# Presentation: 230506

## Management and Technology20th Anniversary Celebration and Conference

**M&T: Looking to the Next Twenty Years**

- University of Pennsylvania
- Philadelphia, PA
- 14 May 1999

- Joseph Bordogna
- National Science Foundation
- http:// www.nsf.gov/bordogna

## A 21st Century World

**Cognitive****Revolution**

**Diverse**
**Workforce**

**Creative**
**Transformation**

**Information**
**Explosion**

**Demographic****Shifts**

**Environmental****Sustainability**

**Finite****Resources**

**International****Partnerships**

**Global****Economy**

**Infrastructure**
**Renewal**

**Continuous**
**Innovation**

**Career-Long**
**Learning**

**Complex**
**Technologies**

## Construction of the Whole

- 	“The need to create sound syntheses and systemizations of knowledge... will call out a kind of scientific genius which hitherto has existed only as an aberration:  the genius for integration.  Of necessity this means specialization, as all creative effort does, but this time the [person] will be specializing in the construction of the whole.”
- 						José Ortega y Gasset
- 						*Mission of the University* 					(1930)

**Construction of the Whole**

## The Process of Creative Destruction

- 	Business leaders usually visualize a market economy in the context of how capitalism administers existing structures, whereas the wiser approach is to understand how it creates and destroys them.

- Paraphrased from J. Schumpeter
*Capitalism, Socialism, and Democracy*
- Chapter VII, page 84

## Creative TransformationsThe Schumpeterian Factor

- “The interaction of technological innovation with the competitive marketplace is the fundamental driving force in capitalist industrial progress.” (Schumpeter, 1942)
- “...a normally healthy economy was not one in equilibrium, but one that was constantly being disrupted by technological innovation  (The Economist (on Schumpeter), 1999)

## The source of wealth is something specifically human:  KNOWLEDGE

**Knowledge applied to tasks we already know how to do is *****PRODUCTIVITY***
**Knowledge applied to tasks that are new and different is *****INNOVATION***

*Managing for the Future:  The 1990s and Beyond*
- Peter F. Drucker, 1992

## Complex Technologies & Global MarketsComparison of Top 30 Exports, 1970 & 1994

*Source: Kash & Rycroft, “Technology Policy in the 21st Century”.*

- “Economic well being in the future will likely go to those who are successful in innovating complex technologies.”

## Returns on R&D Investments (1)

**Investments in S&E Linked to Economic Growth**
- One-third (possibly 1/2) of all economic growth over the past 50 years can be attributed to advances in S&T.  (Solow, Boskin)
**Returns on investments in academic research**
- Strong linkage between industrial innovation and academic research.
- Rate of Return on society’s investment exceeds 25% (Mansfield)

*Source: CEA October ‘95 Report; S&E Indicators, Chapter 8*

## Innovation System

- Concurrent Integration

**Innovation**
**Wealth Creation**
**Sustainable Development**

**Analysis**
**Reduction**

**Discovery of**
**  ****New Knowledge**
**  ****& Basic Laws**

**Societal Needs **
**The Public Good **
**Natural Capital**

**Devices **
**Processes**
**Systems**

**Ideas**
**Information**

**Capital Formation **
**& Investment**

**Synthesis**
**Integration**

**Design**
**Manufacture**
**Maintenance**

**Science**

**Policy Context**

**Engineering**

**Economic Context**

## The Fundamentals

- Simplicity

- Complexity

- System

- Productivity

- Innovation

- Commodity

- Design

- Team

- Cognition

- Making & Moving

- What was, and is harder to get

- What is, and will be

- Features not gleaned from the parts

- A 20th century focus

- A 21st century focus

- What all that is new, becomes

- Manifestation of intent

- Intellectual diversity

- Major computer-communications tool

- Adam Smith’s stuff

## The Credentials/Skill SetThe Year 2010

- Handle projects from initial conception of an idea through to product realization
- Understand, nurture, and capitalize sustainably on nature
- Be alpha-numeric literate
- Articulate team goals, influence others to invest in them, evince trust at all levels
- Envision rational solution scenarios to open-ended challenges
- Act as catalyst and master integrator in multifaceted, multidisciplinary projects
- Understand and practice quality issues

## The Credentials/Skill SetThe Year 2010

- Manifest a strategic intent in design
- Enable comfort in interpersonal relations
- Pursue standards-based practice
- Practice creative transformation
- Focus on innovation
- Sense the coupling among seemingly disparate issues
- Make sense of complexity
- Contribute to, extract from, participate in the world’s collective intelligence base
- Be an astute observer of strategic inflection points and anticipate their consequences at the moment of inflection

## Greenspan’s Intellectual Guidance

- Critical awareness and the abilities to hypothesize, to interpret, and to communicate are essential elements of successful innovation in a conceptual-based economy.
- 				Alan Greenspan
- 				Chairman, Federal Reserve Board
- 				American Council on Education
- 				February 16, 1999

**Greenspan’s Intellectual Guidance**