Analysts: Hawaii needs
to take risks to prosper

New UH business dean concurs

By Susan Kreifels
Star-Bulletin

Reward risk-takers. Encourage new enterprises. And make your state university strong.

That, mainland analysts said at a conference yesterday, is what Hawaii does least. And if the mind-set doesn't change, the islands will never catch up with the "New Economy" that has made other states prosper through innovation and technology.

"Most successful regions have the university to thank," said Randolph Court of the Progressive Policy Institute, a Washington, D.C., think tank that advises public policymakers. "Build an infrastructure for innovation at the university."

The two-day conference, called "Hawaii and Its University System: A New Partnership," includes local educators, legislators and the Western Interstate Commission for Higher Education.

Dennis Jones, president of the National Center for Higher Education Management Systems, said the state must foster risk-taking and new enterprises. "You don't do anything with public funds that has a risk of failure," Jones said. "You spend millions to make sure you don't squander peanuts.

"Folks who try and fail are the ones you have to support."

The profile of the New Economy is: global, risk-taking, based on innovation, technology and knowledge. "The office is the new factory floor," Court said.

In a July Progressive Policy Institute report, Hawaii ranked No. 26 in a survey of all states and how they place in the New Economy. The survey looked at factors such as types of jobs, use of information technology and globalization.

"Hawaii is well-positioned with an educated work force but it has less innovation and entrepreneurial growth," Court said. "Much of the research doesn't immediately transfer to economic growth."

Court said he's spoken with many leaders who "understand the path forward," which is not based on tax incentives and rebates. "It's not hunting and gathering; it's now about gardening and promoting from within, growing the infrastructure."

Jones suggested more public funding be directed to research that can apply to the private sector.

UH President Kenneth Mortimer said the conference messages follow what he has preached for years: You can't fuel the economy without a strong university.

Mortimer told the conference that market forces are reshaping universities that must "be mission-centered, but market-smart."

"Market forces demand greater accountability from institutions and their faculties," he said.