National Commission on Innovation & Competitiveness Frontiers
National Commission on Innovation & Competitiveness Frontiers
About the Council on Competitiveness Commission For more than three decades, the Council has championed a competitiveness agenda for the United States to attract investment and talent, and spur the commercialization Community of new ideas.
While the players may have changed since its founding in 1986, the mission remains as vital as ever—to enhance U.S. Commission Community Launch Conference Launch productivity and raise the standard of living for all Americans.
The members of the Council—CEOs, university presidents, labor leaders and national lab directors—represent a powerful, Conference nonpartisan voice that sets aside politics and seeks results. By providing real-world perspective to Washington policymak- Arizona State University ers, the Council’s private sector network makes an impact on decision-making across a broad spectrum of issues—from the January 16, 2020 cutting-edge of science and technology, to the democratization of innovation, to the shift from energy weakness to strength that supports the growing renaissance in U.S. manufacturing.
The Council’s leadership group firmly believes that with the right policies, the strengths and potential of the U.S. econ- omy far outweigh the current challenges the nation faces on the path to higher growth and greater opportunity for all Americans.
Council on Competitiveness 900 17th Street, NW Suite 700 Washington, D.C. 20006 T 202 682 4292 January 16, 2020 Located in the center of student life at ASU’s Tempe campus, the Student Pavilion is a multi-use event space designed as a net-zero energy building— having the goal to produce as much energy as it uses on an annual basis to complement the larger university goal of climate net neutrality and sustain- able business systems.
Table of Contents
Welcome 2 WiFi Instructions Event Map 4 National Commission Community’s Online 5 1. Connect to asu guest Collaboration Platform from the list of available wireless connections. Master Agenda 6 2. Open a web browser Commission Community Breakout Primers and Guidance 10 and try to connect to the Advisory Committee, and Outreach and Engagement Committee 10 internet. Working Group 1: Developing and Deploying at Scale 14 3. You will be directed to Disruptive Technologies the guest sign in portal. Click “Don’t have an Working Group 2: Exploring the Future of Sustainable 28 account?” Production and Consumption, and Work Working Group 3: Optimizing the Environment for the National 46 • Fill in the registration Innovation System information and click Register. (You can enter National Commissioners 66 in a valid email address Launch Conference Participant Bios 68 OR mobile phone number.) National Commissioners 68 • Click Email Me or Advisory Committee 74 Text Me to receive Outreach and Engagement Committee 88 your password. Working Group 1: Developing and Deploying at Scale 96 • Then click Sign On and Disruptive Technologies enter your username and password. Working Group 2: Exploring the Future of Sustainable 115 Production and Consumption, and Work Working Group 3: Optimizing the Environment for the National 127 Innovation System Council on Competitiveness and Other Staff 144 Council on Competitiveness Members, Fellows and Staff 149 2 Council on Competitiveness Commission Community Launch Conference
Welcome to Arizona State University and the Launch Conference of the National Commission Community
Dear Colleagues, • New research and business models are emerging, In today’s global economy, low costs, high quality, allowing someone to imagine, develop and scale rapid product and service design and deployment, a disruptive innovation independent of traditional and organizational dexterity all come together and institutions. form a baseline to compete—but, increasingly, these What will the United States do in the face of these traits characterize many markets and nations. challenges at home and coming from abroad? Long-term, inclusive prosperity requires strength- Will we plan for the long term? ening this baseline—but it requires more. It requires placing ever more attention on innovation to confer Will we put in place the talent, innovation capital and competitive advantage. infrastructure necessary for continuing success? Why? Will we recognize the multifaceted nature of these challenges and come together across all sectors to Innovation is a proven driver of productivity and forge a new, national innovation compact? economic growth, job creation, and rising living stan- dards. This is the opportunity for the National Commission on Innovation & Competitiveness Frontiers over the And while the United States has stood apart from coming months and years—to develop together a the rest of the world during the past half century in “modernization model” and spur an inclusive innova- its record of sustained innovation, across industries tion movement across the United States. old and new, and through the ups and downs of economic cycles, the nation today faces new realities We are grateful for your participation in this move- and new imperatives transforming the context for ment—nominated by ourselves and our fellow continued innovation leadership: National Commissioners, and forming a powerful, insightful and unique community of stakeholders. • Other nations are replicating the structural You will help us—starting at Arizona State Univer- advantages that historically have made the United sity—to surface, shape, refine and share a new inno- States the center of global innovation; vation agenda for the country. Thank you for joining • Many nations are developing their own, distinctive this Community Launch conference, and we look innovation ecosystems; forward to our conversations and explorations on campus—and going forward over the coming months. • The nature of innovation is changing—becoming dramatically more interconnected, turbulent and fast-paced; Welcome 3
Sincerely,
Michael M. Crow President Arizona State University, and University Vice-chair Council on Competitiveness
Mehmood Khan Chief Executive Officer Life Biosciences, Inc., and Chairman Council on Competitiveness
Deborah L. Wince-Smith President & CEO Council on Competitiveness 1st St
ASU Layered Map CSB 2nd St Rio Salado Pwky YouAve Maple can view more parts of this map by clicking on the North Packard Layersbutton or under Sun Angel Locker Stadium Golf Performance 1 View > Navigation Panels > Layers.* Clubhouse Center SAC *The layer view option Councilis only on Competitiveness Commission Community Launch Conference ASU Karsten 4 PBS available with Adobe Reader 8.0 SAF Golf Course Ash Ave Download3rd at adobe.com St Packard Dr Packard Hobbs Varsity Joe Selleh Golf Facility KGC Sun Devil Track Stadium Frank Kush Kajikawa WTF Field STAD Tempe Police Sun Angel Football WGTF Station Stadium Event Map Tempe Desert Rural Rd Practice Fields 2 TRACK Farrington Transportation Center Aboretum PACKARD Band 5th St DR. Visitor Stadium Park Parking BBTS Practice Tempe Whiteman Post Office Visitor Field UNIVT CSAC Parking Tennis ALBER Tempe VDDM City Center Visitor Ash Ave Ash UNIV. RFPF Soccer Hall Parking WUC TOWERS Wells Fargo
Maple Ave Maple Veterans Way Stadium 6th St 6th St 6th St Arena SDSP SOCCER STADIUM WFA BYOH Visitor AQUAT Parking ANX Visitor CTRPT Parking 3 NCP BYENG BYAC CAVC NOVUS 1/CATELLUS APMA 7th St HBH TKRHA TKRHD Visitor (UNDER CONSTRUCTION) UCNTRB UCNTRC Parking Centerpoint TKRHB TKRHC ve FULTON ve Cornerstone Ave UCNTRA AM CENTER PABLO Mall C Visitor Athletes’ Place Athletes’ PVW PVE MANZH Parking
1 A Myrtle Rideshare drop off/pick up A Forest FULTN College Mill Ave Mill University Dr address:University 550 E DrOrange St, Tempe,
AZ 85281. TOWER PSE PSH USE ISTB7 4 CDN WGHL HSB (U.C.) Check in is atMirabella the Student PSD PSG RSS (U.C.) COWDN Visitor CDS CFS PSC ISTB2 8th St Pavilion (STPV) 2 ARWH and begins LL UCLUB PSF Parking PSB GWC TYLER ST. 9that St 7:45 a.m. SHESC MAIN WXLR PSYN Visitor ART LYC PWH ISTB5 Parking Tyler St The plenary session is in the NEEB Tyler Mall MHALL LSA ECG Student Pavilion. Breakout10TH ST. MCENT LSC BDC CHILD STAUF NOBLE PSY TMPCT MCL SS BDB sessions are in the Student Mall Cady LSB/D ECF ENGRC LSE ECE TCA Visitor LDS SKYSPACE GLVCC 5 Pavilion and theParking MemorialCOOR ECD 10th St PS CP ECC ISTB1 McAllister Mall GLVC Union (MU) 3 . LIB ECB BDA Terrace Rd GHALL McAllister Ave McAllister WHALL Greek EDB LIB ECANX SCOB FAC Mall Forest LDS Terrace Mall Leadership Reserved parking 4 is STPV MUR ECA Village WILSN 2 Walk Palm Orange Mall GLVA
available in Apache Blvd Structure. CHAPL Mall Hayden 1 GLVD ED Visitor Visitor Parking Validation MUSICwill be provided upon CPCOM Parking GLVB EDC MOEUR ARM ISTB4 11th St PEBW PEBE check in. Address: 401 E Lemon 3 MU BKSTR RURAL RD. Visitor St, Tempe,Gammage AZ Pkwy85281 INTDSA MU Service Dr Parking INTDSB 6 RBHL CHPF SSV SDFC Visitor Lemon St Parking MCRD Intramural BAC DISCVRY BA Fields ACHAL 12th St Visitor GGMA Parking Lemon St Hassayampa
Academic RWHAL MSHAL VBHAL Lemon Mall Village Visitor MVHAL HONHAL WILOHAL Visitor MB IRISH Parking Parking 4 SDFCT Barrett Honors ACACI APACHE BLVD. ARHAL SGHAL College JNHAL Birchett Map Legend HAYDN Ave Normal
JOBA CWHAL Park CHUPA AGVHAL CERHAL 7 13th St Ave Forest Apache Blvd ASU Building Walk-Only Zones Parking Area Bike Co-op Visitor VVDS K Ave ASUPD I J Parking Adelphi Visitor Parking Bike Fix-it Station Commons Flash Bus Stop Bike Valet N G Valley Metro Stop Card-Access College H Intercampus Shuttle Bike Parking Rural Rd Light Rail Station F CC Adelphi II VDS Commons Spence Ave
Tempe St. Luke E B W E Hospital VISTA Visitor DEL SOL Parking D C Parking SCD
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MSB Map not to scale Daley Park updated 7/2018 Vista del Cerro Dr A B C D E F G H Acacia Hall ACACI 7E Cmb’d Heat & Pwr. Fac. CHPF 6F Intrdiscip. Sc. & Tech. 2 ISTB2 4E Old Main MAIN 4D Sun Angel Stadium TRACK 2F Acourtia Hall ACHAL 6F Community Serv. Bldg. CSB 1F Intrdiscip. Sc. & Tech. 4 ISTB4 6F Orchidhouse (Brckyd.) BYOH 3B Tempe Center TMPCT 4B Adelphi Commons ADEL 7F Computing Commons CPCOM 6D Intrdiscip. Sc. & Tech. 5 ISTB5 4E Palo Verde East PVE 3D Tempe Center Annex TCA 5B Agave Hall AGVHAL 7F Coor Hall COOR 5B Intrdiscip. Sc. & Tech. 7 ISTB7 4F Palo Verde West PVW 3D The Annex ANX 3C Aquatic Complex AQUAT 3D Cottonwood Hall CWHAL 7F Irish Hall IRISH 7C Payne Hall EDB 5B Tooker House A-D TKRHA-D 3D Armstrong Hall ARM 6E Cowden Fam. Rsrcs. COWDN 4C Jojoba Hall JOBA 7E Perform. & Media Arts APMA 3G Tower Center TOWER 4B Arroyo Hall ARHAL 7E Danforth Chapel CHAPL 5C Juniper Hall JNHAL 7F Physical Ed. East PEBE 6E University Cntr. A-C UCNTRA-C 3H Art Building ART 4B Design Annex DSGNX 3C Language & Literature LL 4C Physical Ed. West PEBW 6D University Club UCLUB 4D Art Warehouse ARWH 4B Design North CDN 4B Life Sciences Center LS 5D Physical Sci. Wings PSB-H 4D University Services Bldg. USB 8G Best Hall MB 7C Design South CDS 4B Life Sciences C-wing LSC 5D Piper Writers House PWH 4D Urban Systems Engin. USE 4E Business Admin. BA 6C Discovery Hall DISCVRY 6C Life Sciences Tower LSE 5D Police ASUPD 7C University Towers UNIVT 2C Business Admin. C Wing BAC 6D Dixie Gammage Hall GHALL 5C Lyceum Theatre LYC 4C Psychology Building PSY 5E Verbena Hall VBHAL 6F Biodsgn. Inst. Bldg. A BDA 5F Education Lecture Hall EDC 6B Manzanita Hall MANZH 4E Psychology North PSYN 4E Verde Dickey Dome VDDM 6F Biodsgn. Inst. Bldg. B BDB 5F Engineering Center ECA-G 5D Matthews Center MCENT 5C Rosewood Hall RWHAL 6F Vista del Sol Cmplx. VDS 8E Biodsgn. Inst. Bldg. C BDC 5F Engin. Research Cntr. ENGRC 5D Material Srv. Bldg. MSB 8G Ross-Blakley Hall RBHL 6E Villas @ Vista del Sol VVDS 8E Bookstore BKSTR 6D Farmer Education Bldg. ED 6B Matthews Hall MHALL 5C Sage Hall SGHAL 7F Weatherup Center WUC 3H Brickyard Artisan Crtyrd. BYAC 3B Fulton Center FULTN 4C McClintock Hall MCL 5C San Pablo Hall PABLO 3D Wells Fargo Arena WFA 3E Brickyard Engnr. BYENG 3A Gammage Auditorium GGMA 6B McCord Hall MCRD 6D Schwada Building SCOB 5E West Hall WHALL 5C Campus Chldrn’s Cntr. CHILD 5G Goldwater Center GWC 4E Memorial Union MU 6C Sch. Hu. Ev. Soc. Chg. SHESC 4C Wexler Hall WXLR 4D Carson Stdnt Ath Cntr. CSAC 2D Greek Ldrsp. Vlg. A-D GLVA-D 5G Mesquite Hall MSHAL 6F Social Sciences SS 5C Willow Hall WILOHAL 6F Centerpoint CTRPT 3Az Greek Ldrsp. Vlg. CC. GLVC C 5G Moeur Building MOEUR 6C Sonora Center SCD 8F Wilson Hall WILSN 5C Cereus Hall CERHAL 7F Grounds Maint. Facility GMF 8G Mohave Hall MVHAL 7E Stauffer Comm. STAUF 5B Womens Gymst. Trng. WGTF 2H Center for Fam. Studies CFS 4C Harrington-Birchett House HBH 3C Murdock Lecture Hall MUR 5D Sun Devil Fit. Cmplx. SDFCT 8E Wrestling Training Fac. WTF 2H Central Plant CP 5D Hayden Hall HAYDN 7C Music Building MUSIC 6B Student Athlete Facility SAF 1D Wrigley Hall WGHL 4C Central Plant South CPS 8F Hayden Library LIB 5C Neeb Hall NEEB 5B Student Pavilion STPV 5D Zero Waste Office ZWO 8G Cholla Apartments CHOLA 5G Health Service HSB 4D Nelson Fine Arts Center FAC 5B Student Services Bldg. SSV 6C Chuparosa Hall CHUPA 7E Honors Hall HONHAL 7F Noble Sci. Library NOBLE 5E Sun Angel Clubhouse SAC 1H College Ave. Market CAM 3C Interdisciplin. A/B INTDSA/B 6C Northern Chiller Plant NCP 3D Sun Devil Sports Perf. SDSP 3H College Ave. Commons CAVC 3C Intrdiscip. Sc. & Tech. 1 ISTB1 5D Off-Camp. Stdnt. Srv. OCSS 5G Sun Devil Stadium STAD 2D Online Portal Activation Instructions 5
National Commission Community’s Online Collaboration Platform Login in, Activate Your Account and Create
To help all of us connect, communicate and co-cre- ate during the coming weeks, months and years, we Quick Start: Joining the Commission are launching the first iteration of our secure online Community Platform collaboration platform at innovation.compete.org. Our goals for the platform are simple: 1. Check your inbox! On January 16, 2020, you should receive an invitation email like the • We want to empower you—as a member of the below image from “Council on Competitiveness Commission Community—to engage with each
Master Agenda
MORNING Moderator Mr. Chad Evans 7:45 Registration Open Executive Vice President, Council on Location: Student Pavilion, Senita Ballroom Competitiveness
Chat 1: Developing and Deploying at Scale 8:30 Welcome & Launching the National Disruptive Technology Commission Community Location: Student Pavilion, Senita Ballroom Dr. Michael M. Crow, National Commission Co-Chair Dr. Michael M. Crow, National Commission Co-Chair President, Arizona State University University Vice Chair, Council on Competitiveness President, Arizona State University University Vice Chair, Council on Competitiveness Mr. Edward Jung Dr. Mehmood Khan, National Commission Co-Chair Founder and CEO, Xinova, LLC Chief Executive Officer, Life Biosciences, Inc. Mr. Chris Musselman, National Commissioner Chairman, Council on Competitiveness Head of U.S. Commercial Business, Palantir The Honorable Deborah L. Wince-Smith, National Technologies Commissioner Chat 2: Exploring the Future of Sustainable President & CEO, Council on Competitiveness Production and Consumption, and Work
8:45 Chats with the National Commissioners— Dr. Mehmood Khan, National Commission Co-Chair Re-inventing America’s Innovation Chief Executive Officer, Life Biosciences, Inc. Systems Chairman, Council on Competitiveness A series of brief kick-off conversations with National Dr. Elisa Stephens, National Commissioner Commissioners—an opportunity for them to share President, Academy of Art University their vision and goals for the Commission, and to charge the Commission Community to develop an Dr. Mark P. Becker, National Commissioner bold, actionable and inclusive innovation agenda for President, Georgia State University the United States. Q&A with the Community. Master Agenda 7
Chat 3: Optimizing the Environment 10:30 Commission Community Breakout for the National Innovation System Sessions
Mr. Thomas R. Baruch, National Commissioner Each Commission Community group will convene. The purpose of these initial work sessions is for Managing Director, Baruch Future Ventures member self-introduction, and a review of the key Dr. M. David Rudd, National Commissioner “charters” and goals set out for each group by the President, University of Memphis National Commissioners. The Honorable Deborah L. Wince-Smith, National After the first hour and a half, there will be working Commissioner lunches, kicking off a set of afternoon deliberations President & CEO, Council on Competitiveness and innovation tours across campus. 9:45 National Commission Year 1: Mapping Specific breakout group primers and discussion the Journey guides follow in this book. A summary of the Community Launch Conference Locations agenda—as well as a preview of the Commission’s Advisors and Outreach/Engagement Leaders Year 1 goals, activities, tools and deliverables. Student Pavilion, Senita B Room Mr. Chad Evans Working Group 1: Developing & Deploying Executive Vice President, Council on at Scale Disruptive Technologies Competitiveness Student Pavilion, Senita C Room Ms. Kathy Trimble Working Group 2: Exploring Future of Sustainable Vice President, Council on Competitiveness Production & Consumption, and Work Memorial Union, Cochise Room 10:00 Transition to Breakout Groups Working Group 3: Optimizing the Environment Commission Community members break out for National Innovation Systems of plenary and head to individual sessions for: Memorial Union, Turquoise Room the Advisory Committee and the Outreach and Engagement Committee, and the three Working Groups. 8 Council on Competitiveness Commission Community Launch Conference
AFTERNOON
12:00–3:00 Each Commission Community group continues Groups should also end their session with: their conversations over working lunches—shifting nominating a representative(s) to summarize their more toward: mapping out parameters/boundaries conversation in the upcoming plenary at 3:30pm; of the issues the Community groups will explore; a conversation on workflow and how best to move brainstorming and developing potential policy forward as a Group—engagement on the online recommendations—or frameworks off of which to platform; potential physical meetings plus online build policy recommendations in the coming months. platform; etc. And each group will have a curated innovation tour on campus—more details to come on the day of the conference.
Advisors/Outreach Working Group 1 Working Group 2 Working Group 3 Location: Location: Location: Location: Student Pavilion, Student Pavilion, Memorial Union, Memorial Union, Senita B Room Senita C Room Cochise Room Turquoise Room
12: 00 Working Lunch with Working Lunch Working Lunch Working Lunch Commissioners 12:15
12:30
12:45 Breakout Innovation Breakout Innovation Conversation Immersion Conversation Immersion 1:00 Tour Tour 1:15
1:30 Innovation Innovation Immersion Immersion 1:45 Tour Tour 2:00 Breakout Breakout Conversation Conversation 2:15
2:30
2:45 Breakout Breakout Conversation Conversation
3:00 Master Agenda 9
3:00 Commission Community Groups Return to Plenary Location: Student Pavilion, Senita Ballroom
3:30 Reports from the Community Commission Community groups share in plenary their respective conversations—initial scoping of their charge; preliminary ideas around policy areas of interest; plans for workflow over the coming months.
Moderator Mr. Chad Evans Executive Vice President, Council on Competitiveness
4:15 Next Steps for the National Commission The Honorable Deborah L. Wince-Smith, National Commissioner President & CEO, Council on Competitiveness Dr. Mehmood Khan, National Commission Co-Chair Chief Executive Officer, Life Biosciences, Inc. Chairman, Council on Competitiveness Dr. Michael M. Crow, National Commission Co-Chair President, Arizona State University University Vice Chair, Council on Competitiveness
4:30 Commission Community Launch Conference Closes 10 Council on Competitiveness Commission Community Launch Conference
Advisors and Outreach and Engagement Committee Community Breakout Session Mini-Agenda and Discussion Guide
Student Pavilion Senita B Room Advisors and Outreach and Engagement Committee Guide 11
Moderator National Commissioners—who first met on Mr. Chad Evans August 7, 2019—have provided general guidance Executive Vice President to the three policy Working Groups for their Council on Competitiveness study of issues, challenges, and opportunities, and the development of recommendations to address them (see Launch for more details). And given the roles of the Advisors and Outreach & Engagement Committee—in overseeing, integrat- ing and communicating the output of the Working Groups—this key summary should be helpful in your MORNING efforts: • Examine challenges and opportunities from an 10:30 Introductions and Roles of the ecosystem perspective inclusive of the broader Advisors and Communications economy, (e.g., if considering opportunities related Leaders to disruptive technology in the agriculture space, also consider linking the cost-benefit outcomes of agribusiness technology-enabled solutions to Role of Advisors improvements in efficiency and productivity, and to The Advisors represent—and in some cases, proxy their impacts on consumers, healthcare systems, for—the National Commissioners. Advisors are the and the environment). day-to-day points of contact and advice for the Council on Competitiveness team driving the Com- • Recommended actions should create mission’s research and supported by a set of three opportunities that uplift as many stakeholders— Working Groups (Developing and Deploying at Scale business, labor, education, research, and Disruptive Technologies; Exploring the Future of consumers—as possible, and improve outcomes Sustainable Production and Consumption, and Work; for broader segments of the population, Optimizing the Environment for the National Innova- especially for those at the lower end of the tion System). socioeconomic scale. Be specific about the economic impacts to families and individuals The Advisors will serve as a strategic screen for the of investments in R&D, physical infrastructure, National Commissioners—helping to coordinate and intellectual property, and industry and academic review the efforts of the Working Groups, as well as sectors. Convey the socioeconomic benefits to setting goals and tracking progress for the Working people and communities whose livelihoods the Groups. And in conjunction with the Council staff, recommendations will directly affect. the Advisory Committee will develop the final set of recommendations and reports for review, debate • Recommendations need to center on and approval by the National Commissioners and the competitiveness, while also recognizing that Board of the Council on Competitiveness. any recommendations may have unintended consequences in potentially lowering competitive Role of the Outreach & Engagement Committee advantage or negatively impacting some elements This Committee will develop and manage for the of the workforce. Commission a creative and actionable media, out- • Recommendations should lead to action-oriented reach and government relations strategy. As such, measurable outcomes—policy recommendations, this group will liaise tightly with the Council on Com- as well as those the Council’s membership and petitiveness staff and the Advisors—as well as the affiliated constituencies could put into practice National Commissioners themselves. This Commit- and track results. tee will comprise experts appointed by the National Commissioners. 12 Council on Competitiveness Commission Community Launch Conference
• Public attitudes toward science and engineering This discussion guide will focus on two funda- should be incorporated into the Commission’s mental threads: assessment. • Substance—a deep dive on Commission issues, • Identify which decision-makers can act on concerns, opportunities and challenges. The recommendations, and consider how to shape Commission’s “work” / output should succinctly a compelling narrative that will encourage them and emotionally capture the urgent need for to listen and act. turning around the United States’ decline in productivity growth (or perhaps an alternative • Other considerations in prioritizing challenges, message that’s tested to more deeply resonate solutions and recommendations to address could with core audiences). include: Is the issue or challenge urgent? Is the issue, challenge, or potential solution pivotal in - Does it do so today? terms of its impact or the number of other issues - How do we make the case to America for or factors affected? Is the recommendation the urgency implied in standing up a National actionable, and what is the vehicle for advancing Commission? the recommendation? • Strategy—does the Commission need a formal, 11:15 Focus of the Advisors and strategic publicity plan? If so, what would that look like? How could we co-develop? What would be Outreach & Engagement the elements of such a case/plan? Committee—and Conversation - Digital Executions? Kick-off - Media advisories and press releases?
National Commissioners’ guidance specific - Administration, federal affairs and Legislative to Advisors and members of the Outreach materials? How do we navigate the DC & Engagement Committee includes: environment and coordinate the writing and positioning of white papers, development and • At the moment, our nation has a tremendous design of collateral, and Hill/administration inability to understand innovation and complexity. briefing messaging? How do we establish and sustain a recognizable “brand?” • How do we develop an actionable and realistic policy agenda that enhances human - Events? How do we take advantage of capabilities—and, at the same time, communicate existing “stages” (like our annual National that emerging agenda clearly, creatively and Competitiveness Forum)—and create others— compellingly? to share our work? • How do we shape the message environment? - Stakeholder toolkits? Can we support National Commissioners, Working Group members, • How do we reach an audience of hundreds, general Council members, media, and other thousands or millions? stakeholders with easy-to-access, clearly • How do we move public opinion on this complex branded, supportive materials to advance our issue set? messaging? What would be in such a toolkit? How do we start to build this? • How do we spur action in Washington, DC as well as on Main Street, USA? • How do we integrate and unify communications and government relations efforts? Advisors and Outreach and Engagement Committee Guide 13
11:45 Community Collaboration Portal—A Deep Dive
A representative from HiveBrite, the company helping to develop our Commission Community’s online collaboration platform, will join us to provide further details, answer questions you might have, and explore opportunities to leverage this tool for internal and external outreach.
AFTERNOON
12:00 Working Lunch with National Commissioners
National Commissioners will join the Advisors and Outreach & Engagement Leaders to hear initial ideas on how best to develop a strategic communications plan for the Commission.
12:45 Breakout Conversation
1:30 Depart for Innovation Immersion Tour
ASU leaders will guide Commission Community members on a tour of a relevant innovation hotspot on campus to inspire and engender further conver- sation.
2:45 Return from Tours, Wrap-up Conversation and Prep Plenary Report Out
3:00 Return to Plenary 14 Council on Competitiveness Commission Community Launch Conference
Working Group 1: Developing and Deploying at Scale Disruptive Technologies Community Breakout Session Mini-Agenda and Discussion Guide
Student Pavilion Senita C Room Working Group 1: Developing and Deploying at Scale Disruptive Technologies Guide 15
Moderator • Recommended actions should create Ms. Kathy Trimble opportunities that uplift as many stakeholders— Vice President business, labor, education, research, and Council on Competitiveness consumers—as possible, and improve outcomes for broader segments of the population, especially for those at the lower end of the socioeconomic scale. Be specific about the economic impacts to families and individuals of investments in R&D, physical infrastructure, intellectual property, and industry and academic sectors. Convey the socioeconomic benefits to MORNING people and communities whose livelihoods the recommendations will directly affect. 10:30 Working Group Introductions • Recommendations need to center on and Role of the Working Group competitiveness, while also recognizing that any recommendations may have unintended Role of the Working Group consequences (e.g., potentially lowering Working Groups are the Commission’s “ideas and competitive advantage or negatively impacting policy recommendation generation engines,” charged some elements of the workforce). with framing and developing actionable recommen- • Recommendations should lead to action-oriented dations to achieve specific goals. The recommenda- measurable outcomes—policy recommendations, tions will likely have many audiences; many will be as well as those the Council’s membership and geared toward policy makers to spur new legisla- affiliated constituencies could put into practice tion, executive orders, or public-private initiatives to and track results. achieve specific goals. Many other recommendations will be designed to encourage businesses and orga- • Public attitudes toward science and engineering nizations to take their own steps to promote compet- should be incorporated into the Commission’s itiveness and innovation in their company, region, or assessment. industry. • Identify which decision-makers can act on National Commissioners—who first met on recommendations, and consider how to shape a August 7, 2019—have provided general guidance compelling narrative that will encourage them to to the Commission’s Working Groups for their listen and act. study of issues, challenges, and opportunities, • Other considerations in prioritizing challenges, and the development of recommendations to solutions and recommendations to address could address them (see Launch for more details): include: Is the issue or challenge urgent? Is the • Examine challenges and opportunities from an issue, challenge, or potential solution pivotal in ecosystem perspective inclusive of the broader terms of its impact or the number of other issues economy, (e.g., if considering opportunities related or factors affected? Is the recommendation to disruptive technology in the agriculture space, actionable, and what is the vehicle for advancing also consider linking the cost-benefit outcomes the recommendation? of agribusiness technology-enabled solutions to improvements in efficiency and productivity, and to their impacts on consumers, healthcare systems, and the environment). 16 Council on Competitiveness Commission Community Launch Conference
11:30 Focus of the Working Group— ISSUE 1: Understanding the U.S. and Conversation Kick-off Competitive Position and Innovation Capacity Relative to Competitors Working Group 1, Developing and Deploying at Scale Disruptive Technologies, focuses on the in a Multi-polar Science and Technology issues, challenges, opportunities, and factors World that affect innovation, technology development and its commercialization at scale. National The United States is competing in a rapidly globaliz- Commissioners’ guidance specific to Working ing science, technology, and innovation environment. Group 1 includes: Science and technology development capabilities are rising rapidly around the world, and all coun- • Consider scalability and technology, and tries potentially have access to new knowledge and industrial and market disruption from multiple emerging technologies. In 1960, the United States perspectives: U.S. government investments, U.S. dominated global R&D, accounting for a 69 percent and international regulatory environment, industry share of the world’s R&D investment. The United leadership, academic communities, societal States could drive developments and lead in tech- impacts and, when appropriate, in the context of nology globally by virtue of the size of its investment. certain industries or public-private partnerships. However, the U.S. share of global R&D expenditures has dropped to 29 percent in 2017, diminishing the • Consider social and ethical implications of U.S. dominance and leverage over the direction of technology applications. technology advancement, and China has risen to • Assess disruptive technologies in terms of the account for 26 percent of global R&D spending. supply chain, global trade implications, scaling China’s spending on experimental development has to production, and barriers to growth and grown rapidly in recent years to more than $370B, opportunities for success. now exceeding U.S. spending by nearly $70B. • Determine regional models as well as national In addition, China has set its sights on world lead- level recommendations to inform a national ership in technology, presenting a growing strategic strategy for innovation. economic and national security challenge to the United States. It is spending hundreds of billions of This discussion guide will focus on four funda- dollars, and employing strategic and aggressive, licit mental threads, and a series of interconnected and illicit practices around the world to achieve that questions to consider in shaping actionable outcome. In addition, many smaller, often overlooked policy recommendations: regions and nations have distinctive strategies to • Understanding the U.S. competitive position and build global innovation competency and competitive- innovation capacity relative to competitors in a ness. These alone may not pose a significant threat multi-polar science and technology-driven world; to the United States but, collectively, can present a challenge to the U.S. economy and national security. • Assessing the current U.S. investment position in The federal government does not systematically col- research and development (R&D); lect, analyze, or publish data and information on the • Mapping the general structure and components investments, policies, and programs of other nations of, and challenges facing the U.S. innovation designed to strengthen their competitive position and ecosystem; and, build their innovation capacity. • Exploring government leadership and national strategies for innovation and competitiveness. Working Group 1: Developing and Deploying at Scale Disruptive Technologies Guide 17
ISSUE 2: Investment in Research and Key Questions to Address Innovation • What is the outlook for U.S. global competitiveness in the application and The United States invests around $540B annually deployment of disruptive technologies? In in R&D, about 2.8 percent of its GDP (Figure 1). which of these technologies is the United States comfortably ahead globally, behind, or Businesses dominate U.S. R&D investment, mostly funding nearer-term applied research and develop- risk falling behind? And what can be done ment aligned with company business strategies. The about this? federal government invests mostly in basic research • What factors account most for the U.S. and mission-related R&D (Figure 2). global competitive position in disruptive Universities and non-federal governments also invest technologies? in R&D—universities around $20B and non-federal • For both economic and national security, does governments about $5B (2017 est.; Figure 2). the United States need to ensure that China In addition to their own spending, universities receive does not achieve an over-match position about $36B in federal R&D funding, and about against the United States in technology? If $4B from private enterprises, about 1 percent of so, what should that entail? business R&D funding (2017). • In which critical technologies is the U.S. Defense and health related research dominate the competitive position at risk of ceding to federal R&D investment portfolio, accounting for China? Are there areas of technology for three-quarters of federally-supported R&D (Figure 3). which we need to shore-up U.S. efforts? If so, In the United States, venture capital plays a key how? role in funding start-ups, and emerging technology • Should the U.S. government systematically and innovation development and commercialization. monitor what other nations are doing to U.S. companies received $131B in venture capital advance and scale new technologies and in 2018. Venture investments of $100M or greater innovations? accounted for 47 percent of the capital invested. In addition, every federal department and agency • Do we need a better understanding of the with an R&D budget of $100M or more is statuto- extent of China’s technology collecting in the rily required to operate a Small Business Innovation United States? Does the United States need Research program, which sets aside 3.2 percent to crack down on these efforts and how? of its extramural research funding for competitive grants for small businesses that can total a few million dollars to support research and technol- ogy development with commercial potential. The Research and Experimentation Tax Credit encour- ages private sector investment in R&D. 18 Council on Competitiveness Commission Community Launch Conference
Key Questions to Address • As they become more globalized and remain • Overall, is the United States investing enough open in their research, do U.S. research in research and technology development? If universities have a responsibility to help not, what would you recommend? ensure U.S. taxpayers capture the benefits from the university R&D they fund? What • What areas of investment require more more could universities do? Should they funding to maintain U.S. global technology protect the technology? leadership? • Should we embed more public R&D in private • Does the United States need to rethink how organizations as a measure of protection it spends its public R&D investment? Are and ability to drive development toward we spending it at the right pivot points? And commercialization? how can we spend it in ways that ensure the
opportunities created by this investment are captured by the United States?
Figure 1. National R&D Investment as Percentage of GDP Source: OECD Main Science and Technology Indicators
5.0 4.5 o e 4.0 p n 3.5 e m n 3.0 nite t tes 2.5 nce
2.0 C in PERCENT OF GDP 1.5 nite in om C n 1.0 t l 0.5
0.0 Working Group 1: Developing and Deploying at Scale Disruptive Technologies Guide 19
Figure 2. U.S. Funding By Sector and Type of R&D Work (2017 est., billions) Source: National Science Foundation
Sector Basic Research Applied Research Development Total
$ % $ % $ % $ %
Federal government 38.6 41.9 36.5 33.1 42.9 12.6 118.0 21.8
Non-federal government 2.5 2.7 1.6 1.4 0.6 0.2 4.7 0.9
Business 27.4 29.7 61.1 55.3 289.6 85.3 378.0 69.7
Higher Education 12.0 13.0 5.4 4.9 2.2 0.6 19.5 3.6
Other Non-profit 11.8 12.8 5.8 5.3 4.4 1.3 22.0 4.1
Totals 92.2 100.0 110.4 100.0 339.6 100.0 542.2 100.0
Figure 3. Distribution of Federal R&D Budget 2018 (preliminary) Source: National Science Foundation
Budget Function Millions of $ %
R&D 128,107 100.0
National defense 60,775 47. 4
Health 34,379 28.8
General science and basic research 10,050 7. 8
Space flight, research, and supporting activities 9,713 7. 6
Energy 3,483 2.7
Natural resources and environment 2,389 1.9
Agriculture 1,994 1.6
Transportation 1,439 1.1
Veterans benefits and services 1,338 1.0
Commerce and housing credit 953 0.7
Administration of justice 656 0.5
Education, training, employment, and social services 463 0.4
International affairs 322 0.3
Income security 63 *
Community and regional development 70 0.1
Medicare 19 * 20 Council on Competitiveness Commission Community Launch Conference
AFTERNOON ISSUE 3: Structure and Components of and Challenges Facing the 12:00 Working Lunch U.S. Innovation Ecosystem Businesses perform nearly three-quarters of all R&D in the United States, more than half of the Nation’s 12:45 Depart for Innovation applied research, and more than one-quarter of Immersion Tour basic research (Figure 4). Companies are moving away from exploratory research toward nearer-term ASU leaders will guide Commission Community applied R&D that supports business units, and now members on a tour of a relevant innovation hotspot frequently look outside of the firm for breakthrough on campus to inspire and engender further conver- innovations. In a recent survey of U.S. manufacturing sation. firms, of those firms that had innovated, 49 percent reported that the invention underlying their most 2:00 Return from Tour and Focus important new product had originated from an out- 1 of the Working Group—Continuing side source. the Conversation At universities, basic research is the dominate type performed, along with a significant amount of applied research; universities do little development work. The federal government performs about 10 percent of the Nation’s R&D, around the EU average (11 per- cent), and lower than in China (15 percent). In addi- tion to universities, private companies also compete for grants to perform federally-funded R&D. With
Figure 4. U.S. R&D Performance By Sector and Type of R&D Work (2017 est., billions) Source: National Science Foundation
Sector Basic Research Applied Research Development Totals
$ % $ % $ % $ %
Federal government $10.4 11.3 $17.8 16.1 $23.2 6.8 118.0 21.8
Non-federal government 0.2 0.2 0.5 0.5 0.0 0.0 4.7 0.9
Business 26.2 28.4 64.8 58.7 306.1 90.1 378.0 69.7
Higher Education 43.8 47. 5 20.2 18.3 6.9 2.0 19.5 3.6
Other Non-profit 11.8 12.8 7. 1 6.4 3.4 1.0 22.0 4.1
Totals 92.2 100.0 110.4 100.0 339.6 100.0 542.2 100.0
1 Arora A, Cohen W, and Walsh J. The Acquisition and Commercializa- tion of Invention in American Manufacturing: Incident and Impact. NBER Working Paper, National Bureau of Economic Research, 2016. Working Group 1: Developing and Deploying at Scale Disruptive Technologies Guide 21
federal funds, universities perform research on a vast In 2015, the 10 states with the largest R&D expen- array of subjects, while federal research carried out diture levels accounted for about 65 percent of U.S. by businesses often involves defense-related work. R&D spending that can be allocated to the states. California alone accounted for 25 percent of the U.S. Universities and small businesses can retain patent total, about four times as much as Massachusetts, rights and license the inventions they develop with the next highest state (Figure 5). Venture capital federal funding. National laboratories can enter into investment is also highly concentrated in certain cooperative R&D agreements with private enter- prises. geographic regions of the United States—particularly California, New York and Massachusetts—which, Technology breakthroughs increasingly come from together, accounted for 79 percent of venture dollars universities, national labs, and small start-up com- invested in the United States in 2018. panies. For example, universities are driving rapid developments in gene editing, while small software The R&D performed domestically by U.S. businesses start-ups are driving many of the developments in occurs mainly in five business sectors: chemicals artificial intelligence. The United States has a long manufacturing (particularly the pharmaceuticals history of start-up companies spinning out of uni- industry); computer and electronic products manu- versity research programs. Many universities are facturing; transportation equipment manufacturing undertaking efforts to encourage spin-off companies (particularly the automobile and aerospace indus- based on the R&D they perform, and train students tries); information (particularly the software publish- ing industry); and professional, scientific, and tech- in entrepreneurship. nical services. In 2015, these five business sectors accounted for 83 percent of total domestic business Key Question to Address R&D performance that year. More than half of ven- • How can we increase flows of innovation, ture capital in the United States goes to software enabling companies to tap innovations from (36 percent) and life sciences (18 percent) compa- outside the private sector, and outside of nies. Large companies (25,000 or more domestic their own industries? employees) accounted for 36 percent of all U.S. business R&D performance in 2015. Micro compa- nies (5-9 domestic employees) and small companies Concentrations of Innovation Assets (10-49 domestic employees) together accounted for and High-Tech Industry 5 percent. National Commissioners have emphasized the need for inclusivity in the U.S. innovation ecosystem. Yet, U.S. R&D and venture capital funding are highly Key Questions to Address concentrated in certain geographic locations in • How can we spread innovative activities the United States, and in certain industries. Also, and support for innovation outside of the United States has numerous high technology those industries, geographic regions, and clusters, geographic regions with higher levels of companies in which they are concentrated? research, technology, and high technology firm inten- • How do we link geographic clusters of sity. Many are closely linked to top research univer- innovation to rural areas that need economic sities. These include the renowned Silicon Valley, revitalization? Can we afford the costs (rural Boston Route 128, and the Research Triangle, but schools, health care, infrastructure)? there are others across the country. 22 Council on Competitiveness Commission Community Launch Conference
Figure 5. Top 10 States in the U.S. R&D Performance, by Sector and Intensity, 2015 Source: National Science Foundation
All R&D Sector Ranking
Rank State Amount Business Higher Education Federal Intramural (current $M) and FFRDCs
1 California 125,056 California California Maryland
2 Massachusetts 28,665 Massachusetts New York California
3 Texas 23,668 Michigan Texas New Mexico
4 New York 22,401 Texas Maryland Virginia
5 Maryland 20,385 Washington Massachusetts District of Columbia
6 Michigan 19,891 New York Pennsylvania Massachusetts
7 Washington 20,038 New Jersey North Carolina Alabama
8 Illinois 16,502 Illinois Illinois Tennessee
9 New Jersey 15,865 Pennsylvania Florida Illinois
10 Pennsylvania 14,839 Connecticut Michigan Washington
Research and Technology Development public-private partnerships jointly funded by govern- Institutes, Centers and Programs ment and private industry. At some of these premier There are numerous research and technology devel- and globally unique laboratories and facilities, core opment institutes and centers across the United scientific and technological capabilities are potentially States, operated by federal government agencies at risk due to deficient and degrading infrastructure. and universities, as well as companies’ internal R&D Space in many facilities within the system is old, organizations. They include the 17 laboratories in the outdated, even obsolete, with maintenance and repair crown jewel Department of Energy National Labora- hamstrung by chronic underfunding. tory System, which house 30 unique scientific instru- The United States has established national research mentation and research facilities available to the pub- initiatives, such as the BRAIN Initiative, National lic and private sector. These institutes also include 14 Quantum Initiative, and the Materials Genome, which diverse national manufacturing innovation institutes, include public-private partnerships. There are other Working Group 1: Developing and Deploying at Scale Disruptive Technologies Guide 23
programs and challenges focused on technology State and Regional Efforts development such as the Small Business Innovation In addition to funding R&D, and in connection with Research Program, defense programs to strengthen their economic development efforts, States and defense technology and the defense industrial base regions have a wide range of initiatives, programs, (e.g. Electronics Resurgence Initiative and MAN- and facilities designed attract high tech companies, TECH); and other mission-related grant research stimulate innovation, grow industry clusters, and and technology development programs in areas such nurture start-ups and entrepreneurs. These efforts as renewable energy and energy efficiency efforts, are often near or connected to research universi- space technology, homeland security, and agriculture. ties. They include: research and technology parks, start-up incubators, accelerators, seed funds, and programs to train and mentor entrepreneurs. The Key Questions to Address federal government provides funding support for • Do we need new types of R&D programs, some of these initiatives. such as national technology initiatives, technology focused centers and hubs, critical technology targeting, etc.? Should these Key Question to Address efforts target the dynamism and innovation • How can the efforts of national government capabilities concentrated in U.S. metropolitan be better integrated with those at the state areas? and local level? • How do we convince national leaders and the American public that this infrastructure Venture Capital is just as important to the economy as Venture capital plays an indispensable role in funding roads, bridges, waterways, etc. and worthy of U.S. innovation, supporting the development of some substantial investment? of the most innovative and successful U.S. compa- • Looking forward—facing accelerating nies. Venture capital has been a key and historically technological advancement, and other distinctive tool in the U.S. innovation ecosystem— disruptive developments such as the tweaked to solve hard problems via a culture of matching multidisciplinary technologies and applying industrialization of space—what should be diverse, data-driven financial tools. The size of the the plan for new science and technology U.S. venture industry has steadily increased over the infrastructure? past decade. At the end of 2018, there were 1,047 venture firms, managing 1,884 venture funds, $403B in U.S. venture capital assets under management. 24 Council on Competitiveness Commission Community Launch Conference
Key Questions to Address Key Questions to Address • How can the United States even better • How can the United States encourage more leverage this asset—in the face of growing of the population to engage in innovation and global competition in the venture space? entrepreneurial activities? • How do we encourage venture capitalists/ • Should the United States launch a global funds to invest in longer-term, hard-to-solve dragnet for top researchers and innovators, and scale societal innovation challenges? and encourage them to come and work in the United States? Talent and Democratization of Innovation • How can we scale current models that seek While there are many occupations involved in inno- to achieve democratization of innovation, and vation, scientists and engineers play a critical role. In to engage a wider segment of the population the United States, there are roughly 7.8M profession- of current and potential innovators? als working in computer, mathematical, engineering, • Are there other models or ways in which we life science, physical science and social science can further democratize innovation? occupations. About 70 percent of these profession- als work in business enterprises. There is signifi- cant untapped U.S. innovative and entrepreneurial Technology Transfer Model potential: about half of those whose highest degree Several challenges hamper the transfer of research is in science or engineering do not work in science results and technology from universities to U.S. or engineering occupations, and 54 percent of the businesses. Industry is market driven, while university U.S. population aged 18-65 believe they have the researchers focus on advancing knowledge (and fed- required skills and knowledge to start a business. eral labs on their government missions). Some may Some companies have programs to provide support be unresponsive to the constraints under which the and training to nurture innovative start-ups. Also, private sector operates, for example, time horizons some companies, private foundations and federal at universities are incompatible with the fast past of agencies sponsor open-to-all innovation challenges commercial innovation, and academic researchers and platforms. want to publish results, while industry wants to keep results proprietary for competitive advantage. Private sector innovation is increasingly multidisciplinary, yet university research remains dominated by single Working Group 1: Developing and Deploying at Scale Disruptive Technologies Guide 25
discipline, investigator-driven research projects, and terminating their development toward commercial- reward systems, publication practices, and career ization, and increasing their vulnerability to foreign paths reinforce that approach. In working with univer- acquisition. A second area of challenge is securing sities, there may be significant intellectual property adequate financing to scale-up to full production in barriers. Technology emerging from universities and the United States. federal laboratories may need significant investment to advance the technology toward an application in the private sector. Key Question to Address • Are greater funding and more programmatic efforts needed to scale promising Key Questions to Address technologies being developed by U.S. start- • What do research universities need to do ups? What would these efforts be, and who to make partnering more attractive and would deploy them? productive for industry? • Should universities seek routine industry Given the emerging technological and competi- input to shape and guide the research they tive environment, National Commissioners have perform? suggested that the United States must achieve a 10x increase in the U.S. rate of innovation. • Do we need to reexamine IP/licensing models? To what end? Key Questions to Address • To what degree does the United States Valley of Death need to accelerate technology development, Obtaining capital at critical points in the innovation commercialization, and deployment? How development life cycle can be challenging for inno- much faster do we need to go to keep vating entrepreneurs, and small and medium-sized pace with the technological and economic enterprises. There are two key investment gaps. In disruption that is happening? the first, entrepreneurs and small firms—including those developing technologies transferred from • Can the current system be optimized to universities and federal labs—often lack funding to operate at that pace? develop prototypes, and to test and validate their • Can the “tech transfer” model of innovation innovations. Lacking adequate resources at this crit- scale to the size of the emerging ical juncture in the innovative life cycle, these tech- opportunities, and operate at the speed nologies may fall into the “valley of death,” stalling or 26 Council on Competitiveness Commission Community Launch Conference
many stove-piped missions of federal agencies and at which technology is accelerating and Congressional committees. In contrast, some U.S. disruption occurring? competitors have established high-level ministries, • How can we protect U.S. technology? government departments or other organizations devoted to stimulating technology and innovation, • What in the fundamental structure of the and to guide national strategic plans. For example, U.S. innovation system is dragging down the Japan’s public science and technology administra- speed at which the United States develops tion operates under the policies of the Council for and scales new technologies? Science, Technology and Innovation chaired by the • What factors play the most pivotal role in the Prime Minister, and works to promote coordination speed with which the United States develops, with related ministries. scales, and deploys technology? What factors Some nations’ science, technology and innovation in government, universities, and the private efforts are guided by national strategic plans. For sector? What are the highest priorities for example, Germany’s New High-Tech Strategy 2025 change? aims to ensure coherence within Germany’s inno- vation policy, and focuses on speeding up trans- fer of scientific findings into marketable products, ISSUE 4: Government Leadership and processes and services, as well as on improving National Strategies for Innovation and the overall environment for innovation. Japan’s 5th Science and Technology Basic Plan (2016–2020) Competitiveness provides directions designed to translate down to changes such as methods of managing science and There are many factors that affect a county’s ability technology budgets, and the fields seen as strategic to innovate and compete. These include investment in R&D for the next five years, where government in R&D, the availability of capital for innovation at policy and resources should be concentrated. China’s critical stages, talent, the environment for entre- national plans focus on both the innovation ecosys- preneurship, and the general business environment tem, and strategic technologies. The 13th Five-Year including taxes, certain trade policies, and business Plan on National Scientific and Technological Innova- regulation. The United States does not have in the tion, and the Made in China 2025 Plan are concerted federal government a single focal point on U.S. efforts to cultivate indigenous technological inno- innovation competitiveness, capacity, and capabilities. vation, while the New Generation of Artificial Intelli- Instead, responsibility for addressing the factors that affect innovation and competitiveness cuts across Working Group 1: Developing and Deploying at Scale Disruptive Technologies Guide 27
gence Development Plan is a blueprint for construct- ing an AI innovation ecosystem that they believe will • Does the United States need to engage in make China the world’s AI leader by 2030. national technology and innovation strategic planning? The United States relies significantly on market mechanisms to stimulate technology commercial- • Should the United States align its R&D ization and innovation. Typically, it does not issue investment with national strategic plans? National Innovation or Technology Strategic Plans; • Should the United States have a national however, it has developed an R&D strategic plan on strategy for strengthening its innovation artificial intelligence and technology for advanced capacity, and strategies focused on specific manufacturing. Two initiatives—one on nanotech- game-changing technologies? nology and the other on advanced IT and comput- ing—seek to coordinate and integrated federal R&D • In this era of disruptive technology and rising investments in these fields. In addition, some U.S. strategic competition, what is the proper state and regional governments have strategic sci- balance between the speed and dynamics ence and technology plans to guide their technology of the marketplace, and greater national initiatives in connection with their economic develop- investment and strategic planning? Can ment efforts. these co-exist in a productive way?
Key Questions to Address • Should the United States move its global 2:45 Wrap-up Conversation and Prep technology and innovation leadership to the Plenary Report Out top of the national agenda? • What kind of leadership structure in 3:00 Return to Plenary government—in both the Executive Branch and Congress—is needed to address the multiple factors affecting technology development, commercialization, deployment, and innovation in a strategic and integrated way? 28 Council on Competitiveness Commission Community Launch Conference
Working Group 2: Exploring the Future of Sustainable Production and Consumption, and Work Community Breakout Session Mini-Agenda and Discussion Guide
Memorial Union Cochise Room Working Group 2: Exploring the Future of Sustainable Production and Consumption, and Work Guide 29
Moderator • Recommended actions should create opportunities Dr. Roberto Alvarez that uplift as many stakeholders—business, labor, Executive Director education, research, and consumers—as possible, Global Federation of and improve outcomes for broader segments of Competitiveness Councils the population, especially for those at the lower end of the socioeconomic scale. Be specific about the economic impacts to families and individuals of investments in R&D, physical infrastructure, intellectual property, and industry and academic sectors. Convey the socioeconomic benefits to people and communities whose livelihoods MORNING the recommendations will directly affect. • Recommendations need to center on competitive- 10:30 Working Group Introduction and ness, while also recognizing that any recommen- Role of the Working Group dations may have unintended consequences in potentially lowering competitive advantage or neg- atively impacting some elements of the workforce. Role of the Working Group Working Groups are the Commission’s “ideas and • Recommendations should lead to action-oriented policy recommendation generation engines,” charged measurable outcomes—policy recommendations, with framing and developing actionable recommen- as well as those the Council’s membership and dations to achieve specific goals. The recommenda- affiliated constituencies could put into practice tions will likely have many audiences; many will be and track results. geared towards policy makers to spur new legisla- • Public attitudes toward science and engineering tion, executive orders, or public-private initiatives to should be incorporated into the Commission’s achieve specific goals. Many other recommendations assessment. will be designed to encourage businesses and orga- nizations to take their own steps to promote competi- • Identify which decision-makers can act on tiveness and innovation in their company, region recommendations, and consider how to shape or industry. a compelling narrative that will encourage them to listen and act. National Commissioners—who first met on August 7, 2019—have provided general guidance • Other considerations in prioritizing challenges, to the Working Groups for their study of issues, solutions and recommendations to address could challenges, and opportunities, and the develop- include: Is the issue or challenge urgent? Is the ment of recommendations to address them (see issue, challenge, or potential solution pivotal in Launch for more details): terms of its impact or the number of other issues or factors affected? Is the recommendation • Examine challenges and opportunities from an actionable, and what is the vehicle for advancing ecosystem perspective inclusive of the broader the recommendation? economy, (e.g., if considering opportunities related to disruptive technology in the agriculture space, also consider linking the cost-benefit outcomes of agribusiness technology-enabled solutions to improvements in efficiency and productivity, and to their impacts on consumers, healthcare systems, and the environment). 30 Council on Competitiveness Commission Community Launch Conference
11:30 Focus of the Working Group— This discussion guide will focus on four funda- and Conversation Kick-off mental threads, and a series of interconnected questions to consider in shaping actionable Working Group 2, Exploring the Future of Sustainable policy recommendations: Production and Consumption, and Work, focuses on • Enhancing the sustainability of production and the ever-evolving disruption underway in the pro- consumption. duction and consumption of goods, and new ways innovators are finding to produce sustainably. The • The changing shape of work and new models Working Group will also explore the rapid evolutions of work organization. unfolding in the American workforce—up and down • Strengthening entrepreneurship and increasing the career ladder, and across the workforce land- entrepreneurial opportunity. scape—and mega trends affecting U.S. labor markets, the occupational mix in the country, what people do • Development and allocation of human capital in on the job and the skills they need to compete and a U.S. economy disrupted by rapid technological, succeed. National Commissioners’ guidance specific market, and competitive changes. to Working Group 2 includes: ISSUE 1: Enhancing the Sustainability • Consider the pace of change across workforce of Production and Consumption skills, technology adoption, and policy changes. • Examine the role of culture and the future of Around the world, pressure to make production and work in U.S. economic competitiveness, including consumption more sustainable is growing. Compa- consideration of workforce skills, retirement nies are responding with initiatives and corporate timelines in key sectors, alternative work reporting on the sustainability of their business. arrangements, and public attitudes toward science A wide range of efforts and some regulations—by and engineering. companies, governments, non-profit organizations, and others—seeks to make consumption more sus- • Since many people perceive innovation as neg- tainable, for example, by banning plastic take-out ative and detrimental to their lives—for example, food containers, and to raise consumers’ awareness equating innovation with job-destroying automa- about the role of their choices in the sustainability tion—be mindful in how innovation is discussed, of consumption. present solutions as enhancements that improve equity and access to opportunities, and commu- Production nicate the benefits and changes that innovation The industrial sector accounts for 32 percent of total will have on consumers and workers, so they can U.S. energy consumption. In producing goods, many see the positive impacts innovation can have on companies are striving to reduce their energy con- their lives. sumption and to use cleaner sources of energy to • Put forth solutions that reduce or eliminate power their operations. In addition, many are imple- barriers for individuals on the low end of the menting efforts to use more sustainable materials socioeconomic scale to take advantage of and greener chemicals; reduce water usage, waste, opportunities. and scrap in manufacturing; deploy more energy effi- cient, alternative power vehicles in their fleets; and • As part of a commitment to promulgating inclusive to increase the energy efficiency of buildings, facili- and equitable solutions, recommended actions ties, and the equipment they use. Eighty-five percent should seek to close minority gaps that exist in of the S&P 500 companies published a sustainability the workforce, for example, gaps in educational report in 2017.2 outcomes and employment for specific populations. 2 The State of the Sustainability Profession, 2018. GreenBiz, September 24, 2018. Working Group 2: Exploring the Future of Sustainable Production and Consumption, and Work Guide 31
The REMADE Institute—one of the newer PepsiCo has key metrics to measure progress Manufacturing USA institutes for shared innova- toward meeting 2020/2025 sustainability goals, tion infrastructure—enables early stage applied for example: research and development aimed at driving down the energy and cost required to recover, Agriculture reuse, remanufacture, and recycle four classes of materials: metals, fibers, polymers, and elec- • Strive to sustainably source direct agricultural tronic waste. The Institute is leveraging $70M in raw materials by 2020. federal funding and $70M from private partners. • Sustainably source 100 percent of palm oil and cane sugar by 2020
Water Others are designing greater sustainability into • Improve water-use efficiency of the direct their products, for example, more energy efficient agricultural supply chain by 15 percent in appliances, and reduced, recyclable, compostable, high-water risk sourcing areas or bioplastic packaging. Proctor and Gamble was the first company to introduce a cold-water laundry • Building on progress achieved, improve detergent, reducing the energy needed in washing by water-use efficiency an additional 25 up to 90 percent. All Nike Air soles contain at least percent by 2025, focusing on manufacturing 50 percent recycled manufacturing waste, and some operations in high-water risk areas of the company’s apparel—including team jerseys— have at least 50 percent of its polyester derived from Packaging recycled plastic bottles. • Strive to design 100 percent of packaging to Improving sustainability across the entire product be recyclable, compostable, or biodegradable life cycle—materials sourcing, production, packaging, • Strive to use 25 percent recycled content in distribution and warehousing, delivery to customer, plastic packaging customer use, and final disposition—is another focus of attention. For example, overall, 65 percent of Climate Change companies’ ultimate water use comes from supply chains (for the S&P 500/S&P Global 1200, Trucost, • Reduce absolute GHG emissions by at least 2018), yet only a quarter of these companies have 20 percent by 2030 set a water reduction target. About half of global companies have set a greenhouse gas (GHG) reduc- tion target. And companies, like PepsiCo, are setting tainability into their core business extremely or fairly ambitious sustainability goals on packaging, water, well. Similarly, in an eight-year study on how corpora- climate, and agriculture to be met in the coming five tions address sustainability, 90 percent of executives to 10 years. see sustainability as important, but only 60 percent In a recent survey of companies,3 52 percent said of companies have a sustainability strategy.4 climate change was a very significant issue, and Some universities are integrating sustainability into 40 percent said it was a key investor interest. Only their educational programming, helping prepare the half of the companies said they were integrating sus- workforce for jobs in companies to address this challenge. For example, Arizona State University
3 The State of Sustainable Business in 2019. BSR and Global Scan. November 12, 2019. Available online: https://www.bsr.org/en/our-in- 4 Corporate Sustainability at a Crossroads. MIT Sloan Management sights/report-view/the-state-of-sustainable-business-in-2019. Review, May 23, 2017. 32 Council on Competitiveness Commission Community Launch Conference
established the Nation’s first school of sustainability, The strength of Biocement materials is comparable
offering both undergraduate and graduate programs to traditional masonry, but has no CO2 emissions or and degrees in sustainability, including specialized waste in its production. programs in sustainable food systems, global sus- Redesigning organisms so they produce a substance, tainability science, sustainability leadership, and sus- such as a medicine or fuel, are common goals of tainable energy. Most of its graduates are working in synthetic biology. For example, vanilla and vanillin sustainability careers. are among the most important flavoring agents. Radically different forms of more sustainable produc- With the demand for all “natural” food and beverage tion are emerging. For example, additive manufactur- products growing, demand for natural vanilla flavor- ing and 3D printing build objects layer-by-layer from ing is out stripping supply, costs have risen, and food 3D model data, rather than through subtraction pro- companies are looking for additional supplies. Most cesses such as milling and grinding, eliminating scrap. synthetic vanilla is produced with a petrochemical Vertical indoor farms increase harvest productivity, precursor. Synthetic vanilla can be grown from mod- cut water use by 70-95 percent, and do not use pes- ified yeast; it is less expensive than pure vanilla from ticides. A European consortium (Siderwin) is working vanilla beans, and tastes better than artificial vanilla. to develop a new steel production process without In other examples, oils grown from modified algae
CO2 emissions based on electrolysis technology. can take the place of palm oil, for example in laundry Circular models turn post-consumer plastics into new detergent, avoiding harvesting oil from palm trees value streams. Zume uses a proprietary process to which can damage rainforests. Scientists at Cornell repurpose agricultural waste and biomass to produce University and the University of Illinois have carried cost-effective compostable food packaging that per- out field trails suggesting that genetically engineered forms and feels like plastic. The packaging breaks tobacco plants could be grown as crops to produce down into organic material and can be used again pharmaceuticals and industrial enzymes. Using an to regenerate soil or other organic matter, creating a enzyme from fireflies, scientists created a modified fully closed-loop cycle where the food grown creates plant that glows in the dark that could create sustain- the input materials for the packaging that carries able natural lighting. food to the consumer and then, once used, is used to help grow more food. Key Questions to Address Biomanufacturing is on the rise. Ecovative Design • Has the business case for greater uses mycelium, the root structure of mushrooms, sustainability been made? as a biofabrication platform to grow biodegradable • How can we encourage companies to think materials, structures, textiles, apparel, footwear, and about sustainability in systematic ways across leather alternatives. The material can be infused with the product life cycle? flavors and other components to create a whole cut of meat. The biofabrication process can be tuned • How can companies influence the decisions based on desired characteristics by controlling suppliers and other actors across the porosity, texture, strength, resilience, and more. product value chain make with respect to the sustainability of their practices and The cement industry is energy-intensive and the purchases? How can major corporations third-largest industrial emitter of CO2 (EPA). In pro- ducing an alternative construction material, BioMa- encourage and help their suppliers become son pours sand into a mold, and then adds microor- more sustainable? ganisms and nutrient rich water. The bacteria create • What is the degree to which these efforts calcium carbonate crystals that cause the sand are global, deploying in countries that are grains to stick together, growing bricks in 3-5 days. growing contributors to environmental degradation? Working Group 2: Exploring the Future of Sustainable Production and Consumption, and Work Guide 33
• What is a good balance between market- Trash Talk generated solutions vs. regulation? Source: UNenvironment • Does the total quality movement and the • One million plastic drinking bottles are circular economy concepts offer a model for purchased every minute. change? • 5 trillion single-use plastic bags are used • What are the challenges in harnessing worldwide each year. American innovation to meet the need for low carbon energy across the board, at • Half of all plastic produced is designed to be used only once. every scale, and around the world? Where is more investment needed? Will market-based • 300M tons of plastic waste is generated approaches meet the challenge? each year; 80 percent of it ends up in landfills, dumps, or the natural environment. • Are greater investments needed to advance biomanufacturing and other novel production approaches?
Consumption Garments are a common consumer product. Their For the first time since agriculture-based civilization life cycle involves materials production, manufactur- began 10 millennia ago, the majority of the world’s ing, shipping, use, and disposal. Garments made from population—just over half—could be considered mid- natural fibers, such as cotton, use gallons of water, dle class or richer. By 2030, the global middle class fertilizers and pesticides, and fuels in their materials could reach 5.3B—1.7B more than today. Reaching production. Synthetic fibers often use petroleum and middle class is transformative as a life experience. other chemicals that release hazardous emissions. These new middle class consumers will want a wide According to Levi Strauss & Company, the life cycle range of products and services. of one pair of its iconic 501 jeans equates to the With increasing development and rising income emissions generated by driving an average car around the world, consumption is on an upward 69 miles and three days’ worth of one U.S. house- trajectory. For example, according to the UN, the per hold water needs. The EPA estimates that discarded capita “material footprint” of developing countries clothing and footwear amounted to 12.8M tons increased from 5 metric tons in 2000 to 9 metric or nearly 5 percent of MSW in 2017, mostly textiles, tons in 2017. In high income countries, the per capita rubber, and leather. Only 13.6 percent was recycled material footprint is 27 metric tons. and nearly 9M tons ended up in landfills. U.S. per capita municipal solid waste (MSW) gener- There are diverse strategies for enhancing the sus- ation is 4.5 pounds per person per day (EPA). Total tainability of consumption. For example, while taxis MSM generated in 2017 (latest data) was 267M waste fuel hunting or waiting for fares, ride-matching tons, of which 67M tons were recycled and 27M optimizes personal transportation. Ride-matching composted—equivalent to a 35 percent recycling drivers often drive an energy efficient vehicle to min- and composting rate. Fifty-two percent ended up imize their fuel use. Turo capitalizes on idle private in a landfill. Paper and paperboard products made vehicles, allowing owners to rent out their cars to up the largest percentage of all materials in MSW others when not in use. These matching and sharing (one-quarter), followed by food (15 percent), plastics services may reduce the need to own a vehicle. (13 percent), and yard trimmings (13 percent). Sev- “Rent the Runway” rents high quality and designer enty-five percent of food that could be composted fashion apparel, including formal wear, giving con- ends up in a landfill. sumers thousands of options. Consumers can rent 34 Council on Competitiveness Commission Community Launch Conference
Figure 6. Clothing and Footwear Waste Management: 1960–2017 Source: US EPA. (2020). Textiles: Material-Specific Data. U.S. EPA. (online) Available at: https://www.epa.gov/facts-and-figures-about-materials-waste-and-recy- cling/textiles-material-specific-data (Accessed 2 Jan. 2020).
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a single time, for example, for a swanky formal event, Levi Strauss & Company is encouraging consum- or sign up for a monthly service that sends several ers to think about the life cycle of a pair of jeans. new apparel pieces a month for a consumer to try. It The company created a “Care Tag for Our Planet,” aims to help keep out-of-fashion and no longer loved which offers tips on how to extend the life span of apparel out of the landfill. their clothing—”wash less, wash in cold, line dry, and Small changes in consumer behavior can have a sig- donate when no longer needed.” The company also nificant impact on the sustainability of consumption. collects clean and dry denim from any brand at any For example, the tenant of “reuse” is being put into U.S. Levi store for recycling. action at the neighborhood level. More than 200,000 From food to fuel, consumption is concentrated U.S. neighborhoods use private social networks in cities and metros. Cities have taken steps to for, among other things, selling or giving away used enhance sustainability, ranging from banning plastic consumer items. Neighbors moving in pass on mov- food containers to adopting building energy effi- ing boxes to neighbors moving out, new homes are ciency standards. Other technologies and designs found for furniture being discarded that would other- could make a significant difference in city sustain- wise end up in the landfill, curb alerts tell neighbors ability including energy efficient building designs when toys, bicycles, kitchenware, or other items are and technologies; intelligent highways and vehicles sitting at the curb and up for grabs for free. that optimize traffic flows, reducing congestion and Working Group 2: Exploring the Future of Sustainable Production and Consumption, and Work Guide 35
“So, what if we said that you Trash Trends could mulch your jeans, put them Source: Environmental Protection Agency in your garden, and see how the Generation, recycling, and disposal of MSW has decomposition of your Levi’s changed substantially. could feed the food that you were • Generation of MSW increased from 88.1M growing. That’s conceivably how tons in 1960 to 267.8M tons in 2017. we might dispose of garments • The generation rate in 1960 was just 2.68 pounds per person per day, but has increased in the future. That would prompt to 4.51 pounds per person per day in 2017. the consumer to think about little • Over time, recycling rates have increased details like how the color was from just over 6 percent of MSW generated in 1960 to 16 percent in 1990, to more than applied to the garment in the first 35 percent in 2017. place. Would the chemicals in the • The amount of MSW combusted with energy dye affect the garment, my food, recovery increased from zero in 1960 to and my body? This is the kind of more than 12 percent in 2017. holistic thinking we want to spur • The disposal of waste to landfills has decreased from 94 percent of the amount in our customers. Fundamentally, generated in 1960 to 52 percent of the asking them to take into account amount generated in 2017. the impact they’re responsible for in the whole system, from the supply chain to the eventual disposal of the garment.
Paul Dillinger, Head of Global Design Innovation idling; high levels of Internet and computing penetra- Levi Strauss tion to support telecommuting; autonomous vehicles for transit and deliveries, “lights-out” robotic and Source: Segran E. “Levi’s Is Radically Redefining Sustainability.” autonomous systems, etc. Widespread adoption of Fast Company, February 9, 2017. existing energy-efficient building technologies—and the introduction and use of new technologies—could eventually reduce energy use in homes and commer- cial buildings by 50 percent.5
5 Quadrennial Technology Review: An Assessment of Energy Tech- nologies and Research Opportunities. U.S. Department of Energy. September 2015. 36 Council on Competitiveness Commission Community Launch Conference
ISSUE 2: The Changing Shape of Work What Consumers Can Do and New Models of Work Organization • Shop for products made with recycled materials Globalization, new scientific discoveries, acceler- ating technology development, and new models of • Buy items with less packaging organization promise to change dramatically the • Buy and use refillable/reusable containers landscape of work. New technologies make entirely new forms of work possible—work without humans, • Reuse bags work in which humans and technologies form teams, • Refrain from discarding items that can be work performed in remote locations and, potentially, reused or repaired entirely novel forms of work organized using today’s powerful computing, Internet, and communications • Compost food and yard waste technologies. Advances in cognitive science will • Wash laundry in cold water; line dry provide new insight on creativity, and how to better analyze, solve problems, adapt to new situations, and • Remove names from paper mailing lists make decisions. This new knowledge will be applied to improve how we work together, manage teams, design organizations, and interact with customers and machines.
Work with Machines Robots are likely to become commonplace, work- ing in homes and offices, assisting in hospitals and Key Questions to Address classrooms, helping run farms and caring for the • Who is responsible for making consumer elderly. Autonomous systems will operate across fac- consumption more sustainable? tories, smart cities and infrastructure. It is estimated • How can we convert public concern into that about 2.4M industrial robots are in operation more sustainable daily decision-making (that worldwide. Global sales of industrial robots reached would also have the benefit of driving market a high of 422,000 units in 2018, with double digit change)? Do we need a movement? growth expected in the next couple of years.6 The use of service robots is increasing in areas rang- • How much responsibility can we expect ing from logistics and medical applications to lawn consumers to take in changing their mowing, window cleaning, and room service delivery consumption behavior and practices to in hotels. make them more sustainable? How can we make sustainable consumption easier for Artificial intelligence is likely to affect portions of consumers? almost all jobs, changing the tasks performed, the way work is organized, how decisions are made and • How can producers help customers use and problems solved. Artificial intelligence could also dispose of their products in more sustainable change the size and mix of human capital and skills ways? needed in an organization. • Does the circular economy concept offer a Many Americans may not understand how automa- model for change? tion and AI could affect professions and the work • How can we encourage cities and metros to they do. For example, 80 percent think it is not at leverage a larger toolbox in more strategic
approaches to sustainability? 6 https://ifr.org/ifr-press-releases/news/robot-investment-reaches-re- cord-16.5-billion-usd. Working Group 2: Exploring the Future of Sustainable Production and Consumption, and Work Guide 37
Americans’ Views of Automation Key Questions to Address Source: Pew Research Center, 2019 • As AI, autonomous systems, and robots increasingly perform routine tasks, will the • Most Americans (82 percent) anticipate skill/wage gap grow—and if so, by how widespread job automation in the coming much? Will rungs on lower/middle levels decade and that, by 2050, robots and of career ladders disappear, closing-off computers are likely to do much of the work traditional pathways to upward mobility? currently done by humans. Does this present new kinds of challenges in • About one-third believe robots or computers reducing economic inequality? will do the type of work they do by 2050. • Do we need a new multidisciplinary field • 76 percent of Americans say inequality in work engineering—the convergence of between the rich and the poor would automation, cognitive and behavioral science, increase if robots and computers perform organizational development, job design, most of the jobs currently being done by systems integration, etc.? humans. • As machines increasingly perform routine • Americans think automation will likely disrupt work, does the public have a grasp on a number of professions but they are less the potentially sharp upward trajectory likely to think their own job will be impacted. of the economy’s knowledge and skill requirements? What role must policymakers play in educating and supporting this shift? all or not very likely that automation could replace a nurse,7 while patient monitoring, routine caregiving, • How will new machine-enabled work change physical therapy, medication dispensing, and patient daily lives and the patterns of work and transport are all opportunities for future automation. society? Two-thirds believe teachers could not be replaced,8 • What kinds of new corporate and government despite the likelihood that AI-infused on-line learning, policy issues will arise with increased use learning in virtual or augmented reality environments, of artificial intelligence and robot/human and smart learning assistants and chat bots could teaming in the workplace, in areas such as disrupt many of the tasks teachers perform. For example, in connection with a new television series, risk, safety, liability, performance evaluation, National Geographic created a Facebook messenger cybersecurity, etc. chat bot where one can have a conversation with Albert Einstein about his life and physics. New Forms of Work Organization In the coming world of collaboration between The prominent model for accomplishing work has humans, robots and intelligent systems—and as been employer-based and carried out in a full-time enterprises integrate extended (virtual, augmented job that is task-, time- (9-5 day), and place-based, and mixed) reality into operations—we could funda- in a career or working life that begins at the conclu- mentally reimagine how work gets done. sion of formal education, typically in the late teens or early twenties, with job holding continuing until retirement, typically 30-40 years later. Job holding
7 https://www.pewresearch.org/internet/2017/10/04/americans-atti- tudes-toward-a-future-in-which-robots-and-computers-can-do-many- human-jobs/. 8 ibid. 38 Council on Competitiveness Commission Community Launch Conference
may be interrupted, for example, by adult education, The Gig Economy: Electronically-mediated training, child rearing and, less frequently sabbatical Work or extended vacation. Work, many of its rules, com- Source: U.S. Department of Labor pensation and promotion policies, worker decisions on where to live, financial and retirement planning Workers obtained short jobs or tasks through and saving, family planning, and childcare are typi- websites or mobile apps that connected them cally based around this model of work and working with customers and facilitated payment for life. Today’s technologies enable other models for the tasks. accomplishing work and designing working life—such • In May 2017, there were 1.6M electronically- as telecommuting, working from remote locations mediated workers, accounting for 1.0 percent and freelancing, as well as enabling more flexible of total employment. work schedules and staffing. • Of all workers, 0.6 percent did electronically- For workers, these models can help people integrate mediated work in-person and 0.5 percent work more seamlessly into their personal lives—if did it entirely online. Some people worked juggling responsibilities for children, health issues, both in-person and online, for example, in two or other activities—as well as access jobs outside different electronically-mediated jobs. of their geographic regions, a particularly important feature for those living in declining rural and indus- • Compared with workers overall, trial areas of the country, or those who cannot afford electronically-mediated workers were to live in job-rich, high cost-of-living locations. Time more likely to be in the prime-working-age spent commuting can be significantly reduced, sav- category (25 to 54) and less likely to be in ing perhaps hours per week that can be devoted to the oldest age category (55 and over). other productive and personal activities. • Electronically-mediated workers were more For employers, more flexible patterns of work allow likely than workers overall to work part time. them to tap a wider range of workers with knowl- • Compared with workers overall, people age edge and skills that can contribute value to the 25 and over who did electronically-mediated organization or business, but may reside in distant work were more likely to have a bachelor’s locations, or who cannot or prefer not to work in a degree or higher (67 percent of online 9-5, full-time job on employer premises. This broader electronically-mediated workers age 25 and landscape for recruiting can be especially valuable over had bachelor’s degree or higher. when unemployment is low and labor markets are tight, or recruiting for occupations in high demand. • Self-employed workers were more likely than With a more flexible workforce and flexible staff- wage or salary workers to do electronically- ing, employers can scale workforce size and mix as mediated work (4 percent vs. 1 percent). needed. • By industry, workers in transportation and Uber, Lyft, Takl, TaskRabbit, and the Gig economy utilities, professional and business services, have established new models of worker indepen- information, and other services on their dence, although accounting for a small percentage main job were the most likely to have done of total U.S. employment. Digital technologies have electronically-mediated work. made it easier to connect customers that need work performed with those able to perform it on a free- Working Group 2: Exploring the Future of Sustainable Production and Consumption, and Work Guide 39
lance basis. While workers may face greater financial risk in the Gig economy, they may also engage in • What kinds of new regulations or policies are work of greater interest to them, make better use needed to address the challenges of worker of their knowledge and skills in a place that may be protection, benefits, and income security in a more convenient, performed on a schedule of their workforce of freelancers? choosing, or more aligned with the demands of their • What is needed in the area of taxation and lives. labor laws to reduce barriers to cross-state New technologies could enable entirely new forms of remote work in the United States? people-centered, rather than employer-centered, and • What is needed in the area of pay, labor self-organized forms of work that optimize human regulation and standards, and taxation for capital and human capacity. For example, today’s cross-border remote work? digital technologies could be applied to identify mar- kets of one or many around the globe, and search • What kinds of new laws might be needed algorithms can match workers, goods, and services to protect those buying work or services with buyers, or workers around the world with each from independent workers or temporary other, to form independent work teams that meet freelancing work teams, especially those that customer needs. Working on a global scale with five cross international borders? billion potential customers, a relatively small number • Who is liable for the work performed, and of buyers can make a market. Service providers and innovators could facilitate marketing and matching what happens when a team disbands? for independent workers and forming of teams, help- • What is needed to scale new forms of work ing them maximize their earnings, a model similar to organization that are not employer centered? those in today’s electronically-mediated gig economy.
Gender Equality Key Questions to Address While U.S. women exceed men in attaining bache- • Will the redesign of work just organically lor’s degrees, they have not achieved parity in work- emerge? force participation, pay, or career progression. The • Are employers comfortable with workers ratio of women’s to men’s median weekly earnings for full-time wage and salary workers in all occu- working remotely and out of sight? pations was 81 percent in 2018. The gap has nar- • How can we encourage employers to expand rowed, in part, because women are increasing their the geographic scope of recruiting, for presence in higher paying occupations. Nevertheless, example, to rural areas, distant areas, and the earnings ratio is lower in some occupations, such globally? as personal financial advisors, physicians and sur- geons, real estate brokers, sales agents and chief • What kind of ecosystem and infrastructure executives. In addition, women’s rate of workforce would be needed to support a people-based participation has leveled off at 57 percent, compared (vs. employer based) economy? to men at 69 percent, in 2018. • What kinds of new knowledge, skills, and support systems are needed for those working outside of traditional employer organizations? 40 Council on Competitiveness Commission Community Launch Conference
Majorities of Americans see men and women as AFTERNOON equally capable in terms of qualities for leadership. Yet, only 4.8 percent of CEOs in the Fortune 500 are 12:00 Working Lunch women, and only 22 percent of Fortune 500 board members. Women leaders are more prominent— though still a significant minority—in academia, with 12:30 Focus of the Working Group— 30 percent of universities having women presidents Continuing the conversation in 2016. Some of the reasons for the gaps include: inflexible career paths (while women have greater involvement ISSUE 3: Strengthening in providing childcare), occupational selection, hours Entrepreneurship and Increasing worked, and industry of employment. For example, Entrepreneurial Opportunity some higher paying jobs favor long hours and reward willingness to put work over other life activities. Also, The United States is known worldwide for its entre- working women are nearly twice as likely as men to preneurship and start-up culture, and many nations say they have faced gender discrimination on the job, seek to emulate the U.S. model. Entrepreneurs and one in four working women say they have earned start-ups play a vital role in leveraging new knowl- less than a man who was doing the same job, and edge and technology to create and grow new busi- more than one in five say they have been treated as nesses and, those that grow into large and success- if they were not competent because of their gender. ful firms, can transform entire industries. The process of finding creative ways to combine new technolo- gies and processes, and make novel products and Key Questions to Address services, leads to the start-up of businesses and the • Employers have taken steps to support decline of less productive businesses or those whose women in their workforces, including onsite business lines are made obsolete. This churning of daycare, family friendly leave policies, more firms—business dynamics—has broad impacts on flexible work schedules, etc. What more can technical progress, economic growth, and produc- employers do within the structure of company tivity in modern market economies, as resources are benefits? What can policymakers do? reallocated away from less profitable businesses to more profitable and competitive ones. • Can telecommuting and remote work be expanded to increase women’s participation While the U.S. start-up and entrepreneurial punch in the workforce and the organization? Does weakened in the years surrounding the Great Reces- working off-site reduce women’s ability to sion, it is recovering. In 2018, openings of establish- build company-specific skills and social ments with employees surpassed one million for the capital within the organization that helps first time.9 The number of closings also rose, indicat- underpin their advancement? ing a higher level of churn in the economy, character- istic of greater business dynamics. Annual openings • Is national legislation needed, for example, have exceeded closings for eight consecutive years to mandate paid family leave or equal (Figure 7). representation on boards of directors? Other? Business applications have also recovered from the Great Recession, increasing from 596,111 coming • What greater efforts can be made to out of the recession (Q4 2009) to 860,125 in the attract women to prepare to enter higher third quarter of 2019, far above the pre-recession paid careers such as those in engineering, levels (Figure 8). However, while business applica- computer, or financial occupations?
9 https://www.bls.gov/news.release/cewbd.htm. Working Group 2: Exploring the Future of Sustainable Production and Consumption, and Work Guide 41
Figure 7. Annual Establishment Openings and Closings Source: Business Employment Dynamics, Bureau of Labor Statistics.