Education, livability and economic ties with Asia will determine the long-term success of Washington, according to Microsoft’s top public-policy man.

Brad Smith, general counsel and vice president of legal and corporate affairs for the software giant, held an open discussion with local media last week to discuss the company’s stance on issues ranging from network neutrality to immigration reform.

Smith emphasized the importance of tapping Asia’s rapidly expanding markets during the discussion, noting that China is on track to become the largest PC market in the world.

Washington is primed to develop deep ties with Asia, particularly because of its proximity to the continent and the Eastside’s cultural diversity, Smith said. Thirty-one percent of Bellevue residents are foreign-born, with many of them coming from that part of the world.

“That’s a great asset to this region as we look to economic opportunities in and from Asia,” Smith said.

Asia may be ripe with market potential, but it’s also a source of robust economic competition.

Smith suggested the U.S. has nothing to worry about in that regard, so long as the country continues leading the world in innovation. Washington, in particular, is near the top, ranking fourth in the nation for patent inventions.

One of the keys to economic prosperity will be keeping that trend alive, along with staying out of the top 10 when it comes to cost of doing business, according to Smith.

In terms of education, Smith said the focus should be on early education, raising performance levels, and strong research programs at the state’s universities. He praised President Obama’s “Race to the Top” initiative, saying performance incentives work better than federal oversight when it comes to improving schools.

Smith also said the state should consider supporting more charter schools.

Talk eventually turned to recent conversations about a state income tax.

Smith said Microsoft has not taken a stance on that issue yet. He did, however, suggest that worker’s compensation and unemployment costs are getting too high for businesses.

“Even though that doesn’t affect Microsoft very much, it is hurting manufacturers,” he said.

Immigration reform was once a top priority for Microsoft, mainly because the company was reaching overseas to find talent, and it wanted the federal government to allow more visas.

That movement has quieted with a slowdown in hiring that followed the recent recession. But Smith said the demand for foreign workers is bound to pick up.

“At that point, we’re going to need federal action to increase the number of visas, or there will be renewed pressure – not just for Microsoft, but on the whole tech sector – to place jobs outside the United States,” he said.

Smith also talked about transportation and the need for greater connectivity between Seattle and its surrounding suburbs.

Microsoft stood strong this year behind legislation that allows the state to move forward on renovating SR-520 and replacing the highway’s bridge over Lake Washington.

Smith called that move “the greatest political victory of the year” for the state.

Interest groups from Seattle, along with Seattle Mayor Mike McGinn, nearly derailed the legislation due to concerns over transit accommodations on the bridge and the project’s impacts on local neighborhoods.

Smith said Microsoft supports light-rail expansion, even though planning for East Link hasn’t turned out exactly as the company had hoped. He said the most important step after building tracks through Bellevue will be creating a connection with Microsoft’s Redmond campus – even before bringing the trains over 520.

Smith also talked about quality of living as a vital part of the region’s economic well-being. He stressed the importance of arts and culture in that regard, and gave a nod to the Tateuchi family for donating $25 million for the naming rights of a future performing arts center in the city.

Microsoft has donated $1 million to support the creation of that facility.

Joshua Adam Hicks can be reached at 425-453-4290.