making the next production revolution inclusive open and secure
TRANSCRIPT
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MAKING THE NEXT PRODUCTION
REVOLUTION INCLUSIVE, OPEN AND
SECURE
G7 ICT and Industry Minister’s Meeting
Andrew Wyckoff, DirectorDirectorate for Science, Technology and Innovation,
OECD
Torino, September 25th, 2017
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The digital transformation of economies
and societies is under way….
NPR and digital technologies have become pervasive
Automation is becoming widely deployed
Artificial Intelligence emerges as a new
technological paradigm
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…and has unique characteristics that
challenge traditional policy making…
Whatsapp: 300 M users, 50B message/day, 55 employees
Netflix: USD8.8B revenue, 3500 employees
Dropbox: 300M users, 1200 employees
“Scale without Mass”
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1990s
Top-3 US Automakers
• Revenues: 250B$
• Market cap: 36B$
• Employees: 1.2M
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…that are largely based on a traditional
economy….
2014
Top-3 US Tech
• Revenues: 247B$
• Market cap: 1T$
• Employees: 137K
Source: “Competition at the digital edge: “hyperscale” businesses,” McKinsey Insights, accessed 4 March 2015
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…affecting policies from trade to…
Share of Sellers Exporting on eBay vs. Offline
https://katisuominen.wordpress.com/page/2/
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…to productivity, business dynamics
and growth.
ICT services Non-ICT services
Note: Excluding the financial sector
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
Frontier firms
Laggards
Top 10%
Top 2%
-0.2
0.0
0.2
0.4
0.6
0.8
1.0
Frontier firms
Laggards
Top 10%
Top 2%
Source: Andrews, D., Criscuolo C., and Gal P. N., “The Best versus the Rest: The Global Productivity Slowdown, Divergence across Firms and the Role of Public Policy”, OECD Productivity Working Papers, 2016-05, OECD Publishing, Paris.
The divergence in multi-factor productivity growth
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• Need to rethink policies, in light of digital vs. analogue economy;
• Is broad based and will affect all sectors / policies: there is no “digital industry”
• Need for a proactive approach so as to maximise the benefits and minimise the downside.
Implications for Policy Making
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NPR: A confluence of new technologies…
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The shift is distinguished by data
and its analysis…
Autonomous machines and
systems
Artificial Intelligence
Cloud computing
Human-Machine
integration
System integration
Internet of Things
Big data
Simulations
Additive manufacturing(3D printing)
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Implications for the nature of production
and jobs...
Source: WikiMedia, http://www.assemblymag.com and © General Motors, Chevy Volt10
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…the nature of capital investment…
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Rolls Royce:
Power-by the-hour
New Holland : Precision
Land Management
AWS: Cloud
Computing
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…and international trade...
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…where the Internet becomes the new
sea lane.
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Spear-Phishing Attacks by Size of Targeted Organization
Openness needs to be accompanied by
security, especially for SMEs
18 %
31 % 30 %34 %
43 %
32%
19 %
31 % 25 %
22 %
50 % 50 %
39 % 41 %35 %
0
20
40
60
80
100
2011 2012 2013 2014 2015
%Small businesses(1-250 employees)
Medium-size businesses(251-2 500 employees)
Large businesses(2 500+ employees)
Source: OECD (2017), Key Issue for digital transformation in the G20, page. 94
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• Rise above the Silos: take a whole-of-government approach;
• Close the gap: foster SMEs competitiveness & help them seize digital era via finance, skills & diffusion;
• Inspire innovation: promote high-tech start-up eco-systems; protect and enforce IPR;
• Connect to the future: ensure access to 21st C networks;
• Keep it open: protect the free flow of information;
• Make it secure : foster cyber security for economic prosperity;
• Put people at the center: share a human-centric vision of Artificial Intelligence.
Filling the “Technology 4.0 / Policy 1.0” gap
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Thank you
Contact:[email protected]
Twitter: @OECDinnovation
Going Digital website:http://oe.cd/goingdigital
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