Definition: The use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business.

2.     Innovation: Noun

Definition: A creation (a new device or process) resulting from study and experimentation.

3.     Macroeconomic: Noun

Definition: Macroeconomics is the branch of economics that is concerned with the major, general features of a country’s economy, such as the level of inflation, unemployment, or interest rates.

4.     Automation: Noun

Definition: In manufacturing, a system or method in which many or all of the processes of production, movement, and inspection of parts and materials are automatically performed or controlled by self-operating machinery, electronic devices, etc.

5.     Empirical: Adjective

Definition: Derived from or relating to experiment and observation rather than theory.

The increase of productivity due to technology cause higher unemployment rate of the changing society. Even though this argument has been supported by a majority of experts, it has only been verified on a macro-level. The article focus on depth micro-level analysis of testify the influence of the new digital technologies on the nowadays manufacturing industry and the possible characteristics of employment in the future.

Concept question:

1.How to understand the term of “Industry 4.0” in the introduction part? Why does the author try to set up the question of the expanding effect of the new technologies under the umbrella of Industry 4.0?

2.How does the different finds of technologies affect the employment according to the former studies cited in the literature review?

3.What's your answer to the four questions arose in the introduction?

4.Do you agree with the argument “jobs are replaced by technologies” after reading the article? Why?

 Questions:

1. What methods do the authors use to study this topic? 

2. How many levels do the authors summarize about the quantitative effects of innovation on employment? And summarize how they effect of innovation of the employment. 

3. What's the aim of the qualitative effects of innovation on employment? Does this method have the limitation, why?

4. How digital technology affect employment according to the analysis of the selected cases?

5. What's your opinion about digital technologies will replace some occupation?

Https://www.forbes.com/sites/marcoannunziata/2018/08/10/seven-steps-to-success-or-failure-for-made-in-china-2025/#30baf23d4057

Https://www.washingtonpost.com/news/monkey-cage/wp/2018/05/03/what-is-made-in-china-2025-and-why-is-it-a-threat-to- Trumps-trade-goals/?noredirect=on&utm_term=.bdc48afd3931


2.
In the case of automatic car driving, google's automatic car rival Uber's automatic car once had an accident. Uber crash shows 'catastrophic failure' of self-driving technology. It also shows that at the current time, the car can not achieve the human ability to process information.

Https://www.theguardian.com/technology/2018/mar/22/self-driving-car-uber-death-woman-failure-fatal-crash-arizona 

The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas.
https://www.weforum.org/about/world-economic-forum

2.Industry 4.0- Industry 4.0 thinking and the industrial Internet of Things are transforming manufacturing and industrial operations through deeper visibility, greater connectivity and enormous potential for improvement. Companies using Industry 4.0 based principles are finding that they bring people, processes and equipment together, from sensors and smart devices to entire systems. Connectivity deepens operators’ understanding of events and sharpens decision-making.

3.Skill Based Technical Change (SBTC)- Skill-biased technological change (SBTC) a shift in the production technology that favours skilled over unskilled labour by increasing its relative productivity and, therefore, its relative demand . For example, one scholarly colloquium on the subject that included many prominent labour economists estimated that technological change was responsible for over 40% of the increase in inequality. Other factors like international trade, decline in real minimum wage, decline in unionization and rising immigration, were each responsible for 10–15% of the increase.

4. Valenduc and Vendramin  2016-This paper sets out to analyse the digital economy and changes in work by sifting elements of continuity from others that are radically new. Aspects examined are: genuinely new features encountered in the digital economy model; major instances of technological change observable in the working environment; new forms of work in the digital economy; distance and employment relationships; challenges entailed in regulating a labour world shorn of its customary structures.

5.World Economic Forum 2016- The Fourth Industrial Revolution is interacting with other socio-economic and demographic factors to create a perfect storm of business model change in all industries, resulting in major disruptions to labour markets. New categories of jobs will emerge, partly or wholly displacing others. The skill sets required in both old and new occupations will change in most industries and transform how and where people work.

 

 

2.     Valenduc & Vendramin 2016: The research in 2016 analyses the digital economy and
the transformation of work, and looks at new forms of work-- virtual work, in
the digital economy. In the final part of the article, it reappraises the
meaning of work in professional environments where virtual worlds cross over
into real life.

 

3.     GPTs , which is "General Purpose Technologies"  It
refers to technologies that can affect an entire economy (usually at a national
or global level). GPTs have the potential to drastically alter societies
through their impact on pre-existing economic and social structures. Examples
include the steam engine, railroad, interchangeable parts, electricity,
electronics, material handling, mechanization, control theory, (automation),
the automobile, the computer, the Internet, medicine and the blockchain. 
which are radical
new technologies that spread in several different industrial sectors, providing
not only the possibilities to enhance the efficiency of the existing product or
processes, but also to transform them radically.

 

4.     Skill-biased Technical Changes (SBTC):
Skill-Biased
Technical Change is a shift in the production technology that favors skilled
over unskilled labor by increasing its relative productivity and, therefore,
its relative demand. Traditionally, technical change is viewed as
factor-neutral. However, the observed rapid rise in the relative wage of
skilled workers in conjunction with an upward trend in their relative supply
means that recent technological change has been skill-biased.

 

5.     Industry 4.0- Industry 4.0 thinking and the industrial Internet of Things are transforming manufacturing and industrial operations through deeper visibility, greater connectivity and enormous potential for improvement. Companies using Industry 4.0 based principles are finding that they bring people, processes and equipment together, from sensors and smart devices to entire systems. Connectivity deepens operators’ understanding of events and sharpens decision-making.

 

6.     World Economic Forum
The World Economic Forum is the International Organization for Public-PrivateCooperation. The Forum engages the foremost political, business and other leaders of society to shape global, regional and industry agendas.

 

Freddi, Daniela • 2009 Apr
Published in Journal Research Policy. Volume 38. Issue 3. Page 548 - 558.

SBTC versus trade
The SBTC approach is supported on the technological-knowledge biased progress in favour of
skilled labour. This bias, arising from both the market-size effect and the price effect induced by the
increased skilled-labour supply (e.g. Acemoglu, 2003; Afonso, 2006, 2008), would lead to a faster productivity growth in skilled labour. The productivity increase,
in turn, enlarges college enrolment and thus the market for skill-complementary technologies. This
process keeps the expansion of skilled-labour demand ahead of that of skilled-labour supply.

Trade-based explanations stem from the insights of the Stolper–Samuelson theorem (e.g. Leamer, 1994; Wood, 1995; Borjas et al., 1997). According to the
Stolper–Samuelson theorem, a decrease in the relative price of imported goods must reduce the return on the factor that is used intensively in their production. Hence, developed countries would specialize in skill intensive goods, thus raising the relative demand for skilled labour and thus its relative wage. In developing countries, the outcome isexpectedly symmetrical.
Reference  

Almeida, Alexandre • 2010 Oct 07
Published in Journal Applied Economics Letters. Volume 17. Issue 15. Page 1497 - 1501. 

^{4th industrial revolution: Cyber physical system.}
2. General Purpose Technologies (GPTs) are technologies that can affect an entire economy (usually at a national or global level). GPTs have the potential to drastically alter societies through their impact on pre-existing economic and social structures. Examples include the steam engine, railroad, interchangeable parts, electricity, electronics, material handling, mechanization, control theory (automation), the automobile, the computer, the Internet, medicine and the blockchain.
3. Skill Biased Technical Change is a shift in the production technology that favours skilled over unskilled labor by increasing its relative productivity and, therefore, its relative demand.
4. World Economic Forum 2016  "Our world is an interconnected system straining under the burden of its own complexity. The Fourth Industrial Revolution and other factors are combining to make the global environment more unpredictable and difficult to navigate.

In year 2016, the World Economic Forum put in place the framework that will ensure our platform serves an enduring role as the “operating system” for the increased multistakeholder and interdependent cooperation this complexity requires. Our role has always been to connect the dots, to provide leaders with a space to proactively focus on the future and develop a forward-looking strategic view in a world that is increasingly interconnected and, at the same time, absorbed by the challenges of the past."
https://www.weforum.org/reports/annual-report-2015-2016
5. Valenduc & Vendramin 2016 is a research paper wrote by Valenduc and Vendramin. The paper sets out to analyse the digital economy and changes in work by sifting elements of continuity from others that are radically new. The study concludes with some considerations on the meaning of work in environments characterised by an increasing interplay of the virtual and the real.
https://dial.uclouvain.be/pr/boreal/object/boreal:173373

2.General-purpose technologies (GPTs) are technologies that can affect an entire economy (usually at a national or global level)GPTs have the potential to drastically alter societies through their impact on pre-existing economic and social structures. Examples include the steam engine, railroad, interchangeable parts, electricity, electronics, material handling, mechanization, control theory (automation), the automobile, the computer, the Internet, medicine and the blockchain.

3.Skill-biased technical change is a shift in the production technology that favors skilled over unskilled labor by increasing its relative productivity and, therefore, its relative demand.

4.Hans Peter Moravec (born November 30, 1948, Kautzen, Austria) is an adjunct faculty member at the Robotics Instituteof Carnegie Mellon University. He is known for his work on robotics, artificial intelligence, and writings on the impact of technology. Moravec also is a futurist with many of his publications and predictions focusing on transhumanism. Moravec developed techniques in computer vision for determining the region of interest (ROI) in a scene.

2. GPTs (General Purpose Technologies): 
It refers to technologies that can affect an entire economy (usually at a national or global level). GPTs have the potential to drastically alter societies through their impact on pre-existing economic and social structures. Examples include the steam engine, railroad, interchangeable parts, electricity, electronics, material handling, mechanization, control theory,(automation), the automobile,
the computer, the Internet, medicine and the blockchain.

3. Valenduc and Vendramin  2016:
This paper sets out to analyse the digital economy and changes in work by sifting elements of continuity from others that are radically new. Aspects examined are: genuinely new features encountered in the digital economy model; major instances of technological change observable in the working environment; new forms of work in the digital economy; distance and employment relationships; challenges entailed in regulating a labour world shorn of its customary structures.

4. Skill-biased Technical Changes (SBTC):
It is a shift in the production technology that favors skilled over unskilled labour by increasing its relative productivity and, therefore,
its relative demand. Traditionally, technical change is viewed as
factor-neutral. However, the observed rapid rise in the relative wage of skilled workers in conjunction with an upward trend in their relative supply means that recent technological change has been skill-biased.

 

opportunities for both consumption and business models, 

thus changing contemporary and future ways of consuming, 

enterprising and working.
2.Demonization n.
definition:The reinterpretation of polytheistic deities as evil, lying demons by other religions, generally monotheistic and henotheistic ones. The term has since been expanded to refer to any characterization of individuals, groups, or political bodies as evil.
eg:The attention paid (in particular by media) to a number of spectacular successes in this respect has lent widespread appeal to the idea that technology always 

increases productivity, as has the demonization of computers and robots as being to blame for large-scale job losses, especially in the manufacturing industry.
3.pervasiveness n./pəˈveɪsɪvnəs/
definition:the quality of spreading widely or being present throughout an area or a group of people.
eg:and we believe that the novelty and pervasiveness of digital technologies require more in-depth micro-level analysis.

is a name given to the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things,  cloud computingand cognitive computing. Industry 4.0 is commonly referred to as the fourth industrial revolution.

is the fourth major industrial era since the initial Industrial Revolution of the 18th century. It is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres, collectively referred to as cyber-physical systems.It is marked by emerging technology breakthroughs in a number of fields, including robotics, artificial intelligence, nanotechnology, quantum computing, biotechnology, the Internet of Things, the Industrial Internet of Things (IIoT), fifth-generation wireless technologies (5G), additive manufacturing/3D printing and fully autonomous vehicles.

 

a shift in the production technology that favors skilled over unskilled labor by increasing its relative productivity and, therefore, its relative demand

2.SBTC:Skill-Biased Technical Change (SBTC thereafter) is a shift in the production technology that favors skilled (e.g., more educated, more able, more experienced) labor over unskilled labor by increasing its relative productivity and, therefore, its relative demand.

3.GPTs:General-purpose technologies (GPTs) are technologies that can affect an entire economy (usually at a national or global level)GPTs have the potential to drastically alter societies through their impact on pre-existing economic and social structures. Examples include the steam engine, railroad, interchangeable parts, electricity
electronics, material handling, control theory the automobile, the computer, the Internet medicine and the blockchain.

4.ICT:Information and communications technology or (ICT) is extensional term for information technology (IT) that stresses the role of unified communications and the integration of telecommunications(telephone lines and wireless signals), computers as well as necessary enterprise software, middleware, storage, and audio-visual systems, which enable users to access, store, transmit, and manipulate information.

The term ICT is also used to refer to the convergence of audio-visual and telephone networks with computer networks through a single cabling or link system. There are large economic incentives (huge cost savings due to elimination of the telephone network) to merge the telephone network with the computer network system using a single unified system of cabling, signal distribution and management.

3D printing is any of various processes in which material is joined or solidified under computer control to create a three-dimensional object,with material being added together (such as liquid molecules or powder grains being fused together). 3D printing is used in both rapid prototyping and additive manufacturing.
https://en.wikipedia.org/wiki/3D_printing
2.Internet of Things.
The Internet of things (IoT) is the network of physical devices, vehicles, home appliances, and other items embedded with electronics, software, sensors, actuators, and connectivity which enables these things to connect, collect and exchange data. https://www.google.com.hk/search?safe=strict&ei=7P3MW_aoGoHDgAasiYLgAw&q=Internet+of+Things&oq=Internet+of+Things&gs_l=psy-ab.3..0i67k1j0l9.1608.2937.0.4333.1.1.0.0.0.0.65.65.1.1.0....0...1c.1j2.64.psy-ab..0.1.65....0.wumJNbYiyCM
3. Industry 4.0 is a name given to the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things, cloud computing and cognitive computing. Industry 4.0 is commonly referred to as the fourth industrial revolution. https://en.wikipedia.org/wiki/Industry_4.0

2.     Difference between digitalization and digitization: They look similar, but digitization is where digitalization began. In digitization, all customer files, product manuals, repair handbooks were hard copies. This meant that the service technician would arrive with a stack of paper that might include anything from the customer’s name and address to the product’s history and a listing of replacement parts to a datebook listing the day’s appointments. Digitization is the process of making all of this information available and accessible in a digital format.
https://www.coresystems.net/blog/difference-between-digitization-digitalization-and-digital-transformation

Tackle: try to deal with something or someone 

Digitalization:  to put information into digital form so that it can be used by computer. 

Causal: means not formal. 

Absorption:  a process of taking something into another substance. 

Substitute: to use something instead of another thing. 

Adoption:  an act of legally taking a child to be taken care of as your own. 

In China, the focus is on artificial intelligence, intelligent finance, healthcare, and smart logistics. They have set aside an area called TEDA which stands for Tianjin Economic-Technological Development Area and they are focusing on not only development but connectivity and collaboration. They hope to further technology in manufacturing to increase their efficiency and intelligence in the field.
2. Internet of things (IoT)
The internet of things, or IoT, is a system of interrelated computing devices, mechanical and digital machines, objects, animals or people that are provided with unique identifiers (UIDs) and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction. 

Benefit of loT 

improve the customer experience; 

save time and money; 

enhance employee productivity; 

integrate and adapt business models; 

make better business decisions; 

generate more revenue. 

2.      The human society has been through several revolutions of science and technology. How do people get out of unemployment caused by new technology or new machines?

3.      What's your opinion to the four questions in the introduction?

4.      Try to explain Industry 4.0.

 

 Q1: What is the Industry 4.0?
 Q2: How is the pace of digitalisation?
 Q3: What is the qualitative effects brought by digitalisation?
 Q4: What is the quantitative effects brought by digitalisation?
 Q5: What skill can be substituted by the digitalisation?

Industry 4.0: It is a name given to the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things, cloud computing and cognitive computing. Industry 3.0 is commonly referred to as the fourth industrial revolution. 

 
 

World Economic Forum 2016: One of the topics
of 2016 World Economic Forum is to measure the Fourth Industrial Revolution and
its socio-economic impact on labor markets. It is expected that it will lead to
a net loss of over 5 million jobs in 15 major developed and emerging economies. 

 

Supercomputer Watson:Watson is an IBM supercomputer that combines artificial intelligence (AI) and sophisticated analytical software for optimal performance as a "question answering" machine. The supercomputer is named for IBM's founder, Thomas J. Watson. 

“General Purpose Technologies (GPTs) (Bresnahan and Trajtenberg 1995; Helpman 1998) which are radical new technologies that spread in several different industrial sectors, providing not only the possibilities to enhance the efficiencof the existing product or processes, but also to transform them radically.”

Paraphrase: The term “general-purpose technology”, or GPT is a new technology which usually reserved for changes that transform both household life and the ways in which firms conduct business.

Source: https://www.nyu.edu/econ/user/jovanovi/JovRousseauGPT.pdf

 

2. Industry 4.0:

“In particular, according to this study, digital technologies that are applicable in manufacturing, usually named under Industry 4.0, will impact industrial sectors in three different waves: automotive and logistics will be the first sub-sectors to see significant technological changes, followed by machineries and mechanical engineering, and by aerospace and chemistry.”

Paraphrase: Industry 4.0 is a name given to the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things, cloud computing and cognitive computing. Industry 4.0 is commonly referred to as the fourth industrial revolution.

Source:https://en.wikipedia.org/wiki/Industry_4.0

 

3. Supercomputer Watson:

“The ability of these robots is documented in particular by the case of the supercomputer Watson, developed by IBM, which competed and won against two humans in a famous American TV game show (Brynjolfsson and McAfee 2014).”

Paraphrase:Watson is a question-answering computer system capable of answering questions posed in natural language, developed in IBM

Source:https://en.wikipedia.org/wiki/Watson_%28computer%29

 

4.World Economic Forum:

“A number of studies have been produced so far, mainly trying to tackle the issue of the number of jobs that might be displaced due to the possibility of substituting human labour with machines (Frey and Osborne 2013; World Economic Forum 2016).”

Paraphrase: The World Economic Forum is the International Organization for Public-Private Cooperation.

Source:https://www.weforum.org

 

5.Input–output model:

“they do not identify technological unemployment while, in case of the use of input–output model (Leontief and Duchin 1986), do not identify compensation effects”

Paraphrase: In economics, an input–output model is a quantitative economic technique that represents the interdependencies between different branches of a national economy or different regional economies.

Source: https://en.wikipedia.org/wiki/Input–output_model

https://www.theengineer.co.uk/opening-our-eyes-to-potential-industry-4-0-digitalisation/

2. Digital Transformation challenges and solution:
i. Employee Pushback
ii. Lack of Expertise to Lead Digitisation Initiatives
iii. Organisational Structure
iv. Lack of Overall Digitisation Strategy
v. Limited Budget
https://medium.com/iotforall/top-5-digital-transformation-challenges-and-how-to-overcome-them-ec60a5254ded

Industry 4.0 is a revolution transforming economics, jobs and the society. Under industry 4.0, digital technologies are combining through analytics, artificial intelligence and many fields to create digital enterprises that are both interconnected and capable of informed decision-making. Digital enterprises can communicate, analyze and use data to drive intelligent action in the physical world.

Skill-Biased Technical Change is a shift in the production technology that favors skilled over unskilled labor by increasing its relative productivity and, therefore, its relative demand. Traditionally, technical change is viewed as factor-neutral. However, the observed rapid rise in the relative wage of skilled workers in conjunction with an upward trend in their relative supply means that recent technological change has been skill-biased.

A general purpose technology or GPT is a term coined to describe a new method of producing and inventing that is important enough to have a protracted aggregate impact. Electricity and information technology (IT) probably are the two most important GPTs so far.

For over four decades, the World Economic Forum’s mission – improving the state of the world – has driven the design and development of the Annual Meeting programme. The world’s political and business leaders, plus the usual smattering of celebrities will attend to the World Economic Forum’s annual conference 2016. The four days of debate will focus on the following topics: the rise of the robots, terrorism and migration crisis, market turmoil and climate change.

 

IoT is simple: it’s about connecting devices over the internet, letting them talk to us, applications, and each other. IoT is more than smart homes and connected appliances, however. It scales up to include – think of that monitor utility use, or smart bins that signal when they need to be emptied – and industry, with connected sensors for everything from tracking parts to monitoring crops.

 

Q2: Do you think artificial is beneficial for employment ? If you don't agree with this opinion, please show your reason ?

Q3: what’s the difference between the nineteenth century and twentieth century about technical change towards skilled labour? 

Q4: what’s the disadvantage of firm level in the quantitative effects of innovation? 

1.       What is the importance of industry 4.0 to manufacture companies?

2.       What does digitalization affect employment on macro-level?

3.        Why the robot cannot replace human labours nowadays?

4.       What is the quantitative effects of innovation on employment at the firm level?

a new idea or method that is being tried for the first time, or the use of such ideas or methods:

 

the fact of being present and noticeable in every part of a thing or place:

 

a situation or statement that seems impossible or is difficult to understandbecause it contains two opposite facts or characteristics:

 

very exciting to look at;especially great:

 

he reinterpretation of polytheistic deities as evil, lying demons by other religions, generally monotheistic and henotheistic ones:

 

a pretended reason for doing something that is used to hide the real reason:

 

 

Technological change: In essence, technological change covers the invention of technologies (including processes) and their commercialization or release as open source via research and development (producing emerging technologies), the continual improvement of technologies (in which they often become less expensive), and the diffusion of technologies throughout industry or society (which sometimes involves disruption and convergence).

 

Manufacturing: Manufacturing is the production of merchandise for use or sale using labour and machines, tools, chemical and biological processing, or formulation. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale.

 

Industry 4.0: Industry 4.0 is a name given to the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things, cloud computing and cognitive computing. Industry 4.0 is commonly referred to as the fourth industrial revolution.

 

Employment: Employment is a relationship between two parties, usually based on a contract where work is paid for, where one party, which may be a corporation, for profit, not-for-profit organization, co-operative or other entity is the employer and the other is the employee.

 

Skills: A skill is the ability to carry out a task with determined results often within a given amount of time, energy, or both. Skills can often be divided into domain-general and domain-specific skills.

the administration of digitalis for the treatment of certain heart disorders

pervasiveness: n.

the quality of filling or spreading throughout

demonization: n.

to represent as diabolically evil

regime: n.

the organization that is the governing authority of a political unit

constrain: vt.

hold back

equilibrium n.

equality of distribution

paradox: n.

(logic) a statement that contradicts itself

adroitness in using the hands

 

Skill-Biased Technical Change is a shift in the production technology that favors skilled over unskilled labor by increasing its relative productivity and, therefore, its relative demand. Traditionally, technical change is viewed as factor-neutral. However, the observed rapid rise in the relative wage of skilled workers in conjunction with an upward trend in their relative supply means that recent technological change has been skill-biased.
3. Supercomputer Watson:

“The ability of these robots is documented in particular by the case of the supercomputer Watson, developed by IBM, which competed and won against two humans in a famous American TV game show (Brynjolfsson and McAfee 2014).”

Paraphrase:Watson is a question-answering computer system capable of answering questions posed in natural language, developed in IBM
4. World Economic Forum 2016: One of the topics of 2016 World Economic Forum is to measure the Fourth Industrial Revolution and its socio-economic impact on labor markets. It is expected that it will lead to a net loss of over 5 million jobs in 15 major developed and emerging economies.
5. Input–output model:

“they do not identify technological unemployment while, in case of the use of input–output model (Leontief and Duchin 1986), do not identify compensation effects”

Paraphrase: In economics, an input–output model is a quantitative economic technique that represents the interdependencies between different branches of a national economy or different regional economies.

Industry 4.0 is a name given to the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things, cloud computing and cognitive computing. Industry 4.0 is commonly referred to as the fourth industrial revolution.

Industry 4.0 fosters what has been called a "smart factory". Within modular structured smart factories, cyber-physical systems monitor physical processes, create a virtual copy of the physical world and make decentralized decisions. Over the Internet of Things, cyber-physical systems communicate and cooperate with each other and with humans in real-time both internally and across organizational services offered and used by participants of the value chain.

World Economic Forum (WEF)

The World Economic Forum (WEF), based in Cologny-Geneva, Switzerland, was founded in 1971 as a not-for-profit organization. It gained formal status in January 2015 under the Swiss Host-State Act, confirming the role of the Forum as an International Institution for Public-Private Cooperation. The Forum's mission is cited as "committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas".

The WEF is best known for its annual meeting at the end of January in Davos, a mountain resort in Graubünden, in the eastern Alps region of Switzerland. The meeting brings together some 2,500 top business leaders, international political leaders, economists, celebrities and journalists for up to four days to discuss the most pressing issues facing the world.

Demonization

Demonization is the reinterpretation of polytheistic deities as evil, lying demons by other religions, generally monotheistic and henotheistic ones. The term has since been expanded to refer to any characterization of individuals, groups, or political bodies as evil.

Digitalisation 

Digitization, less commonly digitalization, is the process of converting information into a digital (i.e. computer-readable) format, in which the information is organized into bits. The result is the representation of an object, image, sound, document or signal (usually an analog signal) by generating a series of numbers that describe a discrete set of its points or samples. The result is called digital representation or, more specifically, a digital image, for the object, and digital form, for the signal. In modern practice, the digitized data is in the form of binary numbers, which facilitate computer processing and other operations, but, strictly speaking, digitizing simply means the conversion of analog source material into a numerical format; the decimal or any other number system that can be used instead.

Empirical evidence

Empirical evidence is the information received by means of the senses, particularly by observation and documentation of patterns and behavior through experimentation.

Pharmaceutical industry

The pharmaceutical industry discovers, develops, produces, and markets drugs or pharmaceutical drugs for use as medications. Pharmaceutical companies may deal in generic or brand medications and medical devices. They are subject to a variety of laws and regulations that govern the patenting, testing, safety, efficacy and marketing of drugs.

A name given to the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things, cloud computing and cognitive computing. Industry 4.0 is commonly referred to as the fourth industrial revolution. 

Digitalization
More and more customer services and payment methods went digital, especially in China, people can literally going out only with their phone and can deal affairs on almost every aspect of life. 

AlphaGo in the chess game suggested the rapid development in this field. But there is still some problem, AI cannot create, the working principle is running code, so this tech in only can be use on repeat work.

Digitization is about converting analog to digital content. In short, digitization is the process of changing from analog to digital form 

Digitalization is when using digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business. 

 

2.      Innovation 

Innovation as a countable noun, means a new idea, method, or invention. For example, recent innovations in English teaching. 

Innovation as an uncountable noun, means the introduction of new ideas or methods. For example, we need to encourage innovation in industry. 

 

Empirical is an adjective, which means being based on scientific testing or practical experience, not on ideas. Thus, empirical result is the information received by means of the senses, particularly by observation and documentation of patterns and behavior through experimentation. 

 

Paradox as a countable noun, means a situation that seems strange because it involves two ideas or qualities that are very different. For example, it’s a paradox that in such a rich country there can be so much poverty. 

Paradox as an uncountable noun, means the use of statements that are a paradox in writing or speech. 

 

Industry 4.0 is a name given to the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things, cloud computing and cognitive computing. 

 

 

 

Skill-biased Technical Changes (SBTC) is a shift in the production technology that favors skilled over unskilled labor by increasing its relative productivity and, therefore, its relative demand.

 

Moravec paradox:Moravec's paradox is the discovery by artificial intelligence and robotics researchers that, contrary to traditional assumptions, high-level reasoning requires very little computation, but low-level sensorimotor skills require enormous computational resources. As Moravec writes, "it is comparatively easy to make computers exhibit adult level performance on intelligence tests or playing checkers, and difficult or impossible to give them the skills of a one-year-old when it comes to perception and mobility"

 

Fourth Industrial Revolution:The Fourth Industrial Revolution (4IR) is the fourth major industrial era since the initial Industrial Revolution of the 18th century. It is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres, collectively referred to as cyber-physical systems.

 

Human Device Interface: A human interface device or HID is a type of computer device usually used by humans that takes input from humans and gives output to humans.

The term "HID" most commonly refers to the USB-HID specification. The term was coined by Mike Van Flandern of Microsoft when he proposed that the USB committee create a Human Input Device class working group. The working group was renamed as the Human Interface Device class at the suggestion of Tom Schmidt of DEC because the proposed standard supported bi-directional communication.

 

Internet of things: The Internet of things (IoT) is the network of physical devices, vehicles, home appliances, and other items embedded with electronics, software, sensors, actuators, and connectivity which enables these things to connect, collect and exchange data.

It is a high-tech plan proposed by the German government. Also known as the fourth industrial revolution. The investment is expected to reach 200 million euros to improve the computerization, digitization and intelligence of the manufacturing industry. The core vocabulary of Industry 4.0 is the intelligent integrated sensing system, which is highly automated and can actively eliminate production obstacles. It is also mentioned in China Manufacturing 2025 and the US Manufacturing Revitalization Plan.

 

General-purpose technologies (GPTs) are technologies that can affect an entire economy (usually at a national or global level). 

e.g. in ancient: Smelting of ore/Early metal tools/8000-7000 BC.

now: Computer/Digital Revolution/20th Century.

 

Institute for Prospective Technological Studies and European science and technology observatory

It is a branch of theoretical economics, seeking to explain supply, demand, and price behavior within the framework of multiple interactive markets in the overall economy.

 

Information and communication technology; Communication technology and information technology in the past are two completely different categories: communication technology focuses on the transmission technology of message propagation, while information technology focuses on the encoding or decoding of information, and the transmission method in communication carriers with the development of technology. The technology is slowly becoming inseparable, and gradually merges into a category.

In the paper, When ICT started to diffuse widely, the skill structure in the US not change so much than in years 1973-1983, So there was no evidence show the link between computerization, upskilling and wage inequality. (Howell 1996).

 

The computer system was initially developed to answer questions on the quiz show Jeopardy! and, in 2011, the Watson computer system competed on Jeopardy! against legendary champions Brad Rutter and Ken Jennings winning the first-place prize of $1 million.

In recent years, the Watson was developed. It is no longer purely a question answering (QA) computing system designed from Q&A pairs but can now 'see', 'hear', 'read', 'talk', 'taste', 'interpret', 'learn' and 'recommend'.

https://www.google.com/selfdrivingcar/ 

Waymo began as the Google self-driving car project in 2009. In recent years, it developed fast and make progress each year. In 2018, they partnered with Jaguar to create the world's first premium electric self-driving vehicle: the Jaguar I-PACE.

The incident report (a company that develops autonomous driving technology in California must be public) shows that the Waymo car has been involved in 30 small crashes, but only one incident was caused by Waymo.

Besides, after the Uber and Tesla incidents, the disturbing problems were re-emerged by public.

In fact, in 2016, Arizona had an average of nearly 350 crashes and 2 deaths per day. This is also the promoter of autonomous driving technology, talking about the fact that nearly 40,000 people die on American roads every year, and human error has caused more than 90% of car accidents. In theory, the machine will not be drunk, will not be distracted, and will not be drowsy, which will undoubtedly greatly weaken these horrifying data.

 

Unlike traditional assumptions, human high-level intelligence requires only very little computing power, such as reasoning, but unconscious skills and intuition require great computing power.    

Therefore, Brooks will pursue a new direction in the research of artificial intelligence and robotics. He decided to build a machine that was unrecognizable and only capable of sensing and acting

 

income elasticity of demand: In economics, income elasticity of demand measures the responsiveness of the quantity demanded for a good or service to a change in the income of the people demanding the good. 

output elasticity: In economics, output elasticity is the percentage change of output (GDP or production of a single firm) divided by the percentage change of an input. 

 

Originally Industry 4.0 was conceived in the context of manufacturing, yet this has changed. So, while all these industries fall under the scope of Industry 4.0 and are tackled in the academic, governmental and industrial collaborations which led to ‘Industries 4.0’ but also to the evolutions after the term was coined you might still often read that Industry 4.0 is only about manufacturing, smart factories and activities, technologies and processes in the broader context of the factory, production and their most closely related areas. There is also a tendency to limit Industry 4.0 to (groups of) technologies such as IoT (the Internet of Things).

Q2: What are the qualitative effects of innovation on employment?

Q3: How digital technology effects the employment?

Q4: Why manufacturing companies have a strategy on the application of digital technologies?

Q5: Why is IOT useful?

definition: The use of digital technologies to change a business model and provide new revenue and value-producing opportunities; it is the process of moving to a digital business.

synonym : numeralization, quantization

eg:The present work tackles the issue of the effects of digitalisation on employment.

2.Pervasiveness

definition: the quality of filling or spreading throughout.

Synonym: universality

eg:I believe that the novelty and pervasiveness of digital technologies require more in-depth micro-level analysis in order to understand the extent to which new digital technologies are currently employed by leading manufacturing companies and the ways new technologies are affecting employment.

3.Demonization

definition: The reinterpretation of polytheistic deities as evil, lying demons by other religions, generally monotheistic and henotheistic ones. The term has since been expanded to refer to any characterization of individuals, groups, or political bodies as evil.

eg:The attention paid (in particular by media) to a number of spectacular successes in this respect has lent widespread appeal to the idea that technology always increases productivity, as has the demonization of computers and robots as being to blame for large-scale job losses, especially in the manufacturing industry.

4.Macroeconomic

definition: the study of financial systems at a national level.

eg:As summarised by this author, the quantitative effects of innovation on employ- ment can be studied at three different levels: at the firm, industry or macroeconomic level.

5.Paradox

definition: a situation that seems strange because it involves two ideas or qualities that are very different

eg:Other authors questioned the actual possi- bility to fully overcome the Polany’s paradox, sustaining that currently this has not happened yet as there are tasks that have proved to be very difficult to automate, in par- ticular those involving ‘‘flexibility, judgement and common sense’’ (Autor, 2015 p. 22).

6.Underpinning

definition: support from beneath

synonym: elements, basis, foundation,

eg:Even if, according to Andreopoulos and Tsotsos (2013) these products should still be considered as prototypes as the underpinning technologies are all improving quickly

industry 4.0 is a name given to the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things, cloud computingand cognitive computing.

 Industry 4.0 is the evolution to cyber-physical systems, representing the fourth industrial revolution on the road to an end-to-end value chain with Industrial IoT and decentralized intelligence in manufacturing, production, logistics and the industry.

It is a term coined to describe a new method of producing and inventing that is important enough to have a long-time impact and can affect an entire economy (usually at a national or global level). Electricity and information technology (IT) probably are the two most important GPTs so far.Examples include the steam engine, railroad, interchangeable parts, electricity, electronics, the automobile, the computer, the Internet, medicine.

 

 

Mass customisation refers to the ability to produce custom-made goods on a large scale at the same time as decentralising manufacturing to locations near to where the goods will be consumed and developing user-centric product design methods.

The Internet of Things will foster the development of cyber-physical systems (CPS) which make it possible to use a virtual representation of physical processes for their surveillance or control.

 

The hypothesis that a burst of new technology caused a rise in the demand for highly skilled workers that in turn led to a rise in earnings inequality  -- has become known as the Skill Biased Technical Change (SBTC) hypothesis.  

 

The Internet of things (IoT) is the network of physical devices, vehicles, home appliances, and other items embedded with electronics, software, sensors and connectivity which enables these things to connect, collect and exchange data. Simply, the Internet of Things is made up of devices – from simple sensors to smartphones and wearables – connected together"

a name given to the current trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the Internet of things, cloud computing and cognitive computing. Industry 4.0 is commonly referred to as the fourth industrial revolution.

skill-biased technical change (SBTC): 

a shift in the production technology that favours skilled over unskilled labour by increasing its relative productivity and, therefore, its relative demand.

Google self-driving car:

Google's development of self-driving technology began in 2009 at the company's secretive X lab run by co-founder Sergey Brin. The Google self-driving car project is now Waymo. Waymo began as the Google self-driving car project in 2009. It stands for a new way forward in mobility. It is a self-driving technology company with a mission to make it safe and easy for people and things to move around—without the need for anyone in the driver’s seat.

Internet of things (IoT):

the network of physical devices, vehicles, home appliances, and other items embedded with electronics, software, sensors, actuators, and connectivity which enables these things to connect, collect and exchange data.

Skill-Biased Technical Change is a shift in the production technology that favors skilled over unskilled labor by increasing its relative productivity and, therefore, its relative demand. 

https://scholar.google.co.uk/citations?user=E7gOgRsAAAAJ&hl=en&oi=sra

2. Ground truth 

the social implication geographic information system 

3. GPTs

general purpose technology

4. Industry 4.0

Tempted by this future expectation, the term “Industry 4.0” was established ex- ante for a planned “4th industrial revolution”, the term being a reminiscence of software versioning. 

https://link.springer.com/content/pdf/10.1007/s12599-014-0334-4.pdf

1. Robot may affect employment negatively from micro aspect.  But it not sure what effect it causes from Macro level. The scholars haven't meet an agreement because AI have not acquire some kinds of human skills.
 2. Other kinds new technologies may bring opportunity on employment but its effect might be negative.
 3. Manufacturer will need the employee with new type of skills.

 

Q1:  Why does the author think micro-level analysis is more important than the macro-level in this topic of study?  

Q2:  According to former research, how much human labour jobs are possible to be taken by robots?   

Q3:  What are the digital applications included under the spectrum of Industry 4.0? Why are they important for the interviewed companies? 

Q4:  In page 395,what the author mean  if the growth of the innovative firms is made at the expenses of competitors, the overall system effect may be negative.

Q5:  Analysis the positive effect of digitalization on direct employment affect from the quantitative and qualitative both sides effects .

•    Digitalization increases the opportunities for consumption and business models
1.     What is AI

2.     What will happen if digitalization develops 

 3.   How does digitalization affect employment 

 4.  What is industry 4.0 

 

Question 2: many studies focus on jobs will be risk based on which two assumption? 

 

Question 3: the quantitative effects of innovation on employment can be studied at three different levels，what are those three different level?

 

Question 4: what is the leading result of 70 s favoured the growth of skilled workers who replaced unskilled labour?

 

Question 5: what is the example that author use to explain the limitation of artificial intelligence?

is the representation of an object, image, sound, document or a signal (usually an analog signal) by a discrete set of its points or samples. The result is called digital representation or, more specifically, a digital image.

 is a new idea, device or process. Innovation can be viewed as the application of better solutions that meet new requirements

Generally refers to something being present in all parts of a particular thing or place, and is used as a term in:

is an imitation of the operation of a real-world process or system.

is a statement that apparently contradicts itself and yet might be true

is an early sample, model, or release of a product built to test a concept or process or to act as a thing to be replicated or learned from

equipping something with or the usage of and associated automation by computers and software