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AI and the Productivity Paradox

Irving Wladawsky-Berger

But, at the same time, productivity growth has significantly declined over the past decade, and income has continued to stagnate for the majority of Americans. This puzzling contradiction is addressed in Artificial Intelligences and the Modern Productivity Paradox , a working paper recently published by the National Bureau of Economic Research (NBER). Economists have proposed competing explanations for declining productivity growth and so far have failed to reach a consensus.” .

The Productivity Puzzle

Irving Wladawsky-Berger

Economic growth has two main components, productivity growth and the growth of the labor force. I ncreasing productivity is thus more crucial than ever to promote economic growth. But, in the US and other advanced economies, productivity growth has significantly slowed down over the past few decades. From 1987 to 2004 US labor productivity grew at a 2.1% Since 2011, the productivity rate has further declined to 0.6%. . US labor productivity grew at only 1.5%

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AI Technologies Are Fundamentally Changing How Work Gets Done

Irving Wladawsky-Berger

To the contrary, automating the more routine parts of a job will often increase the productivity and quality of workers by complementing their skills with technologies and tools, thus enabling them to focus on those aspect of the job that most need their attention.

The Productivity Paradox: Digital Abundance and Scarce Genius

Irving Wladawsky-Berger

Despite the relentless advances of digital technologies, productivity growth has been declining over the past decade. Some contend, - most prominently Northwestern University economist Robert Gordon , - that over the past few decades there’s been a fundamental decline in innovation and productivity. Demographic change , namely, the declining population and labor force growth around the world, is another potential cause for slow economic growth.

The Changing Nature of the Liberal Arts in the Digital Economy

Irving Wladawsky-Berger

More specifically, they needed to learn how to approach problems from many perspectives and to combine various approaches to find innovative solutions.” Similarly, in a 2006 report , the National Academy of Engineering called for reforming engineering education.

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The Science of Innovation

Irving Wladawsky-Berger

Innovation - identified by MIT economist and Nobel laureate Robert Solow as the driver of long-term, sustainable economic growth and prosperity - has been a hallmark of the Massachusetts Institute of Technology since its inception.” Thus starts The MIT Innovation Initiative: Sustaining and Extending a Legacy of Innovation , the preliminary report of a yearlong effort to define the innovation needed to address some of the world’s most challenging problems.

Data Science and the Changing Nature of Research and Innovation

Irving Wladawsky-Berger

Last month, the American Academy of Arts and Sciences (AAAS) released the results of a new study, ARISE II: Unleashing America’s Research & Innovation Enterprise. The study examined the current state of US research and innovation; looked at the role of its key players: academia, industry, and government; and proposed a set of recommendations to better address the highly complex challenges we face in the 21st century information economy.

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AI and the Productivity Paradox

Irving Wladawsky-Berger

But, at the same time, productivity growth has significantly declined over the past decade, and income has continued to stagnate for the majority of Americans. This puzzling contradiction is addressed in Artificial Intelligences and the Modern Productivity Paradox , a working paper recently published by the National Bureau of Economic Research (NBER). Economists have proposed competing explanations for declining productivity growth and so far have failed to reach a consensus.” .

The Internet of Things is Changing the World

Irving Wladawsky-Berger

“How the world will change as computers spread into everyday objects,” is the title of the lead article in a comprehensive review of the Internet of Things (IoT) in a r ecent issue of The Economist. IoT has been ushering a whole new class of smart connected products.

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Automation and the Changing Demand for Workforce Skills

Irving Wladawsky-Berger

In the intervening three years, the study has published a number of report on the subject. The first report , published in November, 2015, explored whether we can look forward to vast improvements in productivity and quality of life, or whether automation will mostly threaten jobs, disrupt organizations, and strain the social fabric. McKinsey’s December, 2017 report analyzed whether there will be enough work in the future.

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The Blockchain and Open Innovation

Irving Wladawsky-Berger

Transformational innovations don’t always play out as originally envisioned. They’ve both gone on to change the world, - to say the least. In addition to developing standards and organizing promotional activities, these various organization make available open source implementations of their software releases, thus encouraging collaborative, open innovation. It’s too early to know if the blockchain will become another major transformational innovation.

Disruptive Innovations and Large Companies

Irving Wladawsky-Berger

The subject of my seminar was Managing Technology-based Disruptive Innovations. Given my long career at IBM, as well as my more recent involvement with Citi, it is not surprising that I am particularly interested in entrepreneurship and innovation in large companies. In March of 2009, The Economist published a very good special report on entrepreneurship. The defining characteristic of entrepreneurship, then, is not the size of the company but the act of innovation.”.

Change in Education and What Needs to be Done

Stephen Downes: Half an Hour

Published as Change in Education and What Needs to be Done , 15 pages, 2020, Maysan Center for Future Studies. In recent months we as a global community have experienced a hard lesson about the nature of change. Either way, what we do today will change what happens tomorrow.

Innovation as a Journey into the Future

Irving Wladawsky-Berger

I recently read an excellent innovation report, - Strategic Orientations for Innovation: Chile in the 2025 Horizon. The document was developed by Chile’s National Innovation Council for Competitiveness (CNIC) , a public-private organization charged with providing advice to the President of the Republic on policies that will strengthen innovation and competitiveness in the country. This was like no innovation document I’ve read.

Once Lumbering, Now Innovative Incumbents Hit Their Stride

Irving Wladawsky-Berger

Two decades after the Internet became a platform for transformation, we’re still wondering how it all might turn out,” notes the report. “The signals aren’t always clear. Even in industries where competitive concentration is increasing, innovation hasn’t – as would be expected – flatlined.”. They’ve outperformed their peers in financial results and innovation over the past three years. What’s changed in a few short years?

Human Capital and the Changing Nature of Work

Irving Wladawsky-Berger

But on balance, such fears appear to be unfounded, noted the World Bank in a comprehensive recent report on The Changing Nature of Work. That’s a mistake, because neglecting investments in human capital can dramatically weaken a country’s competitiveness in a rapidly changing world, one in which economies need ever-increasing amounts of talent to sustain growth.” . How is the Nature of Work Changing? People have long feared that machines are coming for our jobs.

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Open Services Innovation

Irving Wladawsky-Berger

Earlier this year, UC Berkeley professor Henry Chesbrough published a new book, Open Services Innovation: Rethinking Your Business to Grow and Compete in a New Era. This is his third book on open innovation in the last eight years, having published Open Innovation: The New Imperative for Creating and Profiting from Technology in 2003, and Open Business Models: How to Thrive in the New Innovation Landscape in 2006. t from your innovation activities.

The Complex Nature of Cloud-based Innovation

Irving Wladawsky-Berger

I find it helpful to look at cloud along two key dimensions: as a technology to improve IT productivity, and as a platform for enabling business innovation. Only one company in six viewed cloud as a way of fostering business innovation. In addition, cloud can help business users become more agile and keep up with the fast pace of technological and market changes. But, for many companies, the use of cloud to foster business innovation and growth remains elusive.

The Challenges of Automation in a Fast Changing Economy

Irving Wladawsky-Berger

“Technological innovation should be embraced,” notes Automation and a Changing Economy , a recently published report by The Aspen Institute. “Automation has been a largely positive economic and social force, and looking forward, automation will be necessary to feed, house, and raise the living standards of a growing and aging population.” . Let me summarize the key conclusions and recommendations in each of the report’s two sections.

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Innovation in Higher Education

Irving Wladawsky-Berger

Moreover, while the overall unemployment rate remains over 9 percent, a recent McKinsey report found that employers are having trouble filling specific positions because they could not find applicants with the right skills. The report projects that if economic conditions improve, there will be a shortage of 1.5 The report is written by Clayton Christensen , Michael Horn , Louis Caldera and Louis Soares. Disruptive innovations are based on two main ingredients.

Game-Changing Basic Research: Benefits and Challenges

Irving Wladawsky-Berger

Innovation Deficit , - a report on both the long term benefits of basic research and the impact on those benefits of declining federal investments. innovation deficit, attributable in part to declining public investment in research.” . While basic research may not have immediate payoffs, many innovations now critical to economic competitiveness are a direct result of past federally-funded research initiatives. Productivity needs to increase by at least 50 percent.”

Intervention Design: Overcoming Stiff Resistance to a New, Disruptive Innovation

Irving Wladawsky-Berger

With four articles on the subject, HBR ’s overriding message is that design is no longer just for physical products, being increasingly applied to customer experiences, innovation, business strategy, and complex problem solving. . When first introduced, disruptive innovations are likely encounter stiff resistance, both within one’s own organization and in the marketplace, - otherwise we wouldn’t call them disruptive.

Technology, Resources and Innovation

Stephen Downes: Half an Hour

So - how do we drive down the cost of content production, and how do we make sharing easier. The stovepipe innovations - why are you settling for it? We studied compatibility issues and notice the change in instructor attitudes, improvements to Moodle, and new educational apps, all in three years. Most reported positive outcomes (95%). But because of 3D glasses, you can use that and have a full-screen projection, so tech is changing.

Leadership in a Changing World

Irving Wladawsky-Berger

What are the critical competencies needed to lead in our fast-changing business environment? Its findings were recently published in The CEO Report: Embracing the Paradoxes of Leadership and the Power of Doubt. The key challenge confronting CEOs, - and senior executives in general, - is the relentless pace of change. But, w hile speed is the major dimension of change, it’s not the only one. Is the change evolutionary or revolutionary in nature?

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Scale and Complex Systemic Innovation

Irving Wladawsky-Berger

The column addresses a fundamental question that those studying innovation have been wrestling with for years: “Are big companies the best catalysts of innovation, or are small ones better?” The column is based on a recent study - Scale and Innovation in Today’s Economy - by Michael Mandel , chief economic strategist of the Progressive Policy Institute. As a result, there are reasons to believe that scale may be a plus for innovation in today’s economy, not a minus.”

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An Emerging Platform for Digital, Inclusive Innovation

Irving Wladawsky-Berger

The Internet became an incredible platform for innovation, enabling startups, large institutions, and everyone in between to quickly develop and bring to market many new digital products and services. Its reach and connectivity led to the creation of all kinds of innovative, digital applications. But, this picture has started to change in the last five years or so. Inclusive innovation is a relatively new concept.

Measuring the Forces of Long Term Change

Irving Wladawsky-Berger

Intel co-founder Gordon Moore described what became known as Moore’s Law in a 1965 paper where he observed that the number of components in integrated circuits had doubled every year since their invention in 1958, and predicted that the trend would continue for at least ten years, a prediction he subsequently changed to a doubling every two years. The Foundation index has been growing at a ten percent CGR since 1993, and is the primary driver of all the other changes.

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Challenging Mindsets: From Reverse Innovation to Innovation Blowback

John Hagel

Views on innovation in developing economies are evolving rapidly, yet they still do not capture the full significance of what is going on. Executives in the West are still prisoners of a mindset that equates innovation with technology and product innovation. This blinds them to significant alternative forms of innovation that can profoundly disrupt their businesses in the years ahead. Early view of innovation. Reverse innovation.

Irving Wladawsky-Berger: Innovation, Fundamental Research and Universities

Irving Wladawsky-Berger

Irving Wladawsky-Berger A collection of observations, news and resources on the changing nature of innovation, technology, leadership, and other subjects. Home Archives Subscribe « Becoming an Innovation Leader – Is There More than One Style? Main | A Grand Challenge Crying Out for Leadership » November 26, 2007 Innovation, Fundamental Research and Universities The October 13 issue of The Economist included a special report on innovation.

Patent Activity and the State of US Innovation

Irving Wladawsky-Berger

The study examines whether patent activity is a good concrete indicator of innovation, economic growth and productivity by looking at historical data going all the way back to 1790. This is a timely report given recent concerns that the US might be losing its innovation edge. The Economist took a look at these innovation pessimism concerns in its January 12 issue. Its principal finding is thus reason for optimism given the recent innovation concerns. “The

Entrepreneurship and Innovation in Large Companies

Irving Wladawsky-Berger

In March of 2009, The Economist published a special report on entrepreneurship. The best way to break into a business is to offer new products or processes.” It defined the term as: “somebody who offers an innovative solution to a (frequently unrecognised) problem. The defining characteristic of entrepreneurship, then, is not the size of the company but the act of innovation.”

From Trash Cans to Nokia: Is Creativity Innovation?

Steve Denning

Good new ideas are everywhere around us, but turning even a few of those ideas into viable, scalable products and services is something much more difficult. Understanding the difference between creativity and innovation can shed light on seemingly contradictory ideas, namely, that User-Led Innovation Can’t Create Breakthroughs and an article by Patricia Cohen in the New York Times last week about inventions created by users: Innovation Far Removed From the Lab.

Trend: offshore service centers driving innovation and revenue

Ross Dawson

Last week I gave a keynote on Mega Change: Tomorrow is Here at the NASSCOM Global In-House Center Conclave at Pune in India. The next phase is for GICs to go beyond cost arbitrage on support to drive innovation and higher-value functions, as shown in this diagram from a recent NASSCOM report on GICs in India. Global domain expertise inside multi-nationals increasingly resides in GICs, with innovation often a core directive.

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Leveraging Commercial Best Practices to Maximize Government Productivity

Irving Wladawsky-Berger

On October 6, the Technology CEO Council released its report One Trillion Reasons: How Commercial Best Practices to Maximize Productivity Can Save Taxpayer Money and Enhance Government Services. The report identifes a set of recommendations aimed at reducing US government spending by one trillion dollars over the next decade. Again and again, new capabilities have simultaneously reduced costs and sparked innovation.”.

An innovative workshop on radical management

Steve Denning

In these three days ( March 19-21 in Washington DC ), you will discover how to use radical management to thrive in the 21 st Century creative economy and the world of continuous innovation. Have you ever wondered how your firm is going to survive and thrive as the world economy goes through a fundamental phase change—from industrial bureaucracy to a creative economy of continuous innovation? Why economies of scale contain hidden productivity traps.

The True Value of a Good Education: Adaptability to a Changing Environment

Irving Wladawsky-Berger

In his 1945 seminal report, Science The Endless Frontier , presidential science advisor Vannevar Bush laid out the blueprint for R&D in post-war America: “New knowledge can be obtained only through basic scientific research” conducted in universities and research labs, which is then applied to develop new products by the private sector and new and improved weapons by the defense sector.

The Link Between BYOD and Increased Productivity

TOPYX LMS

A BYOD policy also makes it easy for employees to access corporate data and online training materials, which can increase productivity. Of all the benefits listed here, increased productivity usually pleases company leaders most. Some organizations choose to implement BYOD solely for the purpose of augmenting productivity. Dell Study Shows Link Between BYOD and Increased Productivity. Scott Campbell, writer for CRN, reported on the study.

The Good News On The Key Economic Issue of Our Times: Management Innovation

Steve Denning

In his post, The Truth of American Superiority at Innovation , Fred Allen draws attention to new study by General Electric, the “ GE Global Innovation Barometer ,” which outlines a new landscape for innovation in the 21st century. In the study, innovation is seen as the driver of a prosperous economy. is perceived around the world as the clear leader in innovation. as the most innovative nation. Innovation in the Fortune 500.

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Irving Wladawsky-Berger: Talent, Innovation and Competitiveness

Irving Wladawsky-Berger

Irving Wladawsky-Berger A collection of observations, news and resources on the changing nature of innovation, technology, leadership, and other subjects. I was a member of the reports Advisory Committee and participated in the Washington forum. I think it is primarily due to the changing nature of innovation in the 21st century. This kind of talent is more important than ever, given the increasingly complex, fast changing, competitive world we live in.

The Leader's Guide to Radical Management: 84% vote for change in.

Steve Denning

84% vote for change I reported on Tuesday the shocking statistic that 84% of workers in the US plan to change jobs in 2011. It also shows the futility of changing jobs: when most of the jobs suck, changing jobs won't do anyone much good. Yet there is some good news in that 84% figure: 84% of people want change. That's a pretty large, silent majority in favor of change.

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Technology, Leadership and Innovation in the Service Economy

Irving Wladawsky-Berger

At the end of January I gave a half-day seminar at MIT on Technology, Leadership and Innovation in the Service Economy. For a while now, I have been thinking about how technology and innovation can best be applied to services. My interest in technology-based services innovation was heightened last summer when I read an excellent report, Hidden Wealth: the contribution of science to service innovation , based upon a study sponsored by the UK Royal Society.

Building Better Jobs in an Age of Intelligent Machines

Irving Wladawsky-Berger

On November 18, the MIT Task Force on the Work of the Future released its final report , The Work of the Future: Building Better Jobs in an Age of Intelligent Machines. An interim report was released in September, 2019. The Task Force comprehensive report covers a lot of ground.

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Bridging innovation and commercialization

Harold Jarche

Events during the past week have re-focused my attention on research, innovation and commercialization, especially as it pertains to learning technologies. Here is some of the background material from that report on bridging research and commercialization. In a series of three articles [not available online], Alan Cornford stated that increasing public R&D spending will not increase innovation capacity, as only 3% of public R&D spending results in measurable innovation.