The Next Era of Global Technological Development Seminar at the John Curtin Institute of Public Policy Curtin University WA. Tuesday June 17th 2014. Presented by Mal Bryce, Kelvin Willoughby and Ron Johnston Australian Centre for Innovation Addressing the challenges of the future through innovation About Continuity, Breakthroughs and Convergence •The Mature Phase of the Digital Era. •The Biological Nexus of Technological Innovation. •The Resource Efficiency Era. Australian Centre for Innovation Addressing the challenges of the future through innovation Breakthroughs in Life Sciences More Digital Disruption The Next 30 years Resource Efficiency Australian Centre for Innovation Addressing the challenges of the future through innovation Presentation 1 The Mature Phase of the Digital Era. Mal Bryce Australian Centre for Innovation Addressing the challenges of the future through innovation The Digital Revolution Based on Information Technology and Telecommunications had its beginnings in the early 1970’s and is expected to extend through to the 2040’s. The nature and scope of innovation which it has produced has been unprecedented. Australian Centre for Innovation Addressing the challenges of the future through innovation A “Game Changing” environment….a wholesale shift for society and the economy. Australian Centre for Innovation Addressing the challenges of the future through innovation The Digital World & High Speed Networks. Online Business COMMUNICATION LOCAL ENTERTAINMENT TRANSACTIONS Internetworked Community - virtual - physical Online Community Groups INFORMATION EDUCATION GLOBAL Online Government COLLABORATION Online Householders 6th wave 5th wave Waves of Innovation 1770’s – 2030’s Nano Technology Bio Technology Bio Mimicry Resource Efficiency Re Newable Energy Industrial ecology Innovation 4th wave 3rd wave 2nd wave 1st wave Steam Power And Railroads Steel Electricity Chemicals Heavy Engineering Oil Automobiles Petrochemicals Aviation Space Digital Networks Software Information Technology Telecommunications Iron Water power Mechanisation Textiles 1771 1830 1870’s 1920’s 1971 2030’s Degree of diffusion of the technological revolution Classic Phases of the ICT Revolution 1970’s – 2040’s INSTALLATION PERIOD Irruption Turning point Frenzy DEPLOYMENT PERIOD Synergy Maturity Next big-bang big-bang 1971 1987 2008-12 20?? 20?? Time 50 – 60 YEARS SOURCE: Perez, “Technological Revolutions and Financial Capital” Digital Disruption is widespread. • Almost everything we do is impacted. • The nature of consumption, competition, and work has changed. • The balance of power between organizations and individuals has changed. • Major new competitive pressure has arrived. • Disruption varies across sectors and geography. Australian Centre for Innovation Addressing the challenges of the future through innovation The Age of High Speed Networks mean: More people, more data, more locations “Online” and faster outcomes Australian Centre for Innovation Addressing the challenges of the future through innovation Globally from 2 Billion, (in 2010) the number of people online will double and treble quickly. Australian Centre for Innovation Addressing the challenges of the future through innovation Drivers for Further Digital Disruption Australian Centre for Innovation Addressing the challenges of the future through innovation Rollout of High Speed Networks • Infrastructure for Gigabits and 100’s of Megabits • National retrofit for the copper telephone network. • The best possible mix of fibre glass, wireless and satellite. • Infrastructure for global competitiveness. Eg: Telstra to increase its data traffic One Thousand fold between 2011 and 2020 Australian Centre for Innovation Addressing the challenges of the future through innovation Exponential Growth of Social Media. • Customer service becomes customer intimacy • By 2012 > 1billion people per day were accessing Facebook. • Facebook is now second only to Google for Internet activity. • Growth Rate for Twitter is greater than Facebook. • Customer profiling is ubiquitous. Australian Centre for Innovation Addressing the challenges of the future through innovation Mobility of devices, apps and data services • Smart phones and tablets are the basis of a mobility revolution. • The Age of the App has arrived • • • • Cheap to access Meet specific needs Keep track of their owners Generate massive volumes of data. • Globally (by 2013) 30% of all mobile phones were smart phones. • One in seven online searches is now from a mobile device. • Wearable computers for enhanced reality are next. Australian Centre for Innovation Addressing the challenges of the future through innovation Big Data and Analytics • Unprecedented volumes of data are now generated daily on a global basis. • Big Data allows large volumes of data to be analysed to identify trends and patterns. • Current data is now cross referenced with previous data. • Supercomputing handles the mountain of data. • Data literate people are in increasing demand. Australian Centre for Innovation Addressing the challenges of the future through innovation Devolution of Cloud Computing • Origins in the surplus capacity of the Big Five. • Outsourcing takes over from traditional “in-house” IT Infrastructure. • Expected to be a Trillion Dollar business activity by 2015’ • Delivers new services, cost reductions and support for remote working patterns. • Provides superior security services. Australian Centre for Innovation Addressing the challenges of the future through innovation The Internet of Things • 26 Billion THINGS connected to the Net by 2020 ?? (Gartner Group) • Objects, animals and humans automatically transferring data. • Mountains of data will result. • Billions of sensors and transponders interacting with; • the internal state of things • the external environment. • Future concerns about data privacy. Sovereignty and security. Australian Centre for Innovation Addressing the challenges of the future through innovation The Maturity of eCommerce • Basic commercial processes remain the same. Technology has changed. • By 2013 eCommerce (globally) reached a turnover > $1.3 Trillion. • Now infinite options to buy goods and services online. • Key Message: Adapt or Disappear. • Unsolicited and targeted advertising push is of growing concern. Australian Centre for Innovation Addressing the challenges of the future through innovation A Wave of New Content: entertainment, visualisation and video collaboration • • • • • Telepresence, video collaboration and 3D come of age. Dramatic changes for traditional media. Smart Glasses leaders in wearable computers ? Spontaneous citizen Video footage enters the arena. Since the mid 90’s Online Gaming has become a $70 Billion industry activity. • Consumers looking for interactive involvement in entertainment. • Migration of artists and audiences to new media Australian Centre for Innovation Addressing the challenges of the future through innovation Cyber Security • • • • • • A new playground for digitally savvy criminals. Vulnerability of Online services. Limitations of national “Statute Law” Identity theft and the need for certification. New generation of end user “security services”. Cyber warfare and new threats to national security. Australian Centre for Innovation Addressing the challenges of the future through innovation Conclusions Australian Centre for Innovation Addressing the challenges of the future through innovation Numerous Technologies and Disciplines have converged with Informatics eg: • • • • • • Bioinformatics Geoinformatics Hydroinformatics Business informatics Engineering informatics Environmental informatics Australian Centre for Innovation Addressing the challenges of the future through innovation High Speed Networks and the new digital services have become basic sinews of our economy. Australian Centre for Innovation Addressing the challenges of the future through innovation The Links are now undeniable Connectivity Creativity Innovation Productivity PROSPERITY Breakthroughs in Life Sciences More Digital Disruption The Next 30 years Resource Efficiency Era Australian Centre for Innovation Addressing the challenges of the future through innovation Presentation 2 The Biological Nexus of Technological Innovation. Kelvin Willoughby Australian Centre for Innovation Addressing the challenges of the future through innovation For One Baby, Life Begins with Genome Revealed How a California father made an end run around medicine to decode his son’s DNA. Antonio Regalado, MIT Technology Review, June 13, 2014 http://www.technologyreview.com/news/527936/for-one-baby-life-begins-with-genome-revealed/ An infant delivered last week in California appears to be the first healthy person ever born in the U.S. with his entire genetic makeup deciphered in advance. His father, Razib Khan, is a graduate student and professional blogger on genetics who says he worked out a rough draft of his son’s genome early this year in a do-ityourself fashion after managing to obtain a tissue sample from the placenta of the unborn baby during the second trimester. … The idea of sequencing fetuses is extremely new and sensitive. Khan, who had no real medical reason to learn his son’s DNA code, says sequencing his son in utero “was more cool than practical.” He did it to show where technology is headed and because he likes “pushing the envelope.” Myriad Genetics Posts Key myPath Melanoma Data Analyst Blog NASDAQ --- Zacks.com, June 03, 2014 http://www.nasdaq.com/article/-myriad-genetics-posts-key-mypath-melanoma-data-analyst-blog-cm358611/ Myriad Genetics, Inc. ( MYGN ) reported results from a crucial clinical validation study of its myPath Melanoma test at the 2014 American Society of Clinical Oncology (ASCO) annual meeting in Chicago. The Myriad myPath Melanoma test is a clinically validated gene expression molecular test that has been designed to differentiate malignant melanoma from benign skin lesions, with a high level of accuracy. With certain melanomas imitating benign skin lesions, it becomes quite difficult for clinicians to diagnose melanoma in patients accurately. In such situations, Myriad myPath Melanoma comes of help as it has the ability to discriminate malignant melanoma from benign skin lesions, as has been observed in the validation study. The test differentiates between the two diseases by using traditional dermatopathology as a gold standard. A quick and accurate diagnosis of potentially fatal melanoma is now possible, thanks to Myriad myPath Melanoma. U.S. organizations signing: American Farm Bureau Federation; National Association of Wheat Growers; National Farmers Union; North American Millers' Association and U.S. Wheat Associates. Canadian signatories: Canadian National Millers Association; Cereals Canada; Grain Farmers of Ontario; Grain Growers of Canada and Western Canadian Wheat Growers Association. Australian signatories: AgForce Queensland; Grain Growers Limited; Grain Producers Australia; Grain Producers SA; Pastoral and Graziers Association of Western Australia and Victorian Farmers Federations Grains Group. Metabolix biopolymers are based on polyhydroxyalkanoate polymers (PHAs) and are made by fermentation using renewable carbon based feedstocks, making them 100% biobased in neat form. Metabolix has developed leading technology for production of a broad range of PHA biopolymers as evidenced by an industry leading intellectual property portfolio and continues to innovate further to expand the range of performance and production economics of our PHA biopolymers. © Prof. Kelvin W. Willoughby, 2005. © Prof. Kelvin W. Willoughby, 2005. www.bio.org An approach to categorizing biology-related technologies Technologies categorized by the types of MEANS they incorporate Technologies categorized by the types of ENDS they serve Fields of Bioscience Technology Technologies categorized by the types of bio-related MEANS they incorporate Biotechnology Bioscience Technology Medical Technology Bio-systems Technology Technologies categorized by the types of bio-related ENDS they serve Fields of Bioscience Technology Technologies categorized by the types of bio-related MEANS they incorporate Biotechnology “Life Sciences” Medical Technology Bio-systems Technology Technologies categorized by the types of bio-related ENDS they serve 2006 Professor Kelvin W. Willoughby. Fields of Bioscience Technology Technologies categorized by the types of bio-related MEANS they incorporate Biotechnology Medical Devices Sub-categorized by the types of bio-related means they incorporate Bioscience Technology Medical Technology Bio-systems Technology Agri-bio Technology Sub-categorized by the types of bio-related applications they express Bio-industrial Technology Pharmaceuticals Technologies categorized by the types of bio-related ENDS they serve Fields of Bioscience Technology Illustrative Examples Technologies categorized by the types of bio-related MEANS they incorporate Molecular biology, genomics, proteomics Monoclonal antibody based diagnostics Bio-pharmaceuticals Medical Devices Pharmaceuticals (traditional) Drug delivery devices, Cardiac rhythm devices Biotechnology Pharmacologically active GMOs Bioscience Technology Medical Technology Agri-biotech Fermentation, Industrial bioprocessing, Food processing. Agri-bio Technology Bio-systems Technology Bio-security technologies Bio-sensors Bio-industrial Technology Pharmaceuticals Diagnostic devices, Medical biosensors (selections only) Nutritionally enhanced food “Nutraceuticals” Veterinary technologies Bio-fuels / Bio-energy Bio-materials Bio-fibers Technologies categorized by the types of bio-related ENDS they serve “Bio” business … Today’s advances leverage the accomplishments of previous ages, products, and technologies. 1800s 1900s 1950 1960 1970 1980 1990 2000 2025 U.S. Bioscience and Total Private Sector Employment, 2001-10, Indexed (2001 = 100) Source: Battelle/BIO, State Bioscience Industry Development Report (Battelle & Biotechnology Industry Organization, 2012) Employment Trends in the Biosciences and Other Knowledge-intensive Industries, 2001-10 Source: Battelle/BIO, State Bioscience Industry Development Report (Battelle & Biotechnology Industry Organization, 2012) Change in Real Average Annual Wages, United States, 2001-10 Source: Battelle/BIO, State Bioscience Industry Development Report (Battelle & Biotechnology Industry Organization, 2012) U.S. Employment by Bioscience Subsector, 2007-10 Source: Battelle/BIO, State Bioscience Industry Development Report (Battelle & Biotechnology Industry Organization, 2012) Minnesota Life Science Community Minnesota Industries Medical Devices Infrastructure Component/Service Suppliers Bioinformatics & Systems Biology Int’l Business Support Center Bioengineering & Clinical Capabilities Acceleration/ Incubation Education Food Academic Tech Transfer v.19jan09 (Biological & Chemical) NanoTech & Materials Science Animal Health Funding Foundational Capabilities Catalysis & Synthesis Skilled Workforce Enabling Knowledge Clusters Leadership Talent Commercialization Catalysts Biologics/ Biopharma Renewable Materials Renewable Energy Genomics, Proteomics & High Throughput Biology Policy Imaging / Navigation Employment, Biobusiness Technology Industries 2007 2002 1997 23,893 Wisconsin 19,682 19,455 24,653 Washington 26,325 19,423 14,389 Utah 16,650 14,012 29,963 Ohio 29,608 25,008 45,706 North Carolina 41,318 26,849 60,930 New York 81,898 72,405 75,274 New Jersey 79,893 56,524 62,854 Massachusetts 54,676 41,835 10,796 Iowa 10,601 8,545 217,182 California 228,336 152,656 34,422 Minnesota 27,992 28,889 0 50,000 100,000 150,000 200,000 250,000 Enterprise Density Indices, Biobusiness Technology Industries Employment, Biobusiness Technology Industries 2007 2002 1997 2007 2002 1997 23,893 Wisconsin 1.00 Wisconsin 19,682 0.81 0.80 19,455 1.46 24,653 Washington Washington 26,325 1.14 1.15 19,423 1.21 14,389 Utah Utah 16,650 1.29 1.26 14,012 0.90 29,963 Ohio Ohio 29,608 0.85 0.81 25,008 1.00 45,706 North Carolina North Carolina 41,318 0.93 0.86 26,849 0.85 60,930 New York New York 81,898 0.99 1.07 72,405 1.27 75,274 New Jersey New Jersey 79,893 1.25 1.27 56,524 1.51 62,854 Massachusetts Massachusetts 54,676 1.25 1.25 41,835 0.87 10,796 Iowa Iowa 10,601 0.71 8,545 1.37 217,182 California California 228,336 1.01 34,422 Minnesota 27,992 0.85 0.88 28,889 0 1.40 1.42 152,656 Minnesota 0.74 50,000 100,000 150,000 200,000 250,000 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 Percentage Change in Employment Density Indices, 1997-2002 Biobusiness Technology Industries Wisconsin-18.8% 5.8% Washington Utah -13.2% Ohio -2.7% 23.1% North Carolina New York -13.0% 8.0% New Jersey Massachusetts -0.3% Iowa -2.3% -30.0% -20.0% -10.0% -11.5% Washington Utah -25.6% 0.0% 24.3% Wisconsin 10.6% California Minnesota Percentage Change in Employment Density Indices, 2002-2007 Biobusiness Technology Industries -22.7% 9.5% Ohio 10.0% 20.0% 30.0% 10.3% North Carolina New York -19.8% New Jersey -1.1% 23.3% Massachusetts 5.7% Iowa California -4.0% 26.3% Minnesota -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% Modes of Activity, Bioscience Technology Firms, New York, Late 1990s Source: Willoughby Percentage of firms in the industry engaged significantly in each function. Percentage of firms in the industry engaged significantly in each function. Modes of Activity, Bioscience Percentage of Utah's bioscienceTechnology technology Firms, firms engaged in production research, 1998 Utah, Late or 1990s 90% 89% 80% 70% 71% 67% 60% 50% 40% 30% 20% 10% 0% Production Source: Willoughby Research & Production development and R&D Percentage of firms in the industry engaged significantly in each function. Variations in Modes of Activity Between Industry Sectors, Bioscience Technology Firms New York, Late 1990s Source: Willoughby Technological Diversification by Bioscience-Technology Firms New York State, Late 1990s Primary Field of Technology % of Population Number of Firms in Active in Other Population Fields of BioscienceTechnology % of "C" Active in Biotechnology Biotechnology 140 57% 100% Pharmaceuticals 74 55% 85% Medical Devices 109 21% 91% Life-Systems Technology 40 88% 80% Source: Willoughby Source: Willoughby Source: Willoughby “Take Away” Themes • Biology is an emerging nexus zone of technological innovation. • The business of bioscience-technology plays an increasingly significant role the wider economy and in a range of other industries. • The business of bioscience-technology may provide great leverage for regional wealth generation. • Communities compete with one another to become bio-business zones. • Successful bioscience-technology firms tend to be multi-functional, interdisciplinary, and communicative. Presentation 3 The Resource Efficiency Era: Doing so much more with Less Ron Johnston Australian Centre for Innovation Addressing the challenges of the future through innovation Our Understanding of Technology 1. Anything that is in the world when you are born is a natural part of the way the world works 2. Anything that is invented between when you are fifteen and forty is new, exciting and you can probably get a career out of it 3. Anything invented after you are forty is against the natural order of things Douglas Adams Australian Centre for Innovation Addressing the challenges of the future through innovation The Challenge of Predicting Technology and its Effects • • • • • • • • • • Bell’s talking telegraph only creates interest in scientific circles; as a toy it is beautiful; but its commercial value will be limited (Elisha Gray, 1876) The horse is here to stay, the automobile is a novelty (Michigan Bank manager to Henry Ford, 1908) Who the hell wants to hear actors talk? (Jack Warner, 1930) There is a world market for about five computers (Thomas Watson, IBM, 1943) Guitar music is on the way out (Decca Records rejecting Beatles, 1962) If anything will remain unchanged, it is the role of women (David Riesman, 1967) Before the year 2000 is over, the first child will have been born on the moon (Werner von Braun, 1972) The Internet is full. Go away. (T-shirt, 1995) No-one will buy anything over the Web (Newsweek, 1995) Spam will be gone within two years (Bill Gates, 2004) Australian Centre for Innovation Addressing the challenges of the future through innovation Predicting Technology and its Effects – Technological Trends and National Policy (1937) • Needs focussed, identified thirteen key technologies within a 15-20 year time horizon • Identified predicted uses, market timing and impact, and social implications • Television, facsimile transmission, air conditioning, mechanical cotton picker, synthetic rubber – essentially correct on all counts • Cotton/wool substitute and photo-electric eye – optimistic timing, different form and uses • Steep flight aircraft, prefabricated housing, automobile trailers, tray agriculture, gasoline from coal - essentially wrong on all counts Australian Centre for Innovation Addressing the challenges of the future through innovation Our Challenge (2014) • Global population growth – 2.5B in 1943, 7.2B today, 8.3-10.9 B by 2050 • 2.5B people in China, India and other developing counties will enter the ‘middle class’ by 2030 • Increased demand on already constrained resources of food, water, energy and minerals • Non-sustainability of many current industrial practices, and the growing levels of pollution and environmental degradation • Climate change Australian Centre for Innovation Addressing the challenges of the future through innovation Our Opportunity (2014) • The need to achieve a Factor Ten increase in the efficiency of resource use will be a major driver of economic activity in the next 20 years. • Factor Ten is the radical idea that humanity must reduce resource turnover by 90 percent on a global scale within the next 30 to 50 years. • To achieve dematerialisation, within the next generation human energy use must decrease by a factor of 10 while resource productivity and efficiency must increase by a factor of 10. • This will lead to transformation of resource dependency and advantage, the creation of a new technological landscape and shifts in the global factors of production. Australian Centre for Innovation Addressing the challenges of the future through innovation Sources of Factor Ten Productivity Growth • • • • Substitution – lighter stronger, cheaper, lower Waste reduction Circularity – closed-loop use of resources Optimisation – predictive and real-time analytics to reduce resource requirements and increase asset use • Virtualisation – resources as a service Heck and Rogers, Resource Revolution, Harcourt, 2014 Australian Centre for Innovation Addressing the challenges of the future through innovation Case Study – Transport Current massive inefficiencies in car-based transport Usage - 95% of time unused Fuel consumption – 86% of fuel never reaches the wheels Average occupancy – 1.6 people Motorways operating at peak capacity are less than 10% covered by cars Peak capacity is achieved only 4-5% of the day Opportunities Car sharing Smart roads New fuels - electric Efficient batteries 3-D printed manufacture Australian Centre for Innovation Addressing the challenges of the future through innovation Case Study – Smart Agriculture • Networks of low-cost sensors, actuators and wireless networks for data collection and process monitoring of crops and livestock • Robots with enhanced senses, dexterity, and intelligence used to automate tasks, such as harvesting fruit and controlling weeds and pests • Vehicles that can navigate and operate with reduced or no human control to herd livestock and harvest crops • The simulation of real-time agricultural processes using data and algorithms • Inexpensive and capable mobile computing devices with high-speed internet connectivity to the farmer in the field • Intelligent software that can perform farm planning tasks, and support decision-making and optimize large-scale production processes. Australian Centre for Innovation Addressing the challenges of the future through innovation Case Study – and Smart Food • Smart packaging to enhance life and detect breakdown • Interactive labelling to advise on nutrition, energy load, etc • Food tracking and management systems to minimise wastage • Decentralised and localised food production (vertical gardens) Australian Centre for Innovation Addressing the challenges of the future through innovation