The Fourth Industrial Revolution
What It Means and How to Respond
How to Make Almost Anything
The Digital Fabrication Revolution
As Objects Go Online
The Promise (and Pitfalls) of the Internet of Things
The Rise of Big Data
How It's Changing the Way We Think About the World
The Mobile-Finance Revolution
How Cell Phones Can Spur Development
Biology's Brave New World
The Promise and Perils of the Synbio Revolution
The Robots Are Coming
How Technological Breakthroughs Will Transform Everyday Life
New World Order
Labor, Capital, and Ideas in the Power Law Economy
Will Humans Go the Way of Horses?
Labor in the Second Machine Age
Same as It Ever Was
Why the Techno-optimists Are Wrong
The Future of Cities
The Internet of Everything will Change How We Live
The Coming Robot Dystopia
All Too Inhuman
The Political Power of Social Media
Technology, the Public Sphere, and Political Change
From Innovation to Revolution
Do Social Media Make Protests Possible?
The Next Safety Net
Social Policy for a Digital Age
The Moral Code
How To Teach Robots Right and Wrong
Focus on Data Use, Not Data Collection
The Power of Market Creation
How Innovation Can Spur Development
The Innovative State
Governments Should Make Markets, Not Just Fix Them
Food and the Transformation of Africa
Getting Smallholders Connected
Recent advances in technology have created an increasingly unified global marketplace for labor and capital. The ability of both to flow to their highest-value uses, regardless of their location, is equalizing their prices across the globe. In recent years, this broad factor-price equalization has benefited nations with abundant low-cost labor and those with access to cheap capital. Some have argued that the current era of rapid technological progress serves labor, and some have argued that it serves capital. What both camps have slighted is the fact that technology is not only integrating existing sources of labor and capital but also creating new ones.
Machines are substituting for more types of human labor than ever before. As they replicate themselves, they are also creating more capital. This means that the real winners of the future will not be the providers of cheap labor or the owners of ordinary capital, both of whom will be increasingly squeezed by automation. Fortune will instead favor a third group: those who can innovate and create new products, services, and business models.
The distribution of income for this creative class typically takes the form of a power law, with a small number of winners capturing most of the rewards and a long tail consisting of the rest of the participants. So in the future, ideas will be the real scarce inputs in the world -- scarcer than both labor and capital -- and the few who provide good ideas will reap huge rewards. Assuring an acceptable standard of living for the rest and building inclusive economies and societies will become increasingly important challenges in the years to come.
Turn over your iPhone and you can read an eight-word business plan that has served Apple well: “Designed by Apple in California. Assembled in China.” With a market capitalization of over $500 billion, Apple has become the most valuable company in the world. Variants of this strategy have worked not only for Apple and other large global enterprises
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