Ideas

We are witnessing the growth of what former Federal Reserve Chairman Alan Greenspan has termed the “weightless economy”— an economy in which knowledge and technical capacity are contributing an ever greater share to GDP. [1] Historically, GDP was inextricably tied to manufacturing - when one grew, so did the other. However, developed countries today are witnessing the contraction of their manufacturing sector at the same time that their GDP is expanding.  The reason for this apparent contradiction is that ideas are increasingly becoming commodities in and of themselves. Think about it, what gives today’s companies the edge? The ability to use the Internet and networking tools, a receptiveness to customer demands and new ideas, and all around creativity.  It’s not so much the number of units made or sold, as it is how they are developed and marketed.  The “knowledge-based” economy is also turning traditional economic and legal models on their heads.  While the Internet has lowered the barriers for well-meaning entrepreneurs around the globe to enter the market, it has also enabled more nefarious behavior ranging from piracy to cyber-warfare.  It is estimated that up to ninety-five percent of music downloads are made illegally, but the majority of people who download music are otherwise hard-working, tax-paying citizens. [2] We will need to find a new paradigm that allows for the free exchange of ideas while preserving intellectual property rights and profitability.

Connectivity

Communication technologies are decentralizing information, allowing individuals and companies on opposite sides of the planet to collaborate and share ideas.  As Thomas Friedman put it, “thirty years ago, if you had a choice of being born a B student in Boston or a genius in Bangalore, you probably would have chosen Boston.” [3] Thirty years ago it was unlikely that anyone in the developing world, even a genius, could overcome poverty and rise to prominence in the West.  Nowadays, according to Friedman, “anyone with smarts, access to Google, and a cheap wireless laptop can join the innovation fray.” [4] As information technologies reach these workers, they will be able to compete more directly with those in the developed world.  Unfortunately greater connectivity also exposes organizations, governments, and citizens to the risks of fraud and even terrorism.  We have yet to see how democratic governments will regulate this new online environment to insure national security and protect freedom of expression. 

Lifelong Learning

It is estimated that young people currently entering the workforce will experience ten to fourteen major career changes in their professional lives. [5] As the information economy takes root, workers will be required to refine their skills and learn new ones to remain competitive.  In short, they must become life-long learners.  Workers will acquire new skills at cyber-universities through distance-learning courses tailored to meet their individual needs.  Today, only a minority of the population enjoys access to higher education with less than a third of Americans over twenty-five holding bachelors degrees. [6] It is estimated that by 2020 there will be fifteen million new jobs in the US requiring a college degree, but at current graduation rates, there will be a net gain of only three million workers with those credentials to the labor force. [7] Even though matriculation and graduation rates have improved over the past few decades, colleges and universities will need to embrace new technologies and promote vocational training to meet the needs of our economic future and to keep the U.S. workforce competitive.

Open Source Society and Information Integrity

One of the emerging characteristics of our interconnected society is the notion that information should be not only available to all, but also modifiable by all.  The term “open source” is usually used to describe software programs, but the ideas that it represents – public access and public ownership – will influence many other aspects of our lives, including the education system, the political system, and even popular culture.  In essence, “open source” represents the decentralization of knowledge, and nowhere is this more evident than on the Internet.  Blogs and wikis allow individuals to spread information and opinions to a wide audience while bypassing traditional news sources.  Individuals are able to share artistic and creative talents on file-sharing and image-hosting websites without paying a dime.  These applications of open source technologies will greatly lower costs and spur developments that would be impossible with traditional proprietary models, but their strength – their ability to be modified – may also be their downfall.  With more people sharing more information on the Internet, it will become increasingly difficult to discern fact from fiction.  While the diversification of sources of information enriches our awareness of the world around us, it in no way ensures that we are learning the truth. 

Erik Peterson on Information Flows

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