Rebooting the Innovation Agenda

The fourth industrial revolution is underway, and technological changes will disrupt economic systems, displace workers, concentrate power and wealth, and erode trust in public institutions and the democratic political process. Up until now, the focus has largely been on how technology itself will impact society, with little attention being paid to the role of institutions.

The relationship between societies and their institutions is changing, and countries will have to strengthen their capacities to avoid heightened social divisions. They must build resilience through gradual and intentional interventions designed for long-term, sustainable development. It is also essential that institutions work hard to build credibility and use available development tools, such as development finance institutions and foreign aid, to mitigate the risks of disruption.

Countries and other stakeholders must pioneer these initiatives to successfully navigate the disruptions stemming from the fourth industrial revolution. The revision of existing models of education, skill development and investment and the integration of different stakeholders into the conversation will be critical in helping institutions play a productive role in rebooting the innovation agenda. This new report, Rebooting the Innovation Agenda, analyzes the need for resilient institution and the role they are expected to play in the fourth industrial revolution.

Daniel F. Runde is senior vice president, director of the PPD and holds the William A. Schreyer Chair in Global Analysis at CSIS. The authors would like to thank Carmen Garcia Gallego for her research support. Erol Yayboke is deputy director and senior fellow with the Project on U.S. Leadership in Development (USLD) and Project on Prosperity and Development (PPD) at CSIS. Sundar R. Ramanujam is a research assistant with the Project on Prosperity and Development at CSIS.

This report was made possible by RTI International’s generous contributions for and cooperation with the CSIS Project on Prosperity and Development.