ITechKnow Terry Boult Nina Polok Don Kraft Today’s Agenda 9-9:20 9:20-10:05 10:05-10:15 10:15-11:40 11:45-12:45 12:45-2:30 2:30-2:45 2:45-3:30 3:30-5 Photos for web-pages (& donuts) Introductions Bio-break Why study & what is Engineering Lunch Instruction for campus hunt The Campus Quiz + bioBreak The syllabus and class structure Online work in computer lab Some Basic Info About Me Education – B.S. Aerospace Engineering from CU Boulder – M.B.A. Information Systems from UCCS – Ph.D. Organization Development from CU Boulder Have Worked at: – Digital Equipment, University of Colorado, Hewlett Packard, Agilent Technologies My consulting company: New Perspectives, LLC Married 35 years (to the same man!) 2 grown children, both married, all four graduates of UCCS Terry Boult First in family to go to college.. Paid my way though Columbia Univ. BS Applied Math 83, MS CS 84, Ph.DCS 86 8 Years on faculty at Columbia Univ. 9 year on faculty at Lehigh Univ. Chair IEEE PAMI TC, VP IEEE Biometrics Council On my 3rd startup company involvement. What is Innovation? Creativity is thinking up new things. Innovation is doing new things. - Theodore Levitt Harvard Business School Research is the transformation of money into knowledge — Innovation is the transformation of knowledge into money! Ray Mears, 3M, "Protect and Survive" Design Council Business Network Surgery, 2001 And I have grudgingly come to realize that invention is often the easy part of innovation. The hard part is usually the implementation. J. S. Brown Chief Scientist Xerox, director Xerox PARC Innovation is broadly defined as people and organizations creating value by perpetually adapting and developing new processes, ideas, and products. Berkley School of Business Innovation is transforming ideas into impact – T. Boult Innovation at UCCS Did you know that last year… – UCCS produced 1.77 invention disclosures (IDs) per million of research funding. CU Denver (including Health Sciences) produced 0.34 per million. CU Boulder produced 0.39 per million. – UCCS produced 1.5 times as many IDs per faculty as CU Boulder, and 1.75 times CUD. – Over past 8 years UCCS produced 3x as many startup companies, per million of R&D funding, as CU Boulder and almost 6x CUD/HS. UCCS is smaller, but we do innovation well. Boult’s “Innovation” funding Focus is having research with use & “Impact” Currently 16 ongoing Contracts/Grants – – – – – – – NSF Partner for Innovation grant (600K) ONR MURI (1.3M for UCCS) ONR C2Fuse (1.7M) 3 Smaller grants/contracts. 3 Phase II SBIR/STTRs with Securics (DOD, NSF, ONR) 2 Phase II SBIRs/STTRs with others (Army, Navy) 5 Phase I SBIRs (NIH, DOD, DHS, DOC/NIST) Over past 4 years have helped local companies win more than 8M in SBIR R&D funding. Privacy Enhance Biometrics Dr. Boult’s biometrics work highlighted in congressional testimony in June GeoZigbee: wireless low-power Geotracking of trauma patients Web-supported Trauma Treatment ONR SBIR on portable omnidirectional surveillance and ship protection from fusion of omnidirectional and acoustic. (Remote Reality + UCCS) Now transitioning into FPGA hardware to be used by Navy submarine fleet Shoreline Sail Boat Vessel or Shoreline? Speed Boat No Wake Vessels Maritime Surveillance Glare IED detection from micro UAV Geo-reference UAV imagery Real-time Object Recognition/Tracking (Context dependent) UIGUI-specified Filtering & Triggers On Object & CD data Imagery, Context, Object GeoDB DDMCMC/MRF Recognize and Geotag context. (Offline) Warp/Align DB Imagery Image-based Change detection Long-Range Biometrics FPGA-based Intensified-Image Networked Detector with Embedded Recognition Tech Goals: Recognition with standoff 1km+ for operator/uplink Face recognition, Camera standoff (placement distance): Daytime 250m (threshold), 500m (objective) Night: 100m (threshold), 250m (objective) Networking Options: Long-range 802.11b/g or Zigbee (up to 1km) SWAP: Objective <10kg (with 24-48hr battery) Embedded Video systems Previous work deployed both within DOD and commercially. (My second startup involvement acquired last year). Have work with 4 small companies on SBIR/STTRs. Privacy-enhance video surveillance and face-recognition will be deployed this fall in “assisted living” facilities. Low-power Networking Socom BAA, Army STTR and NIST SBIR with NIST SBIR with Navsys ONR SBIR with CombatTrainingSolutions + Direct Company funded project. Work in Protocols for Mobile networking and video surveillance on low-bandwidth networks. Current effort in novel packetmerging network protocols. Ongoing efforts in low-power sensor-networks, system design, sensor integration and evaluation. Why Study? Questions for you What is the lifetime value of College? What’s the “value” of studying? What is the life-time value of Engineering vs other fields? On average, the more education you complete, the more money you earn. Average Annual Income by Educational Attainment for Persons over Age 25 (2002) $113K $90K $53K $23K $19K < 9th Grade Some HS $29K HS Graduate $35K $36K Some College Associates Bachelors $61K Masters Doctoral Professional Source: US Census Bureau, Current Population Survey, March 2003 Demographic Supplement Education reduces unemployment $100,000 $80,000 Average Earnings $81,380 $64,532 $54,714 $60,000 $38,012 $40,000 $30,056 $22,100 $20,000 $0 0% ($20,000) ($40,000) 5% ($60,000) 10% ($80,000) 15% ($100,000) < HS H.S. Grad A.A. Bachelor's Master's Doctorate Average Unemployment Rate The Value of a College Education Bachelor’s degree holders earn on average 75% more than high school graduates. This adds up to about $1 million over a lifetime. Engineers make much more on average with lower average unemployment. Source: US Census Bureau, Current Population Survey, March 2003 Demographic Supplement Lifetime Value Careers that require a college degree are far more likely to have benefits such as health insurance, retirement plans, and paid vacations. Adding these to salary, it is easy to imagine a college degree worth several million dollars over your lifetime. The Value of a College Education A college degree also has many non-monetary benefits that lead to a higher quality of life. Longer life expectancy and better health Women with college degrees live on average 4 years longer than women with high school degrees. Greater participation in community and volunteer activities College grads are active in their communities 50% more than those with only a high school degree. Much greater participation in arts and leisure activities College grads are more than 50% more likely to go to the movies at least once per year. Source: “Why College? Private Correlates of Educational Attainment” Postsecondary Education Opportunity, March 1999 The Value of a College Education is Increasing For full-time male workers between the ages of 35 and 44, the earnings premium associated with having a bachelor’s degree versus a high school diploma has risen from 38% in 1980-84 to 94% percent in 2000-03. The bottom line: a college degree has a greater impact on earnings today than ever before. Investing in Education If we look at an engineering degree as an investment, we see it has a greater return than the stock market. Annual net return on college – 15% per year, over and above inflation. Annual net return on stocks – 7% per year, on average not including inflation (2-5% after inflation) Lifetime Value Attending classes diligently and alertly is a key to college success, no matter how boring your professor may be. Success in life depends on what you can learn on your own, not what you learn in lecture. You should spend 15 hours per week in a classroom for 30 weeks each of your 4 years at UCCS, leading to a degree. This is $1,111 of lifetime value per hour spent in the classroom. Lifetime Value Studying = $500/hour Studying an average of three hours per credit hour per week instead of one hour is quite often the difference between success and failure. The extra hours studying can be worth >$500 prorated per hour. The College Experience Before hitting the snooze button and skipping class, consider the long term value of that class to you. Before deciding to replace three hours of studying with three hours of partying, consider the value of those study hours to you. Do your socializing after you complete your studying. Why Study Engineering? Why be an Engineer? FUN – Great variety and challenge in your work – Work as a team with others IMPACT – Build or improve lasting and tangible products – Use your creativity to solve problems and help humankind Lots of Job Opportunities – Everywhere you look there are engineering jobs Money – Engineers make some of the highest amounts of any career with a 4-year degree • Average engineer salary(after 7 years): $76,000 • Comparison: Lawyers (after 7 years) = $56,000 average • Medical doctors = Higher salaries only after 11 years Source: Occupational Outlook Handbook,07-08; payscale.com Do you know who this guy is? If you use a computer, his product is something you probably use everyday… HINT: It’s LARRY PAGE: co-founder of GOOGLE His net worth = $18.5 BILLION! 26TH Richest Man in the WORLD at 35! Guess What? He’s an ENGINEER! What about these guys??? Here’s a HINT: Steve Chen & Chad Hurley: Co-founders of YouTube Recently sold YouTube to Google for $1.65 BILLION! Guess what? are Engineers! They too “….engineering is creativity, it's curiosity, it's common sense and it's cool stuff. It's not just geeks with pocket protectors." Sally Ride, 1st Woman in Space “Engineering is a great profession. There is the fascination of watching a figment of imagination emerge through the aid of science to a plan on paper. Then it moves to realization in stone or metal or energy. Then it creates homes and jobs, elevates the standard of living and adds to the comforts of life. That is the engineer’s high privilege.” Herbert Hoover STEM TEAMS.ORG 31st President of the US SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS Engineering Pays More 2003 Average Eng Salaries Overall Average Earnings $120,000 $100,000 $100,000 $81,380 $80,000 2003 Average Starting Salaries $104,000 $98,231 $90,514 $80,000 $64,532 $60,000 $60,000 $54,714 $40,000 $40,000 $20,000 $20,000 $0 $0 0% ($20,000) ($40,000) 5% ($60,000) 10% ($80,000) 15% ($100,000) Bachelor's Master's Doctorate 0% 5% Overall Average Unemployment Rate 10% 15% Bachelor's Master's Doctorate 2003 Average Eng Unemployment Rate Salary Showdown: Median Starting Salary with BS 70000 Computer Eng 61400 60900 60000 Eletrical Eng. 57900 Mechanical Eng. Finance 50000 40000 47900 43000 40800 38800 35900 35700 30000 Source: payscale.com 2007 medial starting salaries Bus. Management Marketing Biology Psychology Graphics Design Mid-career(+15y) Median Salaries. BS Only, no advanced degrees 110000 Computer Eng Eletrical Eng. 100000 90000 Mechanical Eng. Finance Bus. Management 80000 70000 Marketing Biology Psychology 60000 Graphics Design 50000 Source: http://www.payscale.com/best-colleges/degrees.asp Do What You Love! Follow your dreams There is something for everyone in engineering. There are more than 25 major branches and 100 specialties. Sports Tech Amusement Video & Film Environment Space Exploration Medicine Music Shopping Yep, Even Macy’s hires engineers! Food Math is just one tool in the box Many students shy away from engineering because of the math. Math and science are tools to understand the world Some fields of engineering need a lot, others need little. What Makes a Good Engineer? Technical Skills Creativity Passion Energy Communications skills Teamwork Skills Excitement about what you do Examples of Engineering? Engineers are practical inventors that turn ideas into reality. They are the concept people of our designed world. A doctor sends a microscopic robot into a patient’s artery to destroy a blood clot. Disneyland wants a new thrill ride. People want to see the yellow line when they watch a football game. People need electric cars to slow global warming. NASA wants to land a space craft on Mars People want to take pictures, watch movies, check email and listen to music on their cell phones. Engineering can also be a launching pad for other professions Many engineers become patent attorneys Biomedical engineers have the highest acceptance rate into medical school More engineers are CEO’s of companies than any other major Many become financial analysts on Wall Street Some go into politics Many become teachers or writers Many Career Options People who enjoy working with other people and traveling may become sales or field service engineers. People who enjoy life’s big picture may become the systems engineers who put all the pieces together. Creative people or people who constantly have new ideas about everything may enjoy working as design engineers. People who enjoy conducting experiments or working in laboratories may enjoy working as test engineers. 47 Engineering Contributions Scientists, engineers make up less than five percent of U.S. population, but create 50% of gross domestic product – Reader’s Digest, December 2005 20 “great” achievements of modern engineering 20. High performance materials 19. Nuclear technologies 18. Laser and fiber optics 17. Petroleum and petrochemical technologies 16. Health technologies Some major engineering achievements 15. Household appliances 14. Imaging 13. Internet 12. Spacecraft 11. Highways Some major engineering achievements 10. Air conditioning and Refrigeration 9. Telephone 8. Computers 7. Agricultural Mechanization 6. Radio and Television Electronics Water supply distribution Airplane Automobile Electrification What Is Engineering? Adapted from slides from STEM TEAMS.ORG and from Project Lead the Way SCIENCE, TECHNOLOGY, ENGINEERING, AND MATHEMATICS Engineering – what is it? Herb Simon Science is the study of what is. Engineering is the creation of what is to be. Engineering is different from science. Science – Discovery – Understanding – Knowledge – Natural world – “The world as we found it” Engineering – Design & Understanding – Creating/producing – Technology – Artificial world – The world we create Design The man-made world The creation of artifacts Adapting the environment to our needs and desires Design is the concern of engineers, architects, and artists Design as problem solving Given – – – – Problem specification Initial conditions Constraints Standards/regulations Find a Solution Design is creative Design problems – – – – Open-ended Ill-defined (vague) Multiple alternatives Generate lots of solutions Design is Experimental and Iterative Getting it right takes many tries The first cut is rarely good enough Some designs fail Even if satisfactory, most designs can be improved Once it works, refine it Design cycle Requirements, problem Generate ideas Initial concept Rough design Prototype Detailed design Analysis Redesign if needed Design The core problem solving process of technological development “It is as fundamental to technology as observation is to science or reading is to language arts” What is Engineering? ABET says… (Accreditation Board for Engineering and Technology) Engineering is the profession in which a knowledge of the mathematical and natural sciences, gained by study, experience, and practice, is applied with judgment, to develop ways to utilize, economically, the materials and forces of nature for the benefit of mankind. Engineering History Way back… Survival was our only concern o food o protection from the elements o protection from predators Engineering History Way back but a little more recent… Egypt Rome Greece - Pyramids and the Sphinx - The Coliseum - The Parthenon Plumbing, Cooking tools, Artisan Tools, Musical instruments, Paper, ink Engineering History Recently… Computers, Cell phones…. Malaysia United States Europe Sweden - Petronas Towers (1,483 ft) V - Space shuttle - Channel Tunnel - Volvo Self-parking car Unsung heroes… In today’s world, while professions such as law, medicine, and law enforcement dominate the media, engineers quietly create the planes that take us safely and quickly to all parts of the world, the automobiles that need virtually no maintenance, the computer networks that give us instant access to the world’s databases, cellular phones to keep us in touch anywhere, as well as a vehicle capable of exploring Mars. The engineer strives to give the user a product that is affordable, safe, durable, reliable, and evermore useful. Engineering History The future… The 21st century will demand – smaller and faster computers convenient communication systems faster and more efficient airplanes more efficient use of recourses less costly but more effective medical diagnostics equipment and new technologies we cannot even imagine and seem like magic. Clarke's third law (1961) Any sufficiently advanced technology is indistinguishable from magic. Serious thinkers of their day 19th Century – No market for the telegraph, we have enough messenger boys • Head of Post Office 20th Century – “In the future computers may weigh less than 1.5 tons” “Popular Mechanics” magazine 1949 – No worldwide market for mobile phones (< 100,000 units in total) • (USA consultancy firm) – 640 Kbytes enough for anyone, • Software CEO 21st Century – Its up to us.. That’s why we are here “Exponential Change & Education” Technology’s growth is from connecting existing knowledge and facts together and making new inferences. Its growth depends on current knowledge – If facts grow linearly, connections grow exponentially. (As an aside: Not all fields have this growth. Also have some fun in college but you’re here for the education, which compounds through your lifetime.) Fun is “flat”; Education is Exponential! Technology builds on itself and drives exponential change Imagine folding a paper (doubles in thickness) How thick is it in say 40 folds? A standard piece of paper folded “40 times” would be approximately 280,000 miles thick -- more than the distance from the Earth to the moon! Exponential Growth Occurs when growth is proportional to current size Mathematically: dy / dt = k * y Solution: y = e k*t E.g., a bond with $100 principal yielding 10% interest 1 year: $110 = $100 * (1 + 0.10) 2 years: $121 = $100 * (1 + 0.10) * (1 + 0.10) … 8 years: $214 = $100 * (1 + 0.10)8 Other examples – Unconstrained population growth – Moore’s Law Absurd Exponential Example Parameters – $16 base – 59% growth/year – 36 years 1st year’s $16 buy book 3rd year’s $64 buy computer game 15th year’s $16,000 buy car 24th year’s $100,000 buy house 36th year’s $300,000,000 buy a lot Technology Background Computer logic implemented with switches – Like light switches, except that a switch can control others – Yields a network (called circuit) of switches – Want circuits to be fast, reliable, & cheap Logic Technologies – Mechanical switch & vacuum tube – Transistor (1947) – Integrated circuit (chip): circuit of many transistors made at once (1958) (Also memory & communication technologies) (Technologist’s) Moore’s Law Parameters – 16 transistor/chip circa 1964 – 59% growth/year – 36 years (2000) and counting 1st year’s 16 ??? 3rd year’s 64 ??? 15th year’s 16,000 ??? 24th year’s 100,000 ??? 36th year’s 300,000,000 ??? Was useful & then got more than 1,000,000 times better! (Technologist’s) Moore’s Law Data Other “Moore’s Laws” Other technologies improving rapidly – Magnetic disk capacity – DRAM capacity – Fiber-optic network bandwidth Other aspects improving slowly – Delay to memory – Delay to disk – Delay across networks Computer Implementor’s Challenge – Design with dissimilarly expanding resources – To Double computer performance every two years – A.k.a., (Popular) Moore’s Law Computing costs Yesterday Tomorrow 2015 2005 1$ 40$ 400$ 1,000$ 10,000$ 700 MHz in a room 1995 700 MHz in a box 1999 Original by Gordon Bell 1998 Embeddable Wrist watch / wallet Palm top (700MHz) Desktop (3 GHz) Server 0.1$ 4$ 40$ 100$ 1,000$ 700 MHz under the TV 700 MHz in your pocket 2001 2004 2008 ?? Chips ++ Computing….the 5th paradigm Source: Ray Kurzweil Moore’s Law was not the first but the FIFTH paradigm to provide for exponential growth of computing. One runs out of steam....Another picks-up the pace! Historical perspective - Then Egyptian, Greek and Roman… Public works, structures, monuments, temples basic skills and objectives the same plan, organize, brainstorm concepts, calculate precisely, build durable, reliable, aesthetically pleasing, within budget Historical perspective - Now Additional challenges… o mandatory recycling o o o o regulatory agencies certification groups global competition pace of technological change Some questions In what ways did prehistoric engineers overcome limitations of the time to perform the same functions as modern engineers? What were the attributes possessed by early engineers that would help you become a successful engineer today? More questions Which areas of current research do you think are going to have the greatest impact in the next ten years and how will that research affect current problems? Which engineering feat of the 20th century do you feel was the most significant and what were some of the underlying principles that finally made it possible? Engineering – what choices? Electrical Engineering EE’s use science of electricity do solve problems. Power, communications, and circuits are common subarea. Simple circuits of switches• Turning on a light switch • A digital clock Industries that hire EEs – – – – – Power SemiConductor Manufacturers Computer & Device makers Areospace Defense programs Computer Science Design/develop information systems Develop algorithms to solve problems and software and programs to run electronics. Less that half “program” on a regular basis • Industries that hire computer scientists: - IT - Manufacturing - Networking - Business & Financial systems - Defense programs Software Engineering The study of how to Build Large Scale systems Related to CS, but its own subspecality. • Industries that hire computer scientists: -Major contractors (IBM, LM, NG, GE, Boeing) -Major developers -NASA Computer Engineering Aspects of CS and EE, its where the two come together. Firmware, digital designs and embedded devices • Industries that hire Computer Engineers: - Computer related systems (CD-ROMs, GPS, etc.) - Robotics - Virtual reality systems - Embedded device developers (cell phones, cars, etc.) Mechanical Engineering ME’s use the laws of physics for - mechanical design, manufacturing, or energy & power. Industries that hire mechanical engineers: – Automotive – Toys – Manufacturing plants Aerospace Engineering Specialize in design, testing, and production of aircrafts, missiles and spacecrafts. Industries that hire aerospace engineers: – Commercial aviation – Defense programs – Space programs Civil Engineering Design and construct buildings, bridges, tunnels and transportation systems. Work closely with architects and environmental engineers. Industries that hire civil engineers – Departments of transportation – Construction – Manufacturing Chemical Engineering Study chemical synthesis to make new materials, energy systems, and medicines. Industries that hire chemical engineers: – – – – – Energy companies- Oil, Natural Gas, Fuel Cell Food producers Pharmaceuticals Plastics Cosmetics Biomedical Engineering An interdisciplinary field that combines mechanical, electrical, and chemical engineering. Design artificial limbs/organs and medical instruments, new treatments for disease. Industries that hire biomedical engineers: – Medical devices – Assistive devices – Pharmaceutical companies Environmental Engineering Involved with projects that work on keeping the water, air and soil healthy. Industries that hire environmental engineers: – – – – Waste management Irrigation Pollution control Hazardous site management – Water treatment What Does it Take to Become an Engineer? Curiosity Creativity Like to figure things out, solve problems Four year college engineering degree A bit more work than many majors Why be an engineer? Fun – Help people; improve lives – Solve real world problems – Variety of applications, projects – Contribute to society Lots of opportunities – High demand for engineers – Large and small companies, universities, non profits Rewarding Career – Innovative thinking, and you get paid! – Provides a very strong background for other careers How is my life affected by the work of Engineers Its not always so obvious ? Let's take an everyday automobile as an example. Cars clearly have mechanical engineering in them. But Take a minute and try to brainstorm what components of a car have some sort of electrical or computer “engineering”. Entertainment Body Electronics Cellular Phone CD Player AM/FM Radio Tape Player Television CB Radio Airbags Climate Control Security System Keyless Entry Automatic Seatbelts Memory Seat Memory Mirror Vehicle Control Antilock Brakes Traction Control Suspension Power Steering 4 Wheel Steering Power Train Engine Transmission Charging System Cruise Control Cooling Fan Ignition 4 Wheel Drive Instrumentation Analog Dashboard Digital Dashboard Navigation Heads Up Display(HUD) Global Positioning System (GPS) What is Engineering’s future? Education needs for 2020 The National Academy of Engineering (NAE) report Educating the Engineer of 2020 concludes: “If the United States is to maintain its economic leadership and be able to sustain its share of high technology jobs, it must prepare for this wave of change. While there is no consensus at this stage, it is agreed that innovation is the key and engineering is essential to this task; but engineering will only contribute to success if it is able to continue to adapt to new trends and provide education to the next generation of students so as to arm them with the tools needed for the world as it will be, not as it is today.” Innovation importance growing A 2006 survey by the Business Roundtable found: 33% of opinion leaders and 18% of voters said improving U.S. science and technology capabilities to increase U.S. innovation and competitiveness is our country’s single most important objective; 62% of both groups said that addressing this problem is equally important to other challenges such as national security, transportation, health care, energy and the legal system; 76% of opinion leaders and 51% of American voters rank a focus on education as the most important way to solve the problem; But there is a problem Only 5% of the survey parents said they would try to persuade their child toward careers in STEM (Science, Technology, Engineering, and Mathematics), while 65% said they would allow the child to pursue whatever career path he/she prefers and 27% said they would encourage the child to pursue a STEM career but balance it with the child’s preference. In a 2003 national survey commissioned by GE, only 9% of college students polled indicated that they felt the United States is doing enough to foster innovation among young people. Production of Engineers (1999) - National Science Foundation Country BS Engineers Percent of Grads - Eng. China 195,354 44.30% US 60,914 5.08% Russia 82,409 14.85% India 145,000 15.44% Japan 103,440 19.43% South Korea 45,145 22.09% Five years later . . . . China graduated 650,000 engineers in 2005. – 2,000 considered to be “world-class” – The half considered equivalent to average US graduates – Half are engineers in “name” (e.g. auto mechanical engineer) Prediction – Asia will have 90% of all practicing engineers by 2010. - Asia Section, The Economist, 2004, p. 35 Opposite Trend Occurring in US 2004 Reports by ASEE and NAE concluded that: “US engineers lead the world in innovation. This great national resource is at serious risk because America has an engineering deficit.” While U.S. college graduation rates increased by 26% from 1985 to 2000, graduation rates for engineers decreased by 23 percent during the same period. 88% of K-12 teachers believe that engineering is important for understanding the world around us while only 30% of teachers feel that their students could succeed as engineers. Reference: "Engineering in the K-12 Classroom: An Analysis of Current Practices and Guidelines for the Future" (http://www.engineeringk12.org) Undergraduate U.S. Engineering Enrollment by Level and by Year Downward Trend Since 1993 Source: Science & Engineering Indicators – 2002 Downward Trend Since 1983 Graduate Graduate Bachelor Degrees Earned in S&E Fields Source: Science & Engineering Indicators – 2002 The Observational Equivalence of Technological Change and Offshoring Although the US experience of last 55 years is dominated by technological change, not offshoring, they are observationally equivalent. Ingram/Krugman parable tells of US entrepreneur creating consumer goods from wheat and lumber. Moral: same result with technology or offshoring. Robert Feenstra demonstrates that technological change and imported intermediate imports have identical effects in raising labor productivity. From Dwight Jaffee’s talk at Understanding Global Outsourcing, Conf. 2004 Question for you How many thing “outsourcing” is hurting engineering job prospects? Has outsourcing reduced our economy? US Real GDP per Worker Grew 254%: More Goods & Services or Less Employment? 7.0 Real GDP Total Employment 6.5 6.0 5.5 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 2002 Major concern by early 1960s that “automated factories” would create vast production worker unemployment. From Dwight Jaffee’s talk at Understanding Global Outsourcing, Conf. 2004 2003 2000 1998 1996 1994 1992 1990 1988 1986 1984 1982 1980 1978 1976 1974 1972 1970 1968 1966 1964 1962 1960 1958 1956 1954 1952 1950 1948 1.0 Last 55 Years: Stable Unemployment Rate and Rising Labor Force Participation Unemployment Rate (Left Axis) Labor Force Participation Rate (Right Axis) 12 68 11 10 66 9 8 64 7 6 62 5 4 60 3 2 58 1 Displaced workers have left no trace in terms of a rising unemployment rate or a falling labor participation rate. From Dwight Jaffee’s talk at Understanding Global Outsourcing, Conf. 2004 2003 2002 2000 1998 1996 1994 1992 1990 1988 1986 1984 1982 1980 1978 1976 1974 1972 1970 1968 1966 1964 1962 1960 1958 1956 1954 1952 1950 56 1948 0 Service Sector Jobs Lost to Offshoring Bardhan, Jaffee, & Kroll [2003] demonstrate that 6 service jobs were created for every production job lost in US computer manufacturing. But are we now losing these service jobs? Service offshoring uses occupations, not industries. Ex: call center operators, software developers, etc. Core features of jobs “at risk” to offshoring: – Face to face contact not required. – Communication based on telephone or broadband. – Scripted or data related services. From Dwight Jaffee’s talk at Understanding Global Outsourcing, Conf. 2004 No Empirical Effects (so far) on Wages in “At-Risk” Occupations Table 5 Occupations All Occupations At Risk Occupations, Total Business/Finance Support Computer and Mathmatical Graphics/Design/Writing Office Support Medical/Legal/Sales Average Annual Wage, At-Risk and Total Occupations Code 1999 2000 2001 2002 May 2003 31,571 32,890 34,020 35,560 36,210 35,035 37,724 39,162 40,380 41,486 13-xxxx 46,934 50,049 52,559 55,517 57,775 15-xxxx 54,930 58,050 60,350 61,630 63240 17-, 27-xxxx 38,999 40,742 42,023 43,268 43,419 43-xxxx 26,966 28,741 29,791 30,561 30,951 Misc. 27,107 28,319 29,249 30,411 31,211 Wages relative to US All Occupations At Risk Occupations, Total 1.11 1.15 1.15 1.14 1.15 Business/Finance Support 13-xxxx 1.49 1.52 1.54 1.56 1.60 Computer and Mathmatical 15-xxxx 1.74 1.76 1.77 1.73 1.75 Graphics/Design/Writing 17-, 27-xxxx 1.24 1.24 1.24 1.22 1.20 Office Support 43-xxxx 0.85 0.87 0.88 0.86 0.85 Medical/Legal/Sales Misc. 0.86 0.86 0.86 0.86 0.86 Source: Occupation Employment Survey (OES), Bureau of Labor Statistics There is no sign (so far) that offshoring is creating falling wages (either absolute or relative) in “at-risk” occupations From Dwight Jaffee’s talk at Understanding Global Outsourcing, Conf. 2004 2006-16 Workforce Demand: Percentage Increase (Labor Dept.) Network systems & data communications analysts Computer software engineers, applications Computer software engineers, systems software Network & computer systems administrators Database administrators Up 54.6% Computer systems analysts Up 31.4% Up 48.4% Up 43.0% Up 38.4% Up 38.2% 113 Jobs Lost to Technological Change or Offshoring: Conclusions Job losses are essential response to technological change (Schumpeter’s “creative destruction”) and to offshoring (Rodrik’s “no pain, no gain”). US labor markets reveal remarkable flexibility in creating new jobs in response to jobs lost to the forces of technological change and offshoring. Skills upgrading crucial as a long-term strategy; From Dwight Jaffee’s talk at Understanding Global Outsourcing, Conf. 2004 Self-assessments Analyze your own performance and find ways to improve. We will use SII analysis.. – Strength, Improvements, Insights Plus a team assessment with similar analysis but also dividing points. This is NOT shared with your team. Strengths Strengths—identify the ways in which a performance was of high quality and commendable. Each strength statement should address what was valuable in the performance, why this attribute is important, and how to reproduce it. Always find one, and list it first. Improvements Areas for Improvement—identify the changes that can be made in the future, to improve performance. Improvements should recognize the issues that caused any problems and mention how changes could be implemented to resolve these difficulties. Can always define one. Insights Insights—identify new and significant discoveries/ understandings that were gained concerning the performance area;. Insights include why a discovery/new understanding is important or significant and how it can be applied to other situations. Not a required element.