global innovation exchange: a new kind of investment in

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By Emma Peters June 29, 2015 11:32 AM Global Innovation Exchange: A new kind of investment in higher ed MSFT 44.15 -0.50% Microsoft Corporation Watchlist 44.15 -0.22 (0.50%) NASDAQ Tue, Jun 30, 2015 4:00 PM EDT Why Microsoft Corporation Isn't Buying Advanced Micro Devices, Inc. Motley Fool q 11 mins ago 10 Best Growth Cities for Tech Jobs TheStreet q 34 mins ago More Last week, Microsoft (MSFT) announced its $40 million contribution to the Global Innovation Exchange (GIX), “a new model of learning” that partners the tech behemoth with the University of Washington and the “MIT of China,” Tsinghua University. GIX, set to open next year, will be a graduate school with an aim to train students to solve real-world technology, design and Rendering of new GIX campus in Bellevue, Wash. (Image: GIX) View photo Related Quotes Recommended Games More games » Compare Brokers Recent Quotes you view appear here for quick access. Quote Lookup Go Finance Home My Portfolio My Quotes News Market Data Yahoo Originals Business & Finance Personal Finance CNBC Contributors What to read next 'Huge uncertainties' over Greece, dollar will delay Fed rate hikes: Ko … Forget 'Googling' Your Name, New Site Knows it All Sponsored InstantCheckmate When Risk & Returns Really Start to Matter to an Investor Markets 'haven't seen enough pain yet': Portfolio manager Why investors are watching the makers of Cheerios and Corona Wed, Jul 1, 2015, 8:11AM EDT - US Markets open in 1 hr and 19 mins Search Finance Search Web Sign In Mail Home Mail Search News Sports Finance Weather Games Answers Screen Flickr Mobile Try Yahoo Finance on Firefox » More

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Page 1: Global Innovation Exchange: A new kind of investment in

By Emma PetersJune 29, 2015 11:32 AM

Global InnovationExchange: A new kind ofinvestment in higher ed

MSFT44.15-0.50%

Microsoft Corporation Watchlist44.15 -0.22 (0.50%)NASDAQ Tue, Jun 30, 2015 4:00 PM EDT

Why Microsoft Corporation Isn't Buying AdvancedMicro Devices, Inc. Motley Fool q 11 mins ago

10 Best Growth Cities for Tech JobsTheStreet q 34 mins ago

More

Last week,Microsoft (MSFT)announced its$40 millioncontribution tothe GlobalInnovationExchange (GIX),“a new model oflearning” thatpartners the techbehemoth withthe University ofWashington andthe “MIT ofChina,” TsinghuaUniversity. GIX, set to opennext year, will bea graduateschool with anaim to trainstudents to solvereal-worldtechnology,design and

Rendering of new GIX campus in Bellevue, Wash. (Image: GIX)

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Page 2: Global Innovation Exchange: A new kind of investment in

entrepreneurshipchallengesthrough “project-based learning.” Students who finish the program will get a master’s degree intechnology innovation and, it’s hoped, a crash course in startupculture. The goal is to help students learn how to navigate thetech world better than traditional academia does now. The institute will be based in Bellevue, Wash., just east ofSeattle and only 10 miles from the University of Washington’scampus. Ann Kirschner, the dean of the Macaulay Honors College atCUNY and a proponent of academic innovation, praised GIX asa “a giant step forward” in the largely static realm of highereducation, explaining that it is the first institution of its kind inmore than one way. It’s the first time a Chinese academic institution has put downroots on U.S. soil. The inverse relationship, with Americanuniversities expanding their physical presence abroad— likeNYU Abu Dhabi or Georgetown’s Qatar campus — is morecommon, says Vikram Jandhyala, vice provost for innovation atthe University of Washington. GIX is a good opportunity for American students to learn aboutthe Chinese mindset, he said. While Americans are known forbold and risky choices in the tech industry, the Chinese have areputation for taking a slower, more cautious approach, thinkingmore about the long term.   The Microsoft connectionThe other innovative aspect of the GIX partnership is itscorporate connection. Microsoft, based in Redmond, Wash.,hopes to bolster the tech economy in the Pacific Northwest withits financial contribution. The greater Seattle area is also hometo web retail giant Amazon.com (AMZN).

The ultimate goal is to create the same sort of symbioticrelationship that Stanford has with Silicon Valley.

“Everybody has Stanford-envy, everybody says I want this to bejust like Stanford and Silicon Valley,” Kirschner said. 

Don’t expect to see this type of feeder program in Seattleanytime soon though. The inaugural 2016 GIX class is expectedto have just 30 students. Though they hope to expand to aclass of 3,000 by 2025, Kirschner said that pace is more on parwith the academic rate of change than that of the tech world. The GIX model is fairly similar to that of Cornell Tech, an appliedsciences graduate institute in New York City that partners

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Page 3: Global Innovation Exchange: A new kind of investment in

Cornell University and the Technion–Israel Institute ofTechnology. Bloomberg Philanthropies announced this monththat it’s giving $100 million to build a new campus for theinstitute (which is currently housed in Google’s New Yorkoffice). Jandhyala said that Cornell Tech and GIX have a lot tolearn from each other.

Potential challengesAny new model for higher education has its own set ofchallenges, of course. The GIX program will put University ofWashington and Tsinghua University students in the sameclassrooms to collaborate on the same projects that have real-world applications. As shown time and again, whose-idea-was-it lawsuits have plagued Silicon Valley and the tech scene for awhile. Facebook (more famously) and Snapchat (more recently)– both created by college students at the time of their founding– have been entangled in major lawsuits disputing intellectualproperty. 

Jandhyala said that GIX is discussing ways to prepare for thesesort of intellectual property conflicts, though it's still unclearwhat exactly the school's strategy will be on this front.

To some, the choice of a Chinese partner for a technologyendeavor may be troubling, especially in light of the recentfederal employee data breach, for which China has beenaccused of carrying out.

Kirschner acknowledged this, saying,  “You’re going to havepeople who call it un-American, asking, ‘why are we selling outto the people who hack our most precious databases?’” 

Finally, there’s the complication of melding three institutionsinto one:

“You have two universities with very different ideas aboutgovernance, intellectual property, academic freedom,” saidKirschner. “Now you throw in a corporate partnership, again,with very different ideas, and it gets challenging.” According to Jandhyala, in order to succeed, GIX will have topractice just what they preach—innovation. 

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