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Created by: Anggi Paima Ulibasa Sibuea Ribka Febriana Yasinta Fajrin

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Book Contents
I: Mixing Apples, Oranges, and Floppy Disks V: Data Drives Empire II: The 390:1 Gap VI: GeneticsThe Next Dominant Language X: Revolution... In A Few ZIP Codes III: The New Rich and The Poor VII: Genetics... Is A Hockey Stick XI: Technology Is Not Kind... It Does Not Say Please IV: Empires of The Mind VIII: The Most Powerful Information System XII: Sleepless... (And Angry) in Seattle

IX: Nano World

XIII: High Tech...High Pay...High Mobility

XIV: The DigitalGenomics Diaspora


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XV: Time Warp


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Slide Contents

The background: Gap

The technology: Digital, Genomics, Nano

Patent

Reached by the future

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MIXING APPLES, ORANGE, AND FLOPPY DISK

The skin and pulp of the orange is just a packaging.

The floppy disk is simply the container for these 1s and 0s. It is reading and rewriting the code inside that drives change.

The seeds contain the code.

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To build a nation.. Become an economic superpower, Wage war effectively, Or launch a global business.. You need a fewer people, time, or capital, And you do need technologyliterate people. We are BEGINNING TO ACQUIRE direct and deliberate control over the evolution of all life forms ON THE PLANET
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New technologies change LIVES COMPANIES COUNTRIES


YOUR FUTURE, that of your children, and that of your country depend on UNDERSTANDING A GLOBAL ECONOMY DRIVEN BY TECHNOLOGY, UNDERSTANDING CODE, PARTICULARLY GENETIC CODE, is todays most powerful technology.
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THE 390:1 GAP


David Walton, a third-year Harvard medical student Went to Haiti for a clinical internship Was shocked by the poverty and disease Wrote a long, emotional e-mail to a lifelong friend And got a one-line response Sounds pretty depressing. What else is going on down there? Extreme income gaps.. Are so common And so large That we rarely question Why they occur? And why they are increasing so rapidly?

II

States are falling apart at an unprecedented rate Because governments and citizens do not understand Why technology is relevant to their daily lives and how it changes their future.

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United States

Europe India

China

Japan
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THE NEW RICH AND THE NEW POOR


Differences in education, particularly in scientific literacy, can lead to extreme changes in relative wealth and position V E R Y . . . Q U I C K L Y

III

The World Economy 1960-1998


70 60 50 40
1960
Global Production (%)

30
20 10 0
Agriculture Manufacturing

1998

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Services

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Fifty years ago


Mexico Produced twice that of someone living in Taiwan Taiwan
Being the poorest and most isolated country 1974, the industrial plant grew, as did exports and competitiveness (the averages Taiwanese produced twice as much as a Mexican) 1990s, Taiwan had become one of the world leaders in PC and chip manufacturing AND A TAIWANESE WAS PRODUCING FOUR TIMES MORE WEALTH THAN A MEXICAN. Powerpoint Templates Page 13

Diverging Hourly Wages


(total dollar wage for manufacturing workers in US $)

Years

Mexico

Taiwan

South Korea
0.32 3.71 6.71

Singapore

1975 1990 1999

1.47 1.58 2.12

0.40 3.93 5.62

0.84 3.78 7.18 Page 14

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In the old economy Building a billion-dollar fortune required Decades of hard work A powerful host country Thousands of workers And thousands of storefronts. The rule of an economy Based on knowledge and networks Are very different from those Of a manufacturing-based economy.

TODAY IT IS JUST THE OPPOSITE.


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When you are trying to spread, and sell knowledge KEEPING SOMETHING EXCLUSIVE and RARE often LEADS TO A LOSS OF VALUE. What matters most is that the purchaser becomes part of a network And that the network keeps growing.
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What makes money today is the knowledge necessary to process and distribute information. Look at software, for instance. The first copy of a major computer program costs millions The second costs pennies. The more people who use the program The easier it is to exchange information The more valuable the program becomes And the richer the company and its Powerpoint Templates employees. Page 17

In general, the companies that grow fastest are those selling ideas, not those with the most assets.

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MUCH OF THE WORLDS NEW WEALTH IS CREATED BY KNOWLEDGE

MANY COUNTRIES
ARE FAILING,
FALLING APART,
AND DISAPPEARING. Powerpoint Templates
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EMPIRES OF THE MIND


The empires of the future are the empires of the mind. WINSTON CHURCHILL

IV

Rich countries no longer need great deposits of gold or diamonds Or an abundance of land Or millions of people THEY NEED TO EDUCATE THEIR POPULATION.

NO MORE
THEY NEED SMART AND ENTREPRENEURIAL PEOPLE.

NO LESS
THEY NEED A GOVERNMENT THAT PROVIDES ECONOMIC AND POLITICAL STABILITY.
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NIGERIA has oil INDONESIA precious woods SOUTH AFRICA diamonds and gold BRAZIL jungles and minerals ARGENTINA vast fertile lands CONGO minerals and gems MEXICO silver and oil COLOMBIA emeralds SAUDI ARABIA oil VENEZUELA oil
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Were sometimes able to create a knowledge economy and are now inhabited by some of the RICHEST PEOPLE on the planet.

SINGAPORE
CHINA INDIA MALAYSIA

UNITED STATES

CANADA
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How can countries rich in natural resources get

SO

POOR

during this century?

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The future belongs to SMALL POPULATIONS who build empires of the mind, and who ignore the temptation ofor dont have the option ofexploiting natural resources. And a lot of people who were wealthy once upon a timewill once again become VERY POOR Powerpoint Templates
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DATA DRIVES EMPIRES


Perhaps there is no better example Of the power knowledge has To rapidly transform an economy Than the digital revolution.

What distinguishes people from animals is THE ABILITY to understand abstract concepts and to communicate these concepts.
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Drawing on the cave wall and Hieroglyp hs

Stylized primitive drawings and language into simplifie d character s by Chinese

The Greeks simplifie d all concepts into a few letters

26 letters we use today

NOW, dominant alphabet no longer in 26 letters but in 2 1s and 0s

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The digital alphabet encodes and transmits information with extraordinary speed and accuracy and it has become the worlds main language.

Example: the phone may transmit 01001000 01101001 00100000 01101101 01101111 01101101 the person who receives these digital strings hears Hi, Mom Powerpoint Templates Page 29

When people share a common language Regions often come together So too do companies.

Things change very quickly in a digital world.

The power of technology, to build and destroy.

The digital revolution is just the beginning, because a new, far more powerful revolution is brewing.
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VI
GENETICS THE NEXT DOMINANT LANGUAGE
Perhaps the most important discovery of the twentieth century was to learn to identify and read the code of life. And perhaps the most important challenge we will face in the twenty century.. Is how.. And when.. To apply this knowledge

The Structure of DNA


DNA contains the code of all life processes.. Bacteria, worms, fish, birds.. Humans..

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Genetics is a very powerful instrument So we all have a stake and a reason To understand And participate in debates As to what should not do As we study and alter The code that governs All life on the planet.

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How long you, your children.. And your grandchildren.. Live.. Depends increasingly.. On understanding the human genome.. And on understanding.. The genetic code of the organisms that attack our bodies.

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The variation between your genome and others is minuscule

Small variations within a genetic code can have enormous impact

Minutes change in a genome are enough to make differences of physical appearance and also to make some healthy and others very sick. Powerpoint Templates Page 35

How the World Lives and Dies


1900 Communicable diseases 1990 Flu Diarrhea Pregnancy problems Depression Heart disease 2020 Heart disease Depression Road accidents Strokes Chronic pulmonary disease Chronic noncommunicable diseases will cause 73% of deaths

How and when one gets these diseases depends in part on genes.. And in part on ones lifestyle. Smoking, for instance, can trigger gene mutations and lead to cancer.
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Societies and peoples who understand the genetic alphabet.. Are likely to LIVE LONGER..AND GET RICHER. But most societies do not understand genetic discovery Or the challenges that arise from these discoveries.. And that makes them, for all practical purposes.. Functionally illiterate.. In the language that codes all life on this planet.
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VII
GENETICS IS.. A HOCKEY STICK
We are learning the language in which God created life.. Without a doubt, this is the most important, most wondrous map ever produced by humankind

Robert Fleishmann & Craig Venter (1995) Published the first full genome of a living organism The first time that scientist could see a complete map of how a life was programmed. Marked the beginning of new era in mankinds history Bringing standarization, mechanization, and supercomputers-> unleash an avalanche of knowledge
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The development of biology


Systematically observing and experimenting on live organism In vivo

Moved indoors into small breakers, test In vitro tubes, petri dishes, and other glass containers
Combining the power of lab with that of a In silico computer
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By using the in silico method:


Increase the identification of gene-data

Dropping the cost of sequencing


Cost collapse, KNOWLEDGE AND PATENTS EXPLODED
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Patent
Include anything under the sun made by man 1971: allowed patents on living organism and genes

1988: patentable not just bacteria and plants, but entire animals.
1991: USPTO received an overwhelming 4000 request for patents on various expressed sequences tags (ESTs)

1995: patents increased to 22.000/year


1996: increased to an unmanageable-> 500.000/year

Patent office was forced to change the rules as to how one could apply for basic genetic patents.
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Patent statistics reflect just part of the change Scientist are overwhelmed by new knowledge.. Every week, every day.. If you graph this knowledge.. It is not a straight upward curve Or a gradual curve.. Genetic knowledge is a hockey stick.. It bounces along the bottom of the graph for decades.. And suddenly explodes upward
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Having the gene maps of basic life forms will allow us to begin to understand the genomes a lot faster

We are way past the time when major genetic discoveries could be made even in a little garden

To cope with and organize the masses of data emerging from every lab, it helps to have supercomputers or massive parallel processing, machines that are concentrated in very few places.
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As the digital and genetics revolutions converge.. So will their languages.. A, T, C, Gs And 1s and 0s,, Are interchangeable.. Ever more powerful data processors,, Some of which.. Could be based on

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DNA
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VIII
THE MOST POWERFUL INFORMATION SYSTEM
Do not explain why it cant be done. DISCOVER how it CAN be done

The machines and technology coming out of the digital and genetic revolutions may allow people to leverage their mental capacity a thousand.. A million.. A trillionfold. The worlds best programmers are increasingly gravitating toward biology, BIOINFORMATICS AND BIOCOMPUTING
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The worlds most powerful and compact coding and informationprocessing system .. Is a GENOME

Blend silicon chips with DNA, so memory chips could grow organically and pack a lot more processing power into much smaller space.
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SMASH- Simple, Many, and Self-healing


Computers are increasingly designed to act as collection of individuals cells that work in parallel to solve problems and can fix themselves

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One way to understand how genes code what they do is through gene chips Instead of placing transistors on the chip, it placed hybrid bits of DNA Lights up under the laser Chips are the result of convergence and synergy among various technology

Gene chips will lead to personalized medicine


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Genomics, bioinformatics, and biocomputing are merging and they are beginning to explode a lot of myths

Medicine is going to change

fast
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IX
NANO WORLD
We can already build pretty small things.. Japanese engineers have produced a car.. That looks and operates like any other car.. Except that it is the size of a grain of rice. Fun.. But trivial compared to what Is coming

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NANO TECHNOLOGY

Nov 2000 Robert Curl Jr., Harold Kroto, and Richard Smalley discover and build new molecules: Carbon
Nanosubs: partly organic and partly inorganic Someday, nanonurses may be able to seek specific diseased cells within the body and deliver molecular doses of medicine

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Genomics is teaching us what life really is on a nano scale

What is extraordinary is how widespread and powerful the technology base of the knowledge economy is getting
And how discoveries in one area lead to breakthroughs in other fields quickly
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Age of Knowledge Economy


Computers Digital Alphabet

Internet

It Revolution
Combinatorial Chemistry

Molecular Revolution
Bioinformatics Biocomputing

Lasers

Genomics

Robotics

Proteomics

Nano Tech

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But as these changes accelerate.. Much of the world remains isolated and ignorant About technologies that.. Will fundamentally alter everyones relative economic status.. And life expectancy.
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Revolution In a Few Zip Codes


The World is divided into a golden billion.. and everyone else.
Vladimir Putin President of Russia

Talking About Patent


Protect the application with the "Licensing" or "patent. Number of patents that are considered to be one of several measures as an indication of the ability to compete. Not all patents are good or valuable, but being unable to generate patent is VERY BAD
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Talking About Patent (cont.)

If you can not create knowledge and patents, It is impossible to launch new-high tech companies

Means

There was little new knowledge to sell


Impacts

Y 1995 Number of Companies listed on Buenos Aires Stock Exchange

Y 2000

example
145 125

And little economic growth


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PEOPLE NEEDED TO PRODUCE A SIGLE U.S. PATENT


Country
United States Japan

Talking About Patent (cont.)

People Per Patent (1998)


2,955 3,914 5,244 5,812 8,227 8,778 13,653 14,658 16,568 22,169 25,735 127,273 772,414 778,261

What matters in modern economy is:

knowlegde
It is what you live off.. It is what power growth.. And from patents in the last twenty years Is not that hard to predict who gets rich..

Switzerland
Taiwan Canada Germany South Korea France United Kingdom Australia Singapore Spain Venezuela Argentina Mexico Brazil India Indonesia

And who gets poor

1,267,532
1,869,318 10,647,319 Templates Powerpoint 21,610,345

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Talking About Patent (cont.)

Not only Indonesian who produces less patent, but as less as Brazilian and Mexican do.

Brazil generation less breakthrough knowledge, and Brazil is less relevant in the globalknowledge market

In 1997, the Mexican patent office received 10.531 patents requests, but only 4% of the request came from Mexican nationals.
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Talking About Patent (cont.)

Things do not have to be this way.


Given the right training, capital and instruments, Brazilian and Mexican scientist can be competitive.
For example:

published

Sao Paulo gives 1% of its tax revenue to a research institute, FAPEST.


And in 2000, FAPEST published the world first plant-disease genome, Xylella Fastidiosa, which destroy oranges, grapes, almonds, plums, peaches, oaks and elms.
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Xylella Fastidiosa

the world first plant-disease genome

Talking About Patent (cont.)

Most developing country are not competitive it the global knowledge economy.
In 1998, a single company IBM obtained more US patent than the total granted to 139 countries 139

IBM generate more patent alone than 139 countries did together (u.s
patent granted 1998)

Countri es 2522

IBM 2685

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Talking About Patent (cont.)

Not only Company that accumulating global brain power. Massachusetts Institute of Technology (MIT) alumni and faculty : have founded more than 4000 companies Generating over $230 billion in a yearly sales Had 1.500 patents pending in 2000

In fact, Many of MITs alumni and Faculty.. Are Foreigners who chose to stay in USA
In a borderless world, those who do not educate and keep their citizens, will lose most intellectual wars..

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As a developing country, you can lower inflation, reduce corruption, cut your budget, privatize, and still not get rich.

Talking About Patent (cont.)

WHY?
Because you are not generating knowledge, but product.
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Talking About Patent (cont.)

We can get a sense how knowledge-intensive an economy is by dividing: Value Added Exports Commodity Exports
If the result: >1 : the country exports more knowledgebased products than raw materials <1 : the economy remains vulnerable to commodity cycle High Tech vs Low Tech Exports
Year Chile Argentina Brazil G7 (Canada, France, Germany, Italy, Japan, UK, USA Asian Tigers (Hongkong, south korea, singapore, taiwan)

1997 1995

0.01 0.01

0.12 0.07

0.22 0.23

2.17 1.67

0.74 1.80 Page 66

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If you dont export knowledge, you dont get rich

Talking About Patent (cont.)

How can we increase the ability to generate knowledge?


Growth and wealth Will be distributed unevenly.. As long as few commodities.. Pay more attention,

To their They are getting childrens richer. science A lot richer. education Powerpoint Templates

And for those who understand this, countries or company, will generating knowledge and invest in technology

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A scary world when,


Talking About Patent (cont.)

The long term.. Is no longer measured in century, or decades.. But in years.. And some times, In months.

Technology accelerates trends

It took the telephone 35 years to get into 1/4 of us home Tv took 26.. Radio 22.. PCs 16 The Internet took 7
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Technology is NOT KIND IT DOES NOT SAY

XI

PLEASE

In the last decade of the twentieth century, the global economy bred Mergers and start-up on an unprecedented scale.. $908,000,000,000 in mergers during 1997 alone A 47% increase over the previous year. By January 2000.

In one month.. Powerpoint Templates There were $244,500,000,000 worth of mergers

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Talking About Technology


Largest mergers and most successful new companies related to telecommunications, Internet, Software and Finance, there is quite a lot of the "Digital Revolution" merger. but the Pharmaceuticals, Chemicals and Agribusiness as well as the digital revolution cause a very large merger and restructuring. In this latter group is the strength of Genetics Code application, which is likely to underestimate the power you have.
Massive changes Knowledg e Economy
Not only computer and telecom
se e

The most basic industry on the planet

Agriculture, Agribusines s

Instead of growing grain for flour. Farmers are starting to grow Medicine, Plastic, Fuel But only those farmer with knowledge and access to new technology, can hope to prosper Powerpoint Templates Page 70

Talking About Technology (cont.)

A seed is an instrument designed to execute a genetic program. that transform soil, water and sun into wood.. Flower fruit
Whoever can read an understand a seeds genetic code. Can

Change IT

Agriculture is simply one example.

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Today we have seen a change in Talking About Technology (cont.) the nature of Agribusiness "Plant Reprogramming What is Year 1999 Monsanto and Dupont sale up to 40% of all different is, soybeans produced in the U.S. and nearly 80% of the seed corn. we are not just Dow Chemical has produced corn that become a biodegradable plastic. extracting substances, Dupont Polyester fibers are like silk. but reprograming Banana and tomato mixture is adjusted to a mixture of edible vaccines to prevent diseases, such as cholera, hepatitis. plants to express Treatment of heart failure derived from the Foxglove extracts specific compounds
aspirin is derived from the wool and so on.

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SLEEPLESS(and angry) in SEATLLE


Some think that the only people anguishing about massive economic change are the colorful protesters who gather dressed as bioengineered vegetables outside meeting of the World Trade Organization the World Bank. Or the World Economic Forum .. Wrong Corporate kahunas are just as concerned and scared Powerpoint Templates about the rate of rapid change

XII

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Talking about sleepless in Seattle why do people were sleepless, frustrated, angry in Seattle?

Everyone, just as people and regions are scare of multinational behemoths. EVEN MEGA-COMPANIES are also terrified, that they might be not be large enough, or fast enough

to compete & survive.


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Talking about sleepless in Seattle (cont.)

Genomics Revolution, could potentially lead to:

Example

4000 to 10000 new medicine

But even if large companies, GROW, MERGE and DOMINATE.


They still hard to monopolize, or even attract the best brain

1 Drugs

Which means require the pharmaceutical industry spend over $ 2,000,000,000,000 for R&D

May cost $500,000,000 Take over a decade

Thats why THEY MADLY MERGE

Some do not need a lot of resources, time or people to get very rich.
Small companies can generate a great deal of wealth and get very large, very quick, even fewer employees. Page 75

To stay on top of genetic revolution


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Talking about sleepless in Seattle (cont.)

The major chemical companies. Many had also feared Genomic Co., Because technology has developed very quickly. And not to be underestimated. Because the sample in the Computer industry and the company, but is later able to acquire a business is worth more than an old company. And for a long time as well.

Microsoft, Intel AOL Yahoo, Amazon

VS. VS. VS.

IBM Time Warner The New York Times or Any other medias Sears Roebuck Page 76

eBay

VS.

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Talking about sleepless in Seattle (cont.)

Knowledge and databases, continue to expand at unprecedented rates. Even after the U.S Patent and Trademark Office revised the rules of gene patents.

At year 2000, Genomics drove 25,000 new patent. 25% more than in 1999. more than all internet or computer business.

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XIII
High Tech. High Pay. High Mobility
The Great thing in this world is not so much where we stand, as in what direction we are moving.
Oliver Wendell Holmes Sr. Powerpoint Templates
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High Tech. High Pay. High Mobility

Distance and Abstract changes in technology


They will change your life, where you live, what you do, what you earn. Whatever your current profession.

Your ability to understand and surf waves of change, will determine how well you do as you change Jobs. Every decade, or 5 years, or every few months.
If you are not stolen away by some company every few years (or months) means.. You are not CONSIDERED A HOT PROPERTY

stability is a mark of shame


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High Tech. High Pay. High Mobility (cont.)

The only way to make a successful transition from being a corporate man or woman,

is to learn how to understand and use new concepts and technologies.


meanwhile, a skill usually learned in college and graduate school

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High Tech. High Pay. High Mobility (cont.)

High Tech=High Pay


U.S. MEDIAN SALARY JOB (1997) ALL OCCUPATION $22,734 Engineering 72,675 managers Electrical 59,155 engineers Geologists 52,395 Computer 50,606 engineers Chemists 43,971 Biology scientists 43,701

In the U.S., the difference in salary as a result of the study was based at the High Tech salary will be higher than other occupations (All Occupations) at least 2-3 times

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High Tech. High Pay. High Mobility (cont.)

Various Country have come up with different method to support Education


South Korea The United State Mexico

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High Tech. High Pay. High Mobility (cont.)

South Korea
The country spends 3.7% of GNP on Education South Korean parents spend almost the same amount on educating their children as the state does. Paying for best tutors in English, Math, and science because the country is a strict meritocracy So At the end of high school, they take a standardized test.
The Major depends on the Test score Top Score Student Korea Universit y Must go to

They not choosing their major

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High Tech. High Pay. High Mobility (cont.)

(Still)South Korea
And Even after you graduate..

You still tested


Its a brutal system, but it brings South Korea became one of the worlds fastest-growing economies and technology leader country
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High Tech. High Pay. High Mobility (cont.)

USA
Us parent spend extra money on their childrens education Plus all those extracurricular activity, such as karate, summer camp, music, basketball, soccer, art, etc.
For instance, US provide education most likely as South Korea does. US succeed maintaining current leadership in technology, and also attracting extraordinary talented people from other countries
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High Tech. High Pay. High Mobility (cont.)

Mexico
In many developing countries, the educational situation is dire. Many Latin American parents profess a passion for educating their children But statistic and government policies seems to negate this Only 60% of the richest children getting a collage degree And only 35% from upper middle class bother graduating from college.
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XIV
The Digital-Genomic Diaspora
When Progress is moving as fast as it is now. Recalling its victims is difficult
Michael Lewis American Non-Fiction Author and Financial Journalist Powerpoint Templates

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Do we have choices? Such a life.

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The Digital-Genomic Diaspora (cont.)

Many of those people wishing to work in US. Can now do so freely, Without visa, or visit or visits form INS.

Manufacturing Economy
You had to travel to the factory and put things together or process paper at specific desk

Knowledge Economy
You can work at your desk, in your home, in a hotel, in a plane. Everywhere.

It caused: Only 1 out of 3 people in California 9-5 job, working on site. 80% of Sun Microsystems employee work home parttime annual income of up to $ 50k Home-Only Teleworkers are more than two times the average income.
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The Digital-Genomic Diaspora (cont) Why the sudden impulse to secede?

And why are so many now successful?

Part of the answer is that . . . Technology empowers individuals . . . And makes it hard to prevent democracy . . . Which in turn allow people to ask . . . Do I really wish to remain a shareholder of this state? (increasingly often the answer is NO!)
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The Digital-Genomic Diaspora (cont)

So.. Governments have far less leeway . . . If they abuse their power . . . If they ignore citizen-shareholders They will tear apart the state

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XV
TIME WARP
Getting a genome sequence has never been an end.. Just a start
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Clones

Is not a photocopy Teach us a lot about what is nature and what is nurture about how much our genes govern out thoughts and actions

Scientist and companies are racing flat-out to decode, understand, rewrite portions of various genomes.

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What our world looks like in fifty or hundred years.. Depends to a significant extent.. On our ability to adopt and adapt.. The ethical, political, and economic challenges.. Of the digital-genomics area.
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You can stand on the sidelines and assume that fate will guide things Or you can help yourself, your family, your company, and your country navigate this wondrous and scary adventure
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