Digital DNA : disruption and the challenges for global governance

Description

Innovation in information and production technologies is creating benefits and disruption, profoundly altering how firms and markets perform. Digital DNA provides an in depth examination of the opportunities and challenges in the fast-changing global economy and lays out strategies that countries and the international community should embrace to promote robust growth while addressing the risks of this digital upheaval. Wisely guiding the transformation in innovation is a major challenge for global prosperity that affects everyone. Peter Cowhey and Jonathan Aronson demonstrate how the digital revolution is transforming the business models of high tech industries but also of traditional agricultural, manufacturing, and service sector firms. The rapidity of change combines with the uncertainty of winners and losers to create political and economic tensions over how to adapt public policies to new technological and market surprises. The logic of the policy trade-offs confronting society, and the political economy of practical decision-making is explored through three developments: The rise of Cloud Computing and trans-border data flows; international collaboration to reduce cybersecurity risks; and the consequences of different national standards of digital privacy protection. The most appropriate global strategies will recognize that a significant diversity in individual national policies is inevitable. However, because digital technologies operate across national boundaries there is also a need for a common international baseline of policy fundamentals to facilitate "quasi-convergence" of these national policies. Cowhey and Aronson's examination of these dynamic developments lead to a measured proposal for authoritative "soft rules" that requires governments to create policies that achieve certain objectives, but leaves the specific design to national discretion. These rules should embrace mechanisms to work with expert multi-stakeholder organizations to facilitate the implementation of formal agreements, enhance their political legitimacy and technical expertise, and build flexible learning into the governance regime. The result will be greater convergence of national policies and the space for the new innovation system to flourish. Content: Cover Digital DNA Copyright Dedication Contents Prologue: Regional Innovation Clusters and Global Economic Governance Part I The Evolution of Innovation Systems and of Information and Production Disruption 1. National Innovation Systems 1.1. Defining Innovation and Innovation Systems 1.2. Changing National Innovation Systems: The American and Korean Experiences 1.2.1. The Vertically Integrated Firm Model: The First Wave of Innovation after 1945 1.2.2. The Rise of the Silicon Valley Model: The Second Wave 1.2.3. Benchmarking Korea's Second Wave 1.3. Trouble in Paradise? 2. Information and Production Disruptions: The Digital Platform Cluster System?2.1. Larger Economic Forces and Questions 2.2. The Information and Production Disruptions 2.2.1. The Information Disruption 2.2.2. The Production Disruption 2.3. The Dynamics of Digital Platform Clusters 2.4. Synergies in Disruption 2.4.1. Transformation of the Automotive Industry 2.4.2. The Energy Grid 2.5. Six Takeaways from the IPD 3. Two Cases and Policy Implications 3.1. Monsanto: Disruption of a Traditional Market and Governance Innovations 3.2. Qualcomm: Large Technology Firms and the Growth of New Clusters3.3. Issues for Governance 3.3.1. Promoting a Trusted Digital Environment 3.3.2. Global Economic Governance Practices: Challenges and a Trade Agenda 3.3.3. Providing Market Access while Promoting Good Conduct 3.4. Conclusion: A Design Philosophy of Global Economic Governance Part II Global Governance in a Technologically Volatile Environment 4. Designing International Governance for the IPD: The Negotiating Challenge 4.1. The Plan for Part II and III 4.2. The Negotiating Landscape 4.2.1. The Dispersion of Economic Power4.2.2. Turbulence and Market Leadership in the Global ICT Sector 4.2.3. Shifting Leadership Roles in the World Economy 4.2.4. The Rise of Civil Society 4.2.5. The Nature of the Governance Challenge 5. Strategy and International Governance Regimes 5.1. The Strategic Bargaining Problem 5.1.1. Governance When the Strategic Problem Is Coordination 5.1.2. Governance When Managing a Cooperation Problem 5.2. A Design Philosophy and the Creation of an International Governance Regime 5.2.1. Defining an International Governance Regime 5.2.2. Testing the Idea in a More Traditional Regime: The WTO5.2.3. The Role of MSOs in International Governance Regimes 5.2.4. A Concluding Synthesis Part III Creating a Trusted Digital Environment in an Era of Quasi-​Convergence 6. Global Policy for the Cloud 6.1. The Technology of the Cloud and Its Intersection with Digital Markets 6.1.1. Understanding the Cloud 6.1.2. The Cloud and Digitally Enabled Markets 6.2. Measuring the Economic Stakes 6.3. The Policy Importance of the Cloud 6.4. The Political Economy Informing the Cloud Debate