FOR IMMEDIATE RELEASE CONTACT: Eduardo Martinez

August 7, 2008 (916) 319-2044

Senate Committee moves Legislation to Modernize California Economic Strategy for the

21st Century

Assembly Bill would update the duties of Economic Strategy Panel to seek a global competitiveness focus

Sacramento, CA ñ AB 1916, the California Innovation, Technology, and Science Policy Act authored by

Assemblymember Anthony Portantino (D-La CaÒada Flintridge), was approved by the Senate Appropriations

Committee. If approved by the Legislature and signed into law, AB 1916 would require California to update its

technology and innovation strategy to guide priorities for state activities and funding.

ìCalifornia could lose its global role in the design and manufacture of technologies without implementing its own,

proactive, aggressive, and comprehensive strategy for supporting California's technology-based industries,î said

Portantino. ìThis bill would keep Californiaís regional economies vibrant by identifying opportunities and

challenges in attracting investment for emerging domestic markets, using models and strategies that encourage

partnerships with public, academic, and private entities.î

In a letter of support to Assemblymember Portantino, Dr. John Kao, leading expert on innovation and bestselling

author of Innovation Nation: How America is Losing Its Innovation Edge, Why it Matters, and What We Can do

to Get it Back, said that ìthe historical success of California has been based on its ability to support innovators in

a wide range of fieldsÖ[however,] the global game board for innovation is transforming by the day. [AB 1916 is

needed because] few agendas could be more important for the future of California than pursing a clear,

comprehensive, intentional and smart strategy for innovation.î

California is the eighth largest economy in the world, with a gross state product of over $1.7 trillion. In general,

California is well positioned to take advantage of new technologies and innovations; however, other states and

even foreign countries are also vying for domination of current and emerging technology industry sectors.

According to a committee analysis of the bill, Connecticut, Massachusetts, Texas, New Mexico, New York, New

Jersey, Florida, and Pennsylvania all have proactive economic policies. Europe and Asia are also successfully

building technology clusters, as Germany and Japan have already usurped California's once leading position in solar

and wind energy through targeted policies and initiatives.

To address this problem, AB 1916 provides a comprehensive and cost-effective approach to enhancing the state's

comparative advantage relative to innovation and technology. The goal of the statewide strategy update,

developed by the California Economic Strategy Panel, is to maximize the state's comparative advantage to other

states and nations for research, finance, development, manufacturing, instillation, and maintenance of high

technology products. AB 1916 requires the panel to include an examination of the stateís economic region,

industry clusters, and cross-regional economic issues.

AB 1916 is jointly authored by Assemblymembers Portantino, Arambula, Caballero, Price, and Salas and co-

authored by Senator Negrete-McLeod. In light of Californiaís state budget shortfall, this measure uses federal and

private funds to develop the strategic plan and its updates. The bill must now be approved by the full Senate and

Assembly before moving to the Governor for his consideration.

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