Race against the machine: How the digital revolution is accelerating innovation, driving productivity, and irreversibly transforming employment and the economy

In Race Against the Machine, MIT's Erik Brynjolfsson and Andrew McAfee advance an explanation for why median income has stopped rising in the U.S. and why societies and economies are becoming more unequal. Drawing on research by their team at the Center for Digital Business, they show that there's been no stagnation in technology - in fact, the digital revolution is accelerating. Recent advances are the stuff of science fiction: computers now drive cars in traffic, translate between human languages effectively, and beat the best human Jeopardy! players. As these examples show, digital technologies are rapidly encroaching on skills that used to belong to humans alone. This phenomenon is both broad and deep, and has profound economic implications. Many of these implications are positive; digital innovation increases productivity, reduces prices (sometimes to zero), and grows the overall economic pie. But digital innovation has also changed how the economic pie is distributed, and here the news is not good for the median worker. As technology races ahead, it can leave many people behind. Workers whose skills have been mastered by computers have less to offer the job market, and see their wages and prospects shrink. Entrepreneurial business models, new organizational structures and different institutions are needed to ensure that the average worker is not left behind by cutting-edge machines. In Race Against the Machine Brynjolfsson and McAfee bring together a range of statistics, examples, and arguments to show that technological progress is accelerating, and that this trend has deep consequences for skills, wages, and jobs. The book makes the case that employment prospects are grim for many today not because there's been technology has stagnated, but instead because we humans and our organizations aren't keeping up.

Brynjolfsson, E. and McAfee, A. (2012), Race against the machine: How the digital revolution is accelerating innovation, driving productivity, and irreversibly transforming employment and the economy, Digital Frontier Press, Lexington, Massachussets.

Metadata

  • no specific sector focus
  • United States
  • 2012
  • Research publication
  • challenges
  • English
  • Digital Frontier Press (Publisher)
  • Qualitative research
  • Not available
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