Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Making the next production revolution inclusive open and secure

403 views

Published on

Presentation to G7 ICT and Industry ministers by Andrew Wyckoff, OECD Director for Science, Technology and Innovation. See also oe.cd/npr

Published in: Technology
  • Be the first to comment

  • Be the first to like this

Making the next production revolution inclusive open and secure

  1. 1. MAKING THE NEXT PRODUCTION REVOLUTION INCLUSIVE, OPEN AND SECURE G7 ICT and Industry Minister’s Meeting Andrew Wyckoff, Director Directorate for Science, Technology and Innovation, OECD Torino, September 25th, 2017
  2. 2. 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
  3. 3. …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”
  4. 4. 1990s Top-3 US Automakers • Revenues: 250B$ • Market cap: 36B$ • Employees: 1.2M 4 …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 4
  5. 5. …affecting policies from trade to… Share of Sellers Exporting on eBay vs. Offline https://katisuominen.wordpress.com/page/2/
  6. 6. …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
  7. 7. • 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
  8. 8. 8 NPR: A confluence of new technologies…
  9. 9. 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)
  10. 10. Implications for the nature of production and jobs... Source: WikiMedia, http://www.assemblymag.com and © General Motors, Chevy Volt 10
  11. 11. …the nature of capital investment… 11 Rolls Royce: Power-by the-hour New Holland : Precision Land Management AWS: Cloud Computing
  12. 12. …and international trade...
  13. 13. …where the Internet becomes the new sea lane. 13
  14. 14. 4 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
  15. 15. • 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
  16. 16. Thank you Contact: andrew.wyckoff@oecd.org Twitter: @OECDinnovation Going Digital website: http://oe.cd/goingdigital Subscribe to our STI newsletter: www.oecd.org/sti/news.htm

×