i4j Request for Comments: Defining Where New Jobs Come From

Cohen-picture-L1000398-531x708By Robert Cohen, Ph.D., Economic Strategy Institute

i4j DC – Innovation for Jobs Summit, October 2014

The table here below shows competing stories about the current technological transformation and how it will create jobs.

The second column summarizes the position of Brynjolfsson and McAfee in “The Second Machine Age”.

The third column offers a new vision based on the “factorial” economy of the virtualization imperative and open, intelligent networking. The factorial economy has a faster growth than the exponential growth of the second machine age.

(Comments can be added to the Google Doc version of this post)

DRIVERS

IN THE SECOND MACHINE AGE:

  1. MOORE’S LAW. APPLIES TO LOTS OF NEW DEVICES LIKE CAMERAS, MICROPHONES.
  2. DIGITIZATION. INFORMATION IS ACQUIRED IN NEW WAYS.

IN THE “FACTORIAL” ECONOMY:

  1. VIRTUALIZATION. SOFTWARE MANAGES MACHINES. NOTHING IS HARD-WIRED TOGETHER.
  2. INTELLIGENT OPEN NETWORKS. SOFTWARE RECOGNIZES WHAT LOADS ARE COMING INTO A NETWORK AND KNOWS WHAT TO DO WITH THEM.

INDUSTRIES CREATING NEW JOBS

IN THE SECOND MACHINE AGE:

  1. COMPUTE-BASED, ROBOTICS INDUSTRIES.
  2. USERS OF ROBOTICS AND DIGITIZED PRODUCTS USE COST SAVINGS TO CREATE NEW INNOVATION AND INVESTMENT.

IN THE “FACTORIAL” ECONOMY:

  1. INFRASTRUCTURE THAT INCLUDES COMPUTING, STORAGE AND NETWORKING.
  2. USERS OF INTELLIGENT NETWORK INFRASTRUCTURE BENEFIT FROM COST DECLINES BUT ALSO NEED TO CREATE MORE INTELLIGENT STAFF TO MANAGE THEM.
  3. EASIER TO USE “INTELLIGENT” NETWORKING MAKES IT POSSIBLE FOR LESS SKILLED WORKERS TO RUN MORE COMPLEX OPERATIONS AND TO SELF-TRAIN FOR NEW POSITIONS.

MULTIPLIER EFFECTS ARE LARGELY PRESENT IN

IN THE SECOND MACHINE AGE:

  1. COMPUTE-BASED, ROBOTICS INDUSTRIES.
  2. USERS OF ROBOTICS AND DIGITIZED PRODUCTS USE COST SAVINGS TO CREATE NEW INNOVATION AND

IN THE “FACTORIAL” ECONOMY:

  1. SUPPLIERS TO INDUSTRIES USING VIRTUALIZED INFRASTRUCTURE.
  2. SUPPLIERS TO INDUSTRIES USING INTELLIGENT NETWORKING.
  3. INDUSTRIES THAT PROVIDE WORKERS WHO CAN TRANSITION INTO POSITIONS THAT RUN MORE COMPLEX OPERATIONS.

Comments are closed.