Unit 02: Sustainability of Productivity

Objectives: By the end of this lesson, the student will be able to

1. discuss the impact of game changing technologies on work and employment,
2. summarize the concept of platform economy.
All economies fluctuate in a business cycle. For a few years, growth is quite rapid,
output
and incomes rise, and unemployment falls. This is the ‘boom’. Then the cycle turns.
Growth slows,
and in a true recession the total output of the economy falls. This is the down-turn of
the cycle.
The industry life cycle focuses on those economic mechanisms that cause firms to be
born (to
‘enter’ an industry), to grow, and to die (to ‘exit’ an industry).
Industry Life Cycle
The industry structure refers to the characteristics of an industry, such as the number
of
firms operating in it, the distribution of power between them (whether some are very
large and
others very small, or whether they are all very large), and the degree to which new
firms find it
easy to enter the industry).
Mechanisms affecting industry structure include the dynamics of entry/exit,
technological
change and falling prices. The industry life cycle is characterized by the following
phases:
(examples are set in the year 2018 for reference)
1. A pre-market or hobbyist phase, in which the product is produced more as a hobby
or
luxury than for commercial purposes. (e.g. self-driving electric cars)10
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2.
An introductory phase, in which the product begins to be produced more for
commercial
purposes than for hobby reasons. (e.g. self-driving cars)
3.
A growth phase, in which the industry grows rapidly due to the emergence of a
standardized product. (e.g. electric cars - Tesla Model S)
4.
A mature phase, in which demand slackens and fewer technological opportunities
are
available. (e.g. ford focus car)
Game Changing Technologies
See Work-in-the-Digital-Age-1.pdf pages 133-140
●
Advanced Industrial Robotics - Involves machines which are designed to perform
industrial tasks automatically, with high programmability and the capacity to interact
with
their environment thanks to the use of digital sensors, usually seen in manufacturing
or
production lines.
●
Additive Manufacturing - Involving digitally controlled devices to add layer on layer of
material(s) to create objects from 3D digital models. This is usually done in the
industrial
sector such as architectural, medical, dental, aerospace, automotive, furniture and
jewelry.
●
Industrial Internet of Things - the use of connected sensors attached to different
objects
throughout the production process to feed live data to central computers, usually
seen on
the factory floor.11
Property of and for the exclusive use of SLU. Reproduction, storing in a retrieval system, distributing, uploading or posting online, or
transmitting in any form or by any
means, electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written
permission of SLU, is strictly prohibited.
●
Electric Vehicles - vehicles whose main system of propulsion depends on (externally
generated) electricity rather than fuel. (e.g. Tesla)
●
Industrial Biotech - the use of biological processes of living organisms for industrial
purposes, drawing on recent scientific insights such as systems genomics and
metabolomics. Uses enzymes and microorganisms to make bio-based products in
sectors
such as chemicals, food ingredients, detergents, paper, textiles and biofuels.
Advanced Industrial Robotics, Additive Manufacturing and Industrial Internet of
Things
involve innovations in the manufacturing production process, and have a very wide
applicability
across most manufacturing sectors.
Electric Vehicles and Industrial Biotech concern innovations of specific products (and
related processes), and have a more narrow applicability to particular sectors
Effects of Game Changing Technologies
1.
Increasing centrality of (digital) information – information as a key source value
2.
Mass Customization – flexible production process with interconnecting objects
3.
Servitization – technologies involve the gradual replacement of manufacturing as
traditionally understood by a type of economic activity that is closer to the traditional
concept of services
4.
Increased Labor/Resource Efficiency – more efficient use of materials and energy in
production
Effects of Game Changing Technologies on Work and Employment
1.
Upgrading of occupations
2.
Higher level of ICT competence
3.
Decline of repetitive and routine industrial work brought about by digital factories