:12:23HOWEVER, THAT SEMICONDUCTORS IS A LONG GAME.
00:12:28SEMICONDUCTORS REALLY THRIVE ON INNOVATION.
00:12:30WE DO THINK ABOUT THESE THESE EVERY NEW GENERATION OF
00:12:34TECHNOLOGY COMES ROUGHLY EVERY
00:12:37TWO YEARS, REQUIRES NOT ONLY A NEW GENERATION OF TECHNOLOGY
00:12:41WITH WITH MORE ADVANCED CAPABILITIES IN MANY DIMENSIONS,
00:12:43BUT ALSO A WHOLE NEW FAB THAT HAS BEEN CREATED TO FABRICATE
00:12:49THESE NEW CHIP TECHNOLOGY AND THESE APPS ARE NOW RUNNING IN
00:12:52THE RANGE OF 15 TO $20 BILLION.
00:12:55IN ADDITION TO THAT, IT TAKES ON
00:12:57AVERAGE ABOUT TEN YEARS FROM A
00:13:01PROOF OF CONCEPT POINT FOR OUR NEW TECHNOLOGY TO REALLY MAKE IT IN VOLUME.
00:13:05MANUFACTURING. SO WHAT THAT TELLS YOU IS THAT WE REALLY HAVE TO BE INVESTED
00:13:10FOR MANY YEARS IN REALLY FOSTERING THIS INNOVATION PIPELINE THAT EVENTUALLY IS
00:13:13GOING TO RESULT IN THOSE NEW TECHNOLOGIES THAT ARE GOING TO
00:13:17ALLOW THE US TO SUSTAIN, SUSTAIN THIS LEADERSHIP. AND GUESS WHAT?
00:13:21THAT PIPELINE STARTS ON UNIVERSITIES. IT IS ON UNIVERSITIES WHERE WE
00:13:24DO THE FUNDAMENTAL RESEARCH TEN YEARS AHEAD THAT IS GOING TO
00:13:28PRODUCE THESE NEW CONCEPTS. IT IS WITH UNIVERSITIES WHERE WE EDUCATE THE WORKFORCE THAT IS
00:13:31GOING TO POWER ALL THESE NEW FACILITIES, R&D, BUT ALSO
00:13:34MANUFACTURING FACILITIES IN THE UNITED STATES. AND IT ALSO IS IN UNIVERSITIES
00:13:38THAT WHERE THE STARTUPS ARE
00:13:42NURTURED, ARE INCUBATED AND EVENTUALLY NURTURE THAT ARE GOING TO BRING MANY OF THESE
00:13:46TECHNOLOGIES FROM THE UNIVERSITY LABS INTO THE MARKETPLACE.
00:13:48AND I THINK THESE ASPECTS ARE SOME ASPECTS THAT THE CHIP
00:13:52SECTOR HAS NOT QUITE ADDRESSED SUFFICIENTLY.
00:13:55AND PERHAPS THESE ARE THESE ARE ASPECTS THAT WE CAN DISCUSS IN THIS PANEL. THANK YOU.
00:14:00LOOK, ALSO, ALL OF IT IS DEPARTMENT MATERIAL, SCIENCE AND ENGINEERING.
00:14:03THANK YOU, LIZ. APPRECIATE THE OPPORTUNITY AND THE SEMINAR THAT YOU TALKED
00:14:07ABOUT THAT CATALYZED THE BOOK WAS REALLY WAS AND CONTINUES TO
00:14:11BE VERY HELPFUL AND CATALYTIC IN THE WORK THAT WE'RE DOING.
00:14:14SO SO MY TECHNOLOGY, I SUPPOSE,
00:14:16IS CRITICAL MINERALS AND THAT SO
00:14:20WE CAN SORT OF THINK EVEN A LITTLE BIT ABOUT WHAT DO WE MEAN
00:14:22BY CRITICAL TECHNOLOGY IN CRITICAL MINERALS.
00:14:25I MEAN, WE TALK A LOT ABOUT THE MINERALS THAT ARE ESSENTIAL TO THE STOMACH INDUCTORS.
00:14:28AND YOU KNOW WHAT? HOW DO WE THINK ABOUT THAT IN THE RISE OF AI?
00:14:32BUT ALSO CRITICAL TO DEFENSE, CRITICAL TO CLEAN ENERGY
00:14:37TRANSITION? AND SO THESE ELEMENTS THAT ARE
00:14:39ESSENTIAL IN SMALL QUANTITIES IS IN THE SETS OF TECHNOLOGIES THAT
00:14:43WE'RE THAT WE'RE VITAL ON SO THAT WE'RE DEPENDENT ON AND AND
00:14:47MAYBE A WAY TO THINK ABOUT THE TECHNOLOGY ASPECT OF THAT.
00:14:50AGAIN, WE'LL THINK ABOUT THIS PATTERN WE'LL HEAR THROUGHOUT
00:14:54PROBABLY THE WHOLE PANEL AROUND
00:14:56THE KNOW HOW THAT DOESN'T EXIST ANYMORE IN THE US THAT WE NEED
00:15:00TO BUILD UP IN TERMS OF EXTRA ACTION, IN TERMS OF PROCESSING,
00:15:03IN TERMS OF, YOU KNOW, MANUFACTURING THE GOODS THAT
00:15:06ARE, YOU KNOW, DEPENDENT ON THOSE ON THOSE CRITICAL MINERALS. SO THAT THE TECHNOLOGIES WE CAN
00:15:12START TO THINK ABOUT THAT WILL BE ESSENTIAL TO PRIORITIZE ARE
00:15:16THE EXTRACTION APPROACHES, THE PROCESSING APPROACHES AND ALL
00:15:19THE SORTS OF WAYS IN WHICH WE GO
00:15:21FROM OR OUT OF THE GROUND TO THE THE GALLIUM AND GERMANIUM THAT
00:15:25ARE PRESENT IN THINGS LIKE SEMICONDUCTORS. AND I THINK ONE THING THAT WE
00:15:29LIKE TO THINK ABOUT INTERIM OR LIKE TO EMPHASIZE IN TERMS OF
00:15:31THE STRATEGY IS THAT NOT ALL OF THESE MINERALS ARE THE SAME.
00:15:35AND WHERE WE NEED TO PUT EFFORT IS GOING TO VARY BY ELEMENT, BY
00:15:39SUPPLY CHAIN, BY GEOGRAPHIC
00:15:43CONCENTRATION. AND SO BEING TARGETED AND
00:15:45SELECTIVE ABOUT HOW WE THINK ABOUT BUILDING CAPABILITY TO
00:15:49HAVE US MANUFACTURING COMPETITIVENESS IS GOING TO
00:15:52ESSENTIALLY NEED TO INCLUDE THAT
00:15:54THAT NUANCE. AND SO IN, FOR EXAMPLE, IN
00:15:58COPPER, ONE OF THE THINGS WE LIKE TO THINK A LOT ABOUT IS, IS IN BUILDING UP RECYCLING
00:16:02INFRASTRUCTURE, BECAUSE SO MUCH OF THE COPPER THAT IS AVAILABLE, YOU KNOW, COULD FILL THE SUPPLY
00:16:06GAP THAT WE HAVE COMING BASED ON TRENDS.
00:16:09AND AI IS, YOU KNOW, IS EXPORTED TO CHINA FOR PROCESSING. AND WE ONLY HAVE TWO SMELTERS IN
00:16:13THE US TO PROCESS THAT MATERIAL. AND SO REGARDLESS OF WHAT
00:16:16POLICIES YOU HAVE AROUND INCREASE RECYCLING, IF YOU'RE NOT ALSO INVESTING IN RECYCLING
00:16:21INFRASTRUCTURE, THERE'S NO THERE'S NO THERE'S NO HOPE IN
00:16:24THAT BEING A COMING TO FRUITION THAT'S GOING TO HAVE A
00:16:28CONTRASTING STRATEGY FROM SOMETHING LIKE RARE EARTHS. WHICH ONE OF THE KEY CHALLENGES
00:16:31IS THE HUNDREDS AND THOUSANDS OF
00:16:33OF FINE PROCESSING STEPS THAT ARE REQUIRED TO SEPARATE THESE
00:16:37CHEMICALLY VERY SIMILAR ELEMENTS IN THE OXIDE FORM AND HAVE THEM
00:16:42AVAILABLE FOR THE SORT OF USES WE WANT.
00:16:43SO THERE THE INVESTMENT IS ABOUT
00:16:46INNOVATION TO HELP IN FORM THAT
00:16:48SEPARATION PROCESS. AND AND THAT'S AGAIN WHERE
00:16:52UNIVERSAL DOES COME TO PLAY. BUT THINKING ABOUT THE PERMITTING REFORM THAT IS THEN
00:16:57NEEDED TO BE COUPLED TO THOSE INNOVATION AND SO THAT THEY CAN
00:17:00ACTUALLY BE TESTED AND PILOTED OUT OF MINE. BECAUSE RIGHT NOW THAT A MINE IS
00:17:04SORT OF DRIVEN TO USE WHAT IS AVAILABLE TECHNOLOGICALLY
00:17:08BECAUSE THE PERMITTING PROCESS IS SO LONG AND THE PROJECTS NEED TO BECOME SO BIG.
00:17:12SO JUST TO GIVE US A COUPLE OF EXAMPLES OF THE WAY IN WHICH WE HAVE TO TAILOR THESE
00:17:16TECHNOLOGIES TO THE PARTICULAR MINERALS THAT WE'RE TALKING ABOUT, AND WE CAN DEVELOP THAT OUT MORE NOW.
00:17:20GREAT. OKAY. CHRIS LOVE FROM CHEMICAL ENGINEERING.
00:17:22THANKS, LIZ. SO BIOTECH, BYE BIOMANUFACTURING
00:17:26IS A PRIORITY. TECHNOLOGY IS A FRONTIER AND AN
00:17:28AREA THAT REALLY REQUIRES ADDITIONAL DEVELOPMENT FOR OUR ECONOMY.
00:17:33BIOLOGY IS IN MANY WAYS THE ORIGINAL GANGSTER GENERAL
00:17:37PURPOSE TECHNOLOGY. IT'S THE OG OF HOW WE ACTUALLY MAKE THINGS.
00:17:40WE'VE BEEN DOING THIS FOR THOUSANDS OF YEARS AND WHAT WE'VE LEARNED IN THE LAST 20 TO
00:17:4350 YEARS IS HOW TO HARNESS THAT IN NEW WAYS TO ACTUALLY MAKE A
00:17:47WIDE RANGE OF DIFFERENT PRODUCTS. IT IMPACTS FOOD, IT IMPACTS
00:17:51MEDICINES, IT IMPACTS MATERIALS. IT EVEN CAN RECOVER CRITICAL
00:17:55MINERALS. SO BIOLOGY IS A TOOL THAT CAN DO VERY MANY THINGS.
00:17:59THE QUESTION IS, IS WHY IS IT A PRIORITY? TECHNOLOGY? WELL, IT'S SCIENTIFICALLY IMPORTANT.
00:18:02ALL THESE DIFFERENT AREAS, IT HAS POTENTIAL FOR DUAL USE, MEANING THAT IT HAS BOTH
00:18:06OFFENSIVE AND DEFENSIVE OF CAPABILITIES, THAT WE SHOULD
00:18:10UNDERSTAND AND KNOW ABOUT. AND IT IS SOMETHING THAT IS
00:18:13CONTESTED AT A GLOBAL SCALE. EVERYONE IS VERY INTERESTED
00:18:16BECAUSE IT HAS THESE KINDS OF CAPABILITIES AND SO WHEN WE LOOK
00:18:19AT WHAT THE POTENTIAL IS, THIS IS AN EMERGING AREA OVER THE
00:18:23NEXT 15 YEARS, WE ARE ESTIMATING
00:18:26THAT ROUGHLY $4 TRILLION OF ECONOMIC VALUE GLOBALLY COULD BE
00:18:30ATTRIBUTED TO WHAT WE'RE CALLING THE BIO ECONOMY. THESE ARE PARTS OF THE ECONOMY
00:18:32THAT ARE DRIVEN BY BIOLOGICALLY BASED PRODUCTION.
00:18:36A TRILLION OF THAT COULD BE ATTRIBUTED TO THE UNITED STATES
00:18:38IF WE ARE ABLE TO TO CAPTURE
00:18:40THAT NOT ONLY IS IT ECONOMICALLY
00:18:43BENEFICIAL, BUT WHEN WE THINK ABOUT MANUFACTURING AND WE OFTEN
00:18:45HAVE THIS PICTURE IN OUR MINDS ABOUT WHAT THAT LOOKS LIKE PHYSICALLY BY MANUFACTURING,
00:18:49IT'S REASONABLY CLEAN, IT'S VERY SUSTAINABLE.
00:18:52WE KIND OF SEE THAT IN OUR ENVIRONMENT AND KIND OF HOW WE THINK ABOUT THE BIOLOGY THAT WE
00:18:56WE ENCOUNTER REGULARLY. THE MAN YOU FACTOR IN AN ASPECT
00:18:58OF LEVERAGING THAT BIOLOGY PRODUCE, THAT SUPPLY CHAIN CAN BE REALLY IMPORTANT.
00:19:02WE'RE AT A POINT WHERE WE HAVE
00:19:04AND WE'RE SITTING HERE IN THE
00:19:06INNOVATION CAPITAL OF THE WORLD FOR BIOTECHNOLOGY, AT LEAST, IT
00:19:09HAS BEEN FOR NEW IDEAS AND WE'VE CREATED THIS WHOLE INNOVATION
00:19:13ECONOMY AROUND WHAT'S POSSIBLE TO BE MADE WITH BIOLOGY.
00:19:17YET WE'VE OUTSOURCED OUR CAPABILITIES OF PRODUCTION TO
00:19:19OTHER PARTS OF THE WORLD THAT ARE CONTINUING TO GROW THAT
00:19:23CAPABILITY TODAY. YOU KNOW, MUCH LIKE SEMICONDUCTORS THAT COST BILLIONS OF DOLLARS TO BUILD A
00:19:27PLANT, IT TAKES 3 TO 5 YEARS TO BRING THESE ONLINE.
00:19:31AND ROUGHLY 80% OF OUR BIOPHARMACEUTICAL COMPANIES HAVE
00:19:34SOME KIND OF OVERSEAS ENGAGEMENT WITH CHINA. AND, YOU KNOW, AS WE THINK ABOUT
00:19:38THIS, THIS CREATES AN OPPORTUNITY WHERE WE HAVE THE IDEAS.
00:19:41BUT WE DON'T ACTUALLY HAVE THE RESILIENCE TO MANUFACTURE THEM. AND SO HOW DO WE THINK ABOUT
00:19:45BRINGING A DOMESTIC BASE BACK IN AND MAKING THAT RESILIENT AS WE
00:19:48LOOK AT WHERE THE OPPORTUNITY IS SET, IT'S REALLY IN KIND OF
00:19:53LEVERAGING OUR STRENGTHS. WE'RE REALLY GOOD AT INNOVATION, BUT YET WE BUILD THESE
00:19:57FACILITIES THAT YOU HAVE TO RUN DOWN OVER 20 YEARS TO AMATORY AS
00:19:59THE FINANCES OF THEM. WE NEED TO BE LIGHTER, FASTER
00:20:03AND QUICKER, MUCH LIKE WE'LL PROBABLY HEAR ABOUT IN A MOMENT
00:20:06IN THE CONTEXT OF A DIFFERENT TECHNOLOGY.
00:20:08BUT AS WE THINK ABOUT THIS, THE
00:20:10ABILITY TO MAKE HIGHLY AUTOMATED
00:20:13EQUIPMENT ABOUT USING AI AS A TOOL TO HELP DESIGN PROCESSES
00:20:16GIVES US AN OPPORTUNITY TO REALLY THINK ABOUT MANUFACTURING FROM A DIFFERENT LIGHT.
00:20:20INSTEAD OF SCALING UP AND MAKING LARGE CAPITAL. WHY CAN'T WE WORK IN A MORE
00:20:24EFFICIENT AND AGILE MANNER THAT REALLY TAKES ADVANTAGE OF WHAT'S POSSIBLE NOW WITH OTHER
00:20:28TECHNOLOGIES, INCLUDING SOME OF THE ONES THAT WE'RE SITTING HERE
00:20:31TALKING ABOUT IN THE TOTAL TECHNOLOGY STACK, A.I.
00:20:35SEMICONDUCTOR AUTOMATION. BUT WE HAVE A LOT OF WORK TO DO.
00:20:37WE HAVE TO FIGURE OUT HOW WE'RE GOING TO EDUCATE A WORKFORCE THAT THINKS ABOUT MANUFACTURING
00:20:41AS PART OF THE DESIGN PROCESS.
00:20:43HOW DO WE ACTUALLY BUILD SOME OF THESE TECHNOLOGIES AND
00:20:47DEMONSTRATE THEM? THESE ARE PLACES WHERE THERE'S AN OPPORTUNITY FOR PUBLIC AND
00:20:50PRIVATE PARTNERSHIPS. AND ULTIMATELY, HOW DO WE THINK ABOUT FINANCING MODELS?
00:20:54MANUFACTURING IS A LINEAR GROWTH MODEL. IT DOES NOT HAVE THE SAME VALUE
00:20:58INFLECTIONS THAT, SAY, AN ASSET HAS, BUT FROM A STRATEGIC STANDPOINT, WE REALLY NEED TO
00:21:02THINK ABOUT HOW DO WE STRENGTHEN THAT MANUFACTURING BASE. AND I'LL JUST LEAVE WITH ONE
00:21:05THOUGHT, WHICH IS THAT THE REAL ADVANTAGE OF BIOLOGY IS THAT
00:21:09IT'S LOCAL. THINK ABOUT THAT CRAFT BREW THAT YOU MIGHT HAVE HAD BEFORE YOU
00:21:13CAME OVER HERE THAT IS AN
00:21:15EXAMPLE OF A BIO ECONOMY IN WORK IN A REGION THAT CREATES
00:21:19PROSPERITY FOR ALL OF THE SURROUNDING REGION. WHEN YOU HAVE THESE TYPES OF MICROBREWERIES AND WE CAN TALK
00:21:23ABOUT THAT MORE LATER. YEAH, EXCELLENT. GREAT.
00:21:27ALL RIGHT. FIONA MURRAY FROM THE SLOAN
00:21:31SCHOOL, TOO. SO I WANT TO TALK ABOUT DRONES. ANOTHER WORD FOR DRONES IS
00:21:36REALLY THAT'S A SORT OF A CATCHALL FOR AUTONOMOUS SYSTEMS,
00:21:39THE ONES WE THINK ABOUT ARE THE ONES THAT ARE SORT OF FLYING
00:21:41AROUND, BUT WE'RE ALSO THINKING ABOUT SYSTEMS THAT WORK ON LAND. THEY WORK ON THE SEA AND THEY
00:21:46WORK IN THE SUBSEA. I THINK DRONES ARE PROBABLY
00:21:49RELATIVELY SPEAKING, THE CHEAPEST OF THE PRIORITY TECHNOLOGY.
00:21:52SO YOU CAN GO TO A STORE SOMEWHERE NEAR HERE AND YOU CAN
00:21:56PROBABLY BUY A DRONE FOR ABOUT $1,000, SOMETIMES EVEN MORE CHEAPLY.
00:22:00AND SO YOU MIGHT SAY WHAT IS DRONES DOING IN THIS LINE UP OF
00:22:04INCREDIBLY SOPHISTICATED TECHNOLOGIES? WE DON'T HAVE A DEPARTMENT FOR
00:22:07DRONES HERE AT M.I.T., ALTHOUGH I WILL SAY WE HAVE SOME OF THE WORLD'S ABSOLUTE LEADING EXPERTS
00:22:11ON THE WAY IN WHICH YOU CAN USE
00:22:12DRONES AND COMPLEX SWARMS TO DO INCREDIBLY INTERESTING AND
00:22:17IMPORTANT THINGS. SO DRONES ARE EXTREMELY
00:22:20IMPORTANT FOR FOR SECURITY.
00:22:22I THINK WE ONLY HAVE TO OPEN THE
00:22:24NEWSPAPER AND THINK ABOUT THE ROLE THAT DRONES HAVE PLAYED IN
00:22:28MODERN CONFLICTS, WHETHER THAT'S
00:22:29IN UKRAINE OR IN IRAN AND
00:22:33ELSEWHERE. BUT THEY'RE ALSO REALLY IMPORTANT FOR PROSPERITY.
00:22:36I MEAN, THEY ARE THE ULTIMATE SORT OF DUAL USE TECHNOLOGY.
00:22:38THEY CAN BE EXTRAORDINARY, REALLY POWERFUL, WHETHER IT'S IN
00:22:41THE DELIVERY OF MEDICINES TO OUT OF THE WAY PLACES OR IN AGRICULTURE AND SO ON.
00:22:45THERE ARE COMPANIES SOON TRYING
00:22:47TO WHO ARE GOING TO BRING YOU
00:22:49YOUR FAST FOOD OR PERHAPS YOUR
00:22:51MICROBE BREWED BEER BY DRONE FOR
00:22:53DELIVERY SERVICES. SO YOU MIGHT SAY, WELL, SO WHAT
00:22:56IS THE ISSUE? AND LET ME JUST GIVE YOU ONE
00:22:59EXAMPLE THAT I THINK BROUGHT THE QUESTION AND THE CHALLENGE OF
00:23:03THE DRONE, THE ROLE OF DRONES IN IN THE SORT OF GEOPOLITICAL ERA.
00:23:07AND THAT WAS WHEN AN AMERICAN COMPANY CALLED SKY DEER MADE AN
00:23:13AGREEMENT TO SELL DRONES TO TAIWAN.
00:23:16AND AT THAT MOMENT, THEY THEN WERE PLACED ON A SORT OF
00:23:20EMBARGOED LIST AND BY CHINA AND COULDN'T ACTUALLY GET SOME OF
00:23:23THEIR MOST CRITICAL PARTS FOR THESE DRONES.
00:23:26AND SO THAT REMINDS US OF THE VULNERABILITY.
00:23:29SO IT'S NOT SIMPLY A QUESTION OF PROSPERITY.
00:23:31IT'S ALSO A VULNERABILITY TO SAY
00:23:34FROM THE PERSPECTIVE OF JUST FREEDOM OF ACTION, WHAT SOMETIMES PEOPLE WOULD CALL
00:23:39SOVEREIGNTY. NOW, WHY IS THIS WORTHY OF AN ENTIRE CHAPTER, THIS ONE STORY?
00:23:42WELL, IT'S BECAUSE THE STORY IS NOT ACTUALLY UNUSUAL. THIS IS INCREASINGLY BUSINESS AS
00:23:47USUAL IN SOME CONTEXTS. AND SO IF YOU'RE IN UKRAINE AND
00:23:50YOU WANT TO GET ADDITIONAL PARTS TO MAKE YOUR OWN DRONES AND TO
00:23:54PRODUCE DRONES FROM THERE, THEY'RE SORT OF COMPONENT PARTS.
00:23:57YOU WILL HAVE IN TREMENDOUS TROUBLE BECAUSE THOSE SUPPLY CHAINS ARE BEING DISRUPTED IN A
00:24:02VARIETY OF WAYS AND THEY'RE BEING DISRUPTED LARGELY BY CHINA.
00:24:05AND WE MIGHT ASK WHY IS THAT? WELL, IT'S BECAUSE DRONES
00:24:09BASICALLY HAVE ABOUT 12 FAIRLY STRAIGHTFORWARD COMPONENTS. AND I PUT A DRONE ON AN
00:24:13OPERATING TABLE AND KIND OF TOOK IT APART. WHAT I WOULD FIND ARE THINGS
00:24:17LIKE BRUSHLESS MOTORS AND THEY WOULD HAVE MAGNETS IN THEM THAT
00:24:22WOULD ULTIMATELY HAVE SOME OF WHAT I'M GOING TO CALL ELSA'S
00:24:25SPECIAL DECOR MATERIALS IN THE
00:24:29THEY WOULD THEY WOULD HAVE BATTERIES.
00:24:32AND SO IN THOSE BATTERIES, THEY WOULD HAVE SOME EXTRAORDINARILY IMPORTANT TECHNOLOGY.
00:24:36THEY WOULD HAVE SEMICONDUCTORS AND THEY ARE EFFECTIVELY
00:24:39SOMETHING THAT IS SORT OF COMPILED.
00:24:42IT'S AN ASSEMBLAGE OF EXTREMELY IMPORTANT TECHNOLOGIES. AND IN THE WORK THAT WE DID BOTH
00:24:46PRIOR TO THIS AND THEN REALLY ENCOURAGED BY THE SEMINAR AND I
00:24:49WANT TO SAY IN PARTICULAR BY GARY GENSLER, WHO'S SITTING THERE, WHO WHO REALLY ENCOURAGED
00:24:53US AND ME TO CONTINUE TO PURSUE THIS LINE OF WORK. EVERY SINGLE ONE OF THOSE
00:24:57CRITICAL COMPONENTS AS KEY COMPONENTS WAS ACTUALLY INVENTED
00:25:01BY THE UNITED STATES OR A US ALLY.
00:25:04SO WHETHER THAT IS A EUROPEAN
00:25:06NATION BY JAPAN, SOUTH KOREA,
00:25:08AND YET EVERY SINGLE ONE OF THEM
00:25:11IS ONLY MANUFACTURED AT SCALE IN
00:25:14CHINA, AND EVERY SINGLE ONE OF THOSE THAT ALMOST NONE OF THEM CAN YOU GUESS IN ANY REASONABLE
00:25:19SCALE ANYWHERE BUT CHINA AND THAT BECOMES REALLY THE
00:25:23GEOPOLITICAL QUESTION. I'M HAPPY TO TALK ABOUT WHAT WE
00:25:25NEED TO DO ABOUT IT, BUT MUCH OF
00:25:27THIS IS A DEMAND SIDE MANAGEMENT PROBLEM BECAUSE REALLY THINK
00:25:30ABOUT WHETHER OR NOT WE'RE PREPARED TO PAY PAY TO HAVE A
00:25:34MORE RESILIENT PRODUCTION AND SUPPLY CHAIN SYSTEM.
00:25:38THERE IS OBVIOUSLY AN INNOVATION ANSWER TO THIS WHICH IS NEW SORTS OF COMPONENTS AND THINGS,
00:25:42BUT THIS DOESN'T COME FREE. AND SO HOW TO DO THIS?
00:25:44WELL, THAT PROVIDES
00:25:46SIMULTANEOUSLY THE SECURE RISK, BUT ALSO THE POTENTIAL FOR
00:25:51PROSPERITY IS ACTUALLY A NEEDLE TO THREAD. THAT'S QUITE DIFFICULT AND
00:25:53SOMETHING THAT'S QUITE SO LOW COST AND LOW PRICE. YES. EXCELLENT.
00:25:58GREAT. OKAY, JONATHAN, RAIN SLOAN, ALSO
00:26:01FROM SLOAN. GREAT LIST. THANK YOU VERY MUCH.
00:26:04DELIGHTED TO BE HERE. SO I'M GOING TO TALK ABOUT QUANTUM COMPUTING IN PARTICULAR
00:26:09AND BEFORE I GET INTO WHY IT'S A NATIONAL LOW PRIORITY PRIORITY
00:26:14TECHNOLOGY, I WANT TO TRY AND
00:26:15SET THE LANDSCAPE IN TERMS OF A
00:26:18TECHNOLOGY THAT GETS A LOT OF HYPE, BUT IS ALSO VERY
00:26:21MISUNDERSTOOD AND SO I WANT TO ANCHOR IT.
00:26:23JUST THE VERY IDEA OF QUANTUM
00:26:26COMPUTING REALLY ONLY EMERGED OR WAS REALLY ONLY EVER VOICED FOR
00:26:29THE FIRST TIME BY RICHARD FEYNMAN. HERE AT A CONFERENCE AT MIT
00:26:33ABOUT 45 YEARS AGO, EVEN THOUGH HE DIDN'T ACTUALLY SAY THE WORDS QUANTUM COMPUTING, WHAT HE
00:26:37DESCRIBED AS WHAT WE WOULD NOW
00:26:39ASSIGN THE IDEA TO AND IT'S SO, IN OTHER WORDS, IS STILL AN
00:26:43INCREDIBLY NASCENT TECHNOLOGY. IT'S ALSO A REALLY INCREDIBLE,
00:26:46DIFFICULT TECHNOLOGY AND ONE THAT, LIKE I KIND OF MENTIONED,
00:26:49IS WIDELY, YOU KNOW, IT'S
00:26:52DIFFICULT TO UNDERSTAND, I WILL SAY. AND SO IT IS NOT A TYPE OF
00:26:57COMPUTING THAT IS GOING TO REPLACE ALL OUR EXIST IN COMPUTING.
00:27:00IT'S NOT LIKE OUR CLASSICAL COMPUTERS ARE GOING TO GET TAKEN
00:27:04OVER BY QUANTUM COMPUTERS. ACTUALLY, WHAT IT IS IS A
00:27:06PARALLEL FORM OF COMPUTING THAT
00:27:09WILL SIT ALONGSIDE OUR CLASSICAL MACHINERY.
00:27:13WE WE WILL NEED MANY MORE SEMICONDUCTORS FOR A LONG TIME TO COME.
00:27:16BUT WHAT'S REALLY INTERESTING
00:27:18ABOUT IT IS ITS APPLICATIONS.
00:27:22AND I THINK THAT IS REALLY WHY
00:27:25IT'S ON THIS LIST OF PRIORITY TECHNOLOGIES.
00:27:27SO I TALKED A LITTLE BIT ABOUT THE HISTORY OF THE CONCEPT OF
00:27:31QUANTUM COMPUTERS. IF I THINK IF I TALK A LITTLE
00:27:34BIT ABOUT THE HISTORY OF MAKING THEM, WE DO HAVE QUANTUM COMPUTERS TODAY.
00:27:38WE HAVE QUANTUM COMPUTERS VERY NEAR TO US IN THIS BUILDING HERE.
00:27:40THE DIFFICULTY IS THEY'RE JUST NOT AT SUFFICIENT SCALE THAT
00:27:44THEY ARE COMPARABLE OR MAYBE
00:27:48ADVANTAGEOUS AS AGAINST OUR CLASSICAL MACHINERY. BUT THE RACE IS ON TO DEVELOP
00:27:52THOSE QUANTUM COMPUTERS TO THAT LEVEL.
00:27:54AND I THINK THAT'S WHERE A LOT
00:27:56OF OTHER NATIONS ARE FOCUSED ON AS WELL, AS WELL AS US HERE IN
00:27:59THE UNITED STATES. BUT I MENTIONED THIS IDEA OF THE
00:28:03APPLICATIONS BECAUSE QUANTUM COMPUTERS AREN'T GOING TO BE
00:28:06USED FOR EVERYTHING THEY'VE THEY ARE ANCHORED VERY MUCH IN A
00:28:09MACHINERY. THESE NEW MACHINES THAT WE'RE DEVELOPING.
00:28:12BUT ALSO THEY'VE GOT TO BE MATCHED UP WITH ALGORITHMS THAT
00:28:16ARE PARTICULAR USE PARTICULARLY
00:28:18USEFUL AGAINST A CERTAIN SET OF
00:28:23APPLICABLE NATIONS. AND THE VERY FIRST ONE THAT WAS REALLY DISCOVERED BY A COLLEAGUE
00:28:26OF OURS HERE AT MIT, NOT IS NOW HERE AT MIT.
00:28:29PETER SHOR WAS THIS IDEA OF USING QUANTUM COMPUTERS FOR
00:28:35FACTORIZATION AND IN OTHER WORDS, THE IDEA COULD WE USE
00:28:37QUANTUM COMPUTERS TO BE ABLE TO
00:28:40BREAK OUR CURRENT ENCRYPTION SYSTEMS?
00:28:42AND THAT'S OBVIOUSLY A FANTASTIC IDEA.
00:28:46AND AN ACADEMIC LEVEL, BUT ALSO
00:28:48INCREDIBLY WORRYING AND SCARY
00:28:50FOR A LOT OF NATIONS. AND THAT HAS CERTAINLY GARNERED
00:28:53A LOT OF INTEREST SIMPLY BECAUSE OF THIS CORE IDEA.
00:28:57NOW, I WILL SAY, JUST IN CASE ANYBODY IS WORRIED, WE DO NOT HAVE THE MACHINERY TO DO THAT
00:29:02TODAY. NEITHER DO WE BELIEVE ANY COUNTRY IN THE WORLD DOES.
00:29:05AND IT IS STILL QUITE A BIT AWAY IN THE ORDER OF, YOU KNOW,
00:29:09DECADES. A DECADE OR DECADES, THAT TYPE OF THING.
00:29:12BUT THAT IS NOT THE ONLY APPLICATION. AND WE HAVE KNOWN QUANTUM
00:29:17ALGORITHMS THAT WHEN WE HAVE SUFFICIENTLY POWERFUL QUANTUM
00:29:20COMPUTERS, WE HAVE KNOWN QUANTUM ALGORITHMS THAT CAN HELP US IN A
00:29:23RANGE OF OTHER APPLICATIONS, IN
00:29:25PARTICULAR IRAN AND SYNTHESIZE
00:29:28IN NATURAL SYSTEMS. SO THIS IDEA OF USING THEM TO
00:29:32DEVELOP NEW CHEMICALS OR DEVELOP
00:29:35NEW PHARMACEUTICAL DRUGS, THERE
00:29:37IS A RANGE OF APPLICATIONS AROUND OPTIMIZATION, WHICH WOULD
00:29:41BE VERY WELCOME IN THE FINANCIAL SERVICES INDUSTRIES, IN A RANGE
00:29:44OF OTHER SIMILAR TYPE APPLICATIONS.
00:29:47AND SO THE RACE IS ON REALLY NOW
00:29:49TO DEVELOP A WHOLE RANGE OF TECHNOLOGIES THAT WILL SUPPORT THIS.
00:29:53SO YES, WE'VE GOT TO DO STUFF ON THE HARDWARE AT A FUNDAMENTAL
00:29:56PHYSICS LEVEL, BUT THERE'S ALSO A WHOLE RANGE OF ENGINEERING
00:29:59CHALLENGES BECAUSE AS WE SOLVING
00:30:01FOR MENTAL PARTS OF THE JIGSAW AT THE PHYSICS LEVEL, WE'VE GOT
00:30:04TO BE ABLE TO SCALE UP THESE MACHINES. AND SO THERE'S ENORMOUS
00:30:08ENGINEERING CHALLENGES AND I DO
00:30:10WANT TO CALL OUT AS WELL THAT THERE WILL BE CONTINUED RESEARCH
00:30:13IN DEVELOPING THESE THESE ALGORITHMS KIND OF THINKING
00:30:17ABOUT THIS ALMOST LIKE MATHEMATICAL TYPE RESEARCH.
00:30:21SO AND MIT IS LEADING A LOT OF THIS WORK.
00:30:24BUT AMERICA IN GENERAL IS MOST
00:30:27DEFINITELY A LEADER IN THIS ARENA. BUT WE'RE NOT THE ONLY COUNTRY FOCUSED ON THIS.
00:30:31IN FACT, IT'S HARD TO FIND A DEVELOPED COUNTRY ANYWHERE IN
00:30:34THE WORLD THAT HAS NOT ALREADY
00:30:36ESTABLISHED ITS NATIONAL QUANTUM STRATEGY.
00:30:39ALL THE MAJOR PLAYERS AROUND THE WORLD ARE INVESTING BEHIND THIS.
00:30:43CHINA IS EXTREMELY ACTIVE AND EXTREMELY CAPABLE.
00:30:47WE FOCUS IN THE BOOK ON QUANTUM COMPUTING, BUT THERE ARE A RANGE
00:30:50OF OTHER QUANTUM TECHNOLOGIES AROUND PARTICULAR QUANTUM
00:30:54SENSING AND QUANTUM NETWORKING
00:30:56THAT ARE CLOSELY AFFILIATED. AND CHINA IS VERY STRONG IN A
00:31:00NUMBER OF THESE ARENAS AND WE SHOULD NOT UNDERESTIMATE THEIR
00:31:04CAPABILITIES OR THEIR RESEARCH
00:31:07EXPERTISE AND THE INVESTMENT THEY'RE PUTTING INTO IT.
00:31:10BUT IT'S NOT JUST CHINA. THERE ARE A LOT OF OTHER ARE OUR
00:31:13ALLIES IN EUROPE ARE ALSO INVESTING VERY HEAVILY AND JAPAN
00:31:17AND IN OTHER COUNTRIES AS WELL. SO THE REASON THIS IS PARTICULARLY IMPORTANT, I THINK,
00:31:20FOR AMERICA IS WE ARE, LIKE I
00:31:24SAID, NOT THE ONLY ONES RUSHING TO TRY TO DEVELOP THIS
00:31:28TECHNOLOGY, BUT IT'S REALLY ABOUT UNLOCKING ALL THE
00:31:32POTENTIAL THAT THIS AMAZING YOU
00:31:35CAPABILITY WILL DELIVER FOR US.
00:31:37AND SO IT'S ONE OF THESE
00:31:39TECHNOLOGIES THAT CAN TRANSFORM
00:31:42FROM MULTIPLE PARTS OF OUR
00:31:45INDUSTRY, OF OUR SOCIETY. AND THAT'S VERY EXCITING.
00:31:48SO THERE'S A LOT OF POSITIVES, ALTHOUGH I KNOW A LOT OF THE FOCUS TENDS TO BE ON THE
00:31:53CRYPTOGRAPHY SIDE OF IT. AND SO I THINK I'M SURE WE'RE GOING TO DISCUSS THIS IN A
00:31:56LITTLE BIT MORE DETAIL. BUT IT'S IT'S AN EXTREMELY
00:32:00EXCITING AND INTERESTING TECHNOLOGY SPACE.
00:32:04EXCELLENT. THANK YOU. I'M GOING TO TAKE YOU I AM GOING
00:32:06TO TAKE ONE MINUTE TO SPEAK TO OUR SIXTH TECHNOLOGY, WHICH IS
00:32:10ADVANCED MANUFACTURING. AND I THINK IS EVIDENT ACROSS
00:32:13ALL OF THE SPEAKERS WHY MANUFACTURING IS INCLUDED IN
00:32:17THIS VOLUME, BECAUSE IT SEEMS TO
00:32:19BE SO FUNDAMENTAL TO A LOT OF THE OF THE TECHNOLOGIES WE'RE
00:32:23TALKING ABOUT AND THE RELATIONSHIP BETWEEN INNOVATION AND MANUFACTURING IS SOMETHING
00:32:26THAT MIT HAS RESEARCHED A LOT. AND WHEN WE TALK ABOUT ADVANCED
00:32:30MANUFACTURING, WE'RE TALKING ABOUT TECHNOLOGIES AROUND
00:32:33AUTOMATION, AROUND AI, ROBOTICS,
00:32:353D PRINTING, A WHOLE HOST OF
00:32:38TECHNOLOGIES AND PRODUCTION SYSTEMS. HOW THOSE ARE USED WITHIN A
00:32:42SYSTEM AND DIGITALIZING THAT
00:32:44SYSTEM HAS BEEN, I'D SAY THE THE
00:32:46BIG FOCUS OVER THE LAST DECADE PLUS IN TERMS OF ADVANCED
00:32:51MANUFACTURING AND IN TERMS OF THE US, I'M SURE EVERYONE HAS
00:32:53BEEN HEARING ABOUT SOME OF THE
00:32:56CHALLENGES IN SUPPLY THING ON OUR DEFENSE SIDE, OUR DEFENSE
00:33:00INDUSTRIAL BASE AND WHETHER WE HAVE THE RIGHT RESOURCES AND
00:33:02CAPABILITIES FOR DOING THAT.
00:33:04BUT WHAT I THINK IS REALLY AT
00:33:06THE CENTER OF OUR CHALLENGES FOR MANUFACTURING IS ADOPTION.
00:33:10IT'S NOT NECESSARILY THE INNOVATION WE HAVE A LOT OF
00:33:13GREAT INNOVATION, BUT ADOPTION OF THIS TECHNOLOGY THE CHINESE
00:33:16PROVIDE ENORMOUS AMOUNT OF INCENTIVES FOR THEIR COMPANIES
00:33:19TO BE ADOPTING THE TECHNOLOGY. WE DON'T HAVE THE SAME SYSTEM IN THE US.
00:33:23WE HAVE ABOUT 250,000 SMALL AND
00:33:24MEDIUM SIZED FIRMS THAT ARE THE
00:33:28BACKBONE TO ALL OF THE SUPPLY CHAINS WE'RE TRYING TO BUILD IN
00:33:32THE US. IF WE WANTED 20% OF THOSE FIRMS
00:33:34TO BE AT THE FRONTIER OF THE DIGITAL TRANSFORMATION OF
00:33:39MANUFACTURING, THAT'S 50,000 FIRMS. WE DON'T ACTUALLY HAVE.
00:33:42WE DON'T HAVE ANY SYSTEMATIC WAY OF GETTING TO THOSE FIRMS OR
00:33:44HELPING THAT HAPPEN. I SEE BEN LINDELL ENGLER HERE
00:33:48FROM THE MASS TECH COLLABORATIVE IN MASSACHUSETTS, WORKING VERY
00:33:51HARD TO BRING FORWARD AND
00:33:53SUPPORT OUR SMALL AND MEDIUM SIZE MANUFACTURERS HERE.
00:33:56BUT IT'S A HIGH TOUCH CHALLENGE AND I SHOULD MENTION, YOU KNOW,
00:34:00THE INITIATIVE FOR NEW MANUFACTURING, WHICH IS A
00:34:03CO-SPONSOR THIS EVENING, IS MIT, IS EFFORT TO TRY AND PUT THE US
00:34:07ON A NEW TRAJECTORY FOR MANUFACTURING. CHRIS IS ONE OF THE LEADERS, JULIE CHOPE, THE EXECUTIVE
00:34:11DIRECTOR, IS HERE. AND THAT WHAT DOES THAT MEAN? THAT MEANS IN MANUFACTURING
00:34:14THAT'S MORE PRODUCTIVE, MORE RESILIENT, MORE SUSTAINABLE, AND
00:34:18ALSO GENERATES QUALITY JOBS. WAGES IN MANUFACTURING HAVE BEEN
00:34:22FALLING BEHIND. HOW DO WE INCREASE THOSE? WE THREAD THE NEEDLE THROUGH
00:34:25MORE TECHNOLOGY, WHICH INCREASES PRODUCTIVITY AND WE WE HOPEFULLY
00:34:29SHARE THAT WITH WORKERS.
00:34:31SO WITH THAT, I'M GOING TO JUST STOP THERE AND I'M GOING TO TURN
00:34:34FOR A LITTLE BIT OF DISCUSSION ACROSS ACROSS OUR PANEL.
00:34:37AND MAYBE THIS IS A GOOD TRANSIT. AND ON THE MANUFACTURING FRONT,
00:34:41I THINK WHAT WE HEAR AND UNDERSTAND FROM SEMICONDUCTOR AND MAYBE FROM DRONES IS A
00:34:46CLASSIC EXAMPLE OF THE US INVENTED INVENTED HERE, MAKE IT
00:34:51THEIR. AND IN BOTH OF THESE CASES WE'VE
00:34:53NOW SEEN AS A COUNTRY THAT THAT WE SORT OF COME UP SHORT AND
00:34:57WHAT THAT MEANS FOR CATCHING UP OR HOW WE ADDRESS THAT NOW.
00:35:00AND SO MAYBE HIS USE AND AND
00:35:03FIONA YOU CAN TALK A LITTLE BIT ABOUT WHAT IS WHAT ARE THE
00:35:07IMPLICATIONS OF INVENT IT HERE, MAKE IT MAKE IT THERE AND WHAT ARE WE WHAT ARE WE GOING TO DO
00:35:10ABOUT IT? WELL, IN THE CASE OF SEMICONDUCTORS, THE TECHNOLOGY
00:35:14HAS BECOME SO SOPHISTICATED THAT A GREAT DEAL OF INNOVATION
00:35:17ACTUALLY HAPPENS ON THE MANUFACTURING FLOOR.
00:35:19SO IF YOUR PLANT IS OVERSEAS, YOUR INNOVATION IS HAPPENING
00:35:24OVERSEAS AND NEW TECHNOLOGIES ARE LIKELY TO REMAIN OVERSEAS FOREVER.
00:35:26SO IT REALLY IS CRITICAL TO HAVE THE MANUFACTURING ON THE US SOIL
00:35:30AND THEN THE INNOVATION WILL HAPPEN THERE AND THE NEW
00:35:33TECHNOLOGIES WILL CONTINUE TO BE
00:35:35CAPTURED BY BY THE UNITED STATES.
00:35:37SO I THINK THE KEY IS THAT WE VERY MANUFACTURE WITH VERY
00:35:41SOPHISTICATED MANUFACTURING. A LOT OF INNOVATION HAPPENS RIGHT THERE.
00:35:45YOUR EFFORT TO ACHIEVE EXTREMELY HIGH YIELDS, VERY HIGH
00:35:49THROUGHPUT BECAUSE YOU HAVE GIGANTIC INVESTMENTS THAT HAVE BEEN MADE IN THAT PART.
00:35:53YEAH. AND WITH DRONES, WHAT ARE YOU SEEING, FIONA?
00:35:55I MEAN, ARE WE REALLY GOING TO,
00:35:57YOU KNOW, MATCH THE MANUFACTURING OF OF OTHER
00:36:00COUNTRIES AND ON THAT FRONT? SO I THINK WE CAN SEPARATE INTO
00:36:04TWO PIECES. SO I THINK WE ABSOLUTELY DO NEED
00:36:06TO BE ABLE TO PRODUCE DRONES AT QUITE SIGNIFICANT SCALE.
00:36:10NOW, SOME OF THE WAYS IN WHICH WE NEED TO DO THAT AND WE NEED TO DO ASSEMBLY IN SOME OF THE
00:36:14SMALL PARTS AND SO ON, WILL ALSO BE INCREDIBLY IMPORTANT FOR ROBOTICS.
00:36:18AND SO WE TAKE ROBOTICS AS A VERY SERIOUS SORT OF RELATED AND
00:36:22ADJACENT TECHNOLOGY AND SET OF SOLUTIONS AND THE SAME SORTS OF
00:36:26MANUFACTURING TECHNOLOGIES WILL BE ABSOLUTELY ESSENTIAL.
00:36:29AND THAT MANUFACTURING BASE IS ALSO ONE THAT WE COULD THEN
00:36:33DEPLOY AT TIMES OF CONFLICT. AND SO WE KNOW IT'S IMPORTANT TO START TO DO THAT.
00:36:36AND THE ONLY WAY THAT WE CAN DO THAT IS REALLY TO BUILD UP THE DEMAND SIDE.
00:36:39SO WE HAVE TO WANT TO DEPLOY THESE PRODUCTS. WE'VE GOT TO BE ABLE TO TEST
00:36:43THESE PRODUCTS. AT THE MOMENT IT'S STILL EXTREMELY DIFFICULT TO ACTUALLY
00:36:48GET LICENSES FOR THINGS LIKE TESTING AND SO ON. THERE'S VERY FEW PLACES WHERE
00:36:52YOU CAN ACTUALLY TEST. I THINK AT ONE POINT, MIT STUDENTS DECIDED TO TEST OUT
00:36:55DRONES THAT THEY HAD BEEN BUILDING BY GETTING SOME LOCAL
00:36:58PIZZA PLACE TO DELIVER A PIZZA STRAP, A PIZZA ON TO THE BOTTOM
00:37:01OF THE DRONE, AND THEN SOMEBODY RANG UP AND SAID, THAT'S ILLEGAL. AND IT TURNS OUT THAT, YOU KNOW,
00:37:05THAT WOULDN'T THE FIRST TIME THAT STUDENTS APPROACH THE
00:37:09BOUNDARY. BUT WE NOW HAVE A NUMBER OF
00:37:11QUITE INTERESTINGLY NAMED EXECUTIVE ORDERS.
00:37:15ONE IS I GUESS RESTORING US AIR DOMINANCE, I THINK. AND THERE'S A BIG BEAUTIFUL
00:37:19DRONE BELL AS WELL OR ANOTHER EXECUTIVE ORDER.
00:37:22SO THAT'S ON THE DEMAND SIDE THAT IS SAYING, LOOK, WE REALLY
00:37:25NEED THIS AND WHEN WE HAVE THOSE ECONOMIES OF SCALE, I THINK WE
00:37:28CAN START TO SORT OF SEE MANUFACTURE RING BEING DEVELOPED AND WE CAN.
00:37:32BUT THE OTHER KEY PIECE, I THINK, IS THE SUPPLY CHAIN.
00:37:35SO EVEN IF WE CAN PRODUCE THINGS HERE AND THAT TAKES ALL THE
00:37:38MANUFACTURING WORK THAT YOU'VE JUST TALKED ABOUT, THE SUPPLY
00:37:41CHAIN OF ALL THESE COMPONENTS, THEY USE IN MANY THINGS THEY USE
00:37:44AT MASSIVE SCALE IN AN ENORMOUS WEB OF ELECTRONICS AND OTHER
00:37:48PRODUCTS. I THINK THE WAY IN WHICH WE START TO PROTECT AND GET SOME OF
00:37:52THE SECURITY REQUIREMENTS HERE IS TO ACTUALLY REQUIRE IN
00:37:57CERTAIN APPLICATION AREAS THAT SOME OF THE KEY COMPONENTS ARE
00:38:00MADE IN US OR ALLIED NATIONS. AND I THINK TOO, WE'RE REALLY
00:38:04IMPORTANT. ONE WOULD BE BATTERY TECHNOLOGY
00:38:06AND THE OTHER WOULD BE THE MOTORS AND THE MAGNETS.
00:38:10ASSOCIATE WITH IT. AND WE'VE ABSOLUTELY SEEN THE GOVERNMENT STEP IN AND BOTH
00:38:13REQUIRE THAT THROUGH THE NDAA.
00:38:14THE DEFENSE AUTHORIZATION BILL
00:38:19AND SO ON, SAYING, NO, THIS IS ABSOLUTELY A REQUIREMENT AND THAT CREATES A DIFFERENT
00:38:23INCENTIVE STRUCTURE. BUT RATHER THAN JUST TELLING PEOPLE WHAT TO DO, WE'VE GOT TO
00:38:27INVEST IN SOME OF THE UNDERLYING ASSETS, WHETHER IT'S IN THE
00:38:30MINES AND THE PROCESSING TECHNOLOGY. BUT FRANKLY, WE'VE FORGOTTEN, I
00:38:34THINK, FOR QUITE A LONG TIME TO INVEST IN THIS NEXT GENERATION
00:38:36OF MATERIALS PROCESSING. WE'VE ALSO NOT DONE AS MUCH WORK
00:38:40IN THE NEXT GENERATION OF BATTERY TECHNOLOGY, AND I THINK IT'S AN EXCITING MOMENT BECAUSE
00:38:44WE'RE BEGINNING TO SEE THOSE INNOVATION BONDS HAPPEN AROUND
00:38:48MIT AND BEYOND. BUT UNLESS WE ACTUALLY PUT INTO PLACE SOME OF THE REQUIREMENT
00:38:51THAT THESE HAVE TO BE PRODUCED DOMESTICALLY OR WITH ALLIES, THE
00:38:55SAME STORY, THE HISTORY WILL REPEAT ITSELF AGAIN AND AGAIN. THE MARKET DOESN'T GIVE US
00:39:00DOMESTIC PRODUCTION UNLESS YOU PRICE IN RESILIENCE.
00:39:02AND SO THAT'S I THINK IS THE KEY THING FOR POLICYMAKERS.
00:39:07INTERESTING. I'M GOING TO JUST TAKE A MOMENT BECAUSE YOU CHAIR THE NAITO
00:39:12INNOVATION FUND AND I HAVE BEEN TEACHING A CLASS ON INNOVATING
00:39:15IN UKRAINE AND LEARNED JUST A FEW WEEKS AGO THAT FOR THE FIRST
00:39:18TIME RUSSIAN SOLDIERS SURRENDER
00:39:20TO A DRONE, A LAND DRONE. I MEAN, IT'S JUST EXTRAORDINARY
00:39:24WHAT'S GOING ON. WHAT WHAT'S THE ROLE OF UKRAINE AND, AS YOU SAY, ALLIES IN
00:39:30HELPING US BUILD THIS CAPABILITY? SO FIRST, YOU'RE RIGHT.
00:39:34I MEAN, SOLDIERS HAVE HAVE SURRENDERED TO DRONES.
00:39:38DRONES HAS ALSO HAVE ALSO RUSSIAN DRONES HAVE TERRORIZED SOLDIERS ON THAT ON THE
00:39:41BATTLEFIELDS. BUT THERE WAS ALSO A BRILLIANT IMAGE OF A COMPANY CALLED ARKS,
00:39:44WHICH IS A GERMAN AUTONOMOUS VEHICLE COMPANY, RESCUING A VERY
00:39:48OLD LADY FROM A STRANDED VILLAGE
00:39:51IN THE FRONT LINE. AND SO DRONES DO ENORMOUS HUMANITARIAN WORK AS WELL.
00:39:55WHAT WE'RE SEEING IN UKRAINE, AND THAT WAS THE SUBJECT, I
00:39:58THINK THAT WAS DRONES 2.27 AND
00:40:01THREE, AS YOU KNOW, A NATION
00:40:03THAT'S HAVING TO NOT ONLY REALLY ITERATE AND INNOVATE IN DRONES
00:40:08THEMSELVES, BUT ALSO IN DRONE PRODUCTION. SO SOME OF THAT IS ABSOLUTELY
00:40:10TRYING TO WORK OUT HOW TO DO THIS VERY LOW COST AND CHEAPLY,
00:40:14HOW TO STRIP PARTS OUT OF DIFFERENT DIFFERENT PRODUCTS,
00:40:17CELL PHONES AND OTHERS, BUT ALSO HOW YOU USE THEM.
00:40:19AND SO WHAT THE MILITARY WOULD CALL CONCEPT OF OPERATIONS.
00:40:23AND ONE OF THE THINGS THAT WE LEARN EVERY TIME, UNFORTUNATELY, WE GO INTO WAR IS HOW TO USE
00:40:27THESE IN DIFFERENT WAYS. AND WE SEE THE MASSIVE POWER OF
00:40:31SOME OF THE SENSOR TECHNOLOGY AND THE DATA AND THE COMPUTE
00:40:33THAT YOU NEED ON THESE DRONES TO BE ABLE TO ACTUALLY USE THEM
00:40:39EFFECTIVELY. AND THAT, AGAIN, MEANS THAT THAT'S A SEMICONDUCTOR QUESTION
00:40:41BECAUSE IT'S REALLY HOW DO I COMPUTE ON THE EDGE IN THE DRONE
00:40:46AS THE DRONES BECOME THIS RATHER ODD IN SOME WAYS LOW TECH.
00:40:49BUT SORT OF NEXUS OF EXTRAORDINARILY HIGH PRIORITY
00:40:52TECHNOLOGIES AND UKRAINE IN A WAY IS A MICROCOSM.
00:40:55I THINK, OF SOME OF THESE CHALLENGES AND OPPORTUNITIES.
00:40:59IT'S A GREAT EXAMPLE. SO I THINK THAT BOTH OF THESE
00:41:03SITUATIONS ARE SORT OF THE CAUTIONARY TALE FOR BIOMARIN YOU'RE FACTORING AND CHRIS, YOU
00:41:07WERE TALKING EARLIER, I THINK THIS CONCEPT OF SCALING OUT
00:41:11RATHER THAN SCALING UP IS IS A LITTLE NUANCED AND WORTH WORTH
00:41:15FLESHING OUT. SO, I MEAN, I THINK WE'LL SEE
00:41:19LESSONS OF HOW INDUSTRIES CAN BE
00:41:21TRANSFORMED IN MOVING OVERSEAS
00:41:23IF WE SURRENDER ASPECTS OF THAT MANUFACTURING.
00:41:26AND THIS IS ALREADY HAPPENING IN THIS INDUSTRY. WE TALKED A LITTLE BIT ABOUT
00:41:29COMPANIES THAT ARE ALREADY ENGAGED IN INDIA AND CHINA BECAUSE THESE ARE THE PLACES TO
00:41:32GO GET THE MATERIAL MADE FOR YOUR FIRST COMMERCIAL PRODUCT,
00:41:37YOUR FIRST IN HUMAN EXPERIENCE, WHICH YOUR KEY VALUE INFLECTIONS FOR THESE IDEAS IN THE MARKET
00:41:40OVERALL, WE CAN'T BUILD FACILITIES FAST ENOUGH WITH THE
00:41:44LABOR PRICES THAT ARE POSSIBLE IN OTHER PARTS OF THE WORLD.
00:41:46AND WHILE THERE'S SOME EQUILIBRATION THERE ON WAGES, IT IS STILL FROM A MATERIAL AND
00:41:50WAGE PERSPECTIVE, JUST NOT NOT COMPETITIVE FOR THE UNITED
00:41:54STATES. AND SO WE HAVE TO THINK DIFFERENTLY. AND I KIND OF SAID THIS UPFRONT,
00:41:58I AM THINKING ABOUT WHAT OUR STRENGTHS ARE, OUR STRENGTHS FOR OUR INNOVATION, AND WHAT DO WE
00:42:01LEARN FROM DRONES. WE ACTUALLY LEARNED THAT
00:42:03ITERATING AND INNOVATING QUICKLY IS A WAY TO BRING HIGH TECH INTO
00:42:07NEW MANUFACTURING. WE HAVE AUTOMATION AND WE HAVE ALL THE CAPABILITIES OF BEING
00:42:10ABLE TO MAKE THINGS LIKE MEDICINES IN A ROOM LIKE THIS AND, YOU KNOW, SOME OF THE WORK
00:42:14THAT WE'VE DONE AND HAVE COMMERCIALIZED THROUGH SUNFLOWER
00:42:16ARE BUILDING OUT CAPABILITIES THAT COULD MAKE ALL THE VACCINES
00:42:20FOR MASSACHUSETTS OR SOMETHING LIKE COVID IN THIS ROOM.
00:42:22AND YOU KNOW, THIS ISN'T A MANUFACTURING SPACE. I SEE SOME OF OUR FRIENDS FROM
00:42:26THE BIOPHARMA INDUSTRY AND THEY'RE SHUTTERING SHOP, THINKING THAT.
00:42:29BUT IT IS EXTREMELY POSSIBLE TO ENGAGE THESE TECHNOLOGIES.
00:42:32BUT WE HAVE TO THINK ABOUT WHAT IS IT GOING TO LOOK LIKE TO BE ABLE TO MAKE THAT AT A COST
00:42:36POINT THAT IS AFFORDABLE FOR A BIOTECHNOLOGY COMPANY TO START THINKING IN A MORE VERTICALLY
00:42:40INTEGRATED WAY? AND BECAUSE WE'VE LOST A LOT OF OUR WORKFORCE THAT REALLY KNOWS
00:42:44HOW TO DO THIS TYPE OF WORK, WE'RE TRAINING THEM UP. YOU KNOW, WE'RE HEARING NUMBERS
00:42:48IN LIKE NORTH CAROLINA WHERE WE'RE SEEING LARGE FACILITIES BEING BUILT BY MANY OF THE
00:42:54BIOPHARMA SUITABLE COMPANIES THAT THEY NEED THOUSANDS OF NEW ENGINEERS AND THOUSANDS OF NEW
00:42:57WORKERS TO BE ABLE TO FACILITATE THAT. HOW DO WE TRAIN THOSE PERSONS?
00:43:00WELL, WE'VE LEARNED A LOT ABOUT HOW TO MAKE TECHNOLOGIES ACCESSIBLE AND OTHER WAYS BETTER
00:43:04SOFTWARE ENGINEERING, BETTER PHYSICAL DESIGNS, USER EXPERIENCES.
00:43:08THESE ARE ALL THINGS THAT WE HAVE TO KIND OF TAKE AS INNOVATION AND PUT INTO THE MANUFACTURING.
00:43:12I THINK THE CHALLENGE IS, IS WE SAY, WELL, WHY WOULD WE NOT DO THIS?
00:43:15THIS SOUNDS AMAZING. I CAN MAKE VACCINES HERE, I CAN MAKE THEM ANYWHERE. MAYBE I CAN HAVE A MACHINE THAT
00:43:19MAKES MY INSULIN IN THE MORNING, MY GLP ONE AGONIST.
00:43:23WE HAVE TO REACH SCALE WITH THESE TYPES OF TECHNOLOGIES.
00:43:26AND AN EXAMPLE IS I THINK WOULD BE A PRINTING.
00:43:28SO THE GUTENBERG PRINTING PRESS
00:43:30BATCH PROCESS IS A LOT LIKE HOW WE DO BIOLOGY.
00:43:33STILL, THE INNOVATION THERE WAS IN CONTINUOUS PRODUCTION AND
00:43:37THIS REALLY HAPPENED AT THE TURN OF THE 20TH CENTURY TO BE ABLE TO PRINT THINGS LIKE NEWSPAPERS
00:43:40OR REEL TO REEL PRODUCTION, VERY LARGE SCALE, YOU KNOW, 300 PAGES
00:43:43PER PERSON BY LIKE THE 1920S, THE GLOBALLY.
00:43:46THERE WAS A TECHNOLOGY THAT CAME ALONG IN THE 1950S FROM XEROX
00:43:50THAT THEN BECAME INKJET PRINTERS, THAT CREATED THE
00:43:52DESKTOP PRINTERS AND PROBABLY EVERYBODY HAS ONE AT HOME. MAYBE YOU GOT RID OF IT BECAUSE
00:43:56NOBODY USES PAPER ANYMORE, BUT, YOU KNOW, THESE ARE CAPABILITIES
00:44:00FOR BEING ABLE TO PRINT THAT ALMOST IDENTICAL PER PAGE. SIMILAR PRICES.
00:44:04AND WE HAVE ALMOST AS MUCH INSTALLED CAPACITY GLOBALLY TO BE ABLE TO DO THIS.
00:44:08AND SO IT BECOMES A QUESTION OF HOW DO WE BRING THESE TYPES OF
00:44:13TECHNOLOGIES TO SCALE AND TO SCALE OUT MANNER. IT REALLY REQUIRES THINKING ABOUT HOW DO WE GET FIRST
00:44:17MOVERS, OUR FRIENDS IN THE BIOPHARMA INDUSTRY ARE OFTEN,
00:44:19YOU KNOW, HESITATE TO BE THE FIRST ONES TO DEMONSTRATE SOMETHING.
00:44:23THEY OFTEN WANT TO BE THE SECOND, AND SOMETIMES THE THIRD, MAYBE EVEN THE FOURTH TO
00:44:26ACTUALLY ADOPT A NEW TECHNOLOGY BECAUSE THERE'S RISK OF BRINGING
00:44:29NEW TECHNOLOGIES IN LINE WITH THE CLINICAL DEVELOPMENT OF THE ASSETS OR THE COMMERCIAL PRODUCT
00:44:33THAT THEY'RE TRYING TO BRING ONLINE. HOW DO WE PARTNER, YOU KNOW, AS
00:44:37THE US GOVERNMENT AND IN ACADEMIA AND STARTUPS TO BE ABLE TO DO THE DEMONSTRATION
00:44:41COMPONENT THAT GETS YOU PAST THAT BARRIER? I THINK THIS IS A KEY THING THAT
00:44:45WE'RE GOING TO NEED TO THINK MORE ABOUT FROM A POLICY STANDPOINT. COMING BACK TO THE DEMAND SIDE
00:44:49OF THINGS, HOW DO WE KIND OF INTEGRATE THAT? THAT'S PART OF THE INNOVATION IS
00:44:53TO NOT ONLY HAVE YOUR IDEA, BUT ALSO BRING A MANUFACTURING
00:44:55TECHNOLOGY WITH IT. SO I THINK THAT YOUR FOCUS IN
00:44:59THE CHAPTER ALSO IS THE SCIENCE OF BIO MANUFACTURING.
00:45:03THAT IS AS MUCH AS WE'RE BOTH IN
00:45:06THE DEMONSTRATION AND THE AND THE SORT OF MANUFACTURING PIECE,
00:45:09THERE IS STILL HUGE AMOUNTS FOR US TO BE DOING IN THE EARLIEST
00:45:13STAGE R&D PIECE AND THAT MAKES ME THINK ABOUT THE QUANTUM
00:45:15COMPUTING PIECE, PERHAPS, AS YOU KNOW, OF ALL THESE TECHNOLOGIES,
00:45:20THE ONE THAT STILL REQUIRES REAL BREAKTHROUGHS IN SCIENCE AND IN
00:45:23ENGINEERING, AND YOU'VE SAID
00:45:25TIME AND TIME AGAIN THAT, YOU
00:45:27KNOW, WHATEVER WE DO, WE CAN'T AFFORD A QUANTUM WINTER, RIGHT?
00:45:32YEAH. DO YOU WANT TO EXPLAIN WHAT THAT WHAT THAT MEANS AND WHAT AND HOW IT'S SO IMPORTANT RIGHT NOW FOR
00:45:37AND LET ME I'LL JUST ANOTHER EXAMPLE FROM, YOU KNOW, FROM THE
00:45:41FROM THE I GUESS FROM THE THE BATTLEFIELD IS THIS
00:45:43EXTRAORDINARY RESCUE OF THE US
00:45:45SOLDIER IN IRAN AND THE USE OF
00:45:47QUANTUM FOR THAT RESCUE.
00:45:49YOU KNOW, TRACKING THE HEART
00:45:51MURMUR OF ACROSS THIS VAST AREA.
00:45:54I MEAN, JUST EXTRAORDINARY THAT FOR ME THAT KIND OF BROUGHT IT
00:45:57HOME AS TO HOW POWERFUL THIS TECHNOLOGY IS. YEAH, RIGHT.
00:46:00INCREDIBLE DEMONSTRATION. YEAH. THE WORD THAT SPRINGS TO MIND IS
00:46:04HYPE. RIGHT. AND IT'S A PHENOMENON, YOU KNOW,
00:46:06A LOT OF QUANTUM COMPUTING
00:46:08RESEARCH ON THE FRONTIER IS VERY DEEP SCIENCE.
00:46:11IT'S VERY HARD SCIENCE, YOU KNOW? YOU KNOW, CUTTING EDGE PHYSICS.
00:46:17BUT IT'S THE HYPE IS A VERY SOCIAL PHENOMENON. AND I WANT TO TRY AND MAYBE, YOU
00:46:20KNOW, TALK ABOUT THE TWO OF THOSE COMBINE.
00:46:22AND BECAUSE THE FANTASTIC THING
00:46:26ABOUT THE AMOUNT OF ATTENTION THE QUANTUM COMPUTING IS GETTING
00:46:29TODAY, IS THERE IS A LOT OF INVESTMENT IN PARTICULAR FROM
00:46:33THE PRIVATE SECTOR AND OF COURSE, INTERNATIONAL AS WELL
00:46:35AROUND THE TECHNOLOGY.
00:46:38AND THIS HAS AN ENORMOUS BENEFITS. IT BRINGS ADDITIONAL RESOURCES
00:46:41INTO THE ECOSYSTEM. IT BRINGS MORE ATTENTION, IT
00:46:44GENERALLY BRINGS EXCITEMENT.
00:46:46PEOPLE ARE MORE INTERESTED IN
00:46:48SIGNING UP TO DO THEIR RESEARCH OR THEIR PH.DS OR JOIN THE NEW
00:46:52STARTUP BECAUSE QUANTUM IS SEXY
00:46:55NOW, AND THAT'S GREAT. AND WE WANT TO CONTINUE TO TRY
00:46:59TO ENCOURAGE THAT. BUT WE NEED TO BE CAREFUL BECAUSE AS WE LOOK AT THE
00:47:03HISTORY OF MANY OTHER EMERGING TECHNOLOGIES OVER THE PAST
00:47:05NUMBER OF DECADES, WE CAN SEE THAT THIS HYPE CYCLE CAN HAVE
00:47:09VERY NEGATIVE EFFECTS AS WELL. THE MOST OBVIOUS AND WELL KNOWN
00:47:12ONE IS IRAN AND THE WINTERS THAT
00:47:16PRECEDED THE ENORMOUS BREAKTHROUGHS THAT WE'RE SEEING TODAY.
00:47:19SO A.I. IS A TECHNOLOGY HAS BEEN AROUND FOR, WHAT, 70 YEARS AS A
00:47:22CONCEPT NOW? BUT THERE HAVE BEEN MANY PEAKS AND TROUGHS THROUGHOUT THAT
00:47:27PERIOD. IN PARTICULAR, 2 OR 3 WELL KNOWN
00:47:30QUANTUM WINTERS, ESPECIALLY IN THE 1980S.
00:47:32AND THAT LED TO A LOT OF THE
00:47:36RESEARCH CAPABILITY BEING DISSOLVED AND BEING DISSOLVED IN
00:47:39PARTICULAR HERE IN THE UNITED STATES.
00:47:41I DON'T LIKE TO ADMIT IT, BUT IT IS A FACT.
00:47:44WE MUST ACKNOWLEDGE THAT THE MAJOR BREAKTHROUGHS THAT
00:47:48HAPPENED IN GENERATIVE AI ARE IN PARTICULAR IN DEEP LEARNING, ARE
00:47:50NOT A TECHNOLOGY. THEY ARE A RESEARCH EFFORT THAT
00:47:53COME OUT OF CAMBRIDGE OR MIT OR
00:47:56EVEN AMERICA AND CANADIANS IN THE ROOM.
00:48:00IT'S A TORONTO BASED BREAKTHROUGH RIGHT?
00:48:04GEOFFREY HINTON AND FRIENDS. SO WHY WAS THAT HAPPENING?
00:48:08WELL, ONE OF THE REASONS AND IT'S A LOT MORE COMPLEX IN THIS ONE SIMPLE THING, BUT ONE OF THE
00:48:12REASONS WAS THAT AS FIELDS GO
00:48:17THROUGH THESE HYPE CYCLES, IT
00:48:20CAN TAKE A LONG TIME TO BRING THE COMMUNITY BACK TOGETHER AND
00:48:24TO GET PEOPLE WITH CAPABILITY TO OPERATE AT THE FRONTIER OF
00:48:28RESEARCH IN PLACE AGAIN. AND I CAN THINK OF NO GREATER
00:48:30EXAMPLE OF THAT THAN QUANTUM PHYSICS.
00:48:34YOU ARE QUANTUM MECHANICS. YOU ARE NOT GOING TO BE ABLE TO
00:48:36RECREATE FRONTIER GREAT RESEARCHERS IN A COUPLE OF
00:48:39MONTHS OR A COUPLE OF YEARS. THAT'S A THAT'S A MULTI-DECADE
00:48:43ENDEAVOR TO GET PEOPLE SPUN UP AGAIN TO THE FRONTIER.
00:48:46AND SO WITH THAT, THE REASON I'M KIND OF POINTING TO THIS IS
00:48:49BECAUSE QUANTUM COMPUTING IS STILL, YOU KNOW, EMBRYONIC.
00:48:53IT'S RELATIVELY SPEAKING, TECHNICALLY PRE-COMMERCIAL.
00:48:56THERE IS NO COMMERCIAL APPLICATION TODAY IN WHICH YOU
00:48:59COULD SAY QUANTUM COMPUTING HAS
00:49:03A SUPERIOR ROI THAN CLASSICAL MACHINERY.
00:49:05WE'RE NOT QUITE THERE YET, BUT MAYBE NOT FAR AWAY FROM IT.
00:49:08SO IN THAT ENVIRONMENT, IT'S SO IMPORTANT THAT WE AS A NATION
00:49:12AND OUR INDUSTRIAL POLICY LEVEL
00:49:15AT A GOVERNMENTAL LEVEL CONTINUE
00:49:17TO PROVIDE TO SUSTAINED
00:49:19RELIABILITY IN VESTMENT INTO THE
00:49:23ECOSYSTEM SO THAT THE ALTHOUGH THERE MAY BE PEAKS AND TROUGHS
00:49:26ON THE PRIVATE SECTOR SIDE AND
00:49:27THE PUBLIC SECTOR IS STABLE, AND
00:49:30I THINK THAT'S PARTICULARLY IMPORTANT WHEN WE LOOK AT THE
00:49:33TYPE OF INSTITUTE ACTIONS THAT FUND THIS RESEARCH IN THE UNITED
00:49:36STATES, INCLUDING THE NSF AND ORGANIZATIONS LIKE THIS, WHICH
00:49:40HAVE GONE THROUGH VERY TURBULENT TIMES AT THE MOMENT. SO I THINK IT'S WORTH POINTING
00:49:44OUT THE IMPORTANCE THERE OF THIS
00:49:47SOLID BACKBONE OF INVESTMENT.
00:49:49BUT I WILL SAY ON THIS, LISTENING TO FEW AND IN
00:49:53PARTICULAR TALKING ABOUT THE DEMAND SIDE, IT REALLY BROUGHT
00:49:56TO MY MIND A PHENOMENON THAT'S
00:50:00HAPPENING IN QUANTUM COMPUTING TODAY THAT I THINK THE UNITED
00:50:03STATES HAS TO STRENGTHEN, AND THAT IS EXACTLY LIKE IN DRONES.
00:50:06ALTHOUGH QUANTUM COMPUTER OBVIOUSLY IS A IS A LOT MORE
00:50:10EMBRYONIC.
00:50:10WE NEED FIRMS FROM INDUSTRY TO
00:50:14LEAN IN AND EXPERIMENT SIDE PLAY
00:50:16WITH THIS TECHNOLOGY TODAY, EVEN
00:50:19THOUGH THEY CANNOT GUARANTEE AND RELY ON IT.
00:50:21AND US FIRMS ARE STARTING TO DO
00:50:25THAT, THERE. THEY'RE WORKING WITH RESEARCH
00:50:29CENTERS. I KNOW I SEE ALBERT HERE FROM THE IDEA THEY'RE LEANING IN TO
00:50:32COME TO PLACES LIKE MIT TO
00:50:35CREATE THOSE COLLABORATIONS AND
00:50:37THEY'RE INVESTING IN SMALL TEAMS.
00:50:40YOU'RE GETTING SOME WALL STREET BANKS WHO ARE SAYING, WE'RE
00:50:44GOING TO PUT TOGETHER A SMALL TEAM. WE'RE GOING TO RESOURCE THEM.
00:50:47IT'S NOT GOING TO COST A LOT VERSUS OUR ENORMOUS PNL WE KNOW
00:50:50IS NOT A SHORT TERM OR AWAY, BUT
00:50:53WE WANT TO MAKE SURE WHEN THE BREAKTHROUGHS COME IN, THE
00:50:56FUNDAMENTAL SCIENCE, WE'RE READY TO SCALE UP BECAUSE THAT IS
00:50:59NON-TRIVIAL IN QUANTUM COMPUTING. YOU NEED TO BE ABLE TO IT TO BE
00:51:03ABLE TO THINK ABOUT YOUR DATA SETS, THE PARTICULAR PROBLEMS YOU MIGHT HAVE WITHIN THE BANK.
00:51:07AND YOU NEED TO BE ABLE TO CUSTOMIZE THEM TO THE EMERGING
00:51:10ARCHITECTURE AND CAPABILITIES OF THESE MACHINES, WHICH, BY THE
00:51:14WAY, WE HAVE MULTIPLE TYPES OF QUANTUM COMPUTERS, AS IF IT
00:51:17WASN'T COMPLICATED ENOUGH. AND SO WHEN I THINK OF HYPE,
00:51:21THERE ARE THE TWO SIDES THAT I'M SEEING ON IT. WE NEED TO BE CAREFUL FROM THE
00:51:24FUNDING, BUT LET'S LEAN INTO IT IN TERMS OF CREATING SOME DEMAND
00:51:27AS WELL. WELL, MAYBE THIS IS I'M GOING TO
00:51:30PIVOT JUST A LITTLE BIT TO BUILD ON WHAT YOU'VE JUST SAID,
00:51:34BECAUSE ONE OF THE THEMES THAT COMES ACROSS IN THE BOOK IS THE
00:51:36CHALLENGE OF SCALING NEW TECHNOLOGIES IN THE UNITED STATES.
00:51:40WE HAVE LIKE ONE OF THE MOST DYNAMIC CAPITAL MARKETS IN THE
00:51:44WORLD, AND YET WHAT WE SEE IS CHALLENGES IN TRYING TO GET
00:51:46GROWTH CAPITAL TO PARTICULARLY TO HARDWARE ORIENTED OR TOUGH
00:51:50TECH, SOMETIMES USED
00:51:54TECHNOLOGIES. I WILL SAY THIS, THAT I THINK THE GOVERNMENT HAS REALLY
00:51:57STARTED TO PAY ATTENTION AND THE PRIVATE SECTOR, DAVID MENDELL IS
00:52:00HERE, IS INVOLVED IN INVESTOR IN
00:52:03HARDWARE ORIENTED COMPANIES.
00:52:06BUT WE SAW A LOT IN THE PREVIOUS ADMINISTRATION AND CONTINUING IN
00:52:10THIS ADMINISTRATION, OFFICE OF
00:52:12STRATEGIC CAPITAL IN THE DEFENSE
00:52:14DEPARTMENT, NOW EX-IM BANK
00:52:16LEANING IN ALL OF THESE WAYS IN
00:52:19WHICH WE'RE TRYING TO ADDRESS THIS SCALE UP CHALLENGE IN THE
00:52:22COUNTRY. AND BUT WE'RE TALKING, I THINK, MORE BROADLY ABOUT NOT JUST THE
00:52:27FINANCE THING, BUT THE DEMAND PULL THE PROCUREMENT ROLE,
00:52:30ADVANCE MARKET COMMITMENTS, THINGS THAT WE'RE SEEING HAPPEN.
00:52:34FIONA, DO YOU WANT TO SAY JUST A WORD ABOUT THAT OR OTHERS WHAT YOU'RE SEEING NOW?
00:52:37I MEAN, LOOK, I THINK WHETHER IT'S IN QUANTUM OR CRITICAL
00:52:41MATERIALS, YOU KNOW, WHEN YOU START TO SEE THE GOVERNMENT SORT
00:52:43OF EXPERIMENT WITH DIFFERENT WAYS OF SAYING IT'S A WAY, A
00:52:47SORT OF IF YOU BUILD IT, WE WILL
00:52:49BUY IT, IS PERHAPS THE EASIEST WAY TO SAY IT. IT'S HAPPENING.
00:52:52IT'S A SOURCE OF ANOTHER NOBEL PRIZE. WHEN PEOPLE SAID, LOOK, IF I IF
00:52:55I CAN BASICALLY DESIGN IF YOU
00:52:57DESIGN A VACCINE FOR MALARIA, THEN I WILL COME ALONG AND I
00:53:01WILL BUY IT. AND THAT'S A WAY OF SAYING I WANT THIS ENOUGH THAT I'M
00:53:06WILLING TO PUT MONEY ON THE TABLE WHEN I DO THAT, THEN COMPANIES CAN START TO INVEST.
00:53:09THEY CAN RAISE DEBT AGAINST THOSE CONTRACTS.
00:53:13I THINK WE ACTUALLY SEE IT A LOT IN CRITICAL MINOW SO I WONDER
00:53:17WHETHER OR NOT ELSE AND WHAT YOU'LL SEE IS, YEAH, I MEAN, I THINK IT'S ALSO IMPORTANT TO
00:53:19ACKNOWLEDGE THAT IT'S NOT ALWAYS GOING TO WORK, THAT INDUSTRY IS GOING TO LEAN IN.
00:53:23WE'VE TALKED RECENTLY ABOUT, YOU KNOW, I SAID THIS SORT OF NOT ALL ELEMENTS ARE THE SAME.
00:53:26YOU KNOW, THERE ARE GOING TO BE SOME WHERE THERE ARE GOING TO CONTINUE TO BE MARKET FAILURES
00:53:29AND THAT THEREFORE NEEDS A PARTICULAR RELATIONSHIP WITH THE
00:53:33FEDERAL GOVERNMENT, BECAUSE IF THERE IS GOING TO BE DIFFICULT
00:53:35FOR INDUSTRY TO LEAN IN BECAUSE
00:53:38OF THE HIGH CAPITAL COSTS, ADMINISTRATION HAS BEEN LEANING
00:53:41IN ON MULTIPLE INVESTMENTS, EQUITY STAKES, ETC., AND IN
00:53:44CRITICAL MINERAL COMPANIES. YEAH, AND I THINK THE OTHER SO I THINK THERE'S PARTLY IS
00:53:48ACKNOWLEDGING SURE THERE ARE GOING TO BE SOME PLACES WHERE INDUSTRY CAN STEP IN AND LEAN IN
00:53:52AND THEN THERE ARE GOING TO BE SOME MARKETS THAT ARE BECAUSE OF THEIR ESSENTIAL NESS, BUT
00:53:55THEY'RE OPAQUE, THEY'RE SMALL, THEY'RE ESSENTIAL THAT IT'S GOING TO BE IMPORTANT FOR
00:53:59CONTINUED GOVERNMENT ATTENTION.
00:54:01WE'VE TALKED ABOUT THE LONG GAME A BUNCH AS WE'VE EVER GONE HERE, AND IT'S DEFINITELY TRUE.
00:54:06THE TWO POINTS THAT I WANTED TO MAKE SURE I MADE RELATIVE TO CRITICAL MINERALS.
00:54:09ONE, WE'VE SAID SORT OF ALREADY,
00:54:11BUT THE THE GIVEN THE LENGTH OF
00:54:14PROJECT TIMELINES AND THE SIGNIFICANT CAPITAL COSTS
00:54:19UNCERTAINTY IN ANY FORM IS VERY CHALLENGING AND I THINK THIS IS TRUE ACROSS THE BOARD.
00:54:23BUT I THINK IT PARTICULARLY LARGE MINING PROJECTS ARE GOING TO NEED A LOT OF CERTAINTY IN
00:54:28POLICY AND FRAMEWORKS AND THAT'S VERY CHALLENGING. AND SO JUST ACKNOWLEDGING THAT.
00:54:31AND THEN THE OTHER THING THAT IS MAYBE NOT AS RELEVANT ACROSS THE
00:54:34OTHER TECHNOLOGIES WE'VE BEEN TALKING ABOUT IS PART OF THE REASON THAT THERE HAS BEEN THIS
00:54:38SHIFT IN THE GEOPOLITICAL CONCENTRATION OF OF CRITICAL
00:54:42MINERAL PROCESSING THAT THERE HAS BEEN IS THERE IS SIGNIFICANT
00:54:44ENVIRONMENTAL AND SOCIAL HAZARD AND CONSIDERATION ASSOCIATED
00:54:49WITH THE PROCESSES WE'RE TALKING ABOUT. RIGHT. AND INNOVATION CAN PLAY A ROLE
00:54:51THERE, BUT NOT ACROSS THE BOARD. AND SO THAT'S ANOTHER THING WE,
00:54:55AGAIN, JUST NEED TO TAKE VERY SERIOUSLY WHEN WE'RE CONSIDERING HOW TO HAVE US COMPETITIVE
00:54:59RELEVANCE THERE GIVEN THE ENVIRONMENTAL CHALLENGES,
00:55:04BURDENS, HEALTH ASSOCIATIONS WITH THE WITH THE SUPPLY CHAIN ITSELF.
00:55:06AND MY IMPRESSION IS THAT YOU'VE BEEN ADVOCATING FOR A STRATEGY
00:55:10THAT IS BOTH INVESTING RESPONSIBLY IN THE US ABOUT WHAT
00:55:14THIS LOOKS LIKE, BUT ALSO FIGURING OUT WHAT WE DO WITH
00:55:16ALLIES AND PARTNERS AND YOU
00:55:18KNOW, THAT WE CAN LAY OUT AS MUCH AS WE CAN DO RIGHT NOW IN
00:55:22THE STRATEGY YOU LAY OUT AND MAYBE THAT'S GOING TO HAVE A
00:55:25MINOR DENT ON OUR DEPENDENCY ON CHINA OVER THE NEXT DECADE.
00:55:28I MEAN, THIS DOES REQUIRE A REALLY LONG TERM VIEW. YEAH.
00:55:32AND I THINK THAT SIMILAR TO THE POINTS THAT HIS VIEWS WERE WAS MAKING.
00:55:36BUT I THINK WE HAVE TO CONTINUE TO SAY THAT AND GET CREATIVE
00:55:40ABOUT HOW WE MAINTAIN ATTENTION TO THE ONE OTHER CROSS-CUT TOPIC
00:55:44I WANTED TO BRING UP, OF COURSE, IS WORKFORCE, BECAUSE IN EVERY
00:55:48CASE WE FIND THAT THE US IS WE'RE SHORT WORKERS BOTH AT THE
00:55:52TECHNICIAN LEVEL AND AT THE HIGHER EDUCATION LEVEL AND EVEN
00:55:55JUST IN MANUFACTURING ALONE. I CAN SPEAK TO RIGHT NOW A
00:55:58SHORTAGE OF ABOUT HALF A MILLION
00:56:00WORKERS AND AN ESTIMATE THAT
00:56:02THAT'S GOING TO GO UP TO ABOUT
00:56:04TWO PLUS MILLION IN A FEW YEARS.
00:56:08AND EVEN WITH AI, WHICH WE HOPE
00:56:10WILL ACTUALLY HELP, YOU KNOW, AS
00:56:13A CO COPILOT OF MANUFACTURING,
00:56:15WE STILL WILL BE SHORT A NUMBER OF THESE WORKERS.
00:56:19AND SO WHAT WE WHAT WE'RE LOOKING FOR IS SOME SORT OF
00:56:22TECHNOLOGICAL I CALL IT SORT OF THREADING THE NEEDLE WHERE THE TECHNOLOGY IS HELPING AUGMENT
00:56:26OUR WORKERS AND ADDRESS OUR LABOR SHORTAGE, WHICH IS A LONG
00:56:30TERM CHALLENGE. BUT I WONDER IF AND IF YOU WANT
00:56:32TO SORT OF SPEAK MAYBE, AS YOU SAY, A LITTLE BIT ABOUT WHAT YOU'RE SEEING IN TERMS OF
00:56:36SEMICONDUCTOR TRAINING AND. YEAH.
00:56:38AND SO WITH ALL THESE VERY LARGE
00:56:42INVESTMENTS THAT WE ARE SEEING AS A RESULT OF THE CHIP STOCK IN NEW FACILITIES IN THE UNITED
00:56:46STATES, CLEARLY THE ALARMS HAVE
00:56:48BEEN RUNG OF OF A DEARTH OF
00:56:52QUALIFIED TECHNICAL STAFF TO OPERATE ALL THESE FACILITIES.
00:56:55THAT IS BOTH TECHNICAL LEVEL,
00:56:56BUT ALSO MASTER'S B AS THESE AND
00:56:59ENGINEERING GRADUATES. NOW, THE MY UNDERSTANDING IS
00:57:03THAT THE INCENTIVES THAT THE GOVERNMENT IS GIVING IN THE
00:57:05CHIPS ACT INVOLVE ALSO A SUPPORT
00:57:09FOR THE REGION.
00:57:11NOW, TECHNICIAN TRAINING
00:57:13PROGRAMS SO THAT THOSE NEEDS APPARENTLY ARE GOING TO BE
00:57:17SATISFIED. BUT WE DON'T SEE EQUIVALENT PROGRAMS AT THE HIGHER LEVEL AT
00:57:20THE BACHELOR'S, MASTER'S AND AT THE LEVEL WHICH IS PROBABLY HALF
00:57:24OF THE WORKFORCE. NOW, IT'S NOT ONLY A SHORTAGE OF
00:57:26OF QUALIFIED WORKFORCE, IT'S
00:57:28ALSO THE STRUCTURAL OF THE WORKFORCE. SO DIFFERENCE THAT WE SEE IN THE
00:57:32SEMICONDUCTOR COMPANIES, FOR
00:57:35EXAMPLE, TSMC IN TAIWAN AND
00:57:37EQUIVALENT COMPANIES IN THE US, SUCH AS INTEL, IS THE STRUCTURE OF THE WORKFORCE.
00:57:41WE SEE A LOT MORE MASTERS THAN
00:57:44CS AND HIGH LEVEL GRADUATES FROM THE MANUFACTURING FLOOR IN
00:57:46TAIWAN AND MUCH LESS SO IN THE US, AND THAT REFLECTS A POINT
00:57:50THAT I WAS MAKING EARLIER, WHICH IS THAT A LOT OF INNOVATION
00:57:54HAPPENS ON THE MANUFACTURING FLOOR AND THAT IS PARTICULARLY
00:57:57THE CASE FOR A PURE PLAY FOUNDRY
00:57:59COMPANY AS THE CASE, AS IS THE CASE OF TSMC, WHERE THERE ARE
00:58:03MANY CUSTOMERS WITH A VERY WIDE RANGE OF PRODUCTS THAT CHANGE
00:58:05ALL THE TIME WITH MANY DIFFERENT DEMANDS AND YOU HAVE TO ATTEND
00:58:09TO ALL OF THEM. AND SO AS A RESULT, YOU REALLY
00:58:11NEED TO BE THERE AND ADDRESS THE
00:58:14CONCERNS OF THEIR NEEDS ON VERY SHORT NOTICE. AND THAT REQUIRES EXTREMELY
00:58:18QUALIFIED WORKFORCE. WE DON'T QUITE SEE THAT ON THE
00:58:20US MANUFACTURING PORTION IN SEMICONDUCTORS, RIGHT? A REAL SHORTAGE THERE.
00:58:26I WILL JUST POINT OUT ALSO, JOHN, LOU, IN THE HERE WHO HAS
00:58:30DEVELOPED A VERY IMPRESSIVE TRAINING PROGRAM WHERE MIT IS
00:58:34WORKING WITH COMMUNITY COLLEGES TO TRAIN THE NEXT GENERATION OF MANUFACTURING WORKERS CALLED
00:58:38TECH CAMP AND A REALLY EXCITING PRODUCT.
00:58:41AND I AND AND THERE IS SO MUCH
00:58:43ACTUALLY I THINK, A VERY DYNAMIC EDUCATION SYSTEM.
00:58:46WE HAVE NOW CLOSE TO 90 NEW
00:58:50SEMICONDUCTOR TRAINING PROGRAMS IN THE COUNTRY SINCE THE CHIP
00:58:52ACT WAS INTRODUCED IN PART WITH COMMUNITY COLLEGES.
00:58:55SO THERE IS A DYNAMIC RESPONSE TO THIS, TO THIS DEMAND, BUT IT
00:59:01IS IT IS KIND OF ONE OF THE BIG CHALLENGES FOR THE COUNTRY GOING FORWARD.
00:59:04LET ME JUST WRAP UP NOW WITH A FINAL QUESTION TO EVERYBODY AND
00:59:07THEN WE'LL OPEN UP FOR ANY QUESTIONS FROM THE AUDIENCE.
00:59:09AND THAT IS, WHAT IF WE DON'T MAKE THESE INVESTMENTS?
00:59:14WHAT HAPPENS? I MEAN, WE HAVE SEEN SIGNIFICANT ATTACKS, FRANKLY, ON SCIENCE AND
00:59:18HIGHER EDUCATION BY THIS ADMINISTRATION. WE SEE CHALLENGES WITH OUR
00:59:22IMMIGRATION SYSTEM. WHAT HAPPENS IF WE DON'T TAKE
00:59:27STEPS ACROSS YOUR TECHNOLOGIES, TECHNOLOGY AREAS?
00:59:30WHAT DO YOU THINK THE THE CONSEQUENCES ARE? JONATHAN, I'LL START WITH YOU.
00:59:35DYER. DYER OKAY.
00:59:35AND I'VE SAID, YEAH, I, I CAN'T
00:59:40UNDERSTATE REALLY OR UNDERSCORE
00:59:42HOW IMPORTANT THIS TECHNOLOGY IS.
00:59:45I THINK A LOT OF PEOPLE IN WASHINGTON IN PARTICULAR GET IT.
00:59:50THEY CURRENT NATIONAL QUANTUM
00:59:53INITIATIVE ACT THAT'S GOING THROUGH AT THE MOMENT HAS
00:59:56BIPARTISAN SUPPORT. SO I THINK BROADLY SPEAKING,
01:00:00FOLKS ARE ON BOARD FOR WHY IT'S
01:00:04IMPORTANT. BUT MAYBE JUST TO PICK ONE
01:00:06ELEMENT OF WHAT COULD HAPPEN IF
01:00:09WE DON'T SUCCEED IN THIS.
01:00:11AND IT'S THIS IDEA MAYBE OF OF
01:00:15STANDARDS SETTING AND HOW ECOSYSTEMS COME TOGETHER AND
01:00:19WHEN WE'RE STILL AT THE EARLY STAGES OF TRYING TO DO THE
01:00:22REALLY HEAVY LIFT AND ON THE
01:00:24SCIENCE, IT CAN BE MAYBE
01:00:26DIFFICULT TO TALK ABOUT SOMETHING THAT MIGHT BE STILL A
01:00:29FEW YEARS OUT, BUT WE REALLY NEED TO MAKE SURE THAT THE
01:00:32UNITED STATES IS AT THE CENTER
01:00:34OF THE STAND SETTING FOR THIS
01:00:38INDUSTRY AS IT THEN STARTS TO SCALE AND MATURE. BECAUSE IN THE SETTING OF THOSE
01:00:43RULES, BOTH FORMAL AND INFORMAL.
01:00:47SO MUCH OF WHERE THE INDUSTRY
01:00:50WILL EVENTUALLY GO IS WRITTEN.
01:00:52AND I THINK THAT WE CANNOT
01:00:54AFFORD NOT TO GET THAT RIGHT.
01:00:58FIONA YEAH, I MEAN IF WE DON'T DO THIS, I THINK WE FIND
01:01:02OURSELVES, I MEAN WE'RE IN A VERY GEOPOLITICAL ERA. THERE'S A TREMENDOUS AMOUNT OF
01:01:07GEOPOLITICAL COMPETITION AND I THINK THERE'S A WORST CASE
01:01:09SCENARIO THAT WE FIND OURSELVES
01:01:12AS A NATION IN THE MIDDLE OF A
01:01:14CONFLICT, NOT ABLE TO ACCESS
01:01:16SOME OF THE TECHNOLOGIES THAT WE
01:01:18ACTUALLY NEED FOR THAT CONFLICT, BUT ALSO NOT BEING ABLE TO
01:01:21ACCESS THE MEDICINES THAT WE NEED. AND SO CONFLICTS CAN BE OVER
01:01:25VERY QUICKLY WHEN THE POTENTIAL
01:01:27NEGATIVE IMPACT ON OUR ENTIRE POPULATION.
01:01:29IT'S NOT JUST ON THE PEOPLE WHO ARE OUT FRONT LINES. IT'S ON OUR FOOD SUPPLIES, OUR
01:01:33ENERGY SUPPLIES AND SO ON. AND SO I THINK THAT THERE IS A
01:01:37AN ENORMOUS NATIONAL SECURITY QUESTION.
01:01:40AND BECAUSE THERE'S A NATIONAL
01:01:42SECURITY QUESTION, THERE'S ALSO A QUESTION OF THE COLLECTIVE
01:01:46SECURITY AMONGST ALLIES AND PARTNERS. AND SO, FRANKLY, THE OTHER THING
01:01:49I SORT OF WANT TO SAY IS THAT I THINK IF WE DON'T TRY TO SOLVE
01:01:52THIS COLLECTIVELY, WE RUN THE RISK OF ALSO NOT HAVING
01:01:55PROSPEROUS BECAUSE IT'S A VERY EXPENSIVE PROBLEM TO SOLVE. I DON'T THINK WE CAN ACTUALLY
01:01:59MANUFACTURE ABSOLUTELY EVERYTHING. AMERICA, IN MY VIEW, SHOULD NOT
01:02:02LOCK ITSELF DOWN BY ITSELF,
01:02:04TRYING TO DO EVERYTHING. AND ALLIES AND PARTNERS STILL
01:02:08ACTUALLY ARE IMPORTANT IN THIS. AND COLLECTIVELY LARGE MARKETS.
01:02:11AND SO ON. AND SO I'M VERY HOPEFUL THAT WE I THINK WE HAVE TO SOLVE THE
01:02:16PROBLEM AND WE REALLY DO HAVE TO SOLVE IT WITH OUR ALLIES AND PARTNERS TO DO IT WELL.
01:02:19IF WE CHRIS, I THINK FOR YOU ON
01:02:22A TOUCH A LITTLE BIT, ON SUPPLY CHAIN, I MEAN, I THINK WE ALL HAVE THE EXPERIENCE IN THE
01:02:26PANDEMIC OF NOT HAVING ACCESS TO MEDICINES AND THINGS THAT WE
01:02:28RELY ON OVERSEAS THAT ARE IN THE SMALL MOLECULE SPACE,
01:02:32PHARMACEUTICALS. THOSE ARE MOSTLY MADE BY CHEMICAL PROCESSES, NOT BY BIOLOGICAL ONES.
01:02:36AND SO AS WE THINK ABOUT AS WE SEED MANUFACTURING CAPACITY OF
01:02:40BIOMANUFACTURING IN OTHER PARTS OF THE WORLD, YOU KNOW, ONE EXAMPLE THAT COMES TO MIND IS A
01:02:44BRITISH ONE. YOU KNOW, THE DISCOVERY OF PENICILLIN.
01:02:47THIS OCCURRED IN THE UK IN THE 1920S. ALEXANDER GRAHAM FLEMING
01:02:51IDENTIFIED IT, BUT THE DEEP TANK TECHNOLOGY TO MANUFACTURE IT AT
01:02:54SCALE IN THE WORLD WAR WAS HERE. IT WAS.
01:02:57AND SO THAT KNOWLEDGE GOT TRANSFERRED TO THE UNITED STATES. WHERE IS THE CENTER OF
01:03:01BIOTECHNOLOGY TODAY? WE'RE LITERALLY SITTING IN THAT
01:03:04PLACE WHERE IDEAS ARE GENERATED, BUT TODAY WE'RE SEEING WHERE
01:03:08THOSE ARE MADE, MADE, MADE ELSEWHERE. AND SO WHAT HAPPENS WHEN THERE'S
01:03:11A CONTESTED EVENT GLOBALLY AND ALL OF OUR DRUGS ARE BEING MADE
01:03:14OVERSEAS, WHERE DO THOSE COME FROM? SO I THINK THIS IS REALLY THE
01:03:18RISK. AND, YOU KNOW, I DON'T KNOW THAT THERE'S ONE ANSWER TO ANY OF
01:03:21THESE QUESTIONS. AND IF OUR FRIEND SIMON WAS HERE, HE WOULD SAY, ACTUALLY,
01:03:25IT'S A TECHNOLOGY STACK. YOU CAN'T CHOOSE LIKE WE'RE NOT GOING TO INVEST JUST IN BIO
01:03:29MANUFACTURING OR JUST IN CRITICAL MINERALS AS A NATION TO STRENGTHEN OUR SUPPLY CHAINS.
01:03:32WE ACTUALLY NEED ALL OF THESE TECHNOLOGIES AS YOU AS YOU'VE
01:03:36HEARD HERE TODAY. AND I THINK THAT THAT'S REALLY THE CRUX OF IT, IS THAT, YES, WE
01:03:39NEED TO CONTINUE TO INNOVATE AND MOVE FORWARD IN ALL AREAS THAT
01:03:42WE'RE IDENTIFY HERE AS TECHNOLOGIES BECAUSE WE DON'T
01:03:46ACTUALLY KNOW HOW THEY'RE ALL GOING TO FIT TOGETHER. WE DIDN'T KNOW ABOUT DRONES.
01:03:49WE DIDN'T KNOW WHAT WE COULD DO WITH SEMICONDUCTOR ERS.
01:03:52WE CERTAINLY DIDN'T KNOW ABOUT
01:03:54QUANTUM, BUT WE KNEW ABOUT BIOLOGY. IT COULD DO SO.
01:03:58I THINK I MEAN, ONE MAYBE TO
01:04:00ECHO A POINT, BUT THE THE COMMON
01:04:05ALL OF THESE ACROSS THESE ARE IMPORTANT AND THIS IS WHAT JUST SAID. BUT I WOULD SAY THE SAME THING
01:04:08ON RARE EARTHS ABOUT STANDARDS. AND SO USING THAT AS A WAY TO
01:04:11HAVE THIS COORDINATED STRATEGY RIGHT.
01:04:15IF WE'RE THINKING ABOUT IN TERMS OF OF US COMPETITIVENESS VERSUS
01:04:19CHINA, THAT'S LONG TERM THAT THERE'S A LOT OF REALLY
01:04:22FUNDAMENTAL LESSONS TO LEARN ABOUT THINKING ACROSS THE WHOLE ECONOMY. AT THE SAME TIME TO IDENTIFY
01:04:25WHERE THOSE POINTS OF LEVERAGE ARE GOING TO BE.
01:04:29SO THAT YOUR QUESTION IS WHAT HAPPENS IF WE DON'T? I AGREE WITH FIONA THAT IT IS
01:04:32VERY EXPENSIVE TO START NEEDING TO FIGURE OUT HOW ARE WE GOING
01:04:34TO STOCKPILE ALL OF THESE ELEMENTS, WHERE ARE WE GOING TO PUT THEM THAT THE COST OF THAT
01:04:38IS WE CAN'T EVEN CONCEIVE. AND SO YOU KNOW THAT THAT THE
01:04:42TRADE OFF IS VERY CLEAR. YEAH. YEAH.
01:04:44I THINK WE WILL BE CREATING HUGE
01:04:48VULNERABILITIES TO OUR NATIONAL SECURITY AND TO OUR ECONOMIC SECURITY.
01:04:51AND I THINK WE'VE SEEN IN THE LAST FIVE YEARS OR SO WHAT A
01:04:56MESSY WORLD WE LIVE IN, IN ALL DIRECTIONS.
01:04:59AND HOW IMPORTANT IT IS TO REALLY HAVE RESILIENCE ON ON
01:05:02CRITICAL TECHNOLOGIES, ON PRIORITY TECHNOLOGIES.
01:05:05WE JUST CAN'T AFFORD NOT TO DO THAT TO YOUR POINT, CHRIS, I
01:05:09THINK IT WAS VANNEVAR BUSH WHO WAS THE ARCHITECT OF 20TH
01:05:12CENTURY SCIENCE AND TECHNOLOGY IN THE US, FORMER PRESIDENT OF
01:05:14M.I.T., WHO REALLY FOCUSED ON NOT THE STOCK OF TECHNOLOGIES,
01:05:19BUT THE FLOW OF INNOVATION. THAT'S WHAT WE HAVE IN THIS
01:05:21COUNTRY THAT WE NEED TO REALLY BE. I THINK INVESTING IN.
01:05:25SO WITH THAT, I'LL OPEN UP TO ANY QUESTIONS.
01:05:28IF THERE ARE QUESTIONS FROM THE AUDIENCE RIGHT HERE UP FRONT. YEAH.
01:05:32AND PLEASE ENTER, INTRODUCE YOURSELF.
01:05:36HI, MY NAME IS BECKY, OR I'M AN ASSISTANT PROFESSOR OVER AT HARVARD BUSINESS SCHOOL.
01:05:40AND THANK YOU SO MUCH FOR, LIKE,
01:05:42A FASCINATING PANEL.
01:05:44I HAVE A QUESTION THAT'S REALLY
01:05:46THINKING ABOUT HOW DO WE PRIORITIZE THESE PRIORITY
01:05:52TECHNOLOGIES IN THE SENSE THAT ONE COULD MAKE THE ARGUMENT THAT
01:05:55US LEADERSHIP IN INNOVATION WAS
01:05:58PARTLY DRIVEN BY THE GAINS FROM
01:06:00SPECIALIZATION SO SPECIAL IZING
01:06:03IN RESEARCH AND DEVELOPMENT AT LEAST IN SOME SPHERES, CAME
01:06:06BECAUSE THE ABILITY TO INVEST IN
01:06:09THAT CAME FROM THE FACT THAT YOU
01:06:11COULD OUTSOURCE THE PRODUCTION.
01:06:13AND SO IN SOME CONTEXT, THOSE TWO THINGS MOVE TOGETHER, BUT IN
01:06:16OTHER CONTEXTS YOU DID HAVE THIS LIKE GAIN FROM SPECIALIZATION
01:06:20WHERE LIKE US WAS REALLY FOCUSING ON THE R&D AND THEN
01:06:24PHYSICAL PRODUCTION IS DONE ELSEWHERE. AND SO AS WE THINK ABOUT THIS
01:06:28TRADE OFF RIGHT, BETWEEN RESILIENCE BUILDING RESILIENCE
01:06:31AND DOMESTIC CAPACITY AND
01:06:33BUILDING AND STILL MAINTAINING A
01:06:35COMPETITIVE EDGE IN INNOVATION,
01:06:38LIKE HOW DO YOU THINK ABOUT WHAT REALLY NEEDS TO BE U.S. BASED
01:06:42VERSUS WHAT NEEDS TO STILL
01:06:44RETAIN SOME OF THAT GAINS FROM SPECIALIZATION BY WHAT CAN BE
01:06:48OUTSOURCED TO CURRENT ALLIES AND
01:06:50WHAT FUTURE ALLIES NEED TO BE
01:06:52CULTIVATED LIKE IS VIETNAM AN ALLY OR NOT?
01:06:56AND AND WHAT KIND OF RELATIONSHIPS NEED TO BE
01:06:59NURTURED TO ACTUALLY BUILD THE
01:07:01KIND OF SET OF CRITICAL PARTNERS
01:07:06SHIPS THAT WOULD ENSURE U.S. RESILIENCE AND STILL HAVE THIS
01:07:09COMPETITIVE EDGE IN THE INNOVATION SPHERE.
01:07:13BUT I MEAN, I DID FEEL LIKE WE WERE GOING TO COME OUT WITH A
01:07:15WINNER, SO I'M GLAD YOU ASKED ABOUT THE PRIORITY PRIORITY
01:07:20TECHNOLOGY, BECAUSE IT DID FEEL LIKE THAT, AS WE RIGHTLY TURNING AROUND, WE THINK I'M GOING TO
01:07:24VOTE FOR HACE2. SO I DON'T KNOW IT, BUT PARTLY IN ANSWER TO YOUR QUESTION, WHAT
01:07:27I REALLY LIKE ABOUT WHAT IS THIS IS SAYING IS THAT, YOU KNOW, PRIORITIZING SOMETHING THAT
01:07:31HELPS US COUPLE THE INNOVATION WITH THE MANUFACTURE. AND GIVEN THAT WE KNOW IT NEEDS
01:07:34TO MOVE ALONG, IT'S KIND OF ON
01:07:37YOUR MARKET SET SUPPLY CHAIN, I ALWAYS SAY AND I THINK THAT.
01:07:40SO THERE'S A SWEET SPOT THERE THAT SORT OF THOSE INVESTMENTS
01:07:42HELP US DO BOTH OF THOSE THINGS. SO I ALSO JUST WANTED TO PICK A
01:07:46FAVORITE. I WANT TO ADD ONE POINT.
01:07:49I THINK THAT CLEAN BOUNDARY THAT YOU SEEM TO ESTABLISH BETWEEN R&D AND MANUFACTURING DOES NOT
01:07:54APPLY IN THE WORLD OF SEMICONDUCTORS. AS I SAID TODAY, SEMICONDUCTOR
01:07:58MANUFACTURING IS AT SUCH A HIGH LEVEL OF SOPHISTICATION THAT A GREAT DEAL OF INNOVATION.
01:08:02IN FACT, I THINK MAURICE CHANG TOLD US 50% HAPPENS RIGHT THERE
01:08:06ON THE MANUFACTURING FLOOR. SO WE CAN'T AFFORD TO SEND THAT
01:08:09OVERSEAS AND KEEP THE R&D HERE. WE ARE SENDING KEY R&D OVERSEAS
01:08:13TO YEAH, I THINK IN SOME WAYS LIKE MAYBE WE HAVE TO LIKE
01:08:15CHALLENGE OUR ASSUMPTION THAT THE GLOBALIZATION OF THESE
01:08:19CAPABILITIES IS IMPORTANT, RIGHT? AND I'LL USE THE BIOTECHNOLOGY SECTOR AS AN EXAMPLE.
01:08:23IT HAS GROWN UP IN THE LAST 40 YEARS IN AN ERA OF GLOBALIZATION. IT HAS OPTIMIZED ITS SUPPLY
01:08:27CHAIN AT A GLOBAL SCALE, AND IT HAS DONE SO BASED ON TAX POLICIES AND OTHER THINGS ALL
01:08:31AROUND THE WORLD. TO HAVE THIS VERY DISTRIBUTED KIND OF NETWORK THAT IT OPERATES
01:08:36UNDER. BUT AS WE KIND OF LOOK AT THAT, RIGHT, IT HAS CREATED REAL BARRIERS TO BRINGING IN NEW
01:08:40IDEAS INTO THE MARKETPLACE. I'LL TAKE A DIFFERENT TECHNOLOGIES.
01:08:43AN EXAMPLE LIKE ADDITIVE MANUFACTURING. YOU KNOW, THERE'S BEEN EXAMPLES
01:08:47OF CONTESTS FOR NEW KINDS OF PARTS WHERE THE IDEAS AND
01:08:49INNOVATION ACTUALLY COME FROM PARTS OF THE WORLD. YOU WOULD NEVER HAVE GUESSED
01:08:53MALAYSIA AND OTHER PARTS OF WHERE THERE, YOU KNOW, CAPABILITIES BECAUSE THEY HAD
01:08:57SOFTWARE AND SOME OF THESE TOOLS TO BUILD LIKE REALLY OUTSTANDING PARTS.
01:09:00SO I THINK IN MANY WAYS IT'S NOT ABOUT CREATING BARRIERS, ABOUT
01:09:03ACTUALLY COMMODITIZING ASPECTS OF THE PRODUCTION TECHNOLOGY. IN OUR FRIEND DAVID MENDELL, WHO
01:09:07WAS HERE EARLIER, REALLY HAS KIND OF LOOKED AT THIS IN A NUMBER OF DIFFERENT WAYS TO LOOK
01:09:11AT THE PROXIMITY OF INNOVATION
01:09:14AND PRODUCTION AS BEING REALLY
01:09:16CRITICAL BECAUSE WE GREW THE
01:09:18BIOTECHNOLOGY ERA UP IN THIS ERA OF GLOBALIZATION.
01:09:21WE HAVEN'T HAD ALL OF THE
01:09:23BENEFITS OF LEARNING BY DOING
01:09:25AND REFINING YOUR MANUFACTURING STRATEGIES BECAUSE YOU HAVE TO STRUGGLE WITH WHAT DOES IT MEAN
01:09:29TO HAVE A PRODUCT AND A PROCESS AND TO KIND OF SEE THAT IN A
01:09:33RELATIONSHIP. AND THIS IS SOMETHING THAT, YOU KNOW, OVER THE LAST 40 YEARS AT MIT HAS REALLY THOUGHT ABOUT.
01:09:36AND PART OF WHAT WE'RE TRYING TO DO IN THE INITIATIVE FOR NEW MANUFACTURING NOW IS TO ACTUALLY
01:09:39BRING ASPECTS OF THAT LEARNING INTO INTO THE INTO THE BROADER
01:09:43WORLD TO BOTH ON THE WORKFORCE SIDE AND IN THE PRODUCTIVITY
01:09:46SIDE TO THINK ABOUT WHAT DOES IT LOOK LIKE TO MARRY TOGETHER
01:09:50INNOVATION AND PRODUCTION SO THAT WE'RE NOT JUST DESIGNING IDEAS HERE AND SENDING THEM
01:09:54SOMEWHERE ELSE TO PRODUCE. DO YOU WANT TO ADD SOMETHING?
01:09:57FIONA, DID YOU OKAY, OKAY. TWO THINGS.
01:10:01BRING TO MIND. THE FIRST THING IS WE CAN PROBABLY DO MORE THAN WE THINK.
01:10:05I'M ABOUT TO CALL IT. THE MAN WHO'S ONLY TWO.
01:10:08SIT DOWN FROM YOU. BUT THE UNITED STATES IS 3% OF
01:10:12THE WORLD'S POPULATION. THERE'S 25% OF THE WORLD'S GDP.
01:10:15BUT IT'S GOT 50% OF THE WORLD'S CAPITAL MARKETS.
01:10:19SO WE HAVE A LOT OF RESOURCES HERE IN THE UNITED STATES.
01:10:22AND SO OUR OUR REQUIREMENTS TO
01:10:26DO TRADE OFFS, OF COURSE, IS IMPORTANT. BUT I THINK IT'S WORTH
01:10:30REMEMBERING THAT. THE SECOND THING I THINK I BRING INTO THE CONVERSATION, THERE
01:10:32PROBABLY HASN'T BEEN MENTIONED, BUT IS PART OF WHAT WE'RE ALL THINKING ABOUT.
01:10:37AND IT'S JUST ANOTHER DYNAMIC TO THINK ABOUT AS WE'RE THINKING
01:10:40ABOUT PRIORITY SETTING. ISN'T JUST THE TECHNOLOGY, BUT
01:10:45WHAT SETS OF TECHNOLOGIES CAN BRING GOOD, STABLE JOBS TO THE
01:10:49UNITED STATES. AND SO I THINK THAT'S A REALLY IMPORTANT FACTOR. I THINK IT'S EMBEDDED INTO ALL
01:10:53WE'RE TALKING ABOUT. OBVIOUSLY, EACH ONE OF THESE TECHNOLOGIES HAS IN THEMSELVES A
01:10:57PARTICULAR BENEFITS OF PARTICULAR INDUSTRY.
01:10:59BUT IN IN AGGREGATE, THEY CAN
01:11:01ALSO SUPPORT A SOLID MIDDLE CLASS, GOOD JOBS.
01:11:05AND I THINK THAT'S REALLY IMPORTANT FOR AMERICA'S LONG TERM SUCCESS.
01:11:09AND LONG TERM. AMERICA'S LONG TERM CONTINUE TO
01:11:11INVESTMENT IN THESE TECHNOLOGIES. THEY GO HAND IN HAND AS
01:11:15MULTIPLIER EFFECTS ARE REALLY IMPORTANT. I MENTIONED CRAFT BREWERIES BEFORE, BUT FOR EVERY WORKER
01:11:18WITHIN A CRAFT BREW, THERE ARE 4 TO 8 ADDITIONAL JOBS CREATED IN
01:11:22THE LOCAL ECOSYSTEM TO SUPPORT THAT. AND SO WE SHOULD GO DO SOME RESEARCH ON THAT.
01:11:26MAYBE TO ME, LIKE CHRIS IS DOING
01:11:28A LOT OF RESEARCH AT THE AT THE BAR.
01:11:30BUT DAVID GOLDSTEIN SO THANKS
01:11:35HAS BEEN FASCINATING. SO AS USUAL, I WANT TO BURN DOWN A LITTLE BIT ON LIKE WHAT
01:11:39ACTUALLY THE GOVERNMENT SHOULD DO NOW AND LET ME LAY SOMETHING
01:11:41OUT THAT MAY BE TOTALLY WRONG. SO YOU SHOULD. SO IN TERMS OF THE GAP, SO
01:11:45EVERYONE TALKS ABOUT HOW NOW EVERYONE AGREES ON INDUSTRIAL
01:11:49POLICY, WHICH I'M NOT SURE TRUE,
01:11:50BUT THE HENCE NOT USING IT IN
01:11:54THE TITLE, BUT THE BUT IN A WAY THAT IF YOU LOOK AT WHAT THE
01:11:58ADMINISTRATION IS DOING SO THE EXTENT THEY'RE NOT CUTTING
01:12:01RESEARCH RIGHT THEY ARE FOCUSING REALLY NARROWLY SAYING LIKE
01:12:04LET'S PUT EVERYTHING INTO AI AND QUANTUM. AND THEN ON THE OTHER END,
01:12:08THERE'S SORT OF BUYING INTO COMPANIES LEAVING ASIDE
01:12:11AIRLINES, BUT INTO COMPANIES LIKE CRITICAL TECHNOLOGIES THAT
01:12:14ARE ALREADY ESTABLISH AND MAYBE
01:12:17THEY'RE IT'LL HELP THEM MAKE A GO.
01:12:20BUT IT SOUNDS LIKE IN A WAY WHAT YOU'RE TALKING ABOUT IS EVERYTHING THAT'S KIND OF IN
01:12:24BETWEEN THOSE TWO. THAT'S RIGHT. AND DO YOU SEE ANYTHING
01:12:27HAPPENING IN THAT GAP?
01:12:29AND IF NOT, WHAT'S THE 1 OR 2 THINGS THE GOVERNMENT SHOULD BE DOING NOW THAT ARE ACTUALLY IN
01:12:35THE ARENA THAT YOU'RE TALKING ABOUT THAT SEEM TO BE IN BETWEEN
01:12:37WHAT PEOPLE ARE ACTUALLY TALKING ABOUT DOING RIGHT NOW?
01:12:42WELL, MAYBE I'LL JUST COMMENT ON WHAT WE'RE SEEING TODAY, WHICH
01:12:46IS, YOU KNOW, I THINK THE THE
01:12:49CURRENT ADMINISTRATION HAS EXPANDED THE TOOLS IN THE
01:12:52TOOLBOX FOR FOR INDUSTRIAL POLICY. AND THAT'S NOT A BAD THING.
01:12:57BUT I THINK WE NEED GUARDRAILS. I GUESS I WOULD SAY, ON HOW WE
01:13:00USE THESE. SO THE EQUITY STAKES, FOR
01:13:04EXAMPLE, AS AILSA SAID, IN SOME CASES WE DON'T HAVE A LOT OF OPTIONS.
01:13:07WE DON'T HAVE MANY COMPANIES, WE DON'T HAVE WE DON'T HAVE A
01:13:10MARKET THAT'S WORKING IN PERFECT WAYS. SO IT COULD MAKE SENSE. BUT IN THE END, I THINK WHAT
01:13:14WE'RE TRYING TO DO IS DEVELOP COMPETITIVE FIRMS AND INDUSTRIES
01:13:19AND SO PICKING AND CHOOSING, YOU KNOW, MULTIPLE COMPANIES IS NOT
01:13:22HELPING US BUILD THAT LONG TERM VIEW.
01:13:25AND SO I THINK A LOT OF WHAT YOU SEE IN THESE CHAPTERS IS AROUND
01:13:28THAT BROADER ECOSYSTEM, JIM.
01:13:30AND THE FOCUS ON I, SIMON AND I
01:13:34ARE WORKING ON AN ARTICLE IN WHICH THE TITLE IS, YOU KNOW,
01:13:37WINNING THE RACE IS NOT ENOUGH.
01:13:39SO A.I. IS A TOOL FOR
01:13:41APPLICATION ACROSS ALL OF THESE THESE AREAS.
01:13:43BUT, YOU KNOW, WHAT DOES THAT MEAN IN TERMS OF DEVELOPING YOUR WORKFORCE? WHAT DOES IT MEAN IN TERMS OF
01:13:47DEVELOPING YOUR SUPPLY CHAIN AND YOUR MANUFACTURING CAPABILITIES?
01:13:51THOSE THINGS, I THINK ARE REALLY IMPORTANT.
01:13:53AND I THINK I WILL SEE IF THERE'S ANY RESPONSES HERE.
01:13:57BUT I HAVE A FEELING THAT BEN WANTS TO SAY SOMETHING FROM THE STATE AS WELL. IS THAT POSSIBLE, BEN, THAT YOU
01:14:02WANT TO WEIGH IN HERE? DO WE HAVE BEN WEIGH IN AND THEN
01:14:04NOT NOT A COMMENT, BUT MAYBE A QUESTION THAT HAS A LONG LEAD IN.
01:14:08SO APOLOGIES FOR THAT UPFRONT. BUT I THINK SOME OF THIS HAS TO
01:14:12DO AND IT'S GOING TO GET TO LIKE TIME HORIZON.
01:14:14THE QUESTION I'LL ASK UPFRONT
01:14:16IS, DO WE ACTUALLY, AS A COUNTRY
01:14:18HAVE THE FORTITUDE TO DO THE HARD THING?
01:14:21A LOT OF THE THE CHALLENGES YOU
01:14:23GUYS ARE TALKING ABOUT ARE 30 TO 40 YEARS IN THE MAKING.
01:14:27SO DO WE HAVE THE FORTITUDE TO
01:14:30SOLVE THESE CHALLENGES THAT MIGHT TAKE 30 TO 40 YEARS TO SOLVE?
01:14:33AND IT REALLY COMES DOWN TO ME TO SHARED PROSPERITY, WHICH IS A
01:14:37SUBTITLE ON THE BOOK. AND LIZ, YOU AND I MET WHEN I
01:14:41WAS AT MIT. I WAS ON LOAN TO THE STATE TO HELP LEAD THE MANUFACTURING
01:14:43RESPONSE FOR COVID. AND AT THAT TIME, WE WERE
01:14:47CRIPPLED BY FILTRATION MEDIA IN
01:14:49MASKS AND PIPETTE TIPS AND IN
01:14:54HVAC FILTERS.
01:14:56AND COMING OUT OF COVID, OUR GLOBALLY RENOWNED HEALTH CARE
01:15:00SYSTEMS SAID, YOU KNOW WHAT? THERE'S SOMETHING ABOUT BUYING
01:15:03LOCAL THAT MAKES SENSE TO PRICE IN RESILIENCY.
01:15:05AND YET FIVE, SIX YEARS LATER, THAT'S NOT THE CASE.
01:15:09AS YOU AS WE'VE WORKED ON CHIPS RIGHT THE NORTHEAST MICRO
01:15:13ELECTRONICS COALITION AND WE'RE MAKING PROGRESS THERE. BUT IT'S NOT LIKE FIVE YEAR TIME
01:15:17HORIZON PROBLEM. AND THE FEDERAL GOVERNMENT HASN'T ACTUALLY DEPLOYED ALL OF
01:15:21THEIR MANUFACTURING INCENTIVES IN SOME OF THESE AREAS IN
01:15:23MASSACHUSETTS IS VERY MUCH A MICROCOSM FOR ALL OF THESE
01:15:27TECHNOLOGY AREAS THAT WE SEE HERE.
01:15:29BUT MY MY QUESTION IS REALLY MORE AROUND THE ECONOMICS,
01:15:33BECAUSE IF WE'RE TALKING ABOUT PROXIMITY PRODUCTION,
01:15:37PROCUREMENT, PRICING AND THINKING ABOUT HOW WE'RE GOING
01:15:40TO PAY A PREMIUM, CURRENTLY WE
01:15:43DON'T HAVE SHARED PROSPERITY. PEOPLE IN THIS STATE DON'T HAVE
01:15:47ACCESS TO THE SAME HEALTH CARE
01:15:49AS EVERYBODY IN THIS ROOM RIGHT? SO SOME OF THOSE SMALL MOLECULES
01:15:53THAT WE'RE TALKING ABOUT THAT WE WANT TO HAVE ACCESS TO IN THE FUTURE, WE DON'T HAVE TODAY.
01:15:56SO WHEN WE THINK ABOUT THIS, ARE WE GOING TO MAYBE ACTUALLY NOT
01:16:00PAY AI ENGINEERS, BAZILLIONS OF DOLLARS, WHERE WE'RE GOING TO
01:16:04MAYBE PAY OUR MANUFACTURES, PAYING TECHNICIANS, BAZILLIONS OF DOLLARS, ARE WE GOING TO
01:16:08THINK ABOUT HOW WE ACTUALLY INCENTIVIZE AND PAY FOR THE
01:16:11THINGS THAT WE'RE TALKING ABOUT THAT WE NEED TO ACTUALLY SCALE
01:16:14AND PRODUCE SOME OF THESE THINGS
01:16:16TO GET TO SHARED PROSPERITY? BECAUSE I FEEL LIKE THESE ARE WE
01:16:20INVEST IN. I DIDN'T DO MY INTRODUCTION AT MASS TECH COLLABORATIVE.
01:16:23WE INVEST A LOT IN THESE CRITICAL TECHNOLOGY AREAS AND
01:16:26SUPPORTING TECHNOLOGY DEVELOPMENT RESEARCH.
01:16:29YET THESE ECONOMIC CHALLENGE IS, I THINK ARE VERY STRUCTURAL AND
01:16:32CHALLENGING AND TAKE A LONG TIME TO SOLVE. AND I KNOW IT'S AN UNFAIR
01:16:36QUESTION BECAUSE SIMON'S NOT HERE. SO LONG LEAD IN IN THE QUESTION. BUT MY QUESTION IS REALLY HOW
01:16:41LONG DO WE REALLY NEED TO FOCUS ON THIS AND DO WE HAVE THE FORTITUDE TO DO IT? THANK YOU.
01:16:46IN THIS CASE, FIONA, SO WHEN PEOPLE COME TO SEE ME TO TALK ABOUT INNOVATION POLICY, I
01:16:50ALWAYS APOLOGIZE AT THE BEGINNING. AND I DON'T JUST DO THAT BECAUSE
01:16:54I'M BRITISH. I APOLOGIZE. ALTHOUGH I DO THAT TOO.
01:16:56BUT I APOLOGIZE BECAUSE I SAY TO THEM, LOOK, INNOVATION POLICY IS ACTUALLY NOT VERY SEXY.
01:17:00INNOVATION IS INNOVATION POLICY. THERE'S NO ONE BIG THING.
01:17:04EVERYONE WANTS TO BUILD A BUILDING AND IT JUST DOESN'T WORK.
01:17:08YOU HAVE TO DO 20 THINGS LIKE
01:17:10SPEND 20 PLATES WITH CONVICTION
01:17:12FOR LONG PERIODS OF TIME, AND THAT IS AND THEY HAVE TO BE SORT
01:17:15OF ALIGNED PLACE. THEY ALL HAVE TO HAVE THE SAME SORT OF PATTERN. AND THAT'S A REALLY FRUSTRATING
01:17:20THING FOR MOST GOVERNMENTS. AND I THINK THAT'S EVEN MORE TRUE OF INDUSTRIAL POLICY.
01:17:23AND SO I THINK, YOU KNOW, DAVID'S SORT OF POINT AND YOURS IS HOW DO YOU DO THAT?
01:17:29GOVERNMENTS WORK ON WHATEVER TIME HORIZONS THEY WORK ON. SO I THINK THE THE ONLY THING
01:17:33THAT WILL HOLD THE LINE AND HOLD
01:17:36COURSE HERE WILL BE IF WE BELIEVE AND I THINK THE EVIDENCE
01:17:40SUGGESTS THAT THIS CURRENT GEOPOLITICAL ERA IS INDEED AN
01:17:43ERA, IT'S NOT JUST A KIND OF A QUICK PHASE.
01:17:46AND IT'LL ALL GO BACK TO NORMAL VERY, VERY QUICKLY TO THE SORT
01:17:49OF GLOBALIZATION, IN WHICH CASE WE'VE GOT TO BE MORE SERIOUS ABOUT THIS.
01:17:53AND TO MY MIND, THE WAY TO TRY TO HOLD THE CAUSE IS TO SAY,
01:17:57LOOK, WE KNOW THAT THE CAPITAL MARKETS RESPOND QUITE RATIONALLY
01:18:00TO CERTAIN KINDS OF STRUCTURES AND INCENTIVES.
01:18:02AND SO WE DO HAVE TO PUT IN SO I SAY SO THE REASON I TALK ABOUT
01:18:06PRICING RESILIENCE IS TO PRECISELY NOT PICK SPECIFIC
01:18:08COMPANIES, BUT TO ACTUALLY LET MARKETS SORT IT OUT.
01:18:12SO WHEN WE START TO DO THAT, THOSE CAN SOMETIMES BE LONGER
01:18:16TERM SORT OF COMMITMENTS THAT WE MAKE TO PAYING FOR THE THINGS THAT REALLY MATTER TO US.
01:18:20AND THEN I THINK WE LET THE PRIVATE CAPITAL MARKETS AT LEAST DO SOME OF THEIR JOB.
01:18:24NOW, I WOULD SAY THAT I'M A BUSINESS SCHOOL PROFESSOR OF MANAGEMENT SCHOOL PROFESSOR, BUT
01:18:27I DO THINK THAT SORT OF IMPORTANT. BUT IT TAKES INCREDIBLE
01:18:31FORTITUDE AND IT'S REASONABLY RARE. BUT CHINA HAS SHOWED US THIS.
01:18:33IT'S POSSIBLE OTHER NATIONS ARE TRYING. AND I THINK THIS CURRENT ERA MAY
01:18:37KEEP OUR FOCUS FOR MUCH LONGER.
01:18:40I MEAN, MAYBE IF I CAN ADD FROM AN ENTREPRENEURIAL PERSPECTIVE,
01:18:42TOO, I THINK, YOU KNOW, BEN, THESE ARE HARD PROBLEMS.
01:18:46THESE ARE BIG SYSTEMS. BUT THE PEOPLE WHO WANT TO SOLVE THEM ARE ENTREPRENEURS THAT ARE
01:18:49MISSION DRIVEN AND HOW THEY DO IT. WHAT WE HAVE TO DO IS FIGURE OUT WAYS TO SUPPORT SMALL COMPANIES
01:18:53BETTER AND MORE EFFICIENTLY. IF IT TAKES YOU A YEAR TO BE
01:18:57ABLE TO GET MONEY FROM A STATE PROGRAM, OR MAYBE THEY WON'T EVEN BACK YOU BECAUSE YOU DON'T
01:19:01HAVE, YOU KNOW, LARGE RESOURCES AND BANK BEHIND YOU.
01:19:05HOW DO YOU ACTUALLY TRY THOSE NEW IDEAS? WE SHOULD LET THE MARKET DECIDE
01:19:09WHO IS ULTIMATELY BEST AT THESE THINGS, BUT THEY HAVE TO HAVE
01:19:12ACCESS TO THE TOOLS TO BUILD IN A MISSION DRIVEN WAY TO CHANGE THE WORLD.
01:19:16ONLY A FEW PEOPLE CHANGE THE WORLD. STEVE JOBS RIGHT. I MEAN, YOU ACTUALLY CHANGE THE
01:19:19WORLD, BUT IT'S THE ENTREPRENEUR THAT DOES IT. YEAH. WOW.
01:19:22SPOKEN LIKE A TRUE ENTREPRENEUR. YES. ALL RIGHT.
01:19:26I'M GOING TO JUST WRAP UP AND I WILL SAY ACTUALLY ONE EXAMPLE
01:19:28FOR BOTH OF YOU. SO THE TRUMP ADMINISTRATION HAS
01:19:32NOW MANDATED THAT THE CENTER FOR
01:19:35MEDICARE AND MEDICAID IS GOING
01:19:37TO REIMBURSE DOMESTICALLY
01:19:39MANUFACTURED GENERIC DRUGS. SO HERE IS AN EXAMPLE OF WHERE
01:19:42WE'RE GOING TO BUILD IN A PRICING RESILIENCY.
01:19:45AND I THINK IT'S A GREAT IDEA. I FRANKLY THINK IT WAS AN IDEA
01:19:48THAT CAME OUT OF THE PREVIOUS ADMINISTRATION. BUT IN ANY CASE, I'M GOING TO
01:19:52STOP THERE AND SAY THANK YOU SO MUCH TO OUR PANEL.
01:19:56THANK YOU TO ALL OF ALL OF YOU FOR BEING HERE. AND WE'RE VERY EXCITED ABOUT
01:19:59THIS WORK AND WE THINK THAT IT'S HOPEFULLY GOING TO MAKE A DIFFERENCE FOR THE TRAJECTORY OF THE COUNTRY.
01:20:03SO THANK YOU. RIGHT. THANK YOU.
01:20:07HI, EVERYONE.
01:20:09OH HO HO, HO, HO, HO, HO.
01:20:12ON THURSDAY, MAY NASA ASTRONAUTS
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