Title: TWIB: Defense industry in New England

" Good afternoon welcome to this week in business -- has the day I'm an ASEAN business reporter Peter out. And apologizing presidency. Of the Greater Boston chamber of commerce Massachusetts has lost more than a 100000 jobs this past year. According to the Fed's latest Beige Book. Improvements and the economy. Are driving some of the early stages of the nation's economic recovery. And -- on the defense industry may play a key role in that recovery with federal contracts pouring billions of dollars into the economy. I keep piece of that is the area of military communications back thousands -- to bust this past week. Work conference on every topic joining us now as the executive director of the defense technology initiative for New -- retired air force brigadeer general Don Quinn bill. Noticed -- also says we can call you Q which is this very often had to stand welcome thank you very much for being with us on any human I love what I am very well let's get it right into it you know one of the reason."

" And we wanted to talk about this was not only the conference but this incredible cluster of industries that doesn't get. Too much attention in terms of its economic impacts. Could you talk for a moment and I know this is New England wide what the economic impact is of this cluster of industries. Well you know the year."

" The one of the reasons why it's so important Ford the defense technology industry to be in this particular areas because the the number of companies and academic institutions and so. But that brings real dollars to our economy. And and recently. Actually in 2007. The mass development -- corporation. Commissioned the UMass Donahue institute to do a study. Good look at fiscal year 2005 and says gee how much is this impact on the Massachusetts economy. And had total both direct and indirect spending is fourteen billion dollars. And so when you think about our economy in some of the struggles that we had you can see the potential impact. Of capitalizing on very very significant in that I believe that same study took a look at the number of jobs direct and indirect that are related. And that's true and as direct and indirect including military personnel retirees in the -- is 115000. People so if you look at our. In our workforce which is right around three million. Or so you know you're talking about one and thirty people are. Are in the defense industry or related to it so."

" To say that number remember about one dollar to out of every twenty coming into the economy from defense here you know -- half percent. So -- free to talk little about what do you do we can we count at that defense technology initiative what -- what are you trying to make happen."

" Well one of the reasons that defense technology initiative actually came to be was because of that. Evil four letter word in defense business called Brack base realignment and closure -- In 2003. The state was looking ahead at the the -- visit for 2000 violence and how we gonna protect. The two of -- key. Locations and that's the Natick soldier system center and the electronic systems on our hands to air force base. Both significant. Let economic drivers. And so they looked -- at. To the mass high technology council. And asked them to go ahead and formulate an organization it was called the -- defense technology initiative to kind of spearhead. The State's effort to ensure that when Brack was over with that we've maintained. The majority of our military presence and result of that process for our viewers I mean it's it's the base closing commission. It's congress' way to try to get out of the way and not let political considerations. Of -- that -- the end result of that whole process. Well actually we did pretty well although there was a bit of sadness for me because. For many years I was at Otis Air National Guard base. Now flying fighters down there and in fact -- there is the commander. And and while I was in Canada on my last military assignment that if they actually lost their plans the airplanes moved to the western part of the state. And the eight tenths from Westfield went away so you know that was a little bit of bittersweet but in terms of -- there's two key areas that we are focused on. For -- DTI. And that's Natick enhance them they have these largely stayed untouched it was a minor piece that enhanced -- the air force research lab. Is gonna relocate some of their personnel. Out to Ohio on all sorts of New Mexico but by and large remained unchanged and and one of the reasons that it was so. Successful I think is because they went to the department of defense and said this is not about. You know war was us we need to go and -- economy but more importantly it was to say. -- Department of Defense cannot afford not to be in this area here because of the the synergies with. High technology. Industry and academic institutions right polish great on strengths weaknesses opportunities threats which are realistic can't make you -- in ninety seconds but it you know hit it about sort of threats to. To this cluster in this area answer what we can be thinking about to strengthen it further. Well I think that one of the big areas that we have difficulty in right now on this is across all of technology and that's to ensure that our pipeline of future engineers and scientists and technicians. Remains. You know robust. Because as we build ourselves not only in Massachusetts but across New England about how important it is for DOD to be here we need to be able to live up to that promise. By having enough of those types of individuals and so stand as -- known science technology engineering and math initiatives abound in this state. And in the other states -- And so one of the difficulties of course is to ensure that we have that. And added. Difficulty for the defense business that makes that need even more acute. Is affected you also need a security clearance if you're gonna work on classified projects and so as a result. We feel this thing. This initiative really needs it to gain some strength so that we can get our homegrown engineers and scientists. To ensure that we have that. You know them on break. And I would ask -- about -- what the tech sector generally and you know observed in -- we certainly think a lot about Silicon Valley Research Triangle to some extent Northern Virginia. Are there other parts of the country that you think are gonna potentially positioned themselves to take away some of what we've got here. Well I you know one of the areas and and in doing some work with with Hanson in the in the cyber business. There in the acquisition arm for the Air Force's cyber initiatives. It turns out that Texas is a very big player in in the IT. San Antonio Austin area is very very big in terms of information technology so in addition to. You know to places like Silicon Valley which naturally come to mind that's another area that is very big player in this. And could potentially. Draw some some business away from its."

" That this whole area of focus on stem education. His becoming very very important -- know bill Swanson from Raytheon is a champion. What have been the results to date I mean at the end of the day. It's about results it's about. A better equipped workforce do you see any real results coming from these efforts. You know --"

" It's a long term investment needs being made it really if you want to go ahead and be successful. And in wooing. Our youngsters into into the sciences and technologies you really have to start middle schoolers. And so people are recognizing that an hour working starting in that level so. You can you can see that getting immediate results from some of these initiatives. Are not going to be apparent right off the bat. I think one of the big areas of course in the current state that we need to do is to try and draw. Those types of folks. To this area. Or for the wants to come to school here trying keep. Give them a reason to stay in New England."

" But what's interesting the other end of the spectrum earlier this week Susan hot field the president and Mikey did an Op Ed in the journal. And one of the things she talked about was attracting. International students or colleges and universities. Particularly the graduate level and keeping them here and not having immigration policies that discourage. I don't know how much you've gotten into that it somewhat controversial but. Fundamentally important for the region."

" What you know I think that that is is another aspect of this but if your -- my statement a few moments ago. We need to get people in the defense technology business thinking get a security clearance and not all those folks. By virtue where they were born. Can qualify for security clearance so our main effort is trying to people who who do qualify for security clearances."

" At the Telecom conference Michael Chertoff of former Homeland Security. Chief had a greater -- that you know probably for the next century old idea -- have military fighting military. That probably goes away and a lot of our enemies are you know kind of terrorist organizations across involved in crime and that's spanning the spectrum activities I -- what you thought of that and what you think it implies for. How we train and equip our military."

" Well the the big thing in the military these days is called interoperability and connectivity and so there's so much information flow that comes. Whether it's from satellites or ground sensors or whatever it needs to travel through cyberspace. That is vitally important that that. Not only can get the signal through but what we call information assurances to ensure that. That information is correct. And so when he talks about he talks about players used to be if you're gonna compete on the on the world scale in the defense business need to have a lot of military hardware. Now I can just -- the bank of computers. Some smart people. Who don't necessarily share our values and they can go ahead and into Iraq. And and intercept our signals and change some of those signals and perhaps a devastating effects across the world. General Hume leader of the New England defense technology initiative thanks for joining us. My pleasure thank you have much inspiration for the -- my character and it's gonna come out of."