Disruptive technologies and long term impacts

So what is  disruptive technology first of all? It’s any technology to causes a shift from a position of knowledge to a position of ignorance within the knowledge production community. That’s not exactly clear. No it isn’t. It’s difficult to define disruptive technologies in a manner like this. However, we all have used disruptive technologies. In the music industry there have been a large number of disruptive technologies. One is as simple as sheet music. Another is the Gramophone and vinyl records (and later turntables and receivers), then 8 tracks, cassettes, CDs, and then finally MP3s. Each of these technologies impacted society in a greatly unpredictable manner. The gramophone and records gave greater access to an amazing array of music to a wider audience. It created an entirely new market, new technologies were created to improve sound quality and increase the production rates. When the 8 track was introduced it had an impact both the home audio and car audio. It gave people access to their own music while driving. You couldn’t do that with records. Most of the knowledge that was generated with records and record players was nontransferable to 8 tracks.

What does this mean? Well it means that through disruptive innovations/technologies, we are able to create dynamism within our economy. A disruptive technology can allow for new firms to break an incumbent’s grip on a market. For instance, in consoles video games there are disruptive technologies every 5 years or so when each of the big players release a new video game system. Over the 30 some odd years of video games and console systems we’ve seen a wide range of entrants and exits. NEO GEO, Atari, Sony, Nintendo, Sega, Microsoft are some examples. Microsoft was able to take advantage of a period of disruptive technology introduction during a generation change in the technologies. This allowed Microsoft to come in at nearly a level playing field. While there was a lot of skepticism within the consumer market and within the technology industry, they were able to take advantage of their technology and get enough game producers to sign on to make games for them.

For consumers disruptive technologies lead to a chance to make a break with a previous technology producer. For instance, when new versions of Apple OS X and Windows Vista were released around the same time a consumer has a much easier time switching to a new OS when buying a new computer. If Windows Vista hadn’t come out around the time of a purchase then it would be very easy to stay with the previous Windows OS. There’s not nearly as much learning required when switching to a new computer with the same OS. However, if you have to learn a new OS, you are free to learn either OS as there are likely similar levels of learning required to actually use that OS.

In my next post I’ll discuss how these can disruptive technologies can impact firms in other ways.

Is the internet a truly democratizing technology?

Boring title I know. However, I believe this is an extremely important discussion to have. Are technologies political things? Many people claim that the internet has radically changed things. That through the internet now all sorts of political activities can happen. Things are freer and more open. Is this true? Is this a result of technology? Does this technology have to be democratizing? I’m going to argue that while there are political implications of many technologies, there are other factors to considered when talking like this.

Can a road have political implications? Most people would argue that, no it’s a road, you use it to get from point A to point B, or just for fun. Well, what if you have to use public transportation and some one designed a bridge so that the bus couldn’t go over it? Would it be political then, or would the person who designed it be instilling political capabilities into a technologies? I would say in this case, the technology was used to prevent the lower class from reaching a nicer area in New York. A designer named Robert Moses designed many bridges for NYC from 1920-1970 that prevented exactly this type of traffic from occurring (Winner, 1986).

Other cases include using assembly lines to control how workers work and the steam engine to force people to work at a steady pace, or a takt time. Other technologies such as an automated tomato picker forced a lot of other changes in California. For instance it laid off workers, forced small farms to combine into larger farms to use the technology, which drove down the cost of tomatoes which big farms were taking advantage of, and also changed the tomato itself. It actually forced the development of a harder tomato so it could survive the automated picking. Which really pissed people off.

Ok, but we’re in the age of the internet. Big deal, what’s your point with all these old technologies? Arab Spring. Protesters were able to rally using the internet. The US government created these things called suitcase internet This allows users to create a mesh network and connect to websites so users are able to get around the walls that governments put into place. Wikileaks is another source of political technology. Sure, it’s just a site where you can upload files, but you could say that anything is just a site. The point is that there are norms and expectations around Wikileaks that allows some one to feel secure if they leak something to.

Additionally, governments are starting to and continuing to control the internet and how it is used. Eric Schmidt, of Google, is worried that this sort of governmental control is only going to increase. Hacktivists such as Lulz Sec and Anonymous are only going to increase the likelihood of this. The US government itself has a conflicting approach to hackers. In the cases where these hackers are going after groups that are not within the US or not the US government, the State Department has been extremely supportive. However, as soon as these groups change focus to the US, they are declared terrorists groups, or something close, which much be destroyed. NATO recently declared much the same thing.

We are in the beginning of a struggle over the future of the internet. Hacking groups are standing up for regular users and attempting to change the direction of governments. There have been a few successes coming from unexpected locations. This op-ed has some of them. The TL;DR of the article is that the UN lambasted some of the UK’s laws, and that an Australian ISP backed out of a filtering agreement with the Government.

Clearly there are many different uses for the internet. These uses can be good and bad. However, these uses have political ramifications. The choice to hack, the choice to be social on the internet, and the choice to educate yourself all impact how the future of the internet goes. I don’t support hacking. However, it is forcing transparency and increasing awareness of people both in and out of cyber space, what is actually going on in the Interwebs.

Also, the UN declared the three-strike laws for copyright, where if you get caught three times you lose internet for life, to be a violation of human rights.

References:
Winner, L. (1980) “Do Artifacts have Politics?” Daedalus, Vol. 109, No. 1: https://wiki.brown.edu/confluence/download/attachments/75695134/Langdon+Winner+Artifacts+and+Politics.pdf

Soft War: http://www.cbsnews.com/8301-504943_162-20073030-10391715.html

California VS. Video Games (Video games won!)

In 2005 California enacted a law which would have made it illegal to sell extremely violent video games to minors. Much in the same way that it’s illegal to sell Hustler to a minor. The video games version of the RIAA, the Entertainment Software Association (ESA), objected to this, with the support of many different organizations like the RIAA, MPAA, ACLU and many big players in software, like Microsoft and Activision. However, there’s more history to this case than first meets the eye. You have to go back to the initial ruling on pornography to really understand what’s at stake here and how this ruling could impact the gaming industry.

In 1964 a movie called “the Lovers” a French movie was banned in Ohio, because Ohio deemed it obscene. Ohio also fined the owner of the theater where the movie was shown. The owner took Ohio to court over this ruling. In this case the court decided this movie was not obscene, and that Ohio was violating the First Amendment of free speech. This case is where the phrase, I can’t tell you what it (pornography) is, “but I know it when I see it” comes from. One of the Supreme Court Justices, Justice Peters,  had decided against a hard and fast definition, but declared that this movie was ok.

Fast forward nine years and you run into another case against California. In this one a guy name Miller was selling sexually explicit material through a magazine. In this case an actual test was created to determine if the material was obscene or not. This test is the basis for the California law signed into effect in 2005.

If this law had gone into effect, it was halted with an injunction, it would have had a chilling effect on the video game industry. So, we know that it’s steadily gotten more difficult to buy violent video games since the 90’s because of the ESRB (Entertainment Software Rating Board) placing ratings on video games. This is similar to what happens with movies. The major difference is that it is up to the reseller to determine if they want to carry a product with the M rating or not. Effectively what this law would have done is to turn the M from the equivalent of an R rated movie into an NC-17 or X rated movie. This would devastate the First Person Shooting (FPS) industry as well as many other games, such as fighting games, some real time strategy and most likely role playing games as well.

We got lucky. The court ruled that Video games are protected by the First Amendment. The results from the Justices were interesting. While the ruling was 7-2, it could have easily been 5-4 if the law had been written differently. The majority, 5 of the Justices, argued that California had been unable to prove that video games were different enough from books, movies, television and other media to justify this law. Thus they ruled it was violating the First Amendment. The two other Justices, Roberts and Alito, argued that the law was too vague and thus, if narrower the Justices would have sided with California.

The dissenting Justices argued that minors have different kinds of free speech, and they claimed there is not much difference between binding and murdering a women and binding and murdering a topless woman. Using this argument is basically saying that it’s obscene to create this kind of art.

There were also discussions on the science used in this case. Which claimed that the more interactive nature of video games make them more dangerous to children developing minds than any other sort of entertainment.

Now that you have some understanding of this case what does it all mean? Well, first, in a way, this legitimizes video games as a type of art. We all have felt that they’ve been art, but now officially the Supreme Court of the US (SCOTUS) has agreed and given video games the protection they deserve. Second, this prevents any other state from attempting to pass a law similar to the California law. It’s also clear from the way that the Justices ruled on this decision that even a narrower ruling would have gone in favor of the video game industry. This is a really good thing, as it means that it’s unlikely another state will try to challenge this ruling with the current Supreme Court.

What other implications does this have? Well, it clearly says that as a culture we feel that violence is inherently different than sex. We have made it clear with this ruling that the US is willing to accept graphic violence as non-obscene while sex is. This is interesting itself. The initial ruling on obscenity, and the 2005 California law, state that what is culturally acceptable defines obscenity. With this ruling we are saying that violence is acceptable in media.

Other observations, while the SCOTUS ruled that there isn’t a difference between video games and books and movies, I can’t help but still see that there is. Some in books, such as A Song of Ice and Fire (ASOIF), would never be allowed in movies are video games because of the sexual content. However, a young impressionable mind can more easily pick up one of these books than they could pick up a movie or video game with the same content. I started to read ASOIF when I was 13, it would have been extremely difficult for me to actually be able to see a movie that had the same amount of sex and violence. Now, I’m not saying that it should have been easier, but that’s because of my parenting more than anything else. As a matter of free speech, I personally don’t see any difference between the word and the picture. The picture just requires less effort to understand or see the scene. This is not a reason to segregate a section of material. Additionally, in Lawrence Lessig’s Code 2.0 he describes an author that writes stories that are violent and sexually violent towards women. This author was arrested and charges were pressed against him. He was acquitted as he was protected under the first amendment. We need to be aware that no matter how much we don’t like these images or words that we can’t make them illegal. Our founding fathers fought for our freedom to allow us these rights.

So, video gamers rejoice! We have won a great victory, one that will hopefully set a precedent which will protect video game writers, artists, coders and everyone else involved long into the future.

Happy Gaming!

Further Reading:
http://kotaku.com/5795472/video-games-defeat-california-in-supreme-court-battle-over-violent-video-games
http://kotaku.com/5678354/all-you-need-to-know-about-this-weeks-violent-video-game-case-in-the-us-supreme-court
http://arstechnica.com/gaming/news/2011/06/us-supreme-court-strikes-down-video-game-law-on-first-amendment-grounds.ars?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+arstechnica%2Findex+%28Ars+Technica+-+Featured+Content%29
Actual Ruling: http://www.supremecourt.gov/opinions/10pdf/08-1448.pdf

The Power of Old Technology

So most of what I post about is about innovation and how that can impact the economy. However, these innovations can take years to hit the larger part of a given market let alone the greater population (either in a country or in the world). I think it’s pretty obvious why it takes so long for technology to diffuse in a given area, but I’ll list some. I think the two biggest adoption slow downs are price and lock-in. I think price is fairly straight forward, if you can’t afford it you can’t buy it right away. You have to wait until the product reaches a price point you can afford. This may mean that you bought an original iPhone when the iPhone 3GS came out or something along those lines. Lock-in is a little bit more complicated. There can be a couple different types of lock-in. Keeping with the cell phone example, you are locked into a specific network based on your contract, and in some cases with the difficulty in taking your number to the new network with you. The other type of lock in is the fact that you are already using a phone. You may already really enjoy using your Blackberry, because you use Blackberry messenger, so you’re going to continue using Blackberry phones even if it is a lesser product.

Most of those examples are from our developed world. Most of the time we don’t think about how the rest of the world uses technology. In parts of India people are still using those old Nokia phones we had about 10 years ago. They were sturdy phones that were able to call and text. In those areas were the only connection is a mobile phone that is powered by a solar panel these old technologies are important. The problem with mixing new technologies like solar panels with rural farmers that still mostly use a hoe for farming is that they have no abilities to fix or deal with a broken solar panel. While most people in the developed world do not either, there are people that do have the experience and they are only a phone call away.

Old technologies also have a habit of making a comeback. Look at the recent explosion of LP sales. This technology was basically dead during the 80’s and 90’s, however it’s extremely popular now again. This is partially because of other effects. The fact that when you purchase many LPs you are able to get a digital version of the album makes it less risky for you to buy the LP. I say risky, not that there is much risk, because without that most people would result to downloading a copy of the album and with the copyright system the way it is, you risk lawsuits etc.

There’s an interesting book on this topic. It’s called “Shock of the Old” by David Edgerton. It’s a great read, pretty fast to get through it too. There’s some surprising numbers in there. For instance, the Nazi’s used more horses in WWII than the British did in WWI. While they were used for carrying supplies, it’s not something we see in movies or video games. Apparently even the US had 1 horse for every 4 men.

Are there any old technologies that you’ve seen a resurfacing of, or that you’ve heard of being used today?

Technology Incubators and You

So, I had a discussion on faccebook that went from discussing the cost of labor for a dutch bike mechanic (€40 for about 15 minutes for work to install wheel (i did it myself in 30 minutes instead of paying that)) to a discussion about technology incubators. It got me thinking about incubators and how people think of them. Technology Incubators come in a variety of forms and while many are attached to universities there have recently been a few where they are unaffiliated and some 18 year old kid makes one. But what is an incubator? Well, at the most basic level an incubator is a place that allows a firm to grow from an idea into an actual business. When it graduates it’s at the stage where it’s making enough money to support itself, or it has gotten Venture Capital (VC) backing so it has enough money to expand to a larger facility.

My first experience with an incubator was the Machine Assistance Center (MAC) at the University of Pittsburgh where I did my undergraduate. I thought it was the coolest idea. It was this old warehouse that was converted into separate mini-factories with a few different companies in it. The rent was free or dirt cheap, and there was equipment, like lathes, drill presses and a 6 axis CNC machine. The firms were able to rent time on these tools to create their product, make new prototypes and train new employees. The university also used these tools to train community members on how to use them to gain new skills for employment. Eventually these firms were making enough money that they were able to move out of the MAC get their own place and set up shop there.

I know that in Pittsburgh there are at least two other incubators. I’m sure there are more. Carnegie Mellon started the other two I’m aware of. However, these ones are software based start ups. So these firms have very different needs than physical product based firms. The Innovation Lab at Eindhoven University of Technology, in Eindhoven The Netherlands, where I’m pursuing my master’s degree, has a different model than either. It has spaces large enough for firms that need to manufacture products, but it also has a lot of offices for consultation firms as well. So, there are many different models for an incubator and non are exactly the same.

Ok, that’s great, why should I care about these things? Well, it matters because some of these are tax payer subsidized or were created through your tax dollars (Tax Euros? Just doesn’t sound right). Earlier this year Obama started the win the future campaign, which put a couple hundred million into both VC, public groups and incubators to help reduce the barriers to entry for new companies. Many policy makers believe that these incubators or hubs of heavy start up activity could spawn another Silicon Valley, or greatly boost the economy through job creating companies. Sadly, most of these companies actually only employ a few people and don’t become huge firms like we’d like them to be (Clarysse et al, 2005). However, this activity still can help the economy of the region to some extent.

So what do we do about it? Well, I plan on studying these and their impact for my master’s thesis, so we’ll see what I find. I probably won’t post to much about it as I might try to publish a paper about it. However, when I do that I’ll write about my findings on here. Until then, I say we should be supporting these incubators. Lowering barriers to competition will eventually lead to new products, services and lower pricing. That’s what we, as consumers, want right? Besides, I want to start a company some day and I’d like some help in getting me to the point where I can get VC funding 😉

Moar?
Here’s an article about the “Win the future” campaign from when it was first announced: http://techcrunch.com/2011/01/31/startup-america-a-campaign-to-celebrate-inspire-and-accelerate-entrepreneurship/

References:
Clarysse, B., Wright, M., Lockett, A., Veld, E. Van de, Vohora, A. (2005) “Spinning out new ventures: A typology of incubation strategies from European research Institutions”, Journal of Business Venturing. Vol. 20 pp 183-216 http://www.feb.ugent.be/nl/Ondz/wp/Papers/wp_04_228.pdf