TEAM PENNSYLVANIA FOUNDATION AND THE OFFICE OF INTERNATIONAL BUSINESS DEVELOPMENT International Business Advisory Board A summary report of the education focused IBAB meeting 3/15/2014 Partners and members discussed expanding support for international student recruitment efforts and the India Higher Education Initiative at this International Business Advisory Board meeting. 1 February 26, 2014 ATTENDEES Jim Bloom, Senior Advisor, Team Pennsylvania Foundation *Bill Bogle, Genesis Packaging *Lou Dejoie, McNees Wallace & Nurick *Michael DelGrosso, DelGrosso Foods *Harry Edelman, Heyl and Patterson *Erin Finn, Drexel University *David Fung, Air Products *Kevin Frank, Voith Helen Hammerschmidt, Department of Community and Economic Development (DCED) *Bruce Heugel, B. Braun *Andy Hyer, Hyundai-Rotem USA *Sean Mahoney, Philadelphia Regional Port Authority *Tim McNulty, Carnegie Mellon University *Eileen Melvin, UMF Medical James Mentzer, Team Pennsylvania Foundation *Lindsay Michael, Team Pennsylvania Foundation *Wilfred Muskens, DCED, Office of International Business Development (OIBD) Jim Newschwander, Team Pennsylvania Foundation *Mary Frances Postupak, East Stroudsburg University Kate Skopp, DCED, Office of International Business Development (OIBD) Abby Smith, Team Pennsylvania Foundation *Richard Somiari, ITSI-BioSciences, LLC Katie Thiemann, Team Pennsylvania Foundation Ryan Unger, Team Pennsylvania Foundation *Tim Williams, Greenville Neuromodulation Services * Denotes an IBAB member or alternate 2|Page AGENDA The agenda for the February 26 meeting held at the Governor's Residence was as follows: International Business Advisory Board February 26, 2014 | 10:00 – 2:00 p.m. AGENDA I. Welcome, Ryan Unger II. Board Introductions III. OIBD program update, Wilfred Muskens IV. Team PA Transition, Jim Bloom V. Lunch VI. India Pilot Program Overview, Lindsay Michael VII. International Higher Education Recruitment Initiative, Abby Smith VIII. Open Discussion IX. International Caucus Update X. Adjournment 3|Page SUMMARY OF PRESENTATIONS "This is why we ask for private sector feedback; to enact change, real change. The ideas and issues raised at these meetings are consistently pushed to the top and enhance an agency of the commonwealth." OIBD Update: Presenter: Wilfred Muskens, DCED, Office of International Business Development Deputy Secretary Muskens gave the IBAB members an update on programmatic work and the proposed OIBD budget to kickoff the IBAB meeting. Governor Corbett's administration has been very supportive and has proposed the first budget increase in many years, a $600,000 increase for the World Trade PA line item. FUNDING Final funding for the program was approved at $7.3 million dollars. Federal funds in the amount of $392,000 were applied for to continue operations, maintain the Global Access Program (GAP) funds, and open a new trade office in Russia. Team Pennsylvania Foundation's Resource Allocation Committee approved $281,000 to continue support of three existing OIBD program; Regional Investment Marketing Grant, Market Access Grant, and the Expert Speaker Program as well as fund two new emerging market missions. Team PA Transition: Presenter: Jim Bloom, Senior Advisory to the Board, Team Pennsylvania Foundation Senior Advisor Jim Bloom gave the IBAB members a brief update regarding the leadership transition at Team Pennsylvania Foundation. He noted the professional staff working diligently on a number of projects and programs and that not one scheduled committee or board meeting had been affected by the leadership transition. Bloom also gave the IBAB members an update on the CEO search. A committee of Board Directors has been convened to begin the interview process in an effort to become a stronger Foundation. He noted that the Board overall has become much more engaged and involved, and that members were working closely with staff to take pause and identify the core ways of how we work and why. Lastly, Bloom provided some updates regarding the organizations pending move to a new location at 2nd and Walnut in Harrisburg and explained some of the challenges encountered. It is estimated the move will occur in 9 months. "Overall, these IBAB suggestions have provided private sector input to guide the work of this [OIBD] program and significantly improve our impact and return on investment." 4|Page India Higher Education Initiative: Presenter: Lindsay Michael, Team Pennsylvania Foundation Over the last year, OIBD has seen a renewed interest for support for PA institutes of higher education with regard to international student recruitment and international awareness of PA colleges and universities. Due to this interest, OIBD has partnered with Team PA to develop a pilot program for higher education in India. The overall goal for this program is to increase PA's brand in India and provide highly specialized service and support for PA based colleges and universities. Together with the Narsee Monjee Center for Excellence in India, Pennsylvania became the first state to have a Center for American Education. This Center is a hub for international development and student recruitment, working to promote PA schools in India and guiding parents/students and principals to develop relationships and exchange opportunities with PA. In 2012, Pennsylvania attracted over 33,000 international students, resulting in over $1 billion in expenditures by these students in the commonwealth. Traditionally, OIBD offered support to PA institutes of higher education by supporting partner searches, providing market research, in-country assistance, and event or promotional support. This new pilot initiative takes the support a step further by providing a full-time staff in India dedicated to building opportunities in-country for PA schools and promoting PA as the premier destination for study abroad. Indian students account for 17% of international students in PA, second only to Chinese students at 24%. The program is unique in that it employs a cost-sharing model with the private sector, allowing for fewer taxpayer dollars to be used to support this initiative. It is the goal of the Office of International Business Development to have this program be self-sustaining and 100% privately-funded in fiscal year 2015-2016. Economic trends show that by 2020, Indian students will become the top international student population in the United States. International Higher Education Recruitment Initiative: Presenter: Abby Smith, Director of Education, Team Pennsylvania Foundation Ms. Smith led the IBAB members in a discussion around international student recruitment as an economic driver for the commonwealth, and ways in which the Office of International Business Development and Team PA could engage the private sector in an effort to attract more foreign students to PA. Ms. Smith's data-driven presentation demonstrated the economic impact of international students and economic trends in education on a global scale. Several IBAB members asked questions regarding the entrepreneurial factor, citing that a foreign student is 12x more likely than their US counterpart to launch a start-up business in Pennsylvania. Members also brought up questions around the Visa process, for both students and student entrepreneurs looking to remain in PA after graduation, which led to a discussion around the role the state could play in supporting these individuals and connecting them to appropriate regional resources. 5|Page This graph displays both economic contribution and enrollment data over a ten-year span. International student enrollment data is provided by the Institute of International Education's Open Doors. This graph displays the number of direct and indirect jobs created in Pennsylvania as a result of the economic benefit of international students as well as the state average of jobs created/supported in the United States for the 2012-2013 academic year. 6|Page A GLOBAL FOCUS ON EDUCATION Importance of univeristy connections and international students Contribute economic value to local and state economies Build bridges between US and other markets Bring global perspectives into US classrooms and research labs Support US innovation through science and engineering coursework Support programming and services on campus for all students by paying out-of-state tuition, funded largely by non-US sources. The discussion ended with a review of potential business models beyond the India Higher Education Initiative. Questions around the model being for-profit, non-profit, implementation around a fee structure were posed to IBAB members for open discussion. RECOMMENDATIONS FROM THE BOARD Expand staff in PA for existing education work and support of future market growth Create a website as a hub for different stakeholders General formal partnerships with businesses to retain talen in PA Mobilize alumni/Ambassadors abroad to capitalize on PA relations/positive experiences Utilize existing IBAB members (CMU, Drexel, and East Stroudsburg) as case studies for new growth Distribute a 1 page fact sheet demonstrating impact of foreign students to educate general public 7|Page THE NEXT 90 DAYS – IBAB ACTIVITY March 3 - India Higher Ed conference calls with Gettysburg College, Wilson College, and CMU FOUNDATION BUSINESS: 3/6/12 4 - Team Pennsylvania Foundation Board of Directors Meeting and Reception 4 - Make it in America: PA Made Again quarterly meeting (Lewisburg, PA) 4 - India Higher Ed meetings with Chatham Univ., Duquesne Univ., Waynesburg Univ., Westminster Univ., and Juniata College 5 - India Higher Ed meetings with Bucknell Univ., Keystone College, Etown College, Drexel, and University of the Sciences 6 - India Higher Ed meetings with Delaware Valley College, Gwynedd Mercy College, Villanova, Immaculate Univ., and Moore College of Art & Design 7 - India Higher Ed meetings with Lebanon Valley College, Albright, Moravian and internal staff 21 - OIBD Staff Strategy Session 30 - Metro Market Investment Mission (Dallas, TX) April 7 - Canadian Ambassador Reception (Pittsburgh, PA) 9 - JOBS1st on the Road meetings, seminars and Kickoff Reception (Lewisburg, PA) 10 - JOBS1st on the Road meetings and events 11 - JOBS1st on the Road meetings, seminars and Wrap-up Celebration Lunch (Lock Haven, PA) 28-30 - York Expo May 1-5 - Mexican Consulate Events 5 - Mexican Trade and Investment Symposium (Philadelphia, PA) 8 - Team PA Executive Committee Meeting 8 - Team PA Investor's Exchange: Dept. of Public Welfare 26 - Memorial Day 30 - Governor's ImPAct Awards Ceremony 8|Page IBAB MEMBER BIOS International Business Advisory Board Membership The IB Advisory Board consists of approximately 20 members from a diverse cross-section of Pennsylvania businesses, universities, and service providers with experience in international business. Leaders of the board have been tasked with formulating and driving strategy to make the most impact for OIBD's trade, investment, and port programs that are vital to the success of our public/private partnership. C. Alan Walker, Secretary, Department of Community & Economic Development Secretary Walker brings over 30 years of experience in the private sector as President and CEO of Bradford Energy Company, Inc. to his role as Secretary of the commonwealth's lead community and economic development agency. Wilfred H. Muskens, Deputy Secretary, Office of International Business Development Wilfred leads a team of professional international economic development specialists that contribute to the growth and strength of the commonwealth by providing value-added international trade, investment, and port services. Dave Fung, Manager, Strategic Planning, Air Products, Allentown With operations in more than 50 countries, Air Products supplies a diverse portfolio of atmospheric, process, and specialty gases as well as performance materials, equipment, and services. Their customer base falls across a wide array of industries, including food, healthcare, energy, and transportation. Bruce Heugel, Senior VP and CFO, B. Braun Medical, Bethlehem B. Braun Medical is a leader in the field of medical device manufacturers, with emphasis throughout their four divisions on patient safety and preventable errors. This German-based company located their US corporate headquarters in Bethlehem and maintains a manufacturing facility in Allentown. Tim McNulty, VP of Government Affairs, Carnegie Mellon University, Pittsburgh Carnegie Mellon University (CMU) is an internationally recognized institution of higher education and is considered one of the top global research and entrepreneurial focused universities in the country. Michael DelGrosso, VP Global Sales & Marketing, DelGrosso Foods, Tipton Family developed and owned DelGrosso Foods is known for their finest-made sauces as a highly-regarded producer of pasta sauce. Dr. Julie Mostov, Vice Provost for Global Initiatives, Drexel University, Philadelphia Located in the heart of downtown Philadelphia, Drexel University continues to be ranked among the top 100 universities in the nation and is often highlighted for being one of the largest, private universities in the country. Mary Frances Postupak, VP Economic Development, East Stroudsburg University, East Stroudsburg ESU has been providing comprehensive education services since 1893 and is one of the premier schools of the Pennsylvania State System of Higher Education. 9|Page Dr. Sangwhui Cho, President, Hyundai-Rotem USA, Philadelphia As part of the Korean-based Hyundai Motor Group, Hyundai-Rotem of Philadelphia manufactures railway vehicles, industrial machinery, defense transportation, and specialized equipment. Bill Bogle, President, Genesis Packaging Technologies, Exton Genesis Packaging is a leader in the science and technology of pharmaceutical vial processing and handling. The company has manufactured vial equipment since 1946 and to this day maintains manufacturing, design, engineering, and sales in Pennsylvania. John Pullo, Vice President of Ground Systems, Gentex Corporation, Simpson Gentex is an innovative, high-technology focused defense equipment and system designer, supplier, and manufacturer located in Northeastern PA. Tim Williams, Vice President, Greenville Neuromodulation Services, Greenville Filling a gap in the neuroscience industry, Greenville Neuromodulation offers services for patients and medical professionals focused on the treatment of movement disorders. In additional to global technical support, their team has designs and manufactures specialized neurosurgical tools. Harry Edelman, Executive Vice President, Heyl and Patterson, Pittsburgh Heyl and Patterson is an engineering company specialized in large equipment, bulk material handling, and thermal processing equipment for the chemical, steel, biomass, energy, port, and mining industries. They also provide consulting and field services, as well as lab services for testing and analytics. Richard Somiari, President, ITSI-Biosciences, Johnstown Integrated Technologies & Services International (ITSI) is a professional service organization dedicated to providing integrated technological, bio-analytical and high throughput research services to the global community. Rich Conti, President, Matson Lumber Company, Brookville This 9th generation family owned hardwood lumber company currently operates three facilities in Northwestern PA and exports products to approximately 28 different countries. William (Bill) Pote, President & CEO, MegaPhase, Stroudsburg MegaPhase designs, manufactures and sells coaxial cable assemblies to OEMs building advanced microwave and optical electronic systems. Lou Dejoie, Chair, International Law Group, McNees Wallace & Nurick, Harrisburg With more than 130 attorneys practicing in the areas of business law and litigation, McNees Wallace & Nurick uses their successful clients first approach to provide quality service through six regional offices. Clark Stapelfeld, Director of International Business, New Pig Corp., Tipton With a large offering of inventive products, New Pig Corp. designs and manufactures products to absorb, contain, and clean up splatters and spills of all kinds. Sean Mahoney, Director of Marketing, Philadelphia Regional Port Authority, Philadelphia The Philadelphia Regional Port Authority (PRPA) is a state agency that owns and leases terminals to private operators. In addition, they offer maintenance, marketing, and other related services. Eileen Melvin, President & CEO, UMF Medical, Johnstown In addition to manufacturing high-quality medical exam tables and equipment and offering Exam Room Solutions, UMF Medical offers world class support and service with patients and providers in mind. 10 | P a g e Kevin Frank, President & CEO, Voith, York Voith is an international leader in the energy, raw material, and automotive industries. Founded in 1867, Voith employs more than 40,000 people, operates in 50 countries, and is one of the largest family-owned companies in Europe. Greg Booth, CEO, Zippo Manufacturing Company, Bradford Zippo Manufacturing Company is the maker of the iconic Zippo lighter. The Bradford-based company was founded in 1932 and is still owned by descendants of Zippo lighter investor George G. Blaisdell. Recently, the company celebrated the manufacture of their 500 millionth lighter. 11 | P a g e