new ideas and products has become ever more difficult because of the rapid international diffusion of technology. nonetheless, to date, we have not fallen behind in converting scientific and technological breakthroughs into viable commercial products. but, to be fully effective in realizing the gains from technological advance will require a considerable amount of human investment on the part of managers and workers who have to implement new processes and who must be prepared to adapt, over their lifetimes, to the ongoing change that innovations bring. clearly our educational institutions will continue to play an important role in preparing workers. while we all are concerned about the performance of american elementary and secondary schools compared with those in other developed countries, there is little question about the quality of our university system, which for decades has attracted growing numbers of students from abroad. however, the notion that formal degree programs at any level can be crafted to fully support the requirements of one ’ s lifework is being challenged. a great deal of innovation and development has been occurring in the business sector where firms are striving to stay on the cutting edge, in an environment where products and knowledge rapidly become obsolete. education, as a result, is increasingly becoming a lifelong activity ; businesses are now looking for employees who are prepared to continue learning, and workers and managers in many kinds of pursuits had better look forward to persistent hard work acquiring and maintaining the skills needed to cope with a dynamically evolving economy. the recognition that more productive workers and learning go hand - in - hand is becoming ever more visible in both schools and in the workplace. linkages between business and education should be encouraged at all levels of our education system. your business school is an excellent example of how our educational institutions are building bridges to the private sector that will have payoffs in how well graduates are prepared to meet the challenges of an increasingly knowledge - based global economy. the growth of high - tech industry here in the research triangle, as well as in silicon valley and boston - - all areas rich in educational and research institutions - - is no accident. in the private sector, a number of major corporations have invested in their own internal training centers - - so - called corporate universities. some labor unions have done the same. more broadly, recent surveys by the bureau of labor statistics indicate that the provision of formal education on the job has risen markedly in recent years. by 1995, 70 percent of workers in establishments with 50 or more employees had received some formal training during the twelve months preceding the survey. the incidence of training was relatively

high across age groups and educational attainment. most often this training was conducted in - house by company personnel, but larger firms also relied importantly on educational institutions. at the same time, we must be alert to the need to improve the skills and earning power of those who appear to be falling behind. in the long run, better child - rearing and better basic education at the elementary and secondary school level are essential to providing the foundation for a lifetime of learning. but in the shorter run, we must also develop strategies to overcome the education deficiencies of all too many of our young people, and to renew the skills of workers who have not kept up with the changing demands of the workplace. the advent of the twenty - first century will certainly not bring an end to the challenges we are facing in a rapidly changing world. americans will surely adjust to a frenetic pace of change, as we have in the past, but we must recognize that adjustment is not automatic. all shifts in the structure of the economy naturally create frictions and human stress, at least temporarily. as those frictions dissipate, however, i have no doubt that the economy will emerge healthier. and, if we are able to boost our investment in people, ideas, and processes as well as machines, the economy can operate more effectively as it adapts to change. this holds the potential to create an even greater payoff of a broadly based rise in living standards over the longer run. your new kenan - flagler facility will enhance this university ’ s ability to meet the challenge.