Open Letter on the Digital Economy

We are in the early stages of an era of great technological change. Digital innovations are remaking our industries, economy, and society just as steam, electricity, and internal combustion did before them. Like their predecessors, computers and their kin are engines of great prosperity. Progress with hardware, software, and networks is improving our lives in countless ways and creating immense value. To take just a few examples, advances in artificial intelligence are helping doctors diagnose disease; new sensors are making it possible to drive cars more safely; digitization is delivering knowledge and entertainment more widely than ever; and mobile networks are interconnecting the planet’s population for the first time ever. The digital revolution is the best economic news on the planet.

But the evidence is clear that this progress is accompanied by some thorny challenges. The majority of US households have seen little if any income growth for over 20 years, the percentage of national income that’s paid out in wages has declined sharply in the US since 2000, and the American middle class, which is one of our country’s great creations, is being hollowed out. Outsourcing and offshoring have contributed to these phenomena, but we should keep in mind that the recent wave of globalization is itself reliant on advances in information and communication technologies. The fundamental facts are that we’re living in an ever-more digital and interlinked world, and the benefits of this technological surge have been very uneven.

Previous surges brought with them greatly increased demand for labor and sustained job and wage growth. This time around, the evidence is causing some people to wonder if things are different. Or, to paraphrase many recent headlines, will robots eat our jobs?

We think this is the wrong question, because it assumes that we are powerless to alter or shape the effects of technological change on labor.

We reject this idea.

Instead, we believe that there’s a great deal we can do to improve prospects for everyone.  We propose a three-pronged effort.

First, we recommend a set of basic public policy changes in the areas of education, infrastructure, entrepreneurship, trade, immigration,  and research. There’s a strong consensus that these can quickly improve America’s economy and the wellbeing of its workforce. It’s also time to start a conversation about the deeper changes that will be necessary over the longer term — to our tax and transfer system, to the nature and extent of our public investment, and even to how democracy can and should function in a networked world.

Second, we call on business leaders to develop new organizational models and approaches that not only enhance productivity and generate wealth but also create broad-based opportunity. The goal should be inclusive prosperity. The corporation is itself a powerful innovation, and one that can do far more than just generate profits and provide a competitive return to those who supply capital and take risk. It is both a tool for transforming ideas into products and services that address society’s challenges, and the means by which many people earn their living. Along with current waves of innovation in technology we also have an opportunity to re-invent the corporation and our business systems.

Third, we recognize that we don’t have all the answers. So we call for more and better research on the economic and social implications of the digital revolution and increased efforts to develop long-term solutions that go beyond current thinking.

In summary, we believe that the digital revolution is delivering an unprecedented set of tools for bolstering growth and productivity, creating wealth, and improving the world.  But we can only create a society of shared prosperity if we update our policies, organizations and research to seize the opportunities and address the challenges brought by these tools.

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    Stanford
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    Khosla Ventures
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    NYU, Nobel Prize in Economics (2001)
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    Yale, Nobel Prize in Economics (2013)
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    UC Berkeley, Nobel Prize in Economics (2009)
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    Harvard, Nobel Prize in Economics (2007)
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    MIT, Nobel Prize in Economics (1987)
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    University of Toronto
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    Babson College
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    Harvard Business School
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    NYU
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    Northwestern
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    Boston University
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    Blockchain
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    www.imitatingmachines.com
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    Independent ICT and technology analyst
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    Entrepeneur
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    www.imitatingmachines.com
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    Health IT Consultant
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    University of Sydney
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    FGV
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    clerisity
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    Microsoft
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    University of Houston
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    Open Technology Institute
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    aveone
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    Fundacion Crear, Buenos Aires, Argentina
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    Bangladesh NGOs Network for Radio and Communication
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    Toyokeizai
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    Ordo
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    Work in Progress
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    KimmiC
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    Deloitte
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    Ahead of Time
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    Text100 GmbH
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    Marginwise
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    Novartis, and as a US Citizen
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    IDB
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    Sheffield Hallam University
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    Microsoft
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    Gonna Grow Wings
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    Asian & Pacific Islander American Health Forum
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    Infotwins Technologies India
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    Ministry of Information Technology, Government of Pakistan
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    Technical University of Denmark
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    NTIA
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    John L. Davidson, PC
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    Port Authority
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    Berrett-Koehler Publishers
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    Santa Clara University
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    Red Bull
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    Department of Economics, University of Genoa, Italy
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    Sodertorn University, Stockholm, Sweden
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    MIT
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    iLab
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    The Rype Group
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    Malardalen University, SWEDEN
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    UCR
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    CEO Digital Business insights
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    Intersticia
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    Nordic Data Empowerment Initiative
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    CMU
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    simpson garrity Innes and jacuzzi
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    SWIFT/Innotribe
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    Digital Transformers
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    University of Nottingham
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    Sanofi Pasteur
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    Jorge Lopez Garrido
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    Maryland House of Delegates
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    Co:Inpetto
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    Mckinsey
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    KTH Royal Institute of Technology
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    Alienvault
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    Undercurrent
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    Golden Ark Highway - Mathura to Mecca
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    Coperfield for Social Good
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    AUAT/INRA
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    CarePath
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    CIO of Skoltech-MIT
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    University of Queensland Business School
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    Trevor-Roberts Research Institute
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    Full Prof. Computer Sciences. Univ. of Valencia (Spain)
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    UK trade and investment
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    Babson College
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    UWE, Bristol / BrisSynBio
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    Evalueserve, Inc.
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    Fidia SRL
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    PUB
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    Center for the Study of Digital Life
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    iconsulting
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    Lean Team Tuning LLC
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    Anil Verma MD Pc
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    Pace University
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    IESE BUSINESS SCHOOL
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    UWV
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    IBM
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    The Institute for Sustainable Communication
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    KAIST
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    Cambridge Semantics, Inc.
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    Brooklyn Defender Services
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    Bristol Robotics Lab
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    brandeins magazine
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    ITU
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    Independent Strategy Ltd
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    Indiana University Southeast
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    HERE
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    Augmentia
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    ironbridge Capital
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    Hourglass Co
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    SM '99, MIT
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    California Concern
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    The Contributor
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    MIT Sloan - Class of 2001
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    MOR Associates, Inc.
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    Google
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    Ashoka
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    Digoshen
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    University of Queensland
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    MIT
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    TE Connectivity
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    University of the Western Cape
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    University of Ottawa, STEAMakers Guild
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    Johnson Controls
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    MIT
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    Asociatia Divers
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    University of London
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    Kamedia Technology Services
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    Escuela San Boal de Salamanca (España)
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    Pirate Party Australia
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    AKAYA Intl Survey Co.Ltd., Istanbul
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    Abaka
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    Tel Aviv University
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    Hanson Inc.
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    Svanberg Bona Officia AB
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    Embraer
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    Digital Strategist Pharma
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    Minerva Training Institute (MTI)
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    MIT
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    Lucid Holdings, Inc.
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    University of Southern California
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    revict consulting
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    Trudelle Consulting
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    GOOGLE
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    MSc Software Engineering
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    Digital Entrepreneur
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    MIT
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    46611635L
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    Embraer
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    Wiley
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    Silenus Consultoría
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    MIT
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    Future Think Limited
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    Faculty of Management and Technology of UCLL Belgium
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    University of Birmingham (UK)
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    Kronberg Academy Stiftung
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    Boston University
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    Parkland School District
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    LSE Startup Hub
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    StrataFusion Group, Inc.
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    Crescendo Capital
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    Design industry
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    Italian Institute for the Future
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    occam XXI
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    Epicor Software
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    FIM-CISL / IndustriALL Global Union
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    InvoiceXpress
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    https://ro.linkedin.com/in/lucaciflorentin
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    Architect
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    sachinbhat.com
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    Associazione Archivio Storico Olivetti
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    Bologna University Business School
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    Cogal SAGE
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    ATB Institute for Applied Systems Technology Bremen
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    The Center for Understanding Change
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    Stanford PACS Digital Civil Society Lab
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    Living Cities
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    Novartis
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    IT Manager
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    Hydrogen Energy Srl
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    Project PACE
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    Royal Academy of Belgium
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    Staples
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    Elon University
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    Real Ventures
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    Retired, Sigma Machining Centers
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    Chief Technology Advisor
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    UPF
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    Broward Latino
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    MB
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    Marginalia on Engagement
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    kcif
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    Intergalactic Industries
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    Innhotep
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    LiTH
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    Éducation
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    BNP Paribas
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    University of Utah
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    Marzano Research
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    Center for Continuing Study of the California Economy
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    bikeandbuild.org/cms
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    FCT NOVA, Portugal
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    tkn
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    Small Biz Economist
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    CSU Dominguez Hills
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    Athena Alliance
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    Invictus Founder
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    TSSG
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    ReSource Pro
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    Kainos
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    Intel
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    OTB
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    Eastern Connecticut State University
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    SaaS Cloud Computing
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    Corporate & Institutional Banking
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    Georgia Institute of Technology
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    Université de Louvain and Institut Européen de Chimie et Biologie
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    Prof. of Int'l Business, GWSB and Managing Director of the Growth Dialogue
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    The University of British Columbia, Vancouver School of Economics
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    University of Applied Arts Vienna
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    Writer, Attorney
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    digital innovation
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    NRCUB
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    Brown
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    Arco Eng
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    Media Entrepreneur
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    Business school student
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    EKT/NHRF, Greece
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    roland_crespo@yahoo.com
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    @wibbleday
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    Ericsson
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    C.S.I. 2000
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    Researcher
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    Abilita Consulting
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    WTN; private investor
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    European Commission
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    Singularity Bros Podcast
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    frog
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    Lean Enterprise Academy
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    Eton College
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    ISI
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    @recyclebin ♻
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    Borg consulting network
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    human,rc trust, rayanthony.io
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    Verivis Consulting
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    Responsive.org
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    Inter-American Development Bank
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    www.robotenomics.com
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    McGill University
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    Shift Counsel
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    SuccessionWeb
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    Smart Jobless Kid
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    Author, Meghan-Kiffer Press
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    None
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    GoodAI
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    retired attorney /writer
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    rmbCreative
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    UC Berkeley
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    Capital Markets/Digital Consulting Marketing
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    Marketing Partners, Inc.
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    Argosy University
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    cxotalk.com
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    AXA GROUP
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    Smithsonian Libraries
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    RBL Bank, India
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    Bank of Lithuania
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    IE Business School, Madrid, Spain
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    S P Jain
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    Swiss Federal Institute of Technology (ETH Zurich)
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    DeepDive Foresight
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    CroissancePlus
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    REA Group
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    SecuTrans Inc.
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    SBIT
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    Embraer
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    LG Electronics
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    Choose The Story
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    Seedble
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    CIO Govt Departm
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    KAUTE Foundation
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    Newportnet.com.au
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    International Architecture Biennial Rotterdam
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    Chineasy
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    Nouvelles Fonctions Urbaines (NFU)
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    Click Conhecimento
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    TA Image
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    ETH Zurich
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    SUP46
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    Florida International University
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    Udemy
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    Viuz
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    The digital economy
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    IMBA
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    WME
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    Helsinki University of Technology
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    Open Knowledge Foundation
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    DIGILE
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    SAP
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    OECD
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    MeaningfulCareers.com
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    Esterlust
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    Dept. Social and economic Sciences, Università Politenica Marche, Ancona, Italy
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    www.klausvandenberg.com
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    Singularity University
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    IIIT Hyderabad
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    citizen votary, retired carpenter
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    UP There, Everywhere
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    Lake Crystal Wellcome Memorial Secondary School
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    Architect/Urbanist
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    Columbia University
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    Microsoft Corporation
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    myMAYDAY.com as
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    University of Stavanger
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    National Conservatory of Music. Pesaro, Italy
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    Universitat Pompeu Fabra
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    Boeing
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    WhatsApp
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    epiSphere
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    Sagence Consulting
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    Mobinomics
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    #CyberPeaceGadfly
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    DCVC
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    ICG LATAM
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    Université Paris Ouest
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    CSD
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    AI2
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    Incantis Corporation
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    Austin Computer Security
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    IsoFusion
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    University of Chicago
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    Student Universität Witten Herdecke
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    Graduate Institute Geneva
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    Repsol
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    Co-Host theCUBE
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    SolarCity
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    Stanford University
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    Stanford
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    Stanford
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    Knowledgent
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    Metacog, Inc.
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    Stanford
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    Beuth University of Applied Sciences Berlin
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    Stanford University
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    neoecommerce
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    Stanford University
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    MKTG.IS
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    University of Oxford
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    CEO, Prodigy Surface Tech Inc.
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    MidKent College
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    Sightcorp
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    GSMA
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    River Holdings
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    IBM
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    Intel sistem Ltd
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    Senior Advisor, The Boston Consulting Group
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    NRG Hom Solar
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    SHIFT Thinking
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    BP
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    Sitekit Ltd
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    Innovation consultant & business leader
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    www.eyeem.com/u/shannonpatrick17
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    Open Knowledge and University of Cambridge
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    Small Business Owner
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    Retired
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    Federmanger Italy (National Association of Industrial Managers)
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    Philips
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    Writer and Entrepreneur
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    Lawyer
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    UC Davis
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    TheFamily
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    Santa Fe, NM
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    Dnavision
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    techUK
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    The Gramercy Fund
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    European Commission
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    Godfrey-Lee Public Schools
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    Georgetown University
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    IBM
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    Earth
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    KnowledgeEconomy.com
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    Futurist/GRCC/Spectrum Health
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    Paris Sud University
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    NYC Media Lab
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    foresightlab
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    Fujitsu
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    Bull
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    University College London
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    Verrazano Ventures
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    School of Visual Arts
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    MakeDoNia MakerSpace Jakarta
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    Anthos Asset Management
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    Student, Manipal University Jaipur
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    New York, NY
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    GWU
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    University of Washington
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    University of Melbourne
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    Sony
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    http://www.digitaltonto.com/
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    Cornell University
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    ESSEC Business School
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    Google
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    Independent Advisor
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    USC
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    Anglia Ruskin University, England
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    Slht
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    AI2
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    Frank Calberg Services
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    Stanford University
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    University of Technology Sydney
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    University of British Columbia
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    UPMC Sorbonne University
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    Paris Dauphine University
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    Genuine Wealth Project
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    Tech Data Italia
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    OGTV (www.opengovtv.com) Open Government TV
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    IT consultant-retired
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    RSH Ventures
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    AI2
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    software engineer
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    Internet Talents
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    Mississippi State University Extension
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    The Greenlining Institute
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    Barry Communications
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    Senior Fellow, Center for Emerging Market Enterprises, The Fletcher School
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    GSV
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    Post-Graduate (Strategic Management) working in the Professional Service Industry
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    University of Kansas
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    Harvard
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    Center for Financial Services Innovation
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    Universidad de León (Spain)
  • Maximilian Bethge
    Student
  • Paul Weiss
  • Igor Fonseca
    Icon Business and Technological Solutions
  • Cristian Merino
    Nu Consulting
  • Junhee Kwon
    Korea National Assembly Research Service
  • Kunwoo Kim
    LGERI
  • Nerdski Alexander
    Software Engineer
  • John Knoepfle
    Citizen Technologist
  • Greg Laudeman
    Eduity, LLC
  • Martin Chesbrough
    Lloopp
  • Joseph Carvin
    One World Youth Education
  • David Gorgan
    START Global
  • Alex Mourmouras
    IMF
  • Zarir Langrana
    Tata Chemicals Ltd.
  • Thomas Mesenbourg Jr.
    Mesenbourg Statistical Consulting
  • Kalyan Kumar
    HCL
  • Venkateshwaran NG
    PSG Institute of Management
  • Duyndam Alexander
    Schuttelaar & Partners
  • Satish Pandita
    HCL
  • Malle Klaus
    Accenture
  • Shiao Huang
  • Hans Petter Graver
    University of Oslo