Post on 14-Feb-2017
Risk, capital markets and the future: a new generation of policy reform
UTSNicholas GruenE ngruen@gmail.comT @ngruen1
19th Oct 2016Nudging towards innovation
1Not representing anyone but myself, though these ideas are being discussed on IA board. Part of the challenge to show how much innovation isnt on the innovation agenda
Outline2Nudging Public goods Emergent public goodsThe ecology of public and private goodsThe interface Digital public private partnerships
PoV: Mainly government policy but also business
Nudging Seen as an offshoot of behavioural economics But theyre also commonsenseDesigned defaults dont need BETaking a problem and reducing interventionMore $ into venture, startups and development Regulate minimum quotasSubsidiseUse soft power3
Superannuation and innovationWorldly wisdom teaches that it is better for reputation to fail conventionally than to succeed unconventionallySo does the lawDefence of usual professional practiceReverse legal onus of proofPublish sample portfolios
4
The technology stack5
6
7
The Platform
8Information Policy Hayek Arrow, Stigliz and Akerlof
The new information economics substantiates Hayek's contention that central planning faces problems because it requires an impossible agglomeration of information. It agrees with Hayek that the virtue of markets is that they make use of the dispersed information held by different participants in the market. But information economics does not agree with Hayek's assertion that markets act efficiently. Joseph Stiglitz The takeout good institutions for information will be hybrids
8
PIMS and Midata data sharing9Citizens AdviceCommunications Consumer PanelConsumer FocusInformation Commissioners Office (ICO)OFCOMOffice of Fair Trading (OFT)Which?
AMEEAvoco SecurebillmonitorBritish GasCallcreditEDF EnergyE.ONGarlikGoogleLloyds BankingMasterCardMoneysupermarket.comMydexnpowerRBSScottish PowerScottish Southern EnergyThe UK Cards AssociationThreeVisa
Windows on workplaces10
11
Windows on workplaces
What drives progress?12TradeCompetition TechnologyProgress is mostly market development
But . . . Economic progress requires new public goods
13
Effectiveness Efficiency
14
All but one of those public goods was information based15
Public goods goods that no-one will supply if the government doesnt Public goods
21st C Public goods
Google (1998)Wikipedia (2001)Blogs (early 2000s)Facebook (2004)Twitter (2006)
The economics of abundancePublic goods . . . present serious problems in human organisation.Vincent and Elenor Ostrom - 1977
He who receives an idea from me, receives instruction himself without lessening mine;as he wholights his taper at mine, receives light without darkening me. Thomas JeffersonPublic goods as a problemPublic goods as an opportunity
Total economic value ~ $ 1 tril
Revenue$60 bil
Tot Value
RevenueConsumer surplusConsumer Surplus$ 940 bilTot Value
RevenueConsumer surplus
Costs
Profit
19
Public goods . . . present serious problems in human organisation.Vincent and Elenor Ostrom - 1977
He who receives an idea from me, receives instruction himself without lessening mine;as he wholights his taper at mine, receives light without darkening me. Thomas JeffersonPublic goods as a problemPublic goods as an opportunity
What could be built in this space?The economics of abundance
21
22
Total economic value
Revenue$60 bil
Tot Value
RevenueConsumer surplusConsumer Surplus
Costs
Loss
Bulk Billing from MedicareOpen Access to dataNudgesConnections to e-healthDiagnosisPharmacovigilanceResearch
23
The takeoutShould govt look for innovative firms to fund/attract?Or for what unique value it can add?the question a good firm would ask24
25Platform A: a trip advisor for the artsFor consumers:Central repository of arts offeringsConsumers can consent to allowing service providers to access their data to eg. determine their preferences, track activity and provide feedback (reviews and recommendations) and network with people like themaccess to third party applications personalised recommendations/offers, travel/event planning, festival or event specific engagement etc ability to have a voice in expressing their conscious art, event or artist they would like to see
26Platform AFor promoters:better planning (locations, venues etc) based on more detailed venue and consumer informationbetter cheaper access to consumers based on preferences, activity, location etcbetter targeting of promotional activitiesability to identify potential artists to represent based on consumer preferences
27Platform AFor venues:better event planning and schedulingnew opportunities for collaborative events and promotionsnew applications offering cross sector customer identification and retention, affinity and behavioural analysis, offer/price management etcbetter targeting of promotional budgetsbetter targeting and measurement of free listsdata to optimise revenue yield over time like airlinesenriching art experience pre and post performanceassociated offerings such as parking, hospitality, merchandise, live streaming, event video/audio, backstage experiences etc
28Platform AFor artists:opportunities to extend consumer/patron engagement through more personalised communications, merchandise, blogs, private events, micro-patronage, crowdfunding etcsocial media apps engaging patrons and promotersstreaming video/audio options for participationFor arts and cultural funding organisations:data/evidence based assessment for funding allocation and measurementcontinuous arts participation data new and uplift rates
29Platform AFor developers:opportunities for social, mobile and web applications using unified arts data by overcoming the data and data access limitations (that have hampered previous efforts to offer solutions)new application integration opportunities with existing social, mobile and web applications, such as YouTube, Bandsintown, Facebook, iTunes, Google arts, Eventbrite, Meetup, Artshub, Foursquare and ticketing applications, etc.
30Platform AArts experience data platformDevelopment of a shared data platform to support services that improve collection, analysis and presentation of cultural and event information for audiences and organisations in the creative industries. The platform and initial business case will be developed in consultation with audience groups and organisations that hold the data and will drive new creative services and responses.
31
32
Rate My Professors, http://www.ratemyprofessors.comIntegrating state and private platformsRatings sites like Ratemyprofessors subject to strategic behaviour by:StudentsProfessorsOutsiders State apparatus can provide the infrastructure for integrity via ID validation A back-end for participating universities could build a rich validated, opt in social databaseSo too with schools, hospitals etc
Private endeavour, entreprenuerialismIntegrityGovernment validation of ID
Opt In
34
InterfacesOpen AustSeeClickFixCareMonkeyInternal InnovationOneTouchFixMyBudgete-taskrChaperoneMurmurDirectoryHealthKitPublic Private Partnerships23andMe Seeding altruismCode for Australia ValidationRate my profRate Govt Services
Building platforms Open Australia Sense-t
The interface35
36
An interface program in health and education 37
Care Monkey38
Allo Mobile39
Insert: 1 Ollo Mobile.mp439
40
41
42
Whats there not to like?
43
The ecology of private and public goods: Markets
Private GoodsTraders address their mutual self-interestPublic Goods
Marketplace for meeting Price discovery Liquidity
Public GoodsPrivate Goods[The public good of] Justice . . . is the main pillar that upholds the whole edifice. If it is removed, the great, the immense fabric of human society . . . must in a moment crumble into atoms.
Adam Smith
The ecology of public and private goods
46
Public goods Governments FamiliesCivic associationPhilanthropy Within teams
Cooperation and group-interest The fractal ecology of public and private goodsPrivate goodsIndividuals FirmsTeams
Competition and self-interest
Private and public goods on a platform
Private GoodsMeeting private needsLinking to other websitesPublic Goods
Google uses this information to rank sitesEveryone benefits
Google monetises with ads
48
49
50