These are some of the views and reports relevant to our readers that caught our attention this week.
The Choice Between Facebook and Running Water Isn’t Obvious
"Over the past several years two seemingly independent ideas have been gaining traction:
- New technology allows developing nations to leapfrog over traditional growth patterns (M-PESA, long-range wi-fi).
- The increasing move towards “convenience models” may be pointing the US’ tech sector away from innovation (Peter Thiel’s “they promised us flying cars but instead we got 140 characters”).
In a recent working paper for the National Bureau of Economic Research, economist Robert J. Gordon writes that the US’ current wave of innovation is less of a step forward and more of a lateral move, merely finding novel ways to use innovations made 20 years ago, sitting him squarely alongside Thiel. To illustrate, Gordon asks the following hypothetical question between two options, A and B:
With option A you are allowed to keep 2002 electronic technology, including your Windows 98 laptop accessing Amazon, and you can keep running water and indoor toilets; but you can’t use anything invented since 2002. Option B is that you get everything invented in the past decade right up to Facebook, Twitter, and the iPad, but you have to give up running water and indoor toilets. You have to haul the water into your dwelling and carry out the waste. Even at 3am on a rainy night, your only toilet option is a wet and perhaps muddy walk to the outhouse. Which option do you choose?" READ MORE