3: Digital Platforms

Support digital platforms.

Other Information:

Information technology transformation -- One of the defining features of many of today's innovations is their basis in information technologies — computers, software and telecommunications. As such, economic success depends upon accelerating digital transformation and the widespread use of IT in all sectors of the economy. The United States performs well when it comes to enterprise-level adoption of IT. However, the United States lags behind in the adoption of IT in other areas, particularly those confronted with chicken-and-egg conundrums... This suggests a key role for government: supporting "digital platforms." Neoclassical economics ignores technology platforms. But throughout U.S. economic history, technology platforms have served as powerful launching pads for new industries and jobs. In the 1920s, there was no point in GE or RCA inventing a new electric appliance if people did not have electricity. In the 1950s, there was no point in Sears or Macy's opening stores in suburban shopping malls if customers could not drive on highways to get to them. In the 1990s, there was no point in Amazon.com trying to sell books online if the World Wide Web didn't exist. And in the early 2000s, there was no point for YouTube to host videos if people didn't have broadband in their homes. Today is no different. There is no point in creating an online application to let people manage their health information if that information consists of paper records. There is no point in creating a smart washing machine that turns itself on when electricity costs are low at night if the supportive electric grid isn't smart as well. There is no point in creating mobile applications that require high transmission speeds if the 4G network is not deployed with adequate spectrum allocated to it. In fact, there are thousands of job-producing new products, services and business models ready to be launched once the needed digital platforms are in place.

Stakeholder(s):

• U.S. Electric Utilities: One prominent example is the smart electric power grid. The smart grid is intended to be a new kind of network that will deliver power more efficiently and reliably than our existing power grid. The smart grid will facilitate the seamless integration of new technologies, including "smart" appliances that respond to dynamic price signals, plug-in hybrid electric vehicles, distributed generation (for example, residential solar panels) and energy storage solutions. However, U.S. electric utilities have been slow to embrace it, in part because as regulated monopolies they have little incentive to do so and in part because the public utility commissions that regulate them have been risk-averse. (It's made worse by neo-Luddite citizen groups that oppose smart grids on completely fallacious grounds.) And, at least until the recent stimulus legislation, there was little help from government.

Objective(s):

3.1: Online Household

3.2: Wireless Spectrum

3.3: Health IT

3.4: Intelligent Transportation Systems

3.5: Electric Grid

3.6: Cell Phones

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