Annual Meeting of the New Champions 2014 Creating Value Through Innovation

Global Agenda Annual Meeting of the New Champions 2014 Creating Value through Innovation

Tianjin, People’s Republic of China 10-12 September Contents Preface

3 Preface The World Economic Forum Annual and hands-on learning with live 4 Meet the Mentors Meeting of the New Champions, demonstrations by the top creators now in its eighth year, is the world’s of disruptive technologies. 6 Meeting Highlights foremost global gathering on 8 The New Champions innovation, entrepreneurship, science Participants also explored and technology. Held in the People’s technological shifts and their 10 Innovation & Industry Republic of China each September in consequences for business and 16 Science & Technology close collaboration with the Chinese society – revolutions in data, 24 Sustainability & Society government, the Meeting is designed nanotechnology, robotics, energy to bring together the ideas of the and neuroscience – as well as 32 Creativity & Culture next generation of leaders – the advances in science and technology, 40 China & Emerging Markets New Champions – who are shaping and creative challenges facing many W. Lee Howell future business models, sustainable industries through an arts and culture 48 Acknowledgements Managing Director growth strategies and technological series. 49 Further Information Member of the Managing innovation. Board 50 Upcoming Meetings The high-level discussions during Under the theme, Creating Value the Meeting have helped to advance through Innovation, more than understanding of how technology 1,900 participants from 90 countries and innovation will shape inclusive, engaged in over 140 sessions to sustainable and economic value; discover breakthrough scientific that is to say, how innovation ideas and innovations transforming can generate more and better economies and societies worldwide; value for the people we serve, improve strategic and operational the organizations we lead and the agility within organizations with societies to which we belong. respect to technological disruption; and introduce the next generation Professor Klaus Schwab, Founder of research pioneers and business and Executive Chairman of the World innovators reshaping global, industry Economic Forum, underscored Olivier Schwab and regional agendas. this point in the Opening Plenary: Executive Director, China “To respond to the economic and Beijing Representative Office The New Champions comprise the social challenges we face today, Forum’s Global Growth Companies, courageous and comprehensive Young Global Leaders, Young reforms are needed.” Scientists, Technology Pioneers, Social Entrepreneurs and Global We look forward to welcoming you Shapers communities. Together with to next year’s Annual Meeting of the the Forum’s Members and Partners, New Champions on 9-11 September they represent business leaders and 2015 in Dalian. entrepreneurs at the forefront of creating the future economy.

© World Economic Forum To maximize creative thinking, 2014 - All rights reserved. experiential learning and shared No part of this publication may be reproduced or transmitted in insights, this year’s programme any form or by any means, including photocopying and recording, or by any information storage and retrieval system. David S. Aikman featured a number of innovative

The views expressed are those of certain participants in the Managing Director, activities and formats that included discussion and do not necessarily reflect the views of all Head of New Champions participants or of the World Economic Forum. presentations from world-renowned experts to share insights on scientific REF 160914 and technological breakthroughs,

Creating Value through Innovation 3 Meet the Mentors “The digital world offers tremendous opportunity for collaboration and inclusive leadership”

Natarajan Chandrasekaran, Chief Executive Officer and Managing Director, Tata Consultancy Services, India

“Science is a truly global “Start-ups are humbling enterprise” experiences. Stuff goes wrong all the time” Jean-Pierre Bourguignon, President, European Research Council, Belgium Kevin P. Ryan, Founder and Chairman, Gilt Groupe, USA

“What we really need is “We should never allow an environment of free ourselves to slow down competition” innovation”

Dong Mingzhu, Chairperson and President, Gree Electric Max Levchin, Founder and Chief Executive Officer, Appliances of Zhuhai, People’s Republic of China HVF, USA

“Changing the current mode “We got where we are of teaching on campus will because we questioned be another revolution” the conventional wisdom”

Subra Suresh, President, Carnegie Mellon University, USA Paul E. Jacobs, Executive Chairman, Qualcomm, USA

4 Annual Meeting of the New Champions 2014 Creating Value through Innovation 5 Community of Global Growth Companies Meeting Highlights Global Growth CompaniesMeeting Highlights Shaping the Future of Business

Central Asian collaboration

A new World Economic Forum report, Scenarios for the South Caucasus and Central Asia, outlines three possible paths regarding the region’s economic future by 2035. One scenario depicts a world in which the global economy is dominated by powerful trading blocs centred on the Atlantic, Pacific and Indian oceans in addition to the Eurasian Union.

Another scenario envisages a global economy that is digital, knowledge-based and dominated by South-South trade in goods and services, and in which Iran’s opening has unleashed new perspectives for the region’s trade with the Middle East and, later, sub-Saharan Africa.

The third paints a picture in which climate change is causing havoc in the global economy, with growing demands for High-growth companies environmentally responsible growth. The report concludes Young Scientists Unlocking better that2. the Southern success of the region’s Gateway future lies with greater honoured in Tianjin cross-border collaboration. This can be done by maximizing honoured healthcare for all the potential of the region’s energy resources, integrating into global supply chains, creating a diversified economic Global Growth Companies (GGC) are fast-growing base and developing a high-standard workforce. Thirty exceptional scientists under the age of 40 were Healthcare systems are becoming increasingly companies with the clear potential to become global recognized at the Annual Meeting of the New Champions unsustainable, and affordable care remains a luxury in economic leaders. These companies are considered DownloadSouthern the report at http://wef.ch/scca14 Gateway for their contributions to advance the frontiers of science, most emerging economies. But innovations in such areas trailblazers, shapers and innovators that are committed engineering or technology in areas of high societal impact. as e-health, clinical analytics, healthy living and consumer to improving the state of the world. In Tianjin, the World During the Meeting, the honourees also engaged with engagement can help redefine the healthcare delivery value Economic Forum recognized 15 GGCs from Greater China, business and political leaders in a number of sessions on chain and unearth cross-sector collaborations that unlock representing a broad cross section of industrial sectors. such topics as precision diagnostics, brain research and better value and more effective treatment. Health and They all share a common track record in exceeding industry touchless computing. healthcare featured high on the agenda in Tianjin, where standards in revenue growth, promotion of innovative leaders from various industries and key decision-makers business practices, and demonstration of leadership in Established in 2008, the Young Scientist community from government, civil society and academia met to discuss corporate citizenship. represents the future of science leadership, bringing new frontiers of health and healthcare in emerging and together the most forward-thinking and advanced scientific developed markets. The companies join the existing GGC community composed minds in the world. The scientists are selected from all of over 370 companies worldwide. They will have the regions and a wide range of disciplines. A series of workshops and sessions examined the opportunity to contribute to Forum meetings, projects transformation of health systems in emerging economies, and knowledge products, which in turn support them This year’s winners were chosen from more than 250 new business models, breakthroughs in brain research, on their path to achieving responsible and sustainable nominations from 21 leading global science institutions, cancer prevention, integration of ancient traditions and growth. Together with the Social Entrepreneurs, Technology including the European Research Council, Nature Magazine, modern innovations, and emerging technologies, including Pioneers, Young Global Leaders, Global Shapers and Young Scientific American Magazine, National Institutes of Health, 3D printing. Scientists, the GGCs make up the New Champions, a larger École Polytechnique Fédérale De Lausanne, Eidgenössische World Economic Forum community of pioneers, disruptors Technische Hochschule Zürich and the Global Young and innovators. Academy.

Find out more about the GGCs at http://www.weforum.org/ More information at http://www.weforum.org/ community/global-growth-companies youngscientists14

6 Annual Meeting of the New Champions 2014 Creating Value through Innovation 7 Making a difference: Facts & Figures the New Champions

The World Economic Forum celebrated blind. “Someday, they can enjoy the various communities it has brought the same movies that you can enjoy 1,000+ together at the eighth Annual Meeting today,” he said. business leaders of the New Champions taking place in 400 Tianjin, China. These new champions Peggy Liu, Chairperson, JUCCCE, Young Global Leaders are transforming science, technology, People’s Republic of China, is working 26 and Global Shapers commerce, civil society and other fields to bring sustainability to her country. with their innovations and commitment “We have brought the concept of a Technology to make a difference. smart electricity grid to China and have Pioneers trained 800 mayors and bureau chiefs 370 The Forum’s “We are all the new champions,” said on how to build sustainable cities,” she women Facebook posts Professor Klaus Schwab, Founder and said. generated Executive Chairman, World Economic leaders 4.5 million Forum. “Our world needs a new spirit, She is collaborating with organizations impressions and a much more collaborative spirit, a around the world to “giga-scale” their reached much more society-oriented spirit.” sustainability solutions for China. It’s a difficult task given the country’s 25,000 1.3 million One new champion is Stéphane 1.3 billion population and massive Meeting mentions people during Bancel, President and Founding geography. “China is a unique place in the press the Meeting Chief Executive Officer, Moderna that matters when it comes to climate Therapeutics, USA. His biotech change,” she said. “It’s the only 1,900 company has developed a new way battlefield that matters today.” participants to design and deliver medicines by sending messages to the patient’s Marc Freedman, Founder and Chief from over cells and allowing them to produce the Executive Officer, Encore, USA, 600+ needed healing proteins. “The patients represented the Social Entrepreneurs, 90 top executives make their own drugs,” he said. while Matsi Modise, Founder and Chief The webcasts Executive Officer, South African Black countries were watched over 100+ Ivana Gadjanski, Assistant Professor, Entrepreneurs Forum, South Africa, academic Belgrade Metropolitan University, represented the Global Shapers, the 90,000 Republic of Serbia, represented the community of emerging leaders in their leaders Young Scientists, a community that twenties. “The innovations in medicine, times in over is reinventing what being a scientist technology and commerce have to be 90 means. She is acquiring knowledge met with social innovation that leads to countries not for knowledge’s sake but to help sustainable societies,” said Freedman. people. “Scientists must not be good 600+ only in one field,” said Gadjanski, who participants from is also a poet. “It’s being Renaissance- Greater China like – you have a blurring of science, technology and maths and a merger of + science and entrepreneurship, and also 240 the arts.” Global Growth Companies Yobie Benjamin, Co-Founder and Chief Operations Officer, Avegant Corporation, USA, represented the Technology Pioneers. His company developed a device that projects images directly to the retina. It was originally designed to help with military targeting systems, but is now being developed to help the functionally

8 Annual Meeting of the New Champions 2014 Creating Value through Innovation 9 Innovation & Industry

the price of solar panels is falling the participants at the three- as car buyers. “We failed to realize Innovation & Industry even as their efficiency in turning day meeting were told. “If your the importance of women for many the sun’s rays into electricity is business doesn’t change, it years,” said Takao Asami, Alliance increasing. Some home solar creates opportunities for me,” Global Vice President, Research kits can now power not only light said entrepreneur Kevin P. Ryan, and Advanced Engineering, Nissan bulbs but also TV sets and small Founder and Chairman, Gilt Motor Co., Japan. These days, the Smart businesses make a refrigerators. Groupe, USA. In the calculus of company has women engineers, that change, “disruption is better dealers and sales representatives. Advances in energy storage can to give than to receive,” said Henry further disrupt power generation Chesbrough, Faculty Director, In China, more deals are being change for the better and distribution. Once generated, Garwood Center for Corporate structured where giants take power must be consumed. But Innovation, Haas School of controlling interests in start-ups yet what if some of that energy is Business, University of California, let management continue to lead stored for future use? Electric cars Berkeley, USA. operations and expansion. From start-ups to mid-sized and large enterprises, innovation is already use rechargeable battery packs that turn electricity into New industry entrants with few, if Thirteen major energy companies reshaping expectations about the pace and profile of future chemical energy. In the future, any, legacy systems may seem to have formed Canada’s Oil Sands global growth. As changes in technology, new customer some homes and businesses may have the upper hand, because they Innovation Alliance. “Intellectual opt to go partly off-grid, reducing can be more agile in leveraging property is contributed by every behaviours and regulation disrupt the business landscape, demand for the electric company’s innovation. But the incumbents are member and new ideas are looked companies will focus on how they can generate more and better services. not necessarily doomed. “It’s not at jointly,” said Gordon Lambert, true that all banks are in the same Executive Adviser, Sustainability value through innovation. In manufacturing, robotics, business and have exactly the and Innovation, Suncor Energy, 3D-printing and other innovations same business model,” said Bunty Canada. So far, the companies A device that projects images new products and services, new One of the worst hit sectors is are forcing a reinvention of Bohra, Chief Executive Officer, have shared intellectual property directly to the retina. The coming business processes and new ways financial services. Mobile banking production processes. Ideas Goldman Sachs, India; Young valued at $1 billion. 5G telecom network that will of managing the organization can and internet-based payment such as circular growth and the Global Leader. They can change. link mobile phones with internet- be disruptive to industry, particularly systems are cutting into the banks’ sharing economy are also affecting “The future will not be dominated Collaborations like these avoid enabled computers, wearables and to incumbent businesses. lucrative intermediation businesses. traditional factory floors. Cradle- by the same institutions, but by duplication of R&D efforts and can other office and home devices in a There is not much need for to-cradle manufacturing involves many institutions with different shorten deployment time of the grand coalition called the Internet But they can also be enablers, middlemen if companies can the constant use and re-use of niches and specializations,” he resulting innovation. Participants of Things. Smart cars. Smart allowing established companies to directly transact with customers, materials to make products, which added. pointed to this business model as grids. Mobile banking. Robotics. scale greater heights even as newer their supply chain and each other. requires little new inputs or none among the most powerful ways Cradle-to-cradle manufacturing. 3D entrants and entrepreneurial start- The same dynamic is at work in at all. The sharing economy is Nissan Motor of Japan is for businesses, regardless of size, printing. ups create new market niches. retail, transportation, travel, media exemplified by mobile-enabled progressively raising the ratio of to develop an idea, create new “Transformation and reinvention and other service industries. companies that allow consumers to recyclable materials in its products products, scale them and then These were among the innovations are critical now,” said John B. share rides instead of owning cars and is eliminating harmful emissions continue innovating. In the new pondered by participants at the Veihmeyer, Global Chairman, Virtually every business is in the themselves. from its manufacturing processes world of the internet, mobile apps Meeting. Not surprisingly, the KPMG International, USA. “CEOs crosshairs, even utilities, which are and those of its supply chain. It is and the other technologies, the one business leaders among them are worried about the relevancy of among the stodgiest and most Business and industry leaders also recognizing the rise of women constant is change. paid special attention. After all, their products.” stable of enterprises. For example, must respond to these innovations,

“Innovation is an inexhaustible engine for “We are all the new champions. economic development.” Our world needs a new spirit, a much more collaborative spirit, a much more society-oriented spirit.” Li Keqiang, Premier of the People’s Republic of China Klaus Schwab, Founder and Executive Chairman of the World Economic Forum

10 Annual Meeting of the New Champions 2014 Creating Value through Innovation 11 Why we can all be entrepreneurs

Inevitably, there are going to be losers in the constant onslaught of innovation. In China, for instance, many distributor channels and bricks-and-mortar supermarkets and retail outlets have had to close. Their costs can account for 60% of the price tag of a product. But middlemen are no longer 01 needed when consumers can deal directly with manufacturers

through ecommerce sites like Alibaba, which can price items 02 more cheaply because they have low distribution expenses.

What can such victims of innovation do? One solution proposed by participants at the Meeting was that these victims can themselves become the innovative entrepreneurs that disrupted their old business. “Almost everyone can become an entrepreneur,” said Kevin P. Ryan, Founder and Chairman, Gilt Groupe, USA. He was inspired to start an online discount store for fashion goods after seeing a long queue of women in Paris 03 waiting for a samples sale. Why can’t women in other places buy the samples, too, by visiting an ecommerce site?

That is how entrepreneurship starts. The budding entrepreneur identifies a need and then figures out an innovative way to meet it. Then it is hard work and long hours to nurture the start-up.

Max Levchin, Founder and Chief Executive Officer, HVF, USA, and a Mentor at the Annual Meeting of the New Champions, discussed three stages. The first is when the sky is the limit and no idea is considered bad. Then the project crystallizes and more people come onboard. Finally, the crunchtime comes and a decision must be made whether to go ahead.

One such project that has taken off is Glow, a Shanghai-based 01: Andrea Armani, 07: Tony Pan, Inventor, start-up that has created a mobile phone app which helps Professor, Viterbi School Invention Science Fund, 06 women to predict their ovulation cycles. So far, the app has of Engineering, University Intellectual Ventures, of Southern California USA and Diva Tommei, helped 30,000 women to conceive. “We are literally putting (USC), USA Chief Executive Officer, 02: Calvin Chin, Founder, Solenica, Italy out babies by the thousands,” said Levchin, who founded the Transist, People’s Republic of China payment system PayPal and sold it to eBay in 2002 for 03: Thinking Ahead with $1.5 billion. the New Champions 04: Kevin P. Ryan, Founder and Chairman, 04 Gilt Groupe, USA; Mentor Entrepreneurs will fail along the way, but they should learn of the Annual Meeting of from their mistakes. In a world where the internet and mobile the New Champions 2014 Subra Suresh, 05: 07 phone are levelling the playing field, the chances of achieving President, Carnegie Mellon University, USA; entrepreneurship success are higher today than they have ever Mentor of the Annual Meeting of the New been. Champions 2014 06: Olivier M. Schwab, Executive Director, China, World Economic Forum Beijing Representative Office

12 Annual Meeting of the New Champions 2014 Creating Value through Innovation 13 01 03 03

02 04 02

01: From Confucius to (KAIST), Republic of C-Pop Korea 02: Panayiota 04: Hellmut Schütte, Poirazi, Research Dean and Vice- Director, Institute of President; Distinguished Molecular Biology and Professor of International Biotechnology, FORTH, Management, China Greece Europe International 03: Kim Sang Ouk, Chair Business School (CEIBS), Professor, Department People’s Republic of of Materials Science China and Engineering, Korea 05: New Champions Advanced Institute of Plenary Science and Technology

05 06 07 05

01: Janice Marturano, Intellectual Property 08 Founder and Executive Organization (WIPO), Director, Institute for Geneva Mindful Leadership, USA 06: Ibrahim Boubacar 02: Sandra Wu Wen-Hsiu, Keita, President of the Chairperson and Chief Republic of Mali Executive Officer, Kokusai 07: Chen Feng, Chairman Kogyo, Japan of the Board, HNA Group, 03: Participants in People’s Republic of IdeasLab with the China University of Oxford 08: Participants in 04: Adrian Monck, Building an Innovative 02 Managing Director, Head Global Business of Public Engagement, World Economic Forum; Rebecca Blumenstein, Deputy Editor-in-Chief, The Wall Street Journal, USA; Vikram Chandra, Presenter and Editor, NDTV, India; Shuo Wang, Managing Editor, Caixin Media 05: Francis Gurry, Director-General, World

14 Annual Meeting of the New Champions 2014 Creating Value through Innovation 15 Science & Technology Science & Technology breakthroughs. Inevitably these between science and business to innovations will also raise complex boost entrepreneurship. Cultural ethical questions. “If an internet- gaps between scientists and connected device is controlling my businesspeople, academic silos insulin level, I don’t want anyone and02 rigid licensing regimes are to hack into that,” said Anne some of the impediments to Risks and opportunities Bouverot, Anne Bouverot, Director- reducing these barriers. General and Member of the Board, GSMA, United Kingdom Forward-looking policy-makers “As companies are testing new models to link adopt internet in the new machine era Another disruption has come academia and the private sector by from the integration of information investing in strong ecosystem for technologies, technology and academia. MOOCs science-business collaboration. Co- 2.6 jobs are (massively open online courses) can locating institutions in science parks created for Breakthroughs in neuroscience, big data, virtual reality, robotics deliver top-tier academic content is one way to improve connections. every job lost.” to billions of people worldwide at Instituting policy regimes that and nanotechnology took centre stage at the Meeting. But how virtually no cost. encourage mobility of talent is Jeffrey A. Joerres, Executive Chairman, Manpower will developments in science and technology affect the future? another strategy for catalysing Group, USA MOOCs have by no means innovation. What are the risks and opportunities for businesses and eliminated the demand for brick- communities? and-mortar universities. Many The question of developing the right institutions are instead finding new policy framework will be central stand to benefit from specialized ways to harness the potential of in order for societies to reap the software and productivity-boosting technology and transform the on- benefits of science and technology. devices, some low-skilled workers Scientists push forward the at the intersections of fields. For mapping of neural networks and campus experience for students, China is one of the most dramatic face obsolescence. In many parts frontlines of innovation, but their example, the linkages between understanding of brain interactions. as well as to extend educational examples of the way in which of the world, the gap between high- work is fundamentally shaped by big data and computational The complexity of the human brain offerings on a larger geographic technology and policy can change and low-income segments of the public policy, funding models, neuroscience could shed light on vastly exceeds standard computing scale. a country. population continues to widen. consumer demand and advocacy. fundamental questions about the capabilities and this complexity Each of these establishes the brain, robotics and mental health, presents an opportunity for big Nonetheless, MOOCs and other Shifts in the global economy and Determining the priorities for parameters where innovation an exciting prospect. David Cox, data firms to partner in studying technologies raise questions about the rise of a new machine era have innovation and distributing of the can take place. The Meeting Assistant Professor of Molecular the brain. From Google to Baidu to the need to update academic helped lift billions of Chinese out gains from technology fairly requires explored the implications of and Cellular Biology and Computer Yahoo, top IT firms have acquired business models and reinvent the of poverty and have dramatically not just good science, but also major breakthroughs in science Science, Harvard University, USA, start-ups and hired talent in artificial classic college experience. improved standards of living savvy businesses, engaged civil and technology, as well as the said: “It’s an amazing time to be intelligence and computation around the world. The benefits for society and farsighted public policy. industries that are changing most thinking about neuroscience and to neuroscience. These examples demonstrate the health, longevity and GDPs are rapidly. be thinking about how this all fits transformative potential – in both tremendous. together.” The potential for transformation is positive and potentially destabilizing Some of the most profound vast, for medical breakthroughs, directions – of linking science However, the gains from disruptions are occurring not New technologies to study the augmentation and more with established industries and technological innovation have been within particular industries but brain have improved scientists’ adaptive robots, among other institutions. Another challenge uneven. While high-skilled workers is how to reduce the barriers

“If an internet-connected device is controlling “We have the algorithms to save millions of lives, but my insulin level, I don’t want anyone to hack only if we dismantle data silos.” into that.”

Anne Bouverot, Director-General and Member of the Board, GSMA, United Kingdom Jeremy Howard, Chief Executive Officer, Enlitic, USA

16 Annual Meeting of the New Champions 2014 Creating Value through Innovation 17 Smart machines, at your service Funding models for science

Self-driving cars. GPS-enabled smartphones. While science produces knowledge on a global Health-tracking armbands. In the era of “ubiquitous scale, the funding models that support it are computing” when the demands for being online typically national. In the last few years, those are constant for many people, the future of smart funding models have changed profoundly in machines seems imminent. Devices are more some of the countries best known for scientific powerful and more integrated with our daily lives production. The United States, which heavily than ever before. And the market potential for subsidized science research for the last 50 years, these devices is vast. According to the International has recently cut government spending on research. Federation of Robotics (IFR), service robots alone Healthcare costs have continued to grow, but represented a $1.2 billion market in 2012, and instead of public-sector funds to meet these social the annual market for non-military robotics, some needs, philanthropies and the private sector have suggest, is expected to grow to approximately $120 become increasingly important financial backers of billion in the next two decades. scientific research.

The rise of “smart machines” often raises fears China offers another national model for private of a “robot revolution”. Are machines going to sector spending on science and technology. More take people’s jobs? Will society become so than 2% of its GDP goes to R&D spending, and dependent on technology that we will become nearly three-quarters of those funds come from the slaves to our devices? For those who fall on the private sector. connected side of the digital divide, smartphones and hyperconnectivity have eroded the boundaries These structural changes in funding have profound between work and private lives. For low-skill implications for the types of research that receive workers, automation could eliminate millions of support. Companies rarely invest in basic research: jobs. Further, the rise of smart machines does not such studies are typically high-risk and can take necessarily mean the creation of more high-tech decades to produce market-ready insights. Further, jobs. Instead, many indicators suggest that greater private companies typically fund medical research automation has shifted job growth to “high-touch” that can generate the greatest profits, which is not sectors, such as custodial work, healthcare and the same as research that can save the most lives food service. or deliver the greatest social benefits.

Determining the contours of a smart machine Greater collaboration between science and the future will require the participation of a wide range private sector can offer a number of advantages, of players. Public policy must be attuned to the such as improving data sharing. Despite strong tremendous demands for job creation and for rhetoric about open data and interdisciplinary transition programmes that equip workers with new approaches, many scientists continue to work skill sets. Scientists, doctors and business leaders in silos, overlook relevant breakthroughs in allied must collaborate to understand the opportunities for fields and express wariness about data sharing. By smart devices to improve health. contrast, the private sector often has fewer barriers to information sharing. Pre-market collaboration While the challenges are vast, many remain hopeful allows companies to pool information in the early that technology and smart devices can be part of stages, and companies frequently partner to grow a better future. “The arc of history is long and it markets in complementary areas. bends toward better lives,” said Erik Brynjolfsson, Director, MIT Initiative on the Digital Economy, Cross-fertilization between business and science Massachusetts Institute of Technology. could stimulate entrepreneurship, but society’s long- term well-being also depends on policy frameworks that will continue to support basic science and research that private-sector models overlook.

18 Annual Meeting of the New Champions 2014 Creating Value through Innovation 19 01

01: Thad Starner, 03: Andrea Armani, Professor of Professor, Viterbi School Computing, Director of Engineering, University of the Contextual of Southern California Computing Group, (USC), USA Georgia Institute of 04: Lama Hourani, Technology, USA Founder and Creative 02: Boqiang Lin, Director, Lama Hourani Director, China Center Creations, People’s for Energy Republic of China Economics Research (CCEER), Xiamen University, People’s Republic of China

01 02

02 03 04

01: The Future of the Internet Economy 02: Yao Ming, Professional Basketball Player (2002-2011), NBA Entertainment, People’s Republic of China 03: He Zhenhong, President, China Entrepreneur Magazine, 04 People’s Republic of China 04: René Redzepi, Founder and Chef, Noma, Denmark 05: Wang Yi FM of China; Philipp Rösler, Managing Director and Member of the Managing Board, World Economic Forum; Young Global Leader 07

20 Annual Meeting of the New Champions 2014 Creating Value through Innovation 21 01

01: Dana Leong, Composer and Musician, Tateo Sound, USA; Morten Overgaard, Professor, Institute of Clinical Medicine, University of Aarhus, Denmark; Young Scientist 02: From Confucius to 02 C-Pop 03: The New Climate Context 04: Erik Brynjolfsson, Director, MIT Initiative on the Digital Economy, Massachusetts Institute of Technology, USA

01: Vikram Chandra, Entrepreneurs Forum, Presenter and Editor, South Africa; Marc NDTV, India, BANCEL Freedman, Founder and Stéphane President Chief Executive Officer, and Founding Chief Encore, USA; Linda Executive Officer Moderna Yueh, Presenter, Talking Therapeutics France; Business with Linda GADJANSKI Ivana , Yueh and Chief Business Assistant Professor Correspondent, BBC Belgrade Metropolitan News, United Kingdom University Republic 02: April Rinne, Expert, of Serbia; BANCEL Sharing Economy, Stéphane, President Shareable Cities, USA and Founding Chief 03: Olivier M. Schwab, Executive Officer Executive Director, China, Moderna Therapeutics World Economic Forum France; Yobie Benjamin, Beijing Representative Co-Founder and Chief Office; Huang Xingguo, Operations Officer, Mayor of Tianjin, People’s Avegant Corporation, Republic of China; Qu USA; Peggy Liu, Xiaofei, Vice-Mayor of Chairperson, JUCCCE, Dalian, People’s Republic People’s Republic of of China China; Matsi Modise, Founder and Chief Executive Officer, South African Black 03

22 Annual Meeting of the New Champions 2014 Creating Value through Innovation 23 Sustainability & Society

need support to become more Rising inequality worldwide also Sustainability & Society productive, more entrepreneurial undermines growth and sows the and more sustainable – this is the seeds for crisis. It is a pervasive business case for food security. risk that must be managed. Governments need to create safety Nutrition is the cornerstone of nets and embark on ambitious Circular approach sustainability. A healthy planet reforms in pension, healthcare and can only be sustained by healthy education systems. populations. Today’s cheap food “Sustainability is mindset is driving unhealthy The obvious response to inequality an investment in to a better future production, fraud, disasters and is to create jobs. Unemployment scandals. Most of the populations rates are skyrocketing, particularly future economic in low- and middle-income among young people. Yet 36% of growth.” countries are not genetically employers worldwide report that

Yesterday’s model of linear economic growth – where prepared for the rapid switch to they cannot fill positions due to lack Helle Thorning-Schmidt, Westernization in their diets and of available talent. Prime Minister of Denmark resources are exploited, used and disposed – is broken and way of living, which is leading to an cannot support a world of 8 billion people. Can the circular epidemic of cancer. Globally, 15%- Some argue that the world has 20% of bowel cancers and 8% of recovered from the financial crisis. economy ensure more sustainable growth, job creation and a all cancers are caused by poor diet. Emerging markets, which account for 50% of global domestic greener planet? Innovation in this sector is product, have rebounded from a blossoming. Dickson Despommier, temporary capital flight last year Japan and Africa; and people-to- an academic at Columbia and are thriving. people and business-to-business In the face of mounting societal from resource consumption. The by pursuing innovations that University, has developed vertical relationships are thriving. and environmental pressures, circular economy proffers unlimited create value for their societies. farms to replace traditional However, looming geopolitical participants at the Annual Meeting potential for innovation, job creation The role of government then is to agriculture with a system that uses threats are casting a long shadow This year’s Meeting showcased of the New Champions rethought and economic development. drive transformation by providing 80% less land, 90% less water, with over the stability of many regions political leaders, individuals and economic growth by focusing on a framework, which includes no pesticides or transport costs. as trading partners and investment companies that are transforming sustainability as an investment in Social challenges abound: food economic incentives, standards destinations. science, technology, commerce, social development. security; disease; climate change; and regulatory instruments that Before farming can be civil society and other fields with inequality; unemployment, encourage innovation. revolutionized, the private sector Looking on the bright side, huge their innovations. Their commitment Today’s entrepreneurs are particularly among young people, should focus on developing supply opportunities are presented by to make a difference is benefiting pioneering new technologies driven by a widening skills In a world where one-third of all chains to bring food from areas different blocs coming together in their communities and society. geared towards creating a better gap; and growing geopolitical, food produced is wasted each of surplus to areas of deficit. emerging markets: China is trading planet through the cradle-to-cradle economic and political risks. These year field-to-fork, food security is Governments must address the with Russia; European small and business model. This is the circular challenges can largely be met fragile; one person in six is deprived trade barriers, tariffs, non-tariff medium-sized enterprises are growth model, which eschews by market-driven solutions. And of adequate nutrition. Global food measures and standards that doing business in Asia to profit the take-make-dispose view and business is taking the lead, often production must be made more impede feeding the world’s hungry from the rising middle class; decouples economic growth working within a policy vacuum, efficient and sustainable. Farmers billions. Chinese companies are working in

“So long as we sail for innovation, “Mother Earth is not helped by targets and the giant ship of the world economy good intentions, but real innovations to will navigate to great prosperity.” change things.”

Huang Xingguo, Mayor of Tianjin, People’s Republic of China Feike Sijbesma, Chief Executive Officer and Chairman of the Managing Board, Royal DSM, Netherlands

24 Annual Meeting of the New Champions 2014 Creating Value through Innovation 25 A world of good, by design

Imagine living in world where we can turn what’s next into what’s now. Imagine a world where we can design materials that go back to nature safely. William McDonough, Consulting Professor of Civil and Environmental Engineering, Stanford University, USA, believes in creating a world of good by design. We should not only protect the planet from ourselves but also we should redesign human activity to improve the planet.

Instead of looking at carbon as the driver of destructive climate change, why not look at it as a source of life? “Carbon should become an asset rather than a liability. But it has become a toxin. We did that. We need to upscale to ensure things get better every day, not just less bad,” McDonough told participants.

Innovative scientist turned entrepreneur Mark Herrema, Co-Founder and Chief Executive Officer, Newlight Technologies, USA, is heeding the call. His company turns carbon emissions from farms and facilities into polymers used to create plastic products, including chairs, bags and cell phone cases. It took 10 years of intensive research before this technology pioneer achieved the breakthrough to turn carbon into plastic.

Herrema doubts that upcoming climate negotiations will result in a global agreement on emissions reductions. Instead, market-driven solutions to climate change will be led by consumers and businesses.

“If our governments cannot do it for us, consumers can take on this problem. Industry is taking climate change into its own hands and sequestering carbon,” he said. “It is possible to reverse the ‘take- make-waste’ cycle.”

26 Annual Meeting of the New Champions 2014 Creating Value through Innovation 27 01 02 01 02

01: Participants in 04: New Frontiers of 03 04 IdeasLab with the Entrepreneurship University of Oxford 05: Participants in 01: Chen Zhangliang, Quitevis, Musician, USA 02: Teymoor Nabili, Discover! Quantum Vice-President, China in Special Performance: Executive Editor and Technology Association for Science Pushing the Limits Presenter, Channel News and Technology, People’s 05: Ocean Experience Asia, Singapore Republic of China 03: José Manuel Salazar 02: David Christian, Xirinachs, Assistant Professor of History, Director-General for Macquarie University, Policy, International Australia Labour Organization (ILO), 03: Daan Roosegaarde, Geneva Artist, Netherlands 04: Dana Leong, Composer and Musician, Tateo Sound, USA; Richard (DJ Qbert) 04

28 Annual Meeting of the New Champions 2014 Creating Value through Innovation 29 06 02

01: Participants in Chief Executive Officer, Rebooting Chinese RUSAL, Russian Finance Federation; Cheung 02: Mande Holford, Yan, Chairwoman, Nine Assistant Professor, Dragons Paper Industries, Chemical Biology, Hunter People’s Republic of College, City University of China; Lord Turner, Senior New York (CUNY), USA Fellow, The Institute for 03: Pardis Sabeti, New Economic Thinking Associate Professor, (INET), United Kingdom; Harvard FAS Center Ma Jun, Chief Economist, for Systems Biology, Research Bureau, USA; David B. Agus, People’s Bank of China, Professor of Medicine and People’s Republic of Engineering, USC Center China for Applied Molecular Medicine, USA 04: Jamil Anderlini, Beijing Bureau Chief, Financial Times, People’s Republic of China; Zhang 01 Xiaoqiang, Executive Vice- Chairman, China Center for International Economic Exchanges (CCIEE), 03 People’s Republic of China; Oleg V. Deripaska,

01: Global Science Outlook 02: Aparna Rao, Artist, Pors & Rao, India 03: Ancient Remedies for Modern Ailments

30 Annual Meeting of the New Champions 2014 Creating Value through Innovation 31 Creativity & Culture

“Artists and scientists tend charged musical performance that represent a new generation of Creativity & Culture to approach problems with a celebrated the week’s imagination, cultural figures in China who are similar open-mindedness and diversity and innovation. using their celebrity status to inquisitiveness. They do not fear promote important social and the unknown, preferring leaps to Participants also had a chance to environmental issues and engage incremental steps. They make engage with the work of the artistic with a wider audience. “Becoming What happens when natural partners,” said John Maeda, duo Pors & Rao. Aparna Rao a celebrity is not something I really a designer and Member of the presented Untitled, a composition wanted, but I believe now that to World Economic Forum’s Global of three camouflaged panels have public attention and influence Agenda Council on New Growth mounted on a wall. Pors & Rao’s is a great honour, and with that art meets science? Models. work is focused on interactive comes huge responsibility,” exhibits that draw the viewer in. It is said Yao Chen, who has 73 In the session, How to Build a meditation on finding one’s place million followers on the Chinese Resilience, artist and filmmaker in a world constantly in motion. microblogging site Weibo and is Artists, musicians and scientists explore together the Lynette Wallworth and environment a Goodwill Ambassador for the scientist Peter Edwards came The intersection between culture United Nations High Commission fundamental life skills needed to fuel innovation. Their new and together to explore survival, and creativity extends well for Refugees. exciting perspectives on global issues rekindle the power of resilience and adaptation. “If we beyond the artistic and scientific don’t care about something, we communities. From the world of This year’s cultural programme was imagination and inspire people to fulfil their potential don’t feel the need to act, but art sports, the Chinese basketball designed to interact with cultural can make us care,” said Wallworth, legend Yao Ming offered a leaders and enhance creative the artist and filmmaker who unique take on how innovation thinking through experiential brought Coral: Rekindling Venus to in his field could contribute to learning. New formats included: the Meeting. the maintenance of a strong The Challenge, an informal space From the very first day of the endangered coral reefs. The long but it also supports the activities and resilient society. “In physical where participants exchanged Meeting, participants were queues and extras screenings of the whole of society,” said Li Another connection made was education, there is often much ideas on some of today’s biggest queueing up to view Coral: attested to its resounding success. Da, Managing Director of the between the chef René Redzepi focus on competition, but I would challenges; Thinking Ahead, Rekindling Venus, a dazzling film on Beijing Poly International Auction and computational neuroscientist also like more focus on the where New Champions revealed coral reef and marine conservation. From visual arts and music Company, in the session, From Panayiota Poirazi in How to connection between sports and unconventional ideas and bold It was a rare opportunity to embark to literature and dramatic Confucius to C-Pop. Embrace Experimentation, which education,” Yao said. “Training initiatives; and Discover!, featuring on a journey deep into the ocean performance, the arts exert a explored the act of doing and of and physical exercise makes live demonstrations by top creators to discover the fascinating yet powerful influence on societal When you pair an artist with a making do with what is at hand you healthy but also teaches the of disruptive technologies. fragile ecosystem of corals and development. Artists often scientist you can further explore the to create something new. And importance of transparency and sea creatures through a captivating challenge commonly held human condition and spark new neuroscientist Morten Overgaard rules – that you cannot be a player Albert Einstein, whose words were video installation where art, perspectives with out-of-the-box insights. This was reflected in the and musician Dana Leong worked and a referee, and that you must projected on the wall of one of the technology, music and science thinking. They raise awareness new “Creative Spark” series. Each together to focus on the mechanics respect your competitor. This is Discover! Sessions, aptly sums up converge. about social issues, break day during the Meeting an artist of developing confidence. “I like the important in a mature society.” the Meeting’s Creativity & Culture down barriers to cross-cultural and a scientist paired up to explore idea that we are all coming together track: “I am enough of an artist to This augmented-reality, full- understanding and global dialogue, the human condition and the life as a community in supporting China’s evolving film industry was draw freely upon my imagination. dome planetarium presentation and inspire creative thinking. skills needed to fuel innovation. conversations in such an open way. also feted at the Meeting in two Imagination is more important than was designed to nurture an This is the future,” said Leong, who packed sessions with two of the knowledge. Knowledge is limited. emotional connection between a “Art, to me, is part of the human Why pair artists with scientists for together with DJ Qbert, “pushed country’s most popular actresses Imagination encircles the world.” global audience and the planet’s body. It’s a nerve. It’s invisible, an event focused on innovation? the limits” in an emotionally – Yao Chen and Zhou Xun. Both

“Acting is only one part of my “The number of my followers is not life. I am also an advocate for significant. What is significant is environmental issues.” mobilizing people to help disaster-

Zhou Xun, stricken areas.” Actress, ZhouXun Studio, People’s Republic of China; Young Global Leader Yao Chen, Actress, HuaYi Brothers Media Co., People’s Republic of China

32 Annual Meeting of the New Champions 2014 Creating Value through Innovation 33 Deep dive under the sea

Coral reefs are one of the most biologically diverse ecosystems on the planet, providing habitat for many marine species. Without urgent action to address climate change, pollution, overfishing and other threats, these beautiful life-sustaining organisms could disappear. In the next 25 years, scientists predict that up to 50% of the world’s coral reefs could be lost.

Participants were invited to Coral: Rekindling Venus, a multi-media film experience in a planetarium designed to immerse viewers in the fascinating and fragile world of corals and marine life. This underwater journey into a vibrant, productive, fluorescent world is a meditation on a complex, sophisticated community that will disappear if predicted global temperature increases come to pass. The film experience gives voice and image to a community desperately reliant on human intervention if it is to survive, and is meant to be a call for everyone to work together to rescue the world’s reefs.

Over 20 screenings took place during the three-day Meeting, with business executives and government officials queueing up to watch the film. The project aimed to create for participants a renewed sense of connection with the natural environment in the hope of inspiring leaders to take the necessary actions to protect the planet from further degradation.

Coral: Rekindling Venus was created by the Australian artist Lynette Wallworth and features original deep-sea photography from Emmy award- winning cinematographer David Hannan, and music by Antony and the Johnsons, renowned Australian Indigenous artist Gurumul and German composer Max Richter.

The World Economic Forum, through a number of environmental initiatives and its Global Agenda Council on Climate Change, is developing innovative ways to get more people involved in climate change mitigation to ensure that everyone plays their part in reducing greenhouse gas emissions. Unless more is done, extreme weather and climate events are likely to be stronger and more frequent, sea levels will change as a result of warming and the melting of glaciers and ocean acidification will continue, affecting the future of the planet’s coral reefs.

34 Annual Meeting of the New Champions 2014 Creating Value through Innovation 35 01 03

02 01

01: The Beam at the 03 World Economic Forum Annual Meeting New Champions 02: Ali Asghar Tofigh, Deputy Minister of 01: Participants in The Lynette Wallworth, Artist, Training, Research and Challenge: Embracing Australia Technology, Ministry of Migration 03: The Future of the Industry, Mines and Trade 02: Daniel Isenberg, Internet Economy of Iran Professor of 04: Yoichi Funabashi, 03: Klaus Schwab, Entrepreneurship Chairman, Rebuild Japan Founder and Executive Practice, Babson Initiative Foundation, Chairman, World Executive Education, Japan Economic Forum and Babson College, USA; 05: Participants in The David Aikman, Managing 02 Peter Edwards, Director, Challenge: Supporting Director, Head of New Singapore-ETH Centre, Ageing Champions, World Future Cities Laboratory, Economic Forum ETH Zurich, Switzerland; 05 06 04: Luis Alberto Moreno, President, Inter-American Development Bank, Washington DC; World 05 Economic Forum Foundation Board Member 05: Christoph Nettesheim, Senior Partner and Managing Director, The Boston Consulting Group (BCG), Singapore 06: Liu Jiren, Chairman and Chief Executive Officer, Neusoft Corporation, People’s 04 Republic of China 07: Carol Liao, Senior Partner and Managing 05 Director, Boston Consulting Group, Hong Kong SAR

36 Annual Meeting of the New Champions 2014 Creating Value through Innovation 37 01 01 02

02 04 03

01: Creative Disruption at the World Economic Forum 02: Jean-Pierre Bourguignon, President, European Research Council, Belgium; Mentor of the Annual Meeting of the New Champions 2014 03: The panellists in Discover! Robot Revolution 04: Strategic Shifts in Information Technology 04 02

05 04

01: Ashraf Salman, University, People’s Minister of Investment of Republic of China; 06 Egypt Andrew Wales, Senior 02: The Challenge Vice-President, 03: Arts in Tianjin Sustainable Development, 04: The Challenge: SABMiller, United Reinventing Media Kingdom; Feike Sijbesma, 05: V. S. Parthasarathy, Chief Executive Officer Chief Financial Officer, and Chairman of the Group Chief Information Managing Board, Royal Officer, and Executive DSM, Netherlands Vice-President, Group M&A; Member of the Group 06: Subra Suresh, President, Carnegie 02 Mellon University, USA; Mentor of the Annual Meeting of the New Champions 2014 07: Anand P. Raman, Editor-at-Large, Harvard Business Review Group, USA; Kasim Reed, Mayor of Atlanta, USA; Zhu Dajian, Professor and Director, Institute of Governance for Sustainability, Tongji 07

38 Annual Meeting of the New Champions 2014 Creating Value through Innovation 39 China & Emerging Markets China & Emerging Markets the enormous economic power Enabling policies are needed not that China could generate if its only in spheres such as education 900 million workers all embraced that have an obvious connection entrepreneurship. to promoting innovation. They are also required across a host of That future is happening already. supporting areas such as finance The China model for Twenty years ago, China, Japan (to ease access to capital by small and Korea accounted for just and medium-sized enterprises, over 7% of the patents filed or SMEs), infrastructure (to help worldwide; today, their share is businesses communicate with “Pricing risks driving innovation 39%. The government, Li said, the rest of the world and plug into in China is had to “remove all institutional regional and global supply chains), difficult. We obstacles to development so that healthcare and social benefits have to have everyone interested in starting a (to provide safety nets that give business is given more space for budding entrepreneurs the courage the right risk- There have been enormous strategic shifts and transformations entrepreneurship and the blood of to take risks), the rule of law, foreign and-return in China and the world’s fastest-growing economies. How can innovation could flow unhampered direct investment, energy, food, framework.” in a society where everyone is full of cybersecurity and even climate they improve their performance on the global stage, as well as the spirit of self-development”. change. Nicolas Aguzin, Chairman and Chief Executive harness their young talent and foster entrepreneurship to drive Officer, Asia-Pacific, JPMorgan The proper role of government in These policies should be Chase, Hong Kong SAR further dynamic economic growth? an innovation-driven economy is as framed for the future and not an enabler. “Rather than support just adapted from old rules and from the government, what we regulations that may have worked really need is an environment of for developed economies in the learn from the experience and The Annual Meeting of the New research and development hubs as of the ‘golden key’ of innovation free competition,” Dong Mingzhu, past. Intellectual property rights then rebound. “Sometimes the Champions 2014 took place on well as sources of vital components and promote institutional as well Chairperson and President, Gree protection, for example, should fear of failure prevents them from the eve of the much-anticipated for innovation including financing as innovation in science and Electric Appliances of Zhuhai, be appropriate for the digital age, taking risks,” Weinberger said. This initial public offering of Chinese and talent pools. This is a model technology. By so doing, we will People’s Republic of China; Mentor while reskilling initiatives should means introducing “hard budget ecommerce giant Alibaba on the for emerging economies that are be able to maintain a medium- of the Annual Meeting of the New take into consideration the needs systems” in the real economy and New York Stock Exchange. The aiming to find their niche in the high growth rate, move towards Champions 2014, said in a session of those displaced by the robotics banking so that defaults, failures listing is a milestone in China’s global economy. medium-high level of development, on China’s evolving business revolution. and bankruptcies are properly emergence as a driver of innovation create more value and upgrade the context. managed. and enterprise, as well as a signal In his opening speech, Premier Chinese economy.” The government shapes the event in the deepening integration Li Keqiang of China stressed the While China’s state-owned ecosystem needed to cultivate “A market system has to be of China with the US and the global importance of promoting innovation China’s reform process over the enterprises (SOEs) remain the entrepreneurship, said Mark disciplined by the possibility of economy. to drive new growth in his country past three decades has itself been dominant players in the economy, Weinberger, Global Chairman and failure,” said Lord Turner, Senior and accelerate its shift to a more a huge innovation drive, Li noted. they can still be nimble and Chief Executive Officer, EY, USA. Fellow, The Institute for New China is not only developing its balanced and sustainable economic The task now is to turn what innovative, if left alone to compete “You can’t train entrepreneurs; they Economic Thinking (INET), United domestic innovation systems model. “Innovation is essential to was once a lumbering command in the global market and recruit are born,” he argued. “But you Kingdom, in a session on reforming but also plugging into the global upgrading the Chinese economy economy into a dynamic society and nurture the best young talents, can help them to succeed.” And China’s financial sector. network. This includes universities, and improving its performance,” of innovators and entrepreneurs. Dong advised. help them to fail without shame, science and technology labs and Li said. “We will make good use He asked participants to imagine

“The opportunities offered by private “We need to give opportunities to young people. We companies are the new vitality of the need to give that segment of society better access Chinese economy and represent the future to the financial system so that they have the same competitiveness of China.” chances as the SOEs.”

Fu Chengyu, Chairman, China Petroleum & Chemical Corporation (Sinopec Group), Klaus Kleinfeld, People’s Republic of China Chairman and Chief Executive Officer, Alcoa, USA; World Economic Forum Foundation Board Member

40 Annual Meeting of the New Champions 2014 Creating Value through Innovation 41 The ‘opportunity cost’ of rivalry 01

With conflicts across the world in the spotlight, there are the obvious costs to consider – casualties, lost livelihoods, the consequences of interrupted schooling and the physical damage. There are also “opportunity costs” to increased friction between countries, Katinka Barysch, Director, Political Relations, Allianz SE, Germany, cautioned in a session on geosecurity.

“If you have tense relations among large powers, we will have less opportunity to cooperate on initiatives to maintain globalization and the benefits of globalization.” For example, effective collaboration to address climate change may be rendered impossible to achieve, she noted.

02 03 Countries – even those with long-held disputes between them – should keep economics and trade separate from geopolitical concerns or arguments, Pan Wei, Professor at the Center for Chinese and Global Affairs in the School of International Studies of Peking University, said. “I hope the world will abide by this new value.” However, this may not be possible in a world of intense rivalries, Barysch reckoned. “Interconnectedness may be used by countries to hurt each other. We not only shoot at each other but there are cyberattacks, energy cut-offs, the stopping of financial flows. As tensions escalate, countries will use those interconnections as weapons.”

Behind the scenes, however, businesses are working together in ways that political leaders cannot, demonstrating how pragmatism should trump geopolitics. Despite the bitter territorial dispute 01: Arts in Tianjin between Japan and China, Japan is the biggest 02: Xue Cheng, Spiritual 04 investor in China, while Chinese companies are Leader, Longquan Temple, People’s Republic increasing investments in Japan. Japanese and of China 03: Professor Klaus Chinese companies collaborate in many parts of Schwab, Founder and the world. Executive Chairman of the World Economic Forum with Global Shapers Victor L. L. Chu, Chairman and Chief Executive Officer, 04: Geosecurity Review First Eastern Investment Group, Hong Kong SAR; World Economic Forum Foundation Board Member, said: “For business, it is much easier to build effective and profitable win-win alliances.”

42 Annual Meeting of the New Champions 2014 Creating Value through Innovation 43 01

02 05

01: Victor L. L. Chu, DC; World Economic Chairman and Chief Forum Foundation Board Executive Officer, First Member at the World Eastern Investment Economic Forum Group, Hong Kong 02: The Challenge: Re- SAR; World Economic Engineering the Human Forum Foundation Body Board Member; Arkady 03: The New Champions Dvorkovich, Deputy Prime 04: Participants in an Minister of the Russian Introduction to Tai Chi Federation; Bernard 05: Robert Xiao Hong, Lo, Anchor, CNBC Chief Executive Officer, Asia, Hong Kong SAR; Perfect World Co., Ashraf Salman, Minister People’s Republic of of Investment of Egypt; China Kenneth Rogoff, Thomas 02 D. Cabot Professor of Public Policy and Professor of Economics, Harvard University, USA; Min Zhu, Deputy Managing Director, International Monetary Fund (IMF), Washington

03 03

01: Participants in Technology for Prosperity at the World Economic Forum 02: Tian Wei, Moderator and Host, CCTV News, China Central Television, People’s Republic of China 03: Hilde Schwab, Chairperson and Co-Founder, Schwab Foundation for Social Entrepreneurship 04: Li Keqiang, Premier of the People’s Republic of China and Klaus Schwab, Founder and Executive Chairman, World Economic Forum

44 Annual Meeting of the New Champions 2014 Creating Value through Innovation 45 01 01 02

01: Asias Business Context 07: Mitchell Baker, 02: Bunty Bohra, Chief Executive Chairwoman, Executive Officer, Goldman Mozilla Foundation, 01 Sachs, India USA; Natarajan 03: Mina Guli, Chief Chandrasekaran, Chief Executive Officer, Thirst, Executive Officer and People’s Republic of China Managing Director, Tata 04: Sathasivam Consultancy Services, 03 04 Subramaniam, Minister of India; Mentor of the Health of Malaysia Annual Meeting of the 05: Victor L. L. Chu, New Champions 2014 Chairman and Chief Executive Officer, First 02 03 Eastern Investment Group, Hong Kong SAR; World Economic Forum Foundation Board Member at the World Economic Forum 06: René Redzepi, Founder and Chef, Noma, Denmark; Panayiota Poirazi, Research Director, Institute of Molecular Biology and Biotechnology, FORTH, Greece; Daniel Isenberg, Professor of Entrepreneurship Practice, Babson Executive Education, Babson College, USA

01: Kaushik Basu, Chief Institute for Global Health, Economist and Senior People’s Republic of Vice-President, The World China Bank, Washington DC 06: Creative Disruption 05 06 02: The Art of Change: Susan Fisher Sterling, Director, National Museum 07 of Women in the Arts, USA 03: Min Zhu, Deputy Managing Director, International Monetary Fund (IMF), Washington DC 04: Henry Chesbrough, Faculty Director, Garwood Center for Corporate Innovation, Haas School of Business, University of California, Berkeley, USA 05: Jason Li Yat-Sen, Director, The George

46 Annual Meeting of the New Champions 2014 Creating Value through Innovation 47 Acknowledgements Further Information Contributors

The World Economic Forum wishes to LIXIL Group ARIA International recognize the support of the following LUKOIL Asia Pacific Land Ltd companies as Partners and Supporters of ManpowerGroup averda the Annual Meeting of the New Champions Marsh & McLennan Companies (MMC) AVG Technologies, NV 2014. McKinsey & Company Berenberg Microsoft Corporation BoodaiCorp Company WLL Mitsubishi Corporation Desso The report was written by Cesar Strategic Partners Morgan Stanley DigitalGlobe Bacani, Mary Bridges, Dianna Rienstra, ABB National Bank of Kuwait frog Alejandro Reyes, Mark Schulman The Abraaj Group Nestlé SA GEMS Education Accenture Novartis GLOBIS Adecco Group NYSE Great Eastern Energy Corporation Editing and Design Production Aetna The Olayan Group Grupo Lauman Ann Brady, Associate Director, Editing Agility Old Mutual Habboush Group Alcoa Omnicom Group Home Instead Senior Care Janet Hill, Senior Editing Manager ArcelorMittal PepsiCo IDEO LLC David Bustamante, Senior Manager, AUDI AG Petrobras illycaffè Production and Design Bahrain Economic Development Board Prudential Indika Energy Bain & Company Publicis Groupe Interprotección Kamal Kimaoui, Director, Head of Bank of America PwC Jawbone Production and Design Barclays Qualcomm The Kuwaiti Danish Dairy Company KCSC Basic Element Reliance Industries LCY Chemical Corp. BlackRock Renault-Nissan Alliance LRN Bombardier Royal Philips Monitise Photographers The Boston Consulting Group SABMiller Overseas Infrastructure Alliance Benedikt Von Loebell BP Plc Saudi Aramco OVG Real Estate Bridgewater Associates Saudi Basic Industries Corporation (SABIC) Palantir Technologies BT Sberbank QI Group of Companies Burda Media Siemens R-Pharm The World Economic Forum thanks CA Technologies SK Group The Sekunjalo Group The Value Web for the graphic Chevron SOCAR (State Oil Company of the Sinosafe General Insurance Cisco Azerbaijan Republic) SouthWest Energy facilitation at the Annual Meeting of the Citi Standard Chartered Bank SREI Infrastructure Finance Limited New Champions. Clayton, Dubilier & Rice, LLC Swiss International Air Lines WISeKey Clifford Chance Swiss Re Yida Group Co. The Coca-Cola Company System Capital Management Credit Suisse Takeda Pharmaceutical Dalian Wanda Group Tata Consultancy Services Global Growth Company Shapers Dangote Group Tech Mahindra ARM Ltd The event page of the Annual Meeting of the New Champions 2014 provides Deloitte Thomson Reuters Bioenco Bioenergy Corporation access to a richer level of content from the Meeting, including videos, Deutsche Bank Toshiba Corporation comScore Inc. Deutsche Post DHL Total Kaspersky Lab photographs, session summaries and webcasts of selected sessions. Doğuş Group UBS Lynas Corporation http://wef.ch/amnc14 The Dow Chemical Company Unilever NQ Mobile Inc. DuPont USM Holdings Serum Institute of India Eskom Holdings SOC Limited VimpelCom Trina Solar EY Visa Inc. TrueCar Fluor Corporation Volkswagen AG Workday Inc. GE VTB Bank Zhangzidao Group Goldman Sachs Wipro Google Inc. WPP Report Hanwha Group Yahoo Service Providers Annual Meeting of the HCL Technologies Ltd Zurich Insurance Group Ogilvy Public Relations Worldwide New Champions 2014 Heidrick & Struggles TCL Corporation Creating Value through Henkel Innovation

Hitachi Strategic Foundation Partners The official host broadcaster for the Annual Tianjin, People’s Republic of China 10-12 September HSBC Bill & Melinda Gates Foundation Meeting of the New Champions 2014 is Huawei Technologies The Rockefeller Foundation Tianjin TV Eurovision. IHS Infosys Strategic Technology Partner Itaú Unibanco salesforce.com Jones Lang LaSalle JPMorgan Chase & Co. Global Growth Company Partners KPMG International Access Bank Plc Kudelski Group Activate Inc. Lazard Advantage Partners LLP Lenovo Amira Pure Foods Ltd This report is also available to download in PDF or HTML format: http://wef.ch/amnc14report

48 Annual Meeting of the New Champions 2014 Creating Value through Innovation 49 Upcoming Meetings

Special Meeting on Unlocking Resources for Regional Development Istanbul, Turkey 28-29 September 2014

Following Turkey’s first direct presidential elections in August, Turkey will assume presidency of the G20 in December, creating new opportunities for shaping both the domestic and international agendas. The World Economic Forum Special Meeting is an opportunity for senior global and regional stakeholders to better understand, adapt to and shape these national and regional transformations by engaging with key economic decision-makers and other leaders from business, government and civil society.

For more information, email: [email protected]

India Economic Summit New Delhi, India 4-6 November 2014

Marking the 30th year of the World Economic Forum’s active engagement in India, the meeting will offer participants an opportunity to engage with the new government to discuss key issues that challenge inclusive growth, and provide a platform that brings together international and national leaders who are invested in building a sustainable roadmap for India’s future.

For more information, email: [email protected]

Summit on the Global Agenda 2014 Dubai, United Arab Emirates 9-11 November

The Summit will bring together over 900 members of the Forum’s Network of Global Agenda Councils in Dubai to explore the latest developments in business, society and technology, to provide a better understanding of the fundamental transformations impacting our world, and to collaborate in interactive workshops to provide innovative recommendations on some of the most pressing global challenges.

For more information, email: [email protected]

World Economic Forum Annual Meeting 2015 Davos-Klosters, Switzerland 21-24 January

We live in a fast-paced and interconnected world, where breakthrough technologies, demographic shifts and political transformations have far-reaching societal and economic consequences. More than ever, leaders need to share insights and innovations on how best to navigate the future. The Annual Meeting remains the foremost creative force for engaging the world’s top leaders in collaborative activities, which are focused on shaping the global, regional and industry agendas.

For more information, email: [email protected]

50 Annual Meeting of the New Champions 2014 Creating Value through Innovation 51 The World Economic Forum is an international institution committed to improving the state of the world through public-private cooperation in the spirit of global citizenship. It engages with business, political, academic and other leaders of society to shape global, regional and industry agendas.

Incorporated as a not-for-profit foundation in 1971 and headquartered in Geneva, Switzerland, the Forum is independent, impartial and not tied to any interests. It cooperates closely with all leading international organizations.

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