"The best way I can help the economy in the state of Washington is education," Inslee said during his keynote luncheon address at the Red Lion Hotel in Olympia.
"Human capital in the new economy means everything," Inslee said.
Some of the ways that Inslee wants to improve education include realigning programs offered by colleges and universities so they meet the needs of industry, and increasing the emphasis on science, technology, engineering and math in K-12 schools.
In order to free up money to spend on education, Inslee said he wants to reform the health care system.
"There's no way to satisfy education needs unless we reform health care demands," he said.
Inslee also reaffirmed his commitment to promoting "disruptive change" in the way state government delivers services, and he held up Virginia Mason Health System and Boeing as role models for the use of Lean Management to boost efficiency.