Ideas, Intellectual Property and the Fourth Industrial Revolution
Yesterday over 1,000 delegates from the WIPOâs 192 member states met to consider a range of work on issues related to intellectual property, which is becoming the bedrock for economic policy in a globalized, technology-driven world.
This is so important for the Future of Work as your valuable ideas are at the forefront of the New ‘Gig’ or ‘Sharing Economy.
Your Ideas are the highest expression of your Identity.
From James Watts Steam Engine in 1764, to Eddisons and Tesla’s contribution to the invention of mass consumption electricity generation in the 1870s through to Steve Jobs Apples in the 1970s – 2000s these individuals created Intellectual Property which shaped the 1st, 2nd and 3rd Industrial Revolution. These three individuals shaped the economies that we use to know.
Whether you like it or not we are at least 25 years into the Fourth Industrial Revolution.
History Repeats. The future resources of tomorrow’s economy are Ideas.
The Assemblies of the Member States of WIPO: Fifty-Ninth Series of Meetings was held September 30 through October 9 at WIPO headquarters in Geneva. The WIPO published a report yesterday of the importance of Intellectual Property being a cornerstone of this new ‘Gig’ economy: https://www.wipo.int/edocs/pubdocs/en/wipo_pub_1050_2019.pdf
Where have we been?
Ask the average accountant and they will tell you that the balance sheet of any business is made up of ‘Plant and Equipment’ (an asset class distinctive of the 2nd and 3rd Industrial Revolution) which typically made up eighty percent (80%) of ‘tangible assets’ of business.
Typically tangible assets such as assembly lines, property, products, stock, inventory. Henry Ford’s Motor Company typified this as did his factories which produced nearly 15 million cars at the turn of last century.
‘Goodwill’ was and still is typically valued as Brand value.
This makes up twenty (20%) of a Business, typically reserved to ‘Intangible’ assets otherwise known as ‘Goodwill’ otherwise known as Intellectual Property.
Examining the world-leading data supplied in 2000 by Interbrand demonstrates how brands of the 19th century were predominantly ‘tangible’ in value such as Henry Fords ‘Ford Company’ (founded in 1905) Eddisons ‘General Electric’ founder, BMW, Mercedes, Coca Cola and Macdonalds to name a few.
Examing the latest data 20 years later the worlds leading Brand are technology focussed including Apple, Google, Amazon Facebook, Cisco, Oracle, SAP and Ebay and Netflix all in the top 20.
Where are we Going?
Uber in just 10 years is one of the world’s largest transport companies but does not own a vehicle fleet (founded in March 2009). Air BnB in just 11 years is one of the world’s largest accommodation providers but does not own a single Hotel (founded in August 2008).
Facebook in just 15 years is the world’s largest media company but does not own one television, radio, print or subscription television services. It also has the power to influence elections and major world events such as the outcome of elections.
Google holds the greatest proportion of the world’s Data and is 21 today. It probably holds the greatest value of Intellectual Property in the world. Most of these businesses typical of the ‘Gig Economy’ value is held in the Data that they hold, which is an asset class known as ‘Intellectual Property’.
And it is worth big business. The maturation of these companies will continue to change the world as we know it in the next 10 years.
Intangible Assets as a cornerstone of economic growth
The tables have turned and the intangible assets of a business its data, information, brand value, software, trademarks, copyright, patents and designs make up 80% of the value of the world-leading brands including Google, Mircrosoft and IBM.
The World Economic Forums focus on Intellectual Property is looking forward to our economic future. Brands of Tomorrow did not exist 10 years ago. Google, Facebook, and Amazon are all on the rise. They are the future powerhouses of tomorrow, like it or not.
Traditional businesses (those that produce products of the 2nd and 3rd Industrial Revolution) are falling rapidly and some of them are now ‘extinct’. Kodak and Nokia were in the top 20 twenty years ago.
Both failed to innovate and now their brands are only echoes of the financial powerhouses they once were.
Elon Musk Tesla and electric vehicles will cure the Automotive Industries addiction to resources on oil and will topple the traditional automotive industry in less than 10 years. This could be the death knell for some of the worlds leading car brands Ford, Mercedes and BMW.
Very much like Amazons destruction of Myer and Westfield Shopping centers, closer to home in Australia in less than 3 years. Traditional Retail is dying. We are now shopping online.
Adapt or Die
Greta Thornbergs Climate Change Speech at the UN “We are Failing” September 2019 https://www.straitstimes.com/world/united-states/greta-thunberg-is-right-world-leaders-say-we-are-failing
We need to champion new ideas.
In examining our collective nature Charles Darwin a leading scientific thinker of the 17th Century suggested that ‘it is not the strongest or smartest species that survives’ it is the ones most ‘adaptable to change’.
‘It is not the strongest or smartest that survice’ it is one most adaptable to change.
Charles Darwin
Our mindset is everything and in forging the furnaces of our collective future our Economic and Education System needs to ‘wake up’ to present-day realities.
Businesses that focus on ‘old’ resources such as mining (our 1st and second-largest export industry) may not survive the resource boom of the 21st Century. Their days are numbering. Climate change upheaval is moving towards a crescendo and the world may be running out of Time.
Our Ideas, otherwise known as Intellectual Property, can save our planet and have a remarkable impact on the bottom line of economics through intangible asset creation. Particular if we can nurture these ideas to great commercial AND social impact. The B-Corporation movement is just one example of this.
According to the Bureau of Statistics last year there were 3,893,834 students enrolled in 9,477 schools across Australia. At Vocational and Higher Education 500,000 are enrolled in University Education and Vocationally an enormous number of 4.2 million students were enrolled in VET.
Additionally, Australia has approximately 800,000 International Students from various countries around the world.
‘9.1 Million People young Australians are Studying. That is One Third of our entire population’
(Source: Australian Department of Education )
This means in Australia alone we have 9.1 Million People Studying in our Education System. That is more than one-third of Australia’s entire population.
In order to prepare for the future of work, our Education system needs to provide outcomes for these students based on the needs of our present-day workforce. 9.1 Million peoples lives depend on it.
Education and the Future of Work
Our Education system is in the most direst need for change.
If Education is not preparing current generations for the future of work. What is its purpose?
Sir Ken Robinson highlights the antiquated nature of our Education System that was developed during the 1st and 2nd Industrial Revolution in his famous TEDx talks.
Unfortunately not much has changed to our Education since the mid 1800s, he says:
Employment Training
Training for work is often left to the employer who needs to ‘fill the gap’ between students high school, vocational or higher education training.
This is known as a Skills Gap which I have spoken about on numerous occasions this year in including for the Victorian Government’s Digital Innovation Festival in both Melbourne and Regional Victoria: www.garethspeaking.com
Three industries are in direst need of graduates are Digital Media, Cybersecurity and Information Technology. All are all desperate for graduates with ‘skills’.
We also need new Ideas. Ones that can provide an impact and solve problems. Big problems such as the environment and sustainable development.
Social Entrepreneurship is considered by Professor Klause Schwab President of the World Economic Forum as being a pathway to future prosperity for tomorrow in his book “The Fourth Industrial Revolution”:
In a world destined to change between 2020 – 2030 through the continual rise of digital technologies, a sharing economy that is already highly developed (Uber Eats anyone?) and through economic ‘disruption’ , we need to develop new Ideas.
Our Ideas are our most vital ‘asset class’.
Making the tangible out of the ‘intangible’ of Ideas is how Jobs (Apple), Gates (Microsoft), Page (Googe) and Besos (Amazon) turned the world upside down.
According to Peter Reich The Sharing or Gig Economy needs a new economic system and we need an education that fits this system as Identified in this excellent documentary:
Not everyone is a Gates, Jobs or Besos. However, at the very least our Education System can nurture students of today with the skills they need for tomorrow. Including allowing individuals to prosper with their Ideas instead of being trained to fulfill a ‘function’ on a production line that is rapidly eroding.
The Solution: A Future of Ideas
The World Economic Forum yesterday foreshadowed the Future Economic Benefit that lies in Intellectual Property.
The Director-General stated that:
âthe increased prominence of IP has brought with it new challenges for both IP and the Organization. One of those challenges, which affects all national and regional IP Offices, as well as WIPO, is the management of the growing demand for IP titles in a way that ensures the timely and high quality administration of IP applications.â
Mr. Gurry said new tools were needed to assist IP offices around the world to deal with the massive increase in the volume of IP applications, noting that the Organisations have been âat the forefront of the development and deployment of new artificial intelligence (AI) applications for this purpose.â
The value of these new Assets was also foreshadowed in 2017 with Frances Gurys report which suggests that now ‘intangible’ assets are worth at least twice as much as ‘tangible’ Assets;
Where are we Growing?
We all need to champion new ideas.
âThose who do not have power over the story that dominates their lives, power to retell it, to rethink it, deconstruct it, joke about it, and change it as times change, truly are powerless.â
Salman Rushdie
Never has there been the better potential for business leaders, entrepreneurs and current students to embrace their ideas that can create genuine value in the Future World of Business.
Some key solutions are highlighted here:
Education
- Building Bridges between Higher Education and Vocational pathways towards Future World of Work in Digital Industries (one of our fastest-growing economic sector) for 9.1 million students in Australia;
- Implementing ‘Design Thinking’ into curriculum and classrooms to prepare students for the Future World of Work to create and ‘Ideate’ Ideas for the world that they are inheriting.
- Implementing Intellectual Property knowledge into STEM, Scientific and Innovation training and Creative Industries training.
Business:
- Embrace the fundamentals Impact Economics as championed by B-Corporation and others which changes the pure commercial imperative of organistions. Ensuring that people benefit over the profit (Dale Patridge, People over Profit)
- Implementing Intellectual Property knowledge and encouraging ‘Intrapreneruship’ within organisations (Matt Church, Thought Leaders).
- Supporting Intellectual Property Knowledge and Training in the SME sector (80% of the economy) so Small Business Owners and Entrepreneurs can learn to leverage the value of their Ideas for greater Commercial success.
In less than three (3) months we enter a new decade, one which according to Moore’s Law will see the exponential shift of disruption rapidly take pace as we have already seen in transport (Uber), Hospitality (Airbnb) and Retail (Amazon).
Its time to adapt or die. There is much work to be done in creating new ideas and Intellectual Property that can sustain a world on profit and purpose. One that can truly lead to sustainable economic development.
And it all begins with You believing in the power of your New Ideas.
Dr Maurice Roussety is a Consulting Strategist for DST Advisory and Lecturer in Small Business, Franchising and Entrepreneurship at Griffith University in Queensland, Australia. He has worked with leading organisations such as Queensland Transport, IAG, Westpac, Australia Post, Coles Myer, Red Rooster, Commonwealth Bank, ACCC, and Optus. Maurice holds a PhD in Intellectual Property and Franchise Goodwill Valuation. He also holds a Masterâs degree in Leadership and in Business Administration. He is available for consulting and public speaking engagements and can be contacted further at maurice@dstadvisory.com or you can visit him at www.mauriceroussety.com.au
