Arizona’s three public universities made a promise to citizens a year ago to raise the state’s competitive standing and per capita income through an ambitious initiative called the “New Economy Initiative: Enhancing Arizona’s Competitiveness.”

Though Arizona has seen incredible population growth and industry growth in certain sectors, the state lags behind the nation when it comes to personal income and discretionary spending, said Michael Crow, president of the state’s largest university, Arizona State University (ASU).

“Arizona is seeing economic growth, does have a stable economy, is attracting a lot of things to the state,” Crow said during Morning Scoop with the Arizona Capitol Times last week. “But on a per capita basis we’re creating mostly low wage jobs and they are difficult to build economic wealth around.” 

ASU sponsored the virtual event to speak with the business community audience about the technology-centered initiative and what’s ahead. The three main objectives are to: 

• Create a skilled workforce that stays in Arizona
• Attract major research funding to bring new industry here
• Close achievement gaps to better prepare Arizona students for higher skilled, technology-based jobs 

Arizona lags behind states like Texas, Colorado, Utah and Washington

The ultimate goal is to position Arizona alongside western states like Texas, Colorado, Utah and Washington that have made vast investments in the new technology-based economy. 

In turn, they have benefited “thousandfold,” Crow said. They are all outperforming Arizona and the nation in per capita income and GDP. 

Colorado, for instance, has a 25 percent higher per capita income. That generates more revenue for the state to invest in things like low-income communities and public infrastructure. 

Texas, which does not have a state income tax, has invested billions of dollars in education, research and infrastructure to . Today, it is one of the most competitive states in the U.S, Crow said. It’s $1.6 trillion economy is roughly the same size as the economy of Russia. 

Expanding ASU engineering school into leading talent powerhouse 

Crow detailed some of the efforts ASU is engaging in to achieve the initiative’s goal to create workforce pipelines for fast growing sectors like advanced manufacturing, information technology, health care, business services, and energy that are education-intensive and demand both knowledge-based and applied skills.

To that end, ASU is embarking on a major expansion of its nationally renowned . The expansion includes the construction of five Science and Technology Centers (STC) that will bring together faculty and industry leaders to identify specific workforce needs, develop training programs and create long-term partnerships. They will also be research hubs for industry to work with faculty and students to grow ideas from bench to market.

“We’re already seeing companies coming, staying, being built here and born here,” Crow said. “What we want to do is accelerate that around these specific areas with a focus on engineering.” 

Each will focus on a different industry:

Energy and Materials STC will be a national research resource for advancing new energy materials and device technologies to market, growing industry engagement and workforce training.

Human Performance STC will capitalize on regional strength and technology opportunities to enhance physical and cognitive performance, medical prevention and intervention and drive research from discovery to marketplace.

Extreme Environments STC will focus on management and technology opportunities associated with growing population centers; research outcomes to engineer resiliency into the energy, water, materials and transportation systems in the built environment of future cities and regions.

Advanced Manufacturing STC for the development of new technologies aimed at transforming manufacturing through 3D printing, robotics and automation, and new materials with strong links to private industry support in aerospace, defense and space systems.

Future Communication Technologies STC will drive ASU and the region to the forefront of physical information systems as the “internet of things” continues to develop, and as users increasingly desire greater access, information, reliability, and communications diversity. 

These centers will add to Arizona’s existing two applied research centers focused on industry-led research — one for WearTech, the other for Blockchain. 

This expansion will position Phoenix and Arizona as one of the leading global engineering centers in the world, Crow said.

Universities requesting $165 million with emphasis on workforce development 

The Arizona Board of Regents (ABOR), is asking the state Legislature to commit $165 million for the initiative. About $65 million would be for hiring and training more teachers, increasing student enrollment, expanding programs and degrees in different regions, and attracting more research funding. 

The bulk of the money — $100 million — would be for workforce development. Of that, $46 million would be “seed money” for the of the Ira A. Fulton engineering schools. Private investment would pay for the rest. 

The addition of the five new Science and Technology Centers are projected to attract more than 250 new industrial partners and empower global projection capabilities to drive engineering linkages around the world.

“It’s a catalyst investment. It’s a small investment in the overall scheme of things,” said Crow, who’s entrepreneurial approach brought in $671 million in research dollars to the university in 2019.  

The University of Arizona and Northern Arizona University will similarly leverage the New Economy initiative to expand and enhance areas of expertise at those schools to produce graduates in areas of high demand. NAU will place special focus on the healthcare field and bolstering the state’s talent pipeline, while UArizona will focus on space and defense, health sciences and mining.

Widespread support from business, economic development groups 

There is widespread support for the initiative from economic development and business groups including the Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry, the Greater Phoenix Economic Council, and the East Valley Partnership as well as Governor Doug Ducey and other state leaders.

Arizona Â鶹´«Ă˝Ół»­ President and CEO Glenn Hamer praised the universities for their futuristic vision in creating a sound business plan for the state.

“There’s a lot of uncertainty in today’s world. What is certain is that if we get The New Economy Initiative funded, Arizona’s GDP will increase considerably over what would be the case if this initiative did not exist,” Hamer said. “We know education attainment is directly tied to a state’s economic health and we would strongly urge our Legislature to seriously consider this initiative.” 

Read more about the initiative at:

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At the end of each year, Arizona Â鶹´«Ă˝Ół»­ of Commerce & Industry President and CEO Glenn Hamer hands out his Ham(m)er Awards to recognize the people and groups who contributed in a big way to the year that was. This year’s edition looks back on a year that was unlike any other.

Hit by a once-in-a-century pandemic that created an instant economic worldwide collapse, and soon after racial unrest triggered by the tragic murder of George Floyd, it’s fair to say that 2020 has been a tough year. We’ve lost more than one out of every one thousand Americans to the virus, we’re still down more than 10 million jobs and there’s continued social unease. 

But these difficulties brought out the best in many of us and that’s the focus of this year’s Hammers.

The public health heroes

Let’s start with the obvious. No group is more deserving of recognition than the frontline healthcare workers who have worked nonstop despite near-constant personal danger to keep us well and to educate us on what we should do to keep well. Our hospitals, including Banner, Honor Health, Dignity (CommonSpirit Health), Mayo and others have been working overtime on top of overtime. 

I want to especially call out Dr. Cara Christ for leading Arizona’s response. If you want the definition of an impossible and thankless job, it’s leading a state health agency during a pandemic.

A Hammer Award also goes to Dr. Amish Shah, an E.R. doc who is also a state representative. His blog posts early in the pandemic provided crucial information to the general public.

State Rep. Lorenzo Sierra deserves a Hammer for his deeply personal account of his harrowing battle with Covid that he shared in USA Today and with media outlets across the country.

Our universities stepped up massively. Led by Dr. Michael Crow, Arizona State University developed an easy and effective  for Covid that was a welcome alternative for those who don’t like something stuck up their nose. Dr. Bobby Robbins, a distinguished medical doctor, developed several efforts to assist in the pandemic, including a huge  to store vaccines. NAU stepped up under the direction of Dr. Rita Cheng as well, lending needed  in the development of vaccines. 

Testing. Testing. Testing. Kudos and a Hammer to Dave Dexter and Sonora Quest for rapidly developing the leading  for Arizonans. Testing remains critical to controlling the spread and we’re fortunate to have a major testing lab based in Arizona. 

Speaking of testing, A.P. Powell deserves a Hammer for setting up testing sites in underserved communities. A.P. also used his Bridge Forum to promote much needed dialogue between neighborhood leaders and senior law enforcement leadership. 

Our friends at Vitalant deserve a Hammer for their continuous efforts to encourage blood and plasma donations. Vitalant’s work is always essential, but in 2020 it was absolutely critical to help the scientific community learn more about Covid antibodies and convalescent plasma. Plus, they’ve ensured that blood donations can continue safely.

Frontline workers. The men and women who work in our grocery stores, serve our coffee and keep America running deserve our deepest thanks…and more. Many months ago, Peggy Noonan wrote that those who are undocumented who are keeping the gears of the American economy turning should be put on a track to citizenship. I agree. 

Over the air

Arizona’s media outlets have been essential partners in getting information out to the public throughout the pandemic.

Day in and day out, KTAR’s Jim Cross has been a go-to source for useful news about the pandemic’s impact on the state and national economies. The consummate workhorse, Jim was deservedly part of the . In addition to joining the Hall of Fame, he deserves a Hammer. I’ll let him decide which is the more flattering honor. 

ABC 15’s Garrett Archer, the Data Guru, boils down the flood of data from the state Department of Health Services into easy-to-follow daily digests. He points out positive and negative trends, avoids alarmist reporting, but also gives this crisis we’re living through the seriousness it deserves. He’s also relied on his years of experience as a congressional aide, campaign hand, and Secretary of State’s Office staffer to help us understand all there is to know about ballot counting. 

It’s also worth noting that AzDHS has done yeoman’s work in providing the public a wealth of information. I’m looking forward to seeing a daily tracker in 2021 on the number of vaccinations given across the state.

Crisis response

The Paycheck Protection Program is the most successful small business program ever developed or administered in the history of the country. The relatively smooth administration happened because multiple parties in Arizona stepped up in a major way. 

A Hammer Award goes to Paul Hickman, the head of the Arizona Bankers Association, for leading the charge. His organization was in regular contact with Capitol Hill and his member institutions were essential in getting the funds flowing to small businesses that desperately needed the help.

A Hammer also goes to David Adame of Chicanos Por La Causa for helping to save thousands of jobs through Prestamos, a Community Development Financial Institution, which issues microloans to struggling small businesses in underserved communities.

More than 80,000 Arizona companies secured over $8.5 billion in largely forgivable loans. A new round is on its way. I want to thank the U.S. Â鶹´«Ă˝Ół»­ of Commerce for the fantastic materials it distributed on PPP and other relief for businesses that have now been downloaded a billion times. 

A Hammer goes to Sandra Watson and her entire team at the Arizona Commerce Authority for putting together comprehensive programming for small businesses on how to navigate the pandemic. I believe that Sandra is the best economic development professional in America. The proof? During a pandemic it was announced that  would come to Arizona. This news would be eclipsed in the evening of the same day when it was announced that  would invest more than $12 billion and bring nearly 2,000 jobs to Arizona, the biggest deal in our state’s history. 

Sandra was charged with leading the Arizona Together fund, the business community’s response to the pandemic. This fund chaired by Eileen Klein has distributed millions of dollars in aid. Many donors deserve credit. Special recognition goes to Catherine Ivy of the Ben and Catherine Ivy Foundation for her generous $5 million donation and to Michael Bidwill for being the first to contribute seven figures. 

Speaking of the economy, a Hammer goes to Jim Rounds and the crew at Rounds Consulting Group for their outstanding work to help industries of all types not only understand the impact the pandemic has had on the Arizona economy, but also what policymakers can do to help Arizona recover in a position of strength.

A Hammer goes to Sen. Kyrsten Sinema for hosting weekly conference calls with the business community during the early stages of the pandemic. These practical calls helped to ensure that Arizona businesses were well represented in Washington when it came to Covid relief. She delivered. 

Kim Sabow and the Arizona Lodging and Tourism Association deserve a Hammer Award for rolling out the best safety program on the market. The AZSAFE + CLEAN hotel certification program is the model that can be used for other industries. Kim’s industry was hit first and worst, so credit to her for leading her industry through the most difficult period ever.

Globalization is good. A Hammer goes to Pfizer (U.S.) and BioNTech (Germany) for developing the world’s first widely distributed vaccine. Clocking in at 95% effectiveness using mRNA technology, the vaccine provides hope that other illnesses (cancer) will ultimately benefit. The key is to get as many people as possible vaccinated and as quickly as possible. The U.S. is leading the world in doses administered, with Israel leading on a per capita basis. The Trump administration deserves tremendous credit for developing Operation Warp Speed. Many experts said a speedy, safe vaccine was not possible. They were wrong. To have multiple vaccines at around 95% efficacy hit the market in less than one year is the accomplishment of this century. 

Speaking of private sector contributors stepping up to meet a global need, Honeywelldeserves a Hammer Award for its lightning-fast turnaround of its Arizona production lines to crank out millions of N95 masks. The effort was so impressive that it earned a factory visit from President Trump. Honeywell’s work in 2020 wasn’t a nice-to-have, it was must-have, and it was an inspiring display of American ingenuity and invention. 

The Hammer Award for Model Bipartisanship goes to Gov. Doug Ducey and State Superintendent Kathy Hoffman for joining together to provide smart, healthy and at times politically courageous guidance to keep our K-12 system running. Our teachers and school staff members all deserve big thanks for ensuring our kids have a safe place to go during this most disruptive period.

There’s no I in team

I’m very fortunate to have served under excellent board chairs throughout my tenure at the Â鶹´«Ă˝Ół»­, and this year was no exception.

We started out 2020 with Susan Anable at the helm, who was completing her second year with the gavel, which itself was unusual because our chairs usually rotate every year. But Susan didn’t bat an eye when the board asked her to take on a second year. No one knew then that the business community would be entering its most challenging year ever, but Susan took on the challenge with her usual aplomb and helped shift the Â鶹´«Ă˝Ół»­ into crisis response. I should also recognize her company, Cox, which has proven to be an indispensable partner in helping thousands of Arizona kids learn remotely and folks like me work from home.

In June, we welcomed Dawn Grove as our board chair. Dawn’s a longtime Â鶹´«Ă˝Ół»­ member and is recognized nationally and globally as a leader in manufacturing policy with a razor-sharp legal mind. An executive with Karsten Manufacturing, the parent company of PING, few have Dawn’s insight into what makes Arizona’s manufacturing environment one of the country’s most competitive. The fact that Arizona now has more manufacturing jobs than construction jobs is in no small part thanks to Dawn’s contributions over the years. As we turn our attention to the great Arizona economic recovery of 2021, the Â鶹´«Ă˝Ół»­ board couldn’t ask for a better business leader. 

Finally, a Hammer Award to each team member at the Â鶹´«Ă˝Ół»­, Â鶹´«Ă˝Ół»­ Foundation and Arizona Manufacturers Council. Our last regular day in the office was in mid-March. They didn’t miss a beat. The team assembled regular virtual meetings with our colleagues across the business community; presented dozens of webinars for small businesses to access relief funds; shifted each of our regularly scheduled events online; coordinated dozens of video calls for our members with leaders in government, business and academia; launched a  with the Arizona Medical Association to help businesses keep their employees and customers safe and healthy; issued  on big issues; and even cranked out a regular YouTube show on news of the day (that sometimes as many as dozens enjoy!). To top it all off, they kept me and my schedule in one piece as I shifted to mostly working from home.

I would not want to repeat 2020, but I’m thankful for my colleagues at the Â鶹´«Ă˝Ół»­ who made lemonade out of a year full of lemons.

We’re in the final months of what has been a lethal pandemic. There is light at the end of the tunnel. Please be safe and get the vaccine as soon as it’s your turn. 2020 has been tough. There’s potential for 2021 to be the year we vanquish Covid-19 and begin a new and robust expansion. Let’s make it happen.

Glenn Hamer is president and CEO of the Arizona Â鶹´«Ă˝Ół»­ of Commerce and Industry. 

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From open spaces to open minds, Arizona has the “highest potential” of any state in the nation to successfully move into the new economy, said Arizona State University (ASU) president and innovation trailblazer Michael Crow. The university’s “enterprise” model will help lead the way.

“The potential index for Arizona is off the charts. Off the charts. You can still build here and build well. You can design communities here. You can do new things here, and ASU is really representative of that,” said Crow, who spoke last week at a virtual breakfast meeting of the nonprofit , the voice of the real estate in the Phoenix metro region. “We have all the pieces. We have all the components. We still have small government. We still have a willingness to accept new ideas.” 

About 150 real estate professionals and business and community leaders attended the event to hear Crow speak. He talked about what is needed to take Arizona’s economy to the next level, ASU’s response to COVID-19, and the school’s transformation into a leading global institution that has amassed vast real estate holdings and leases to attract tenants, corporate partners and startups.

Today, the university relies little on public funding, bringing in hundreds of millions of dollars each year from corporations, donors and organizations, and tuition from students worldwide.

ASU now exceeds top research institutions 

Since becoming president in 2002, Crow’s vision and hard driving personality have positioned ASU as one of the top research universities in the country. 

The university has been named the most innovative university in America by U.S. News and World Report every year since the category was created six years ago.

ASU now rivals and exceeds institutions like Cambridge, MIT, Oxford, Stanford, UCLA and USC for research in both medical and non-medical innovation, Crow said. 

COVID-19 leader in testing, research 

ASU took a leading role when news surfaced in December that a new virus had surfaced in China. 

Since then, more than 200 COVID-19-related research groups have been created at ASU. Among its successes is one of the fastest saliva-based PCR (polymerase chain reaction) tests for COVID.

In April, an ASU research team expects to complete a new microchip fluidity device that will allow anyone to spit into a microchip containing an internal “laboratory” that can produce a quick result and send an alert to an individual’s phone. 

As the world rushes to create a vaccine for the coronavirus, ASU will continue to develop new tools to protect lives in the coming years and build profit-making enterprises around it, he said.

Building recovery in fiercely competitive world 

Moving forward, Arizona’s number one challenge will be how to build an economy that grows faster than population growth. With per capita growth on the decline in recent years, this will be critical to its global standing, Crow said.

“Arizona’s new economy is going to require us to leapfrog into an understanding that the world has become ever more competitive,” he said. “In Singapore, in Korea, in Europe, in Indonesia, in China and other places, are rising competitors, and significant competitors, on every possible level.”

If Arizona and the nation do not stay in front of the pack, they will be overwhelmed by the scale of all the other competitors, he said.

“So the only way to be successful is to always be in the lead, to always be in front, to always be the most innovative, always to be the most creative.” 

Knowledge-driven enterprises will lead the way    

Knowledge-driven enterprises with more technological underpinnings are necessary to push the economy higher here, Crow said.

Towards that end, ASU has been undergoing massive of its research, teaching and real estate operations to advance industry and high paying jobs, create tens of thousands of jobs over the next two decades, and to attract new students from around the globe.   

Expansion of 10 innovation corridors in Phoenix metro

Among its many projects, the university is expanding its global presence including building a new headquarters in Los Angeles and satellite campuses across the world to attract new investment and students. 

In Arizona, the university is building and expanding a host of facilities and projects including in its 10 “innovation corridors” including:

Health Futures Center ASU and Mayo Clinic are building a 150,000-square-foot building next to Mayo Clinic in North Phoenix that will feature a MedTech Accelerator, biomedical engineering and informatics research labs, nursing programs and an innovative education zone. Through the project, Phoenix expects to see $3.5 billion in capital investment over the next two years, an additional 4.4 million square feet of advanced facilities, creating more than 7,000 jobs. 

Entrepreneurship Residence Center This will be the first new residential space on the ASU Downtown Phoenix campus since 2008. It will house more than 1,200 students including 500 student entrepreneurs who will be launching their own companies. It is set to open next year. 

Mesa City Center Also under construction, this state-of-the-art project will jump-start the revitalization of downtown Mesa and train students in one of the biggest industries in the U.S.:  media production. Set to open in spring 2022, it will offer programs in the Herberger Institute for Design and the Arts in digital and sensory technology, experiential design, gaming, media arts, film production, and entrepreneurial development and support.

Polytechnic Research Park This facility near Phoenix-Gateway Airport and ASU’s Polytechnic campus in Mesa will specialize in hands-on exploration of solutions in aviation, alternate energy, human-technology integration, comprehensive commercial printing and design services, and on-demand digital manufacturing.

Phoenix Biomedical Campus A new biomedical campus is underway that is part of a development in downtown Phoenix that is owned by a public-private partnership that includes Phoenix, ASU, Wexford and Ventas. The Wexford Innovation Center is part of the $1.5 billion research and innovation pipeline with Ventas. Ventas is investing $800 million in four university-related developments totaling more than 1.3 million square feet. Upon completion, the campus will include seven buildings totaling more than 6 million square feet of research, academic and clinical facilities.

Novus Innovation Corridor This public/private partnership between the ASU and Catellus Development Corporation is under construction adjacent to the Tempe campus and has been dubbed the nation’s “most progressive,” urban, mixed-use developments for introducing leading-edge technologies into an urban landscape. Built in phases, it will house more than 11 million square feet of offices, residences, hotels, retail stores and restaurants throughout 355 acres.

A successful diverse student population is a must

In addition to research, ASU has not forgotten its mission as a public teaching institution, Crow said. Data backs that up.  

For example, the  engineering class went from 6,000 students with low retention rates their freshman year to 25,000 engineering students with a 90 percent retention rate today. This year, ASU is graduating four times more students than it did in 2002.

While geniuses are essential to any research university, ASU is focused on reaching down into high schools to make sure not only A and B students make it to college but lower performers as well. Recruiting in-state students, particularly Latinos, has been a major effort that has paid off. 

“For the first time in the history of the institution, the student body is completely representative of the population of the state, economically and ethnically,” Crow said. 

Continuing that trend will be key to raising per capita income and building the economy, he said.

“We don’t want to build an economy that’s growing at 1 percent or 2 percent or 3 percent a year. We want an economy that’s growing at 4, 5 and 6 percent every year.” 

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