Honoring these amongst us who create financial base jobs – i.e. wealth – needs to be customary working process.
I acknowledge with gratitude those that make the Flying 40 doable:
- Albuquerque Journal Enterprise Outlook
- Metropolis of Albuquerque Financial Growth
- Delta Dental
• Sandia Science & Expertise Park Growth Corp.
• KPMG LLP
• NMA Ventures
• New Mexico Financial institution and Belief
• New Mexico MEP
• True Well being New Mexico
Think about if, as a substitute of a Flying 40 occasion, New Mexico celebrated an annual Flying 400 occasion. Not solely would our financial system now be primarily based on disruptive innovation, however everybody in New Mexico would take pleasure in the next high quality of residing. That’s the dream that impels us to honor and have a good time the Flying 40.
Because the 1950s, New Mexico’s financial base has had however two legs: oil and gasoline, and the federal authorities. None of our efforts to create a 3rd leg – to really diversify our financial system – have been profitable.
A number of initiatives have occurred over the previous 70 years; I cannot belabor these at the moment. Suffice it to say, our search continues.
So how does a state create a various, broad-based financial system? An financial system fueled by financial base jobs?
The reply just isn’t partisan, political or divisive. The reply given some years in the past within the “Rising Above the Gathering Storm” research that was commissioned by the U.S. Home and Senate on a bipartisan foundation (keep in mind that?) was, in a phrase, innovate. And whereas innovation takes many types, a collection of financial research performed through the years has proven that between 50% and 85% of the expansion in U.S. GDP is attributable to developments in science and know-how. This, even supposing lower than 5% of the U.S. workforce consists of scientists and engineers. This implies that every 1% of the workforce engaged in these professions accounts for one thing approaching 15% of the expansion in GDP. A very exceptional multiplier.
We in New Mexico know, as was verified within the U.S. authorities “Gathering Storm” research, science and know-how jobs are the envy of the market place. Within the Sandia Science and Expertise Park, the typical wage is greater than twice the typical New Mexico wage.
New Mexico is maybe the richest of America’s 50 states in science and know-how belongings, as evidenced by Air Power Analysis Laboratory, Los Alamos Nationwide Laboratory, New Mexico State College, New Mexico Institute of Mining and Expertise, Sandia Nationwide Laboratories, College of New Mexico, College of New Mexico Well being Science Middle, White Sands Missile Vary, and Military Analysis Laboratory. New Mexico can also be house to a number of Utilized Expertise facilities created by the state Legislature.
To really diversify our financial system would require a long-term, multi-year, extremely targeted effort. Remodeling science and know-how into financial items just isn’t new; the intensification and complexity of innovation, nonetheless, is. A number of reciprocal relationships amongst institutional sectors – personal, public, and educational – shall be required at completely different factors within the data capitalization course of.
Stated a distinct method, New Mexico should create, promote and mature the capitalization of the innovation and data course of, thereby creating financial base jobs. (An financial base job is one during which the worth of the output is bigger than the worth of the enter and the products produced generate new income.)
This state-managed course of would require a excessive stage of collaboration between the assorted sources of modern science: sustained, long-term, lively collaboration.
Success would require state funding. (No shock – no free lunch.) A state Innovation Fund needs to be created that may put money into the maturation of innovation. The state Innovation Fund would co-invest in/or with personal sector funding funds. A brand new partnership between the legislative, administrative, and the New Mexico State Funding Council would activate the trouble. The administration and the SIC might put aside $100 million because the Innovation Fund and the Legislature might applicable the required funding to handle the method.
Is that this lifelike? Massive structural change is troublesome. Let’s not enable the previous 70 years to dictate our future. No query New Mexico faces many challenges, however high quality job creation is solvable. The fact is we solely need to diversify our financial system as soon as, so let’s agree to start work on the Flying 400.