Thank you for that very kind introduction. To Ron Kitchens and all the members of Southwest Michigan First, I applaud your commitment and unfailing leadership in developing and building stronger communities in Southwest Michigan.
I'm pleased that Congressman Upton invited me to join him this evening. I know Congressman Upton feels very strongly about economic development in this region, and that is why we are both here this evening to honor these two companies. Congressman Upton has shown his commitment to economic development by securing funding for critical infrastructure such as the widening of I-94 and the Kalamazoo/Battle Creek International Airport.
Borroughs Corporation and Bridge Organics are being recognized here tonight because they are creating jobs and opportunity in this region. It's the private sector that generates wealth. The federal government does not create wealth, it can only redistribute it. What the government can do is create the right enabling conditions to allow the private sector to do what it does best generate jobs, growth and prosperity.
Economy It's worthwhile to consider the national context in which you are working and remind ourselves of what we have achieved as a nation in the past few years: As has been mentioned, I previously served as the head of the Economic Development Administration. In that capacity, I visited many regions facing difficult times. There have been tough challenges on the economic front here in Michigan and significant job loss in the state, but I believe the future is very bright for this region. Let me explain why. US economic history is driven by innovation, adaptation, and rising to every challenge.
Second, market-based economies are the most resilient ever devised by man.
Third, US workers are the most productive in the world. As long as we continue to focus on enhancing our innovative capacity, pursue sound economic policies at the national, state, and local levels, and provide world-class education and training opportunities for our workforce, this region will weather the current storms and create new opportunity for this country.
I've seen it happen first-hand in other regions in this country. In the past several weeks, I have visited two sites, one in North Carolina, and one in New Hampshire, that were recipients of grants from EDA.
There is no "golden economy" that can be frozen in time. Economies must grow, adapt and innovate to stay competitive in the marketplace. In economic terms, trying to preserve the status quo is a recipe for stagnation. Bringing together an entire region to develop a long term economic strategy, as opposed to just one city or county, is a very effective way to encourage strong and stable growth. I believe you already have that group in Southwest Michigan First.
A strong, committed regional growth plan, as long as it builds on market strengths, will ensure that you will be honoring companies like Borroughs and Bridge Organics as "catalysts" of economic growth for many years to come.
Tax Relief To further foster pro-growth conditions at the national level, President Bush's tax cuts have put more dollars into your pockets, letting citizens and entrepreneurs choose how to spend, save, and invest their hard-earned money.
Many other pieces are already in place for creating long-term prosperity for this region. I am very impressed by the "The Kalamazoo Promise." This commitment to education will not only draw and keep families in the area, it will help generate a highly educated workforce for places like Borroughs and Bridge Organics to keep the region on the cutting-edge of innovation and competition. I believe that, as long as we continue to build new rungs on the top of the economic and innovation ladder, there is no reason we should be worried about other economies around the world. And investing in the education of the next generation of scientists and engineers is an essential component of our future innovative capacity.
IPR One last thing I want to discuss is intellectual property theft and counterfeiting. In 1943, Winston Churchill delivered a speech at Harvard. In what I believe to be an incredibly prescient statement, he said, "The empires of the future are the empires of the mind." Today, 75 percent of the value of publicly-traded US companies is tied up in intangible assets, namely ideas and innovation. That's up from 40 percent in the 1980s.
IPR thieves cost American companies an estimated $250 billion each year in lost revenue on top of hundreds of thousands of lost jobs.
Often, when IPR theft is mentioned, people think of CDs and DVDs, and it is important to protect those, but we are seeing increasing amounts of counterfeit goods showing up in the supply chains of pharmaceuticals and manufactured goods such as car and airplane parts.
Even in places like Kalamazoo with much of the economy invested in auto parts and pharmaceuticals, the economic losses pale in comparison to the potential health and safety hazards posed by pirated goods in these industries. Obviously, the risk of counterfeit car and airplane parts has grave safety implications, but also consider the potentially harmful effects in pharmaceutical products.
I have seen reports that as much as 10 percent of the drugs currently on the world market contain counterfeit materials. This could mean the drug contains the wrong active ingredient, no active ingredient, or worse, a toxic active ingredient.
At the Department of Commerce, IPR protection is one of our top priorities, and we are placing IPR attachés in our embassies in countries where the most egregious violations take place, like China and Russia.
I was trained as a historian, and I believe that, looking at our past, there is every reason to be optimistic about our future. The challenges in front of us are tremendous opportunities to make this a stronger country, a safer country, a more prosperous country.
President Bush has read the compass and set a clear direction with his leadership and pro-growth economic policies.
But our work isn't finished.
Your leadership and dedication to this region show commitment to being part of the solution to the challenges we face. It is a pleasure to be here and I thank you again for inviting me to this evening with you.
Source: U.S. Department of Commerce
