WAAS Forum 2013

The role of Technological Innovation in the evolution of the Enterprises and the future

of Employment

TRIESTE FORUM 2013Impact of Science and Technology on Society and Economy

World Academy of Art & Science

Trieste, 5-6 . 3 . 2013

Roberto Siagri

WAAS Forum 2013

The presentation will try to answer questions 2, 4, 5

• 1. What should be the role of human capital in a comprehensive approach to human welfare and well-being?

• 2. What should be the role of human capital in assuring sustainable development?

• 3. How to describe and quantify the untapped human capital?

• 4. How to increase human capital - the role of individual and collective activity, education, health: local and global?

• 5. How should global and local political orders be altered in order to adequately harness and develop the potentials of human capital?

• 6. How should global and local legal systems be modified in order to more fully tap the potentials of human capital?

• 7. What should be the broad outlines of a human capital-based development strategy and what essential conditions need to be met to implement such a strategy?

WAAS Forum 2013

World Economic Performance

WAAS Forum 2013

Less is More

R. Buckminster Fuller1895 - 1983

“The principle of doing ever more with ever less

Space, Time, Matter and Energy

per each given level of functional performance”

Innovation moves from material to abstract

This trend has also been called:“Ephemeralization”, “Virtualization,” “Weightlessness”

WAAS Forum 2013 5

«…. we won't experience 100 years of progress in the 21st century; it will be more like 20,000 yearsof progress - at today's rate.»

Accelerating Returns

Exponential-Appearing Phase

Linear-Appearing Phase

Hyperbolic-Appearing

Phase

EP

Ray Kurzweil

WAAS Forum 2013

The Paradigms of the Knowledge Economy

• Knowledge is wealth• Bigger doesn't always mean better• More opportunities• Less certainties• Everything happens faster• Everything is exponential• Demand comes in surges• ReturnOnIdea is the greatest ever

WAAS Forum 2013

Start-ups & Innovative-SMEs

7

SMEs produce 24 times more innovation than large companies for every invested $.

Source: Doyle, Wong marketing and competitive performance

Large companies need from 3 to 10 times more time thanSMEs to develop the same new products.

Source: National Science Foundation (USA)

SME R&D spending overall has grown 10 times as fast as large-company spending over 24 years (1981-2005).

Source: H. Chesbrough, Haas School of Business, Univ, Berkeley

Photo Credits: Martin Whitmore

WAAS Forum 2013

More than one third of new jobs come from new companies.Turmoil and Growth: Young Businesses, Economic Churning, and Productivity Gains, Jun. 2008

From 1980 to 2005, companies born in the previous 5 years generated the whole net job growth in the US.

Business Dynamics Statistics Briefing: Jobs Created from Business Startups in US, Jan. 09

New Entrepreneurs have big Social Role

iiiii ERLKQ The Entrepreneurial Economy:Need Entrepreneurship Policies

• Universities as Engines of Economic Development• Technology Transfer & Commercialization• Private-Public Partnerships

WAAS Forum 2013

The Boundaries of the Enterprise are Changing

“workers need to think of their careers as their own small businesses”

JAMES FLANIGAN, New York Times, 14 ottobre 2009

Not only Entrepreneurs have a social role

but also an

Enterpreneurial attitude has a big impact in society

Photo Credits: jairoagua

WAAS Forum 2013

Evolution of Enterprise

Traditional Enterprise : full time employees

Virtual Enterprise: core mgt + project team

Enterprise without people

...???.....

Time theseare existingtoday

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The "lights-out" Manufacturing is a Realitywhere Robots do all the Work

C. Null and B. CaulfieldJune 1, 2003 - Business 2.0

Fanuc's 4,000-square-meter factories near Mt. Fuji, robots are building other robots at a rate of about 50 per 24-hour shift and can run unsupervised for as

long as 30 days at a time

WAAS Forum 2013

The Hollywood model:

smallexpert teams

independentwith a great deal of connections

Source: http://kotaku.com/gaming/business/copying-the-hollywood-business-model-239845.php

Virtual Company

WAAS Forum 2013

Entrepreneurial Economy

• Small Business

• Stability (Low Startup

and Exit Rates)

• Low R&D

• Low Human Capital

• Low Growth

• Entrepreneurship

• Turbulence (High

Startup and Exit Rates)

• High R&D

• High Human Capital

• High GrowthSource: David B. AudretschInstitute for Development StrategiesIndiana University

Traditional vs. Entrepreneurial

WAAS Forum 2013

Managed vs. Entrepreneurial Economy

• Predictability• Conformity• Obedience• Deference to Authority• Homogeneity

• Novelty• Originality• Creativity• Challenging of Authority• Diversity

• Constraining• Centralized at National Level• Public Ownership, Regulation

• Enabling• Decentralized at Local Level• Creation & Commercialization

of Knowledge

Social behavior

Public Policy

David B. AudretschInstitute for Development StrategiesIndiana University

WAAS Forum 2013

Social and Economic Evolution

Industrial triangle Entrepreneurial quadrangle

STALL

Large Enterprise

StateUnions

Tuition feesPublic fundingDonations

Taxes

Personal FinanceBusiness AngelsVenture Capital

ShareholdersDebt

Start-upsSME

Large Enterprises

Universities State

VITUOUSCIRCLE

Source: Carl Schram,Kauffman Foundation

WAAS Forum 2013

The last 150 years of Co-Evolution

18th Century 19th Century 20th Century 21st Century

Agricultural Age(Farmers)

Industrial Age(Factory Workers)

Information Age(Knowledge Workers)

Conceptual Age(Creators and Empathizers)

ATGAffluenceTechnologyGlobalization

Daniel H. PinkA Whole New Mind

WAAS Forum 2013

Human Capital and Process Automation

• Perhaps 80% of today's First World paycheck is paid for by automation

• Human contribution (20%?) to a First World job is:Social Value of Employment + Creativity + Education

• Developing countries are next in line (sooner or later).

• Continual education is the true job descriptions for all human beings.

Source : J. Smart, Accelerating.org

WAAS Forum 2013

Automation Development always Creates Massive Economic-Demographic Shifts

• Automating of farming pushed people into factories (1820, 80% of us were farmers, 2% today)

• Automating of factories is pushing people into service (1947, 35% were in factories, 14% today)

• Automating of service is pushing people into servicenetworks (Web 2.0, Web 3.0) (2003, 65% of GDP is service industry)

• Automating of networks will push people into collective/self-expression (symbionts)

• Automating individual and group values will push people into self-actualization (digital twins)

• Automating of self-actualization will push people beyond biology (“transhumanity”)

18 Source : J. Smart, Accelerating.org

WAAS Forum 2013

Social Behavior : Homo Zappiens

HOMO ZAPPIENS HOMO SAPIENSHOMO SAPIENS

HOMO ZAPPIENS!Learning Strategies of Students in a Digital EraProf.Dr. Wim Veen DUDelft

TWITCH SPEED

MULTI TASKING

NON LINEAR APPROACHES

ICONIC SKILLS FIRST

CONNECTED

COLLABORATIVE

ACTIVE

LEARNING BY EXTERNALISING

INSTANT PAYOFF

FANTASY

CONVENTIONAL SPEED

MONO TASKING

LINEAR APPROACHES

READING SKILLS FIRST

STAND ALONE

COMPETITIVE

PASSIVE

LEARNING BY INTERNALISING

PATIENCE

REALITY

WAAS Forum 2013

new powerful and “cheap” tools especially for newcomers

• Networking proof!• No need to be big • Enabler to capture new opportunities • Ready when things happen faster &

exponential • Maximize your ReturnOnIdea

Technology: Web 2.0, Cloud Computing & Big Data

WAAS Forum 2013

"In a time of change, it is learners who inherit the future. The learned find themselves well equipped to live in a world that no longer exists."

Eric Hoffer

Thank you for your attention

Phooto Credits: CollegeDegrees360