Thought Starters: innovation, unicorns and a critical look at the sharing economy

The following is a look through articles, research and opinion pieces highlighting interesting trends, developments and changes in the world you and I live in, with an emphasis on technology.

Matt Ridley focuses on the forces that drive innovation forward, describing it as a more organic and chaotic environment that isn’t something that governments can readily turn on or off:

“The implications of this new way of seeing technology—as an autonomous, evolving entity that continues to progress whoever is in charge—are startling. People are pawns in a process. We ride rather than drive the innovation wave. Technology will find its inventors, rather than vice versa. Short of bumping off half the population, there is little that we can do to stop it from happening, and even that might not work.”

Activate provide a valuable look at the intersection of media and technology, focusing on the evolution of media usage, mobile messaging, audio, television and mobile apps. Good overview of how the landscape is likely to evolve over the next year:

Benedict Evans and Steven Sinofsky explore how smartphones represent the latest format in computers evolution, expanding technologies reach and ask what might be next in this cycle:

Wall Street Journal’s data visualisation (click through for the interactive version) makes apparent the massive growth in valuation of various venture funded startups over the last two years…exciting but also scarey:

Companies valued at $1 billion or more by venture-capital firms

The rapid growth of various unicorns has not come without its critics. Airbnb has accelerated the process of gentrification as property developers shift their focus from local residents to visiting tourists in markets already dealing with shortages of affordable housing. Steven Hill states:

“In a tight housing market, rent-controlled apartments are prey for what we might call “slamlords,” who promote condo conversions or renovations that would justify massive rent increases. Airbnb provides another layer—a powerful financial incentive as well as a technique for landlords to convert their apartment buildings into tourist hotels.”

Zeynep Tufekci looks more broadly at startups associated with the ‘sharing economy’, characterising them as fueling a growing gap  between the winners and losers in our current labour market:

“It sounds great, except for the ugly reality which lurks under the proliferation of “uber for…”s: the calcification of the two-tiered system between the overworked who need and can afford the “uber for…”s and the underpaid who are stuck in its 1099 economy of unstable, low wages.”

For the moment, the impact of the “gig economy” might be overstated. Figures from America’s Bureau of Labour Statistics points to self employment as actually decreasing in recent years (although that’s not to say this trend will continue):

The Self Employment Rate in the US

The majority of developed market economies are facing the challenge of an aging population as fertility rates decline so it’s interesting to look at those countries with large young populations with China and India standing out. A closer look at the statistics by John Poole reveals some more unsettling truths with China “missing” about 24 million girls between the ages of 0 and 19:

Half the world's teens live in these 7 countries
Countries with the largest teen populations

Climate change is reshaping our planet and forcing many indigenous ecosystems to adapt with a negative impact on our planet’s biodiversity. The effect on countries’ economies is more of a mixed bag according to Marshall Burke, Sol Hsiang, Ted Miguel’s forecast with winners and losers (click on the map for more detailed information). Whether such modelling can accurately accommodate all the different consequences of climate change remains to be seen:

Economic Impact of Climate Change on the World

The featured image is a mural by Italian artist Tellas in Shoreditch, London and published in StreetArtNews.