Chancellor’s Remarks

Association to Advance Collegiate Schools of Business
International Conference & Annual Meeting
April 13, 2008

Honolulu

“The Role of Universities in Regional Prosperity”

Good afternoon and aloha! Thank you for inviting me to speak to you today.

This afternoon I would like to share with you some thoughts about the role of universities and business schools in workforce and economic development, tell you a little about UH Hilo’s role as an economic engine, and then share with you some strategies that I hope you’ll find interesting and useful.

Compared to other developed countries, the U.S. lags in the proportion of its population who have an associate degrees or higher. This is a gathering storm. We need to enhance our human capital, and in the new knowledge economy, universities are recognized as the engine of economic growth.

The Big Island is a microcosm of the world: an island the size of Connecticut, surrounded by water, thousands of miles from the mainland. In fact, you could say our university is at the center of a big economic experiment. UH Hilo plays a huge role in the local economy, including direct expenditures on the island, second largest employer in east Hawai‘i, and workforce development. On the Big Island, it’s easy to see the effect UH Hilo has on the economy.

The Association to Advance Collegiate Schools of Business has some 400 member institutions. They serve many first generation college students, they’re “down-to-earth” and committed to workforce development, they improve the quality of life for individuals, families, and communities, and are true economic engines. AASCU stands for access, inclusion and quality.

Business schools are actively engaged in creating innovative economic programs across the country:

• Cal State Fresno has developed Fresno Regional Jobs Initiative.

• University of Northern Iowa has the Institute for Decision Making to help communities.

• Western Carolina has a Center for Rapid Product Realization to help businesses develop new products.

• Northern Kentucky is dedicated to a community planning project to help region compete in global economy.

The role of business schools is to:

• Support regional needs: The University of Wisconsin-Oshkosh works with the Oneida Indian Nation to develop a certificate in tribal management.

• Foster entrepreneurship: Salem State College’s business school students work with entrepreneurs to develop business plans

• Engage local business: Alabama State’s business school offers free training workshops in business ownership and management.

The emerging role of business schools (from AACSB BizEd article “The Next Economy,” March/April 2006) is to develop:

• Students who are scientifically and technologically literate.

• Cross-cultural leadership for the diverse workforce.

• Students’ ability to think critically and understand sustainable business practices.

• Programs that encourage creativity and innovation.

Organizations like the National Governors Association say that innovation is the key. Innovation combines human, intellectual and financial capital. We need to enhance human capital, or else the workplace will have an out-flow of “baby boomers,” leaving us with a less educated and less competitive workforce.

Business schools and businesses must build a culture of innovation:

• Be alert to all sources of ideas

• Select the right ideas.

• Take the necessary risks to guide good ideas to the marketplace.

• Leadership must encourage innovation and provide incentives to take risks .

Most of you are deans-what do you think your role is in building your region’s workforce? I’m not an economist, but we all know the world of business is now global. We need to ask: How do we make our region competitive? Let me tell you a little about what we are doing at UH Hilo. Maybe you will recognize some things that you are doing.

At UH Hilo, a major emphasis is to integrate culture, science and technology to prepare students of Hawai‘i for global challenges. This is our university’s answer to meet the urgent need for more skilled professionals in science and technology fields.

UH Hilo is located in one of the most fascinating places on Earth. We have one of the most diverse populations in the country. Our living laboratory provides incredible opportunities for scientific research and training. Let me share some our programs that use our natural resources to build our region’s workforce.

Our College of Agriculture, Forestry and Natural Resource Management does research, education and community service to support our local agricultural community. We are doing research in sustainable energy to see if we can grow crops for biofuels. We have aquaculture programs at both the 110-acre University Farm and the Pacific Aquaculture and Coastal Resources Center. Our professors and students are researching fish, caviar, shrimp, and pearl oyster species to benefit local and worldwide aquaculture industries.

Our College of Arts and Sciences provides high quality professional and pre-professional programs. We have traditional arts and sciences subjects, especially those with special relevance to Hawai‘i.

These students are the first undergraduates ever to perform their own astronomical research on Mauna Kea! They were part of a $675,000 NASA grant for local students, especially Native Hawaiians, from kindergarten to undergraduate, to become interested in astronomy. UH Hilo’s new 36-inch teaching telescope is in the final stages of development. It will provide incredible hands-on learning for our students.

Marine science is one of the largest programs at UH Hilo and takes full advantage of the island’s marine environment. Graduates are well prepared to work for the Department of Land and Natural Resources, the National Marine Fisheries Center, the National Oceanic and Atmospheric Administration, and other exciting careers. Many pursue graduate studies at prestigious universities.

Geology is a major field of study on the island of Hawai‘i. Scientists from around the world come to study our active volcanoes and constant earthquakes.

Our island is one of the best places in the world to study conservation and environmental biology. Twenty-five percent of all endangered plant and animal species in the U.S. are found in Hawai‘i.

In UH Hilo’s master of science degree program in Tropical Conservation Biology and Environmental Science, graduate students do basic and applied research in ecology, evolutionary genetics, and the environment. Much of the research has to do with protecting Hawai‘i’s natural resources: Cybil Glendon, from Keaukaha on the Big Island, did her graduate thesis on “Arsenic concentrations in the sediment of Wailoa River”; Anne Veillet from Kea‘au did her thesis on “Investigation of inbreeding of Nene goose using DNA fingerprinting.”

Also, graduate students and faculty include UH Hilo undergraduates in research projects-something not found at most universities.

Graduate students also serve as mentors in GK-12 programs. In fact, UH Hilo is leading the way to encourage kids to explore science, technology, engineering and math-STEM subjects. The idea is to “grow our own” future science students. 4th-graders are using digital microscopes to learn about coral reefs. 7th graders are learning about insects with Teaching Fellows.

UH Hilo recognizes the need for innovation and innovative business schools, and established its College of Business and Economics in 2004. The new college received initial AACSB accreditation in 2005. The College of Business’s vision is to become a center for entrepreneurship and small business education.

Our business college:

• Responds to regional needs and promotes regional economic development.

• Partners with the local business community.

• Assists local business with free workshops and economic reports.

• Develops student internships.

• Creates hands-on class projects in marketing and marketing information systems.

Our newest college is the College of Pharmacy; the first cohort started last year. Students come from the entire state, the mainland, and the Pacific Islands. College of Pharmacy is in response to state’s professional workforce needs. There are opportunities for business colleges to work with professional programs-the graduates in pharmacy will also be business people.

UH Hilo also contributes to regional economics through research productivity. Grant activity supports both research and teaching in science and technology. When I arrived nine years ago, the grants were about $3 million annually. Now we bring in about $20 million annually. Faculty now secure major grants from the National Science Foundation, National Institutes of Health, NASA, USDA, and others. Research grants require good managers who have a background in business and in the sciences.

In the past, minorities have been left out of science programs. UH Hilo has been successful in obtaining grant funding to educate minority students in the sciences. We initiated a National Science Foundation program that focuses on creating a cultural learning environment for Native Hawaiians who show promise in STEM fields. This program includes research internships for undergraduates, and retreats for faculty to develop culturally-sensitive curriculum.

UH Hilo has received multi-million dollar Minority Biomedical Research Support grants since the 1970s. Our National Institutes of Health program supports faculty research that includes hands-on undergraduate training on high-level biomedical research projects.

We also receive a $4 million Research Infrastructure in Minority Institutions grant, to support health research for medically underserved communities. Our undergraduates work side-by-side with their professors, conducting research on biomedical projects such as cultural factors on diabetes and obesity.

UH Hilo science and technology initiatives are not limited to the Big Island. We initiated the statewide NSF Experimental Program to Stimulate Competitive Research. EPSCoR boosts research development throughout the entire state. The grant provides support for undergraduate, graduate, and post-doctoral scholars to conduct research in evolutionary genetics, ecosystem studies, and cyber infrastructure.

As deans, you can think of ways to bring management and leadership skills to science students. Marcia Sakai, dean at UH Hilo’s College of Business and Economics, looks for ways to involve her college in our initiatives.

Many of the programs I’ve shared with you are based on partnerships with community, government, business & industry, and international groups. It’s important for campus leaders to engage with the community. I’m on the local Chamber of Commerce board and the Hawai‘i Island Economic Development Board.

Out in the community, business schools and universities:

• Hear the needs of the local region.

• Trade innovative ideas.

• Recruit students and finds jobs for students.

• “Sell” the university.

In fact, college deans are academics, managers and salespeople.

Hawai‘i’s colleges and universities establish many partnerships for academic programs, applied research and campus development. For example, UH Hilo’s University Park of Science and Technology is one of the most exciting initiatives at our university. Located at our campus, tenants are from the Pacific Basin, Europe, Asia, and the United States. International science and research at the park boosts our island economy. Our tenants are several astronomy facilities, USDA research centers serving the entire Pacific region, and UH Hilo’s ‘Imiloa Astronomy Center. The total investment is over $800 million.

At the park, UH Hilo created, designed and built the $28 million ‘Imiloa Astronomy Center of Hawai‘i. The public center integrates Hawaiian culture and modern science. Outreach projects like this inspire youngsters to explore science and technology-our future professionals! ‘Imiloa is a shining example of the university’s partnerships with the island community, the county, state, federal government (NASA), and the world.

UH Hilo is working with private investors to build the China-US Center to house 800 students. This project is a great example of public-private partnership to benefit students, faculty and staff, our island community, and the entire state.

The UH Hilo Innovation Center is a business incubator in older downtown Hilo. They also conduct outreach programs for workforce development. It’s a partnership with the state’s Department of Business and Economic Development.

UH Hilo is also home to the Hawai‘i State Small Business Development Center network, a federal partnership which provides business consulting services statewide.

UH Hilo also has built a strong alliance with the National Science Board (NSB). The board’s vision is to create “A prosperous America that is powered by innovations flowing from the latest transformative scientific ideas with a workforce among the most scientifically and technically competent on the planet.” This vision fits very well with UH Hilo’s vision.

We now have an interim vice chancellor for research on loan from the NSB.

The NSB held its annual meeting on the Big Island last year. Steven Beering, NSB chair, said, “UH Hilo is truly an exemplary institution that builds on its unique heritage and environment to promote a sense of connectedness throughout the campus and ultimately, to make a positive difference in the lives of its students.”

I just gave two talks to the NSB at the National Science Foundation headquarters in Arlington, Virginia. They invited me to speak on UH Hilo’s research-education programs, and share our success at integrating culture and science.

Building a partnership like this builds UH Hilo’s reputation for applied research, and builds economic competitiveness for the entire state of Hawai‘i.

It’s not only higher education that knows the value of partnerships. I recently read an article in Business Week magazine called “Radical Collaboration,” about major companies that partner with other companies to create “innovation networks.” For example, IBM now shares research and development with nine other companies. They never shared research before. But now, the head of IBM says, “We are the most innovative when we collaborate.” The article says that the motto for the 21st century is “network or die.”

Another critical skill for 21st century leaders is an entrepreneurial spirit. A recent study shows the vast majority of successful university presidents have an entrepreneurial spirit (by Fisher and Koch in 2004 book The Entrepreneurial President and a 2004 doctoral dissertation by McAdory). These presidents are:

• Risk-takers.

• Innovative.

• Put their reputations on the line.

• Successful in institutional effectiveness.

• Raise money.

• Raise quality of students.

• Grow institutions rapidly.

I predict there will be increased partnerships to stimulate economic competitiveness, workforce development, research development, and business incubation.

Before I close, I’d like to share some successful strategies to create partnerships and bring people together to talk, dream big, and create a shared vision.

I gave a joint presentation on Entrepreneurial Leadership at the Campus of the Future with Dr. Claire Van Ummersen, vice president at ACE’s Center for Effective Leadership. We spoke about successful strategies for leaders in higher education. Let me share them with you:

• Keep your eye on the vision!

• Take the long-term perspective.

• Balance speed, deliberation, and persistence.

• Frame the change as beneficial.

• Invite participation.

• Ask yourself-”Who can I invite to the table to find the win-win?”

I’ve enjoyed speaking with you today. I would be very interested in hearing your thoughts about UH Hilo’s strategies for professional workforce development, and what you are doing in your region.

Aloha and mahalo!