Bill Gates at the WEF: creating innovations in a globalized economy
Bill Gates is catching on to us. Speaking at the World Economic Forum, Mr Gates made a call for “creative capitalism” — new forms of business that connect with the developing world and innovate around collaborations with the mass majority of the globe.
As it turns out, Bill Gates didn’t really have anything meaningful to say after that. His ideas for new ways of doing business didn’t include the innovations we use at northxsouth, including distributed development or network-based human resources. Surprisingly, Mr Gates wasn’t embarrassed at all about suggesting his “innovation”: a portion of the proceeds of some products will go to a charity that helps a developing country. Wow.
The reality is that Mr Gates’ observation is astute: a real and unexpected side effect of globalization is that there are billions of people living in the developing world and their markets aren’t “opening” up as easily as the existing multinationals of the world would like. Instead, these markets are pushing back with their own needs, born out of an imbalance in global wealth. In the software world, this push-back is manifested by either out-right piracy or adoption of open source platforms.
There will be innovations in doing business that mesh with these emerging markets. But they won’t look like Mr Gates’ tired re-hash of a “save the child” advertising scheme that was played out decades ago. They will look more like northxsouth and other businesses like us. A post by Paula Rooney on zdnet gets this exactly right:
Question for Bill: Does he mean companies like Canonical, whose popular Ubuntu Linux distribution got its start in Africa and is now spreading like wildfire? Is he referring to the One Laptop Per Child (OLPC) foundation, spearheaded by MIT’s Negroponte, whose $100 laptop runs XO, a free and open source operating system? Is Gates a secret admirer of open source? After all, he is the world’s richest man whose company found guilty of monopolistic practices, very restrictive in its licensing practices and not known for its benevolence.
A company like Microsoft cannot bring about the innovations that Gates calls for because the necessary innovations subvert the basis of their corporate structure. And the reality for dinosaurs like Microsoft is that they are a tiny minority surrounded by an ocean of people that, to date, have been excluded from their privileged club.
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