GDP Is a Wildly Flawed Measure for the Digital Age

Harvard Business Review

New workers embarking on their careers are finding that their education is incomplete in many areas essential to our technology-driven lives today. Gross Domestic Product (GDP), our core measure of prosperity, was developed during the industrial age. HBR STAFF.

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Forget GDP — We Need Numbers That Matter for the Questions We Have

Harvard Business Review

No single number has become more central to society in the past 50 years than GDP — Gross Domestic Product. government released its revised estimate for GDP for the last three months of 2013. GDP very purposefully excludes whole swaths of human existence, from domestic work to volunteer activities to cash transactions not recorded by the government. The limitations of GDP have long been recognized. Academics have also joined the post-GDP party.

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Technology Is Changing Transportation, and Cities Should Adapt

Harvard Business Review

And as innovation brings self-driving cars, electric vehicles, in-vehicle data connectivity, mechanisms for sharing rides and vehicles, and other technologies to more people, getting around cities will become easier, faster, and safer. Such improvements could help cut the costs of traffic congestion ( about 1% of GDP globally ), road accidents ( 1.25

How Digital Technology Is Changing Farming in Africa

Harvard Business Review

Agriculture accounts for more than 30% of the continent’s GDP and employs more than 60% of its working population. Those that do look to leverage new technologies run into financial issues. Foreign-made farm technologies remain unappealing to farmers in Africa because they are cumbersome for those who control, on average, 1.6 The implication is that the smart farming startups must build such a map as they introduce their technologies across the continent.

To Improve African Education, Focus on Technology

Harvard Business Review

These present drivers of its economy, however, are under threat from technology. I founded the nonprofit African Institution of Technology to help universities in the region develop capabilities in emerging areas like microelectronics, biotech, and nanotechnology. Education drives technology. Any nation that cannot create new ideas, devoid of intellectual property, will never lead; today, technology is wealth. Economy Education Technology

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Digital Transformation Is Racing Ahead and No Industry Is Immune - SPONSOR CONTENT FROM DXC TECHNOLOGY

Harvard Business Review

Read more from DXC Technology: Embracing Digital Change Requires a Clear Strategic Focus. Digital transformation transcends technology. Digital transformation is often viewed through a narrow technology lens, as just another mobile project or e-commerce initiative. Fundamentally, though, digital transformation is the result of enterprises seeking to adapt to the storm of new technology affecting markets and customers. Information & technology Sponsor Content

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Globalization in the World We Live in Now: World 3.0

Harvard Business Review

Because economic data simply don't support the view that we live in a flat, connected world, even if we are technologically connected with everyone, everywhere, all of the time. Economy Global business Information & technology GDPSo far, 2011 has been a remarkable year.

China, America, and Copycat Economics

Harvard Business Review

In the second quarter of 2011, China's Gross Domestic Product (GDP) growth slowed to 9.5%. From the vantage point of many in the United States, where optimistic estimates of GDP growth continue to be cut and now hover around 2%, it seems that the Chinese "problem" is a nice one to have. However, when it comes to developing the breakthrough technologies and disruptive innovations that will change people's lives, free markets are much better coordinators of economic activity.

Should a Woman Act More Like a Man to Succeed at Work?

Great Leadership By Dan

The research shows that men are 16 percent more inquisitive than women, possibly due to their tendency to gravitate towards STEM (Science, Technology, Engineering and Mathematics) careers that reinforce inquiry.

How Competition Is Driving AI’s Rapid Adoption

Harvard Business Review

New research from the McKinsey Global Institute simulates the potential global macroeconomic impact of five powerful technologies (computer vision, natural language, virtual assistants, robotic process automation, and advanced machine learning). GDP growth a year across the period.

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When You’re Tied Up In Supply Chains, You Need A Strategy

Strategy Driven

In short, it’s an enormous business, consuming some 6 percent of total world GDP, more than military spending and education combined. The best way to do this is to use scanning technology. Automation technology has come on leaps and bound in recent years.

The Real Reason Companies Are Spending Less on Tech

Harvard Business Review

As a percentage of GDP, it’s now back to mid-1990s levels: There’s a version of the chart above in the much - discussed paper that MIT economist David Autor presented last week at the Federal Reserve’s annual Jackson Hole meeting. job market troubles of the past decade than new technology had.

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The Industrial Era Ended, and So Will the Digital Era

Harvard Business Review

Today digital technology is all the rage because after decades of development it has become incredibly useful. We need to start preparing for a new era of innovation in which different technologies, such as genomics, materials science, and robotics , rise to the fore. To understand what’s happening, it helps to look at earlier technologies. Every technology follows a similar path of discovery, engineering, and transformation. First is the technology itself.

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Women and the economy: an opportunity for growth

Strategy Driven

As Christine Lagarde, Managing Director of the International Monetary Fund states: if women were employed at the same rate as men, GDP would increase by 5 percent in the United States, by 9 percent in Japan and by 27 percent in India. Women are historically underrepresented in STEM (Science, Technology, Engineering and Mathematics. One of the most strategic challenges remains inexplicably a black hole.

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How Cloud Computing Is Changing Management

Harvard Business Review

Theories and practices of management often spring from the opportunities created by new technologies. Client-server technology begat enterprise resource planning systems, and the consequent system-wide visibility that was required for what we call business process management (BPM). That makes it imperative to start thinking about how management will be changed by the most impactful information technology of our time: cloud computing. yagi studio/Getty Images.

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Competing in the Huge Digital Economies of China and India

Harvard Business Review

According to China scholar Adam Segal’s analysis , the Chinese President Xi Jinping “aims to build an ‘impregnable’ cyber-defense system, give itself a greater voice in Internet governance, foster more world-class companies, and lead the globe in advanced technologies.”

China’s Economy, in Six Charts

Harvard Business Review

Its gross domestic product has surged from less than $150 billion in 1978 to $8,227 billion in 2012 (see “China’s GDP” chart below). Despite these impressive achievements, there is still plenty of room for catch up, with China’s per capita GDP only a fifth of the U.S.

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What Could Amazon’s Approach to Health Care Look Like?

Harvard Business Review

GDP dedicated to health care as fertile ground for expansion. The Amazon Go store allows a customer to simply swipe their phone over a sensor upon entry and then relies on an array of sensor technologies to distinguish between the consumer actions of picking up a product, placing it in a cart, or returning it to a shelf. Innovation Technology Operations Digital Articlejamie jones/Getty Images. It is clear from some of its recent moves that Amazon sees the 18% of U.S.

Robots Seem to Be Improving Productivity, Not Costing Jobs

Harvard Business Review

Why did an observed technology boom coincide with a prolonged slump in the productivity data? Overall, Graetz and Michaels conclude that the use of robots within manufacturing raised the annual growth of labor productivity and GDP by 0.36 Economy Technology Manufacturing

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The Most Digital Companies Are Leaving All the Rest Behind

Harvard Business Review

economy operates at only 18% of its digital potential, and the sort of productivity gains that digital technologies should be enabling are not showing up in the broader economy. This does not mean every technology company is leading; there are plenty of tech companies falling behind, too.

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How Will AI Change Work? Here Are 5 Schools of Thought

Harvard Business Review

In a new Accenture survey (titled Reworking the Revolution , which will be published on January 23 rd ) of 1,200 C-level executives worldwide, 75% say that they are currently accelerating investments in AI and other intelligent technologies. Falling incomes will have grave consequences in places like the United States and Europe, where consumption accounts for 56% or 69% of GDP , respectively, requiring new social supports, such as a universal basic income. The Technology Optimists.

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Imagining a Smarter Future with the Industrial Internet

Harvard Business Review

From BMW’s self-driving car to smart door locks and bells, and Wi-Fi tea pots, there were hundreds of exhibitors who presented their IoT-ready technology. The Industrial Internet could add $10 to $15 trillion to global GDP in efficiency gains over the next two decades.

The “Smart Society” of the Future Doesn’t Look Like Science Fiction

Harvard Business Review

While flights of imagination from science-fiction writers, filmmakers, and techno-futurists involve things like flying cars and teleportation, in practice smart technology is making inroads in a piecemeal fashion, often in rather banal circumstances. The potential for technologies to enable smart societies is rising. The market for smart technologies is predicted to be worth up to $1.6 The technology is just a way to get there. What is a “smart” society?

Backdoor Government Decryption Hurts My Business and Yours

Harvard Business Review

based technology company that securely backs up and protects data for more than 1.5 Every single customer can trust us to encrypt all of their files with bank-grade technology before we back them up to our cloud servers. It is the backbone of the digital economy that contributes up to 8% of the GDP of G-20 economies. technology firms. The technology sector — software, hardware, telecommunications and related services — is a commercial powerhouse.

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How the Philippines Became Tech Startups’ New Source for Talent

Harvard Business Review

The Southeast Asia city’s rapid growth echoes the story of the so-called “unicorns” — technology start-ups that rapidly grew to a billion-dollar valuation and beyond. That’s significant for a country with a GDP of $270 billion.

Why WikiLeaks Matters More (And Less) than You Think

Harvard Business Review

Perhaps the most basic economic institution is GDP. When GDP's updated to reflect environmental costs, so must be corporate income statements — otherwise, the math simply won't work. From an economic perspective, its goal is much the same as India's updated GDP 2.0: That's why the traditional understanding of everything from GDP to " jobs " to " profit " to " IPO " is limited. Information & technology Internet Transparency

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The Flaws in Obama’s Cybersecurity Initiative

Harvard Business Review

For example, the gains that IT contributed to the GDP of the Netherlands in 2014 were wiped out by the even larger cost of cybercrime. That’s bigger than the GDP of 75 countries combined. Good technology exists and will help, if we use it.

How the Digital Wind Farm Will Make Wind Power 20% More Efficient

Harvard Business Review

GE says that the technology could boost a wind farm’s energy production by as much as 20% and create $100 million in extra value over the lifetime of a 100-megawatt farm. Technology Internet Energy & Natural Resources Sponsor ContentSponsor Content Insight from GE.

Solving the Internet's Congestion Problem

Harvard Business Review

An open, neutral internet has been a force for sweeping social change: democratizing information, commerce, and access to jobs, triggering GDP growth and a rising standard of living. Or do we need better technologies that can be more efficient at using the internet we've already got?

Which Nation Has the Best 'Technik'?

Harvard Business Review

Paul Kennedy's seminal Rise and Fall of the Great Powers captures the way technological and economic advances have converted into strategic advantage, and how failure to "lock in" that edge accelerates imperial decline. Over the past three centuries, the spread of industrial technologies gradually weakened Britain while stimulating the United States. Technik , then, is the technological quotient of civilization. Technology belongs on that list as well.

18 of the Top 20 Tech Companies Are in the Western U.S. and Eastern China. Can Anywhere Else Catch Up?

Harvard Business Review

Most of the digital giants in both countries are investing in artificial intelligence and other technologies that will facilitate their entry into yet other industries. Indeed, from 2011 to 2017, the GAFAM companies (Google/Alphabet, Amazon, Facebook, Apple, and Microsoft) acquired more than 65 leading-edge European technology companies. The Information Technology Industry Council has identified at least 22 laws in 13 European countries that regulate the localization of data.

The Missing Political Debate Over the Digital Economy

Harvard Business Review

A 2011 McKinsey study estimated that the internet accounted for 21% of GDP growth over the previous five years among the developed countries studied, a sharp increase over the 10% contribution over the 15 years prior. If you are a bookkeeping accounting or auditing clerk, 86% of your tasks could be automated with current technology - and there are 1.6 Of late, it is China, not Silicon Valley, taking the lead in developing mobile technologies. This U.S.

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The Obama Administration’s Roadmap for AI Policy

Harvard Business Review

The two reports – one by a subcommittee of the new National Science and Technology Council , and a second on AI and R&D — were prepared with remarkable speed, especially relative to the traditional pace of government. And somebody reminded me that the space program was half a percent of GDP. Of course, early adopters also risk exposure to the costs of learning and of less-tested technologies. Technology Analytics Digital Article

Brexit Could Deepen Europe’s Digital Recession

Harvard Business Review

These are real concerns for the UK economy overall as the tech sector accounts for around 10% of British GDP. National competitiveness Technology Europe Digital Article

How to Become Truly Social

Coaching Tip

Winning in this environment requires more than new technology ; here are ten ways to become truly social in a world that is not just connected, but interconnected and interdependent: 1) Do away with one-way conversations. Just because all companies now possess the technological capability to hold social conversations with employees, customers and stakeholders, this does not mean we can automatically make these conversations valuable. By Guest Author Dov Seidman.

What a Study of 33 Countries Found About Aging Populations and Innovation

Harvard Business Review

And growth reduces the government’s debt-to-GDP ratio, which facilitates and cheapens future government borrowing. The problem is that population aging is itself a cause for a decline in both GDP and per-capita GDP. The active labor force declines over time, and so does GDP. Accordingly, GDP per capita tends to fall. If the more productive few can produce as much output as the less productive many, GDP will not fall.

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There’s a Gender Gap in Internet Usage. Closing It Would Open Up Opportunities for Everyone

Harvard Business Review

Facebook, Google, and Apple have 17%, 19% and 23% women in their technology staffs, respectively. Apart from the many benefits of the uptake of digital technology, can the industry’s advances actually help address this gender disparity? The second measure is one of digital uptake, an index comprising adoption of the internet, mobile or landline connections, digital consumption, and use of digital technology for commercial purposes. michael suriano/unsplash.

How Marketing Is Evolving in Latin America

Harvard Business Review

The region will soon represent 10% of the global population and 9% of global GDP, with 640 million customers. Marketing Technology Central & South AmericaLatin America is a modern marketer’s dream, and not just because of its size.

The Question with AI Isn’t Whether We’ll Lose Our Jobs — It’s How Much We’ll Get Paid

Harvard Business Review

The basic fact is that technology eliminates jobs, not work. — National Commission on Technology, Automation and Economic Progress, Technology and the American Economy, Volume 1, February 1966, pg. The standard view of technical change is that some jobs are displaced by the substitution of machines for labor, but that the fear of total displacement is misplaced because new jobs are created, largely due to the technology-fueled increase in productivity.

Reverse Innovation Starts with Education

Harvard Business Review

Since two-thirds of world’s growth in GDP is likely come from poor countries, reverse innovation is an important phenomenon. Earlier this year, I received an invitation on behalf of the Tata Center for Technology and Design and the Department of Mechanical Engineering to speak at MIT about my work on reverse innovation. Reverse innovation will be a catalyst for new ideas and a valuable design tool for engineers striving to create technologies that have global impact.

Solving the Internet's Congestion Problem

Harvard Business Review

An open, neutral internet has been a force for sweeping social change: democratizing information, commerce, and access to jobs, triggering GDP growth and a rising standard of living. Or do we need better technologies that can be more efficient at using the internet we've already got?

China’s Growth: A Brief History

Harvard Business Review

Some find evidence of a clear improvement of total factor productivity since market-oriented reforms began in 1979, estimating that the increase in TFP contributed about 40% to GDP growth, roughly the same as that contributed by fixed asset investment.

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Using Algorithms to Predict the Next Outbreak

Harvard Business Review

The pattern only occurs in countries with low GDP that have low concentration of water in the area. Risk management Technology There’s no doubt that our world faces complex challenges, from a warming climate to violent uprisings to political instability to outbreaks of disease. The number of these crises currently unfolding – in combination with persistent economic uncertainty – has led many leaders to lament the rise of volatility, uncertainty, complexity, and ambiguity.