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a16z Podcast | Open vs. Closed, Alpha Cities, and the Industries of the Future
26 segments available
The principal political binary of the past century was the political 'left versus right'. But in the 21st century the binary has shifted -- the battleground now is 'open versus closed'. Those states and societies that embrace economic, political, and cultural openness will have a better shot at competing in the software and technology-driven future, argues Alec Ross, author of the new book The Industries of the Future. Ross, who worked on the first Obama presidential campaign and was the advisor on innovation to Hillary Clinton when she was Secretary of State, joins the a16z Podcast to discuss his views on the industries (and cities) of the future, how they are playing out across a 196-country chessboard, and what we all can do to prepare ourselves and our children for what is to come.
Segments Timeline
Introducing Alec Ross
In this segment, Michael Copeland introduces Alec Ross, author of 'Industries of the Future', highlighting his background as a senior advisor for innovation to Hillary Clinton and his role in President Obama's campaign. Ross shares a humorous anecdote about his extensive travel, setting the stage for a discussion on global innovation and technology.
"welcome to the a 16c podcast I'm Michael Copeland and today sonal and I are lucky to have Alec Ross with us on the podcast and Ross has a new book out industries of the future he was the senior adviso..."
The Global Chessboard of Innovation
Alec Ross discusses his unique perspective on global innovation, drawing from his experiences across 196 countries. He emphasizes the importance of understanding how different regions encounter technology, setting the foundation for his insights on the future of industries and cities.
"of this podcast that did not include responsibilities for home-brewed email servers yeah we're gonna talk about Hillary Clinton and politics later but Alec welcome to the podcast we're glad that you'r..."
Open vs. Closed Societies
Ross introduces the concept of the principal political binary of the 21st century: open versus closed societies. He argues that states and societies embracing openness in economic, political, and cultural systems will be more competitive in the future, contrasting this with those that are more closed.
"there my assistant did Mia really I did me a real disservice recently where she actually totaled up my travel over the last five or six years and apparently I have travelled the equivalent of 25 circu..."
Defining Openness and Closure
In this segment, Ross elaborates on the spectrum of openness and closure in societies, noting that no society is perfectly open or closed. He uses examples like North Korea and Iceland to illustrate the extremes, while discussing the implications for innovation and entrepreneurship.
"sweeping conclusion that's forward-looking and that is I think that the principal political binary of the 20th century was left versus right who's the political left versus the political right but in ..."
Cultural and Economic Implications
Ross highlights the cultural characteristics that foster innovation and entrepreneurship in open societies. He discusses the importance of inclusivity and the role of women in the economy, emphasizing how these factors contribute to a society's ability to thrive in future industries.
"this thinking about the industries of the future not necessarily looking back at the 20 years of digitization and the rise of the consumer internet but looking forward to the next 20 years trying to b..."
The Role of Government Policies
The conversation shifts to the impact of government policies on economic openness. Ross critiques both European and American policies, discussing how regulations can either facilitate or hinder innovation and entrepreneurship, particularly in the context of data privacy and surveillance.
"define it and what are the sort of spectrum that you're talking about that's a really important question and the key word that you brought out there is spectrum there is no perfectly open society in n..."
Surveillance and Openness in the U.S.
Ross addresses the rise of surveillance in the United States and its implications for openness. He argues that control measures can create barriers to communication and collaboration, highlighting the need for a balance between security and the free flow of information.
"the most open Passa the most open system possible to allow for capital formation entrepreneurship innovation and then you know basically and then cultural characteristics that lend themselves to imagi..."
Navigating Policy and Industry Futures
The discussion continues with a focus on how to balance regulation and policy with the needs of future industries. Ross reflects on his experiences and the importance of preparing low-income and working-class communities for the changes driven by technological advancements.
"they're also micro economic ways that open and close play out I mean you alluded to it a little bit when you talked about IP and and sort of sharing of ideas but even down to open source versus not ev..."
Lessons from Personal Experience
Ross shares personal anecdotes from his upbringing in West Virginia and his teaching experiences in Baltimore. He emphasizes the importance of understanding the forces shaping the future to empower individuals from disadvantaged backgrounds to navigate the evolving job landscape.
"the degree to which these economic systems are open or closed and the degree to which it's easy or difficult to be an entrepreneur and since you brought up the point that this doesn't sort of hit the ..."
Bridging Tech and Government
Alec Ross discusses the increasing collaboration between the private tech sector and government agencies, particularly in counterterrorism. He emphasizes the importance of a framework that allows for cooperation without compromising privacy, advocating for a balance between regulation and the needs of constituents, especially in the context of job creation.
"sector which is unlike here I there's been a real shift it seems in the past 10 years where a lot more private sector employees from the technology industry have been going to Washington it does seem ..."
Empowering Working-Class Communities
Ross shares his motivation for writing 'The Industries of the Future,' stemming from his experiences in low-income areas. He highlights the need for policies that support the working class and middle class, advocating for educational reforms that align with future job markets to ensure these communities are not left behind.
"collaboration between the technology community and the intelligence and law enforcement communities in ways that that fall short of say mandating backdoors in to encrypted technology oh yes I think we..."
Reforming Education for Future Jobs
In this segment, Ross argues for a shift in educational programs towards vocational training and community colleges. He stresses the importance of aligning these programs with the industries of the future, addressing skills gaps, and ensuring that educational institutions serve the needs of the working class effectively.
"of having grown up in a poor rural part of the United States West Virginia and having been a teacher in a poor urban part of the United States in in West Baltimore and in this case part of what I was ..."
Incentivizing Vocational Education
Ross proposes attaching conditionality to federal and state funding for vocational education to ensure it aligns with future job markets. He believes that changing the incentives is crucial for transforming educational outcomes and preparing students for the evolving economy.
"out well where I would start from where I would start from is looking at what the industries of the future are identifying where the skills gaps are where the jobs are but where we can't hire enough e..."
Identifying Future Industries
Discussing the industries of the future, Ross identifies key sectors such as robotics, cybersecurity, and genomics. He emphasizes the need for educational systems to adapt to these emerging fields, which are expected to drive significant economic growth and job creation.
"wealth creation I have actually heard that argument made even here where you know that among all the educational paradigms the one to think about shifting towards is more skill based apprenticeship ba..."
The Role of Nations in Future Industries
Ross reflects on the relationship between nations and industries of the future, suggesting that countries that embrace these industries will thrive. He discusses the geographical dynamics of future markets, emphasizing the importance of metropolitan regions in shaping economic outcomes.
"so that it pushes it pushes content it pushes training towards the industries of the future you know I take a view here that unless you change the incentives you won't change the behavior so just to b..."
Emerging Alpha Cities
In this segment, Ross highlights cities that are emerging as alpha cities in the global economy, such as Berlin and Tel Aviv. He discusses the unique ecosystems developing in these areas and the potential for them to become significant players in the future economy, while also acknowledging the challenges faced by other cities.
"good could you have called this book nations of the future instead of industries of the future I mean is it those nations who kind of grab on to the industries of the future that have a future and how..."
Regulatory Arbitrage and City Policies
Ross and the hosts explore the concept of regulatory arbitrage, where cities adjust their policies to attract businesses and foster innovation. They discuss the implications of this trend for urban development and the competitive landscape among global cities.
"National that's a very useful framework for thinking about it are their top tier cities that that you observed or that are sort of up and comers that we might not kind of recognize immediately like Ne..."
Regulatory Arbitrage and Innovation
The conversation shifts to the concept of regulatory arbitrage, where cities can adjust their policies to foster innovation. Ross explains how some cities are loosening regulations to attract tech hubs and create ecosystems for specific industries. This competitive dynamic can lead to significant advancements in technology and business development.
"direction yeah I would add Mexico City to that list but it's it's sort of hard to watch as they shoot themselves in the foot sometimes but actually given that like Michael the city's you guys just nam..."
Human Capital: The Key to Success
Ross discusses the critical role of human capital in creating successful innovation ecosystems. He contrasts the Industrial Age's reliance on a few elite businessmen with today's need for a diverse and skilled workforce. The segment emphasizes that without the right talent and entrepreneurial spirit, cities may struggle to realize their potential.
"to invest in builds and one area is is all for the good and I think that there's actually some fairly substantial precedent for this in different ways that we can see from throughout history from the ..."
The Evolution of Urban Economies
In this segment, Ross reflects on how urban economies have evolved from the Industrial Age to the present. He notes that modern cities benefit from network effects and a larger workforce, rather than relying on a small number of influential elites. This shift has implications for how cities can foster innovation and economic growth.
"human capital you know you don't actually have the people and the entrepreneurs who can execute against the vision now that is it that's a really tough way of putting it but it's the God's honest trut..."
The Code War: A New Frontier
Ross introduces the concept of the 'code war,' highlighting the significance of cybersecurity and the weaponization of code. He discusses the implications of cyberattacks and intellectual property theft, particularly from nation-states. This segment underscores the evolving nature of conflict in the digital age and its impact on global security.
"clustering and so you know I even think about a city like Chicago Chicago has so much going for it but you when you really scratch the surface a little bit at least for internet-based businesses there..."
Weaponization of Code: A Growing Threat
In this critical segment, Ross elaborates on the weaponization of code as a significant development in modern conflict. He compares it to the weaponization of nuclear materials, emphasizing the accessibility of creating powerful malware. The discussion highlights the economic and safety costs associated with cyber warfare and the challenges it poses to trust and security.
"this code war of which you write and how is that going to play out yes so the the industries of the future is a mostly is a fairly optimistic book it's not a utopian book it's not a bedwetting dystopi..."
The Asymmetric Nature of Cyber Warfare
Ross discusses the asymmetric nature of cyber warfare, where attacks can be launched from anywhere, making it a democratic form of conflict. He contrasts traditional warfare with cyberattacks, noting that malware can be repurposed and reused, creating unprecedented challenges for security and defense.
"increasingly bellicose weaponized space right it's not just an economic cost it's a safety cost you know there's cost to trust and security IP regulations everything that comes out of it thriving busi..."
The Dynamic Nature of Code
In this segment, Ross explores the dynamic and evolving nature of code in the context of warfare. He discusses how malware can be easily shared and modified, making it a powerful tool for both state and non-state actors. This segment emphasizes the need for vigilance and adaptability in the face of rapidly changing technological threats.
"with malware once malware has been unleashed it can be repurposed and redirected and so malware which could be developed by a very powerful nation-state I've seen evidence that the malware that the Un..."
Geographic Expansion for Entrepreneurs
In this segment, Ross advises entrepreneurs to expand their geographic horizons, drawing parallels to early investments in China. He encourages thinking beyond familiar markets to tap into the growth potential of frontier markets, emphasizing the importance of understanding local contexts and cultures to succeed.
"connected part of the global economy and because its citizens have benefited from connectivity now for more and more years there's some really cool stuff coming out of there that I think is gonna help..."
Interdisciplinary Learning for Future Success
Ross stresses the importance of interdisciplinary education, advocating for a blend of STEM and humanities. He argues that individuals who can integrate technical skills with an understanding of human behavior will be better equipped for future industries, using examples from Facebook and Google to illustrate his point.
"and thinking in a way that isn't just treating these places as objects and target markets but that really goes from the bottom up to truly in-depth understanding the history the culture the context ev..."