HIGH TECH INNOVATION DRIVES SUSTAINABLE DEVEOPMENT

1
HIGH TECH INNOVATIONDRIVES SUSTAINABLE DEVEOPMENT

• High Tech and the Triple Bottom Line

2
OVERVIEW OF PRESENTATION

• The high tech industry is characterized by
  constant, dynamic innovation and we just in the
  beginning of the Internet age
• Although we tend to take this innovation for
  granted, it serves critical human needs across
  the so-called triple bottom line of sustainable
  development
• Social progress
• Environmental protection
• Economic advancement
• Illustrations abound in this presentation
• Principles for regulating high tech without
  harming innovation

3
HIGH TECH IS INNOVATION

• We are in early stages of the information and
  communications revolution
• By 2001, fewer than 60 percent of US population
  had PCs (SOURCE US Department of Commerce)
• Phone, radio, electricity adoption rates all
  90-100, but took many years to get there
• PC penetration rates for many countries is still
  very low
• Innovation means doing OLD things more
  effectively and more efficiently
• AND doing entirely NEW things

4
THE INTERNET ERA HAS JUST BEGUN

• Although its roots go back further, the term
  Internet did not enter the popular lexicon
  until 1994
• Internet access rates vary widely by country and
  region
• Over half of US residents had access in 2001
• In Europe it was 18
• In Asia it was 4
• But Internet access and usage is exploding.
  Growth rates in 2001
• 10 in US
• 33 in EU
• 33 in Latin America
• 44 in Asia
• SOURCE International Telecommunications Union
  UN Commission on Trade and Development

5
THE INTERNET ERA HAS JUST BEGUN(contd)

• In 2001, there were 500 million Net users, with
  one-third of new users coming from the developing
  world
• E-commerce continues to grow rapidly, up 50
  worldwide in 2001
• Wider availability of broadband is anticipated to
  accelerate growth further
• SOURCE International Telecommunications Union
  UN Commission on Trade and Development

6
A GLIMPSE OF THE FUTURE

• We are moving into the age of pervasive
  computing and ubiquitous connectivity
• In the words of Internet pioneer, Vinton Cerf
• What is the future of the Internet? It will
  become the 21st Centurys telecommunications
  infrastructure. It will become our medium of
  commerce and education, of research and medicine.
  It will be come a repository of the knowledge,
  wisdom and creativity of the human spirit.
  Internet will be there, for everyone.
• The proliferation of broadband will help make
  this vision a reality
• SOURCE Crandall and Jackson, Criterion
  Economics, 2001

7
HIGH TECH SERVES HUMAN NEEDS

• Innovation in the high-tech industry makes
  sustainable development possible
• Sustainable development is the triple bottom
  line
• Social progress
• Environmental protection
• Economic advancement

8
THE SOCIAL DIMENSION

• Health care
• Greater computing power makes new diagnostic
  tools available
• New health monitoring technologies revolutionize
  medicine
• Peer to peer computing speeds medical research
• Education
• The Internet and wireless technologies bring
  education resources to remote locations
• PCs and the Internet can aid the teaching many
  subjects, including reading and the environment
• Communications
• The Internet and wireless phone connections can
  bring wide variety of services to remote rural
  villages

9
THE SOCIAL DIMENSION (contd)

• Art and Cultural Restoration
• New technology opens new opportunities
• Safety
• More cost-effective auto safety testing through
  simulation
• Advance auto safety systems make driving less
  hazardous
• GPS technology promotes driver security
• Advanced circuitry guard against electrical fires
• Emergency Response and Homeland Security
• Ground-penetrating radar and GPS make emergency
  response quicker and safer
• Smart chemical sensors detect hazardous gases
• Remote sensing and modeling used to detect
  changes in coastal regions, aid in military
  operations

10
TeraRecon 3-D Medical Imaging

• High-speed broadband, combined with fast
  microchips, enable detailed, 3D medical imaging
• 2D CT or MRI scans processed in centralized
  server, converted to 3-D model
• 3-D image distributed via high-speed broadband to
  doctors at remote sites, accessed by basic
  desktops, laptops
• Source TerraRecon, Inc Intel

Standard 2D image
TeraRecon 3D image
11
TeraRecon Benefits

• Better patient visualization provides
  better/faster diagnosis
• Saves film costs
• Eliminates mail latency or doctor travel time
• Source TerraRecon, Inc Intel

TeraRecon User Interface
12
eICU Centralized ICU Management

• Using VISCUs technology, centralized ICU doctor
  can treat patients in multiple hospitals remotely
• All bedside telemetry available
• Videoconferencing for patient observation and
  interaction
• Source Intel, VISCU Inc.

13
eICU Benefits

• Trained ICU doctors reduce mortality by 20
• But many more ICUs than trained ICU doctors
• ICU doctors can work at multiple locations
  simultaneously, providing needed care

14
Given Imaging M2A Camera Pill

• Ingestible pill containing camera, semiconductor,
  and radio transmitter
• Flashes 4 pictures per second for 24 hours
• Provides unparalleled medical imaging
  capabilities for endoscopy, proctology, and
  colonoscopy
• SOURCE National Semiconductor

15
Given M2A Camera PillConvergence of
Technologies
Source SPIE The International Society for
Optical Engineering
16
OTHER HEALTH-CARE ADVANCES

• Broader deployment of broadband Internet access
  will accelerate the growth of telemedicine
  applications that consume lots of bandwidth
• Bio-sensors and software now available to link
  Alzheimers patients with their doctors to permit
  remote monitoring of condition (Source Intel)
• Miniature computerized monitors can be implanted
  in the chest to detect and correct heart rhythm
  abnormalities (Source Washington Post, 12/30/02)
• Subcutaneous computerized pumps can be used to
  precisely deliver insulin to diabetics (Source
  Washington Post, 12/30/02)

17
HEALTH CARE ADVANCES (contd)

• Virtual house calls have become possible
• Home monitoring of circulatory, heart, kidney
  conditions will be transmitted via Internet to
  doctors offices (Source Battelle)
• Cyber-Care, Inc. already provides Electronic
  HouseCall, an Internet-based system that allows
  doctors to monitor patients in their homes
• IBM working with medical researchers to perfect
  heart monitors, linked to cell phones, that will
  be able to automatically dial 911 when a joggers
  heart rate exceeds certain parameters
• Coming soon Baby blankets with computerized
  sensors, equipped with radio transmitters, will
  monitor a babys vital signs and alert parents of
  problems

18
PEER-TO-PEER COMPUTINGSPEEDS MEDICAL RESEARCH

• Peer-to-peer computing entails using the Internet
  to link the hard drives and processing power of
  thousands of computers for a variety of purposes,
  including file-sharing (e.g., Napster)
• Peer-to-peer computing now being used to harness
  the computing power of multiple PCs to create a
  virtual supercomputer to perform computations
  required in medical and genetics research
  projects
• Downloaded software and web link enable idle
  PCs to perform calculations on data packets,
  which are then returned, via web, to central
  program, in exchange for a new data packet
• United Devices, Inc., the American Cancer
  Society, Oxford University and Intel are
  cooperating to use peer-to-peer computing to
  speed cancer research

19
THE INTERNET ANDRURAL EDUCATION

• China Netcom, one of the countrys largest
  telecoms, is laying fiber-optic cable in rural
  areas.
• In pilot phase, local elementary schools will
  receive broadband Internet hookups to enable them
  to participate in classes in Beijing and Honk
  Kong through teleconferencing
• SOURCE Asiaweek.com, 10/11/02

20
DISTANCE LEARNINGUSING THE INTERNET

• University of Ottawa (Canada) offers
  French-language courses via interactive
  video-conferencing
• Permits students in remote regions of Canada to
  earn credit towards their degree
• Students in Manitoba can earn their Masters in
  Nursing using video-conferencing and web-based
  learning software from the University of Ottawa,
  thousands of miles away

21
PCs HELP TEACH READING SKILLS

• IBMs Watch-me!-Read software designed to help
  students in grades 1-5 learn how to read
• Software includes over 110,000 words, spoken in
  multiple accents, as well as many books
• Using Watch-me!-Read, student reads aloud PC
  pal spots errors and provides as-needed spoken
  assistance
• Makes it easier for one teacher to work with
  multiple students who are progressing at
  different speeds
• SOURCE IBM

22
The Internet and Environmental Education Intel
and the Nature Conservancy
Inspire science students, teachers and the
community to explore and protect the Last Great
Places on Earth.
TNC has designated 200 Last Great Places
23
Intel-TNC Last Great Places Website

• Explore the Last Great Places
• Website designed for 7-8-9 grade science students
  to take Virtual Tours of the Last Great
  Places
• 1st Tour - San Pedro River (Sonoran Desert)
• Provided in English and Spanish
• 2nd Tour Berkshire-Taconic Landscape
• Visit http//www.lastgreatplaces.org/

24
HIGH TECH TELECOMMUNICATIONSBRINGS THE WORLD TO
REMOTE LOCATIONS

• Networks of telecenters established in parts of
  rural India, using a hub and spoke distribution
  model
• Telecenters in each village can communicate with
  each other and with world through the Internet,
  featuring
• Wireless Internet connections
• Back up solar generators
• Information content includes market prices, bus
  schedules, health care information, and education
• SOURCE UNEP, 2002

25
Art Restoration and Preservation

• Lasers, electron beams, and DNA mapping are used
  to restore and preserve paintings and other works
  of art.
• For example, the picture on the upper-right is
  covered in black paint.
• Hand-held lasers were used to carefully strip
  away the black paint to reveal the color paint
  beneath, as conventional methods, involving water
  or other solvents, can do little to improve this.
• Source The Economist, 11/22/02

26
SIMULATING AUTO SAFETY

• Cost of actual crash-testing limits amount of
  safety testing auto companies can afford
• Audi is installing a simulation system, based on
  Intel PentiumTM and XeonTM processor technology,
  that allows simulation of virtually any plausible
  crash scenario
• SOURCE Intel Corp.

27
AUTO SAFETY SYSTEMS

• Antilock braking systems
• Smart cruise control
• Mercedes Benz has developed Proximity-Controlled
  Cruising technology that adjusts cruising speed
  to ensure safe distance from cars in front of
  cruising vehicle

28
GPS and Auto Safety and Security

• A number of companies use GPS technologies to
  identify location of vehicles, both to track
  stolen cars and locate drivers in distress
• Clifford Electronics Mobile Trace 1 system uses
  GPS technology to locate and track vehicles
• Alpines Mobile MaydayTM system also uses GPS to
  track vehicles
• GMs OnStarTM technology offers similar
  capabilities
• SOURCE Edmunds.com

29
GROUND-PENETRATING RADARSAVES LIVES

• GPR used to locate buried landmines that threaten
  troops or civilian populations
• GPR permits systematic mapping of subsurface
  utility lines, ensuring that future construction
  avoids these hazards

30
HOMELAND SECURITY

• Scientists are using remote sensing, modeling,
  and information management capabilities to
  predict the fate and transport of contaminants
  that could threaten human safety and health, as
  well as contribute to environmental disasters.
• Emergency management and, therefore, increased
  security, can begin with an assessment of
  vulnerability and the development of contingency
  response plans to natural, accidental, and
  intentional events.
• Source Battelle

31
EMERGENCY RESPONSE ANDHOMELAND SECURITY

• GPS units placed on fire hydrants, water lines,
  and other infrastructure can improve speed and
  efficiency of emergency response (Source NASA)
• Argonne National Lab has developed smart
  chemical sensor system technology that uses
  microchips to detect hazardous gases based on
  their unique chemical signatures (Source Argonne
  National Lab)
• PQuake system, developed at Georgia Tech, allows
  emergency workers to enter and manipulate
  real-team damage assessment data on Palm Pilots
  and other PDA devices (Source National Science
  Foundation)
• Enables quicker and safer planning of on-site
  responses to earthquakes and other disasters
• Played an important role in recovery operations
  at World Trade Center site

32
ELECTRICAL SAFETY --GROUND FAULT CIRCUIT
INTERUPTERS (GFCIs)

• GCFI sensors constantly monitor electrical flow
  in a circuit
• When miniscule losses of current are detected,
  the GFCI stops current flow to prevent shock
• GFCIs have played a major role in reducing home
  electrocutions
• SOURCE National Electrical Manufacturers
  Association (NEMA)

33
THE ENVIRONMENTAL DIMENSION

• Resource efficiency gains
• Semiconductor progress in size, performance, and
  resource consumption
• Energy efficiency and climate
• Advanced PC power management reduces greenhouse
  gas emissions
• The Internet is reducing climate gas emissions
  through structural changes in the economy
• Energy efficient lighting also reducing climate
  impacts
• Automobile emissions control

34
THE ENVIRONMENTAL DIMENSION (contd)

• Monitoring, mapping, and modeling
• Advanced sensors permit real time monitoring of
  environmental resources
• Ground penetrating radar and GIS technology
  permit sophisticated management of natural
  resources
• Teleworking
• The Internet and advanced communications
  technology prevent commuter trips, reducing
  congestion, improving air quality and quality of
  life

35
SEMICONDUCTOR EFFICIENCY GAINS

• 1000x Decrease in Size (Resource Savings)
• 10,000x Increase in Performance (Energy Savings)
• 100,000,000x Decrease in Cost

1 Transistor 6 1959
64 Meg DRAM 6 1999
36
HIGH TECH INCREASES ENERGY EFFICIENCY

• Integrated circuits and sensors drive energy
  efficiency in many industry sectors
• UPDATE TI DSP INFO FROM WRI
• Advanced thermostats and building system
  controls..
• UPDATE HONEYWELL INFO FROM WRI
• The Internet drives both structural and
  efficiency gains
• Teleworking reduces the need for energy-intensive
  air and auto travel

37
Intels Instantly Available PC (IAPC)

• Intel developed technology licensed freely to
  any OEM
• Based on ACPI open standard
• Stand-by power state
• Low power consumption
• Network connectivity
• Quick wake-up 5 sec
• Exceeds Energy Star requirements (
• Always On Always Connected
• Enables appliance-like usage model.

38
Annual Carbon Dioxide Reductions in PCs
(Worldwide)
Source EPA ENERGY STAR Program
39
AMDS ENERGY SAVING TECHNOLOGY

• AMD flash memory semiconductors, found in a
  variety of appliances, equipment and vehicles,
  consume very low amounts of power, e.g. 0.002
  0.036 watts, and these devices consume so little
  current in standby (0.0000002 amperes) that most
  test equipment cannot measure it.
• AMDs microprocessor families support the Energy
  Star computer specification of 15 W watts
  sleep-state power consumption. AMD has also
  developed PowerNow!, a combination of software
  and hardware, which allows set top boxes to
  reduce power consumption up to 74.

40
HIGH TECH CAN HAVE HUGEPOSITIVE CLIMATE IMPACT

• 1997 Japanese Telecom Ministry study estimated
  that a combination of high tech applications
  could meet 7 of Japans emission reduction
  commitments under the Kyoto Protocol
• Significant emissions reductions projections
  included (in kilotonnes)
• Telework 1,290
• Intelligent transportation systems 1,200
• Internet 500
• SOURCE UNEP, 2002

41
THE INTERNET POTENTIAL

• The Internet may be one of the most powerful
  environmental improvement technologies in history
• The Internet enables energy efficiency gains of
  two basic types
• Structural gains
• Achieved when growth shifts to sectors of the
  economy that are not particularly
  energy-intensive such as the high-tech industry
  and away from sectors such as chemical
  manufacturing, pulp or paper manufacturing, and
  construction, which are energy-intensive
• Efficiency gains
• Achieved when businesses change their activities
  reducing energy use relative to their output of
  goods and services. This can happen, for
  example, through the spread of teleworking and
  more efficient logistics systems made possible by
  Internet.
• Source Center for Energy Climate
  Solutions

42
INTERNET STRUCTURAL GAINS

• Reduction of, or elimination of the need for,
  office space
• -- By 2007, B2C and B2B e-commerce together
  could avoid the need for 1.5 billion square
  feet of retail space and up to 1 billion square
  feet of warehouse space.
• Energy savings just from the operations and
  maintenance of these "un-buildings" could total
• -- 53 billion kilowatt hours per year
• -- approximately 13 percent of total electricity
  growth projected under business-as-usual
  scenarios.
• Source Center for Energy Climate Solutions

43
INTERNET EFFICIENCY GAINS

• Internet shopping
• -- Internet shopping uses less energy to get a
  package to a house Shipping 10 pounds of
  packages by overnight air - the most
  energy-intensive delivery - uses 40 percent less
  fuel than driving roundtrip to the mall. Shipping
  by truck saves 90 percent.
• Amazon.com saves significant energy compared to
  traditional bookstore. Energy cost per square
  foot of space
• Traditional bookshop 1.10
• Amazon.com .56
• Source Center for Energy Climate Solutions

44
MACRO TRENDS VALIDATEENERGY EFFICIENCY ROLE OF
INTERNET

• Rise of Internet has coincided with a decrease
  rather than an increase in energy intensiveness
  of economy
• Comparing pre-Internet era (1992-6) to Internet
  era (1996-2000)
• GDP growth rate increased by nearly 50 percent,
  while
• Electricity demand growth rates actually declined
• If Internet was a significant energy hog, you
  would expect to see accelerated electricity
  demand growth rates, not the decline the data
  actually show
• And, we are in the early stages of Internet
  deployment
• Source Center for Energy Climate Solutions

45
GDP vs. OTHER GROWTH RATES
Source U.S. Department of Energy, Energy
Information Administration
46
ENERGY EFFICIENT LIGHTING

• Modern energy-efficient lighting fixtures are
  4-6x more energy efficient than incandescent
  lighting
• Use of these fixtures significantly reduces
  emissions of air pollutants and greenhouse gases
• SOURCE National Electrical Manufacturers
  Association

47
Lifetime Air Pollution Emissions

KEY
Milligrams of Mercury

• CONCLUSIONS
• Hg from lamp disposal is small compared to Hg
  released from power generation required to
  operate lamp
• Incandescent lamps contain no mercury but result
  in the highest Hg emissions
• Similar reductions for greenhouse gasses and smog
  and acid rain forming pollutants.

Magnetic TCLP FailingRecycled
ElectronicTCLP CompliantIncinerated
Equivalent Light Output
ElectronicTCLP Compliant Recycled
Based on 20K burning hours, Hg content of 23 mg
per T12 lamp, and 8 mg per T8 lamp. Hg content
of fuels is the US weighted average for fossil
and non-fossil fuels, calculated from
Environmental and Health Aspects of Lighting
Mercury J.IES 1994. Disposal emissions assume
3 in residuals of recycling, 90 from
incinerators.
48
LEDs Drive Energy Efficient Lighting

• Use of conventional light bulbs is being replaced
  by Light Emitting Diodes (LEDs) that are
  controlled by semiconductors
• LEDs are more efficient than bulbs at converting
  electricity into light.
• The best white LEDs on the market emit 25 lm/W,
  which is almost twice as efficient as an
  equivalent tungsten-filament light bulb.
• Source The Economist, 10/03/02

49
ENERGY EFFICIENT MOTORS

• Electrical motors consume 63 of all electricity
  in the industrial sector
• The National Electrical Manufacturers
  Association (NEMA) as established a Premium
  Motors standard to drive motor efficiencies
  beyond Federal requirements
• Based on US Department of Energy (USDOE) data,
  broad adoption of Premium Motors standard could
  save
• 5,800 gigawatt hours of electricity
• 80 million metric tons of carbon emissions
  equal to taking 16 million cars off the road
• SOURCE NEMA

50
ENERGY EFFICIENT HOMES

• Combination of high tech sensors, smart
  thermostats, and PC controls can significantly
  reduce energy intensity of buildings and homes
• Estimates of potential savings are in the 10-30
  range
• SOURCE UNEP, Global e-Sustainability Report, 2002

51
ENVIRONMENTAL MONITORING AND MAPPING

• The potential is immense
• Because innovative technologies have the
  potential to clean up and protect the environment
  and the public's health in a more cost-effective
  and efficient manner, finding ways to encourage
  their increased use is crucial. (Source USEPA,
  1999)
• Marine environments
• Bio-optical monitoring buoys, linked to
  satellites, can track fish populations, oil spill
  plumes, and monitor water quality (Source NASA)
• IBM and Australian Institute of Marine Sciences
  have developed sophisticated modeling tools to
  visualize growth and destruction of coral reefs
  in response to varying water conditions (Source
  IBM)
• Environmental GIS
• Computer monitors combined with GPS can create
  detailed geographic information systems (GIS) for
  environmental management (Source NASA)

52
ENVIRONMENTAL MONITORING (contd)

• Soil and hydrologic mapping
• Ground penetrating radar (GPR) can map water
  tables and identify plumes of chlorinated
  solvents and other pollutants in the groundwater
  (Source MALA Geoscience)
• Used for the detection of heavy metals in soil
  (primarily), XRF analyzers emit X-rays that
  irradiate the sample and excite the electrons of
  the element(s) present.
• As these excited electrons return to their normal
  state they give off energy that is detected by
  the XRF equipment and the pattern is analyzed to
  determine the element.
• After data collection, the analyzer is connected
  to a computer for data analysis and storage.
• Source U.S. Environmental Protection Agency,
  Sept. 1999

53
ENVIRONMENTAL MONITORING (contd)

• Endangered species
• Intel and the Duck Island Bird Sanctuary (Maine)
  have installed a network of inexpensive
  silicon-based sensors to monitor and report
  environmental conditions to central database
• Sensors also used to monitor nesting behavior of
  endangered bird species h

54
TELEWORKING

• Teleworking improves the environment and raises
  quality of life in several ways
• Reduced congestion and lower vehicle miles
  traveled (VMT) reduce all forms of air pollution
  associated with the car
• Local air quality
• Global warming
• Typical commute 18 miles translates into 15
  lbs of air pollutants (Source ITAC, 1999
  www..teletrips.com)
• Telecommuting potential enormous
• 9 of US workers telecommute occasionally
  (Source Rutgers U.)
• 17 of Finns telecommute (Source
  www.eto.uk.org/eustats)
• Projected 137 million teleworkers globally by end
  of 2003 (Source PC World)

55
TELEWORKING SUCCESS STORIES

• Sun Microsystems
• As of 11/02, 800 employees at Sun work full- or
  part-time from home
• Drop-in Centers Sun provides mini-offices
  that enable workers to work at company sites near
  their homes, deferring commute to main campus
  until after rush hours
• ATT
• ATTs employee telework program eliminates 100
  million miles of commuting per year
• Environmental benefits include
• Saving 5 million gallons of gasoline
• Reduction of 44,000 tons of CO2 emissions
• Reduction of 500 tons of CO emissions
• Reduction of 200 tons of NOx emissions
• SOURCE Sun and ATT

56
TELEWORKING SUCCESS STORIES (contd)

• Compaq estimated productivity increases in 15-45
  range as a result of their telework program
  (Source CO Telework Coalition)

57
THE ECONOMIC DIMENSION

• High tech raises economic productivity and
  efficiency, enables higher standard of living
• High tech employs many high-wage workers
• B-to-C e-commerce is exploding
• New markets and marketing technologies have been
  created
• New technologies spur agricultural development
• Teleworking provides multiple benefits

58
HIGH TECH RAISES PRODUCTIVITY

• Rising standards of living depend on increasing
  productivity
• Information and communications technology have
  been the principle drivers of recent productivity
  improvements
• High tech contributed 50 percent of the
  acceleration in U.S. productivity growth in the
  second half of the 1990s. Source DOC, Digital
  Economy 2000
• Falling prices of high-tech goods and services
  have reduced overall U.S. inflation by an average
  of 0.5 percentage points a year (from 1994 to
  1998). Source DOC, Digital Economy 2000
• High tech helps create a highly-efficient economy
• Information technology improves communications
  between suppliers and customers, facilitating
  U.S. manufacturers efforts to sell products and
  reduce inventory. Source DOC, Digital Economy
  2000

59
IMPROVING ECONOMIC EFFICIENCY

• High tech helps create a highly-efficient economy
• Information technology improves communications
  between suppliers and customers, facilitating US
  manufacturers efforts to sell products and
  reduce inventory (Source US Department of
  Commerce, Digital Economy 2000)
• Utilities Afrique Exchange provides African
  utility companies an e-trading platform, helping
  sellers and buyers of power to reduce their costs
  through more efficient trading (SOURCE UNEP,
  2002)

60
HIGH TECH DROVE ASIAN GROWTH EXPLOSION

• Asian high tech exports have increased
  dramatically since 1985
• China From 5 in 1985 to 20 in 1998 (high tech
  exports as a percentage of total exports)
• New tiger economies From 10 to 37
• Mature tiger economies From 17 to 38
• Asian growth rates (ex. Japan) have ranged from
  4 to almost 10 since 1985
• Average manufacturing wages increasing as well
• China Annual growth (1997-2000) 14
• Sources International Labor Organization The
  World Bank Lall and Albaladejo (2001)

61
HIGH TECH PROVIDES HIGH WAGE JOBS, EXPORTS, and
RD

• In 2001, the high tech industry employed over 5
  million Americans almost 11 of US manufacturing
  workforce
• High tech is one of top export sectors of US
  economy accounting for over 25 of total US
  exports in 2001
• In 2000, wages in US high tech industry were over
  90 percent higher than the average for entire
  private sector
• The high tech industry is the largest investor in
  non-federally funded RD, leading to rapid
  innovation and long-term employment gains
• SOURCE AeA US Department of Labor US
  Department of Commerce, Bureau of Census and
  Bureau of Economic Analysis

62
GROWTH OF INTERNET USEFOR B-to-C e-COMMERCE

• 1995
• 28 million in US have access to Internet
• 1.5 million use Internet for making purchases
• 2002
• 149 million Internet users in US
• 35.5 million use Internet for shopping each week
• Widespread deployment of broadband Internet
  connections will make e-commerce more efficient
  and attractive, spurring rapid growth
• Convenience yields time savings for consumers a
  huge societal economic benefit
• SOURCES Vanderbilt University Nielsen Ratings
  Comscore.com Cyberatlas.internet.com

63
B-to-B e-COMMERCE WILL DRIVE ECONOMIC GROWTH

• Most e-commerce today is B-to-B
• Global Internet trade has been forecast to reach
  USD 6.8 trillion in 2004, or almost 9 of global
  sales of goods and services
• Goldman Sachs has estimated that cost savings
  associated with B-to-B e-commerce can contribute
  a sustained additional 0.25 economic growth
  globally over next ten years
• SOURCE UNEP Global e-Sustainability Initiative
  report, 2002

64
CREATING MARKETS OVER THE INTERNET

• Viatru Co. links artisans in India with museum
  shops in the U.S.
• Web site (www.mfa.org/poppy) provides virtual
  tour of goods as they are being made (Source
  NYTimes, 3/16/01)
• The Manobi project provides access to
  Internet-enabled mobile phones
• Allows farmers in Senegal to access up-to-date
  market prices for their crops before they decide
  which market to sell in (Source BBC, 10/6/02)
• The MyBiz network in Malaysia provides local
  small and medium-sized businesses with a platform
  for collaborative marketing by linking 300
  companies up and down the supply chain (UNEP,
  2002)

65
3D MARKETING ON THE WEB

• General Motors and other companies are using 3-D
  imaging technology to provide prospective
  customers a more realistic view of their
  vehicles, inside and out, via the web (Source
  Intel)

66
NEW TECHNOLOGIES SPURAGRICULTURAL PRODUCTIVITY

• GIS systems can use geographical data to help
  improve agricultural yields by identifying where
  crops should be planted to take advantage of
  soil, slope, and hydrologic characteristics
  (SOURCE CATIE, The Tropical Agricultural
  Research and Higher Education Center, Costa Rica)
• GIS systems can use forest data to help local
  communities and farmers manage rain forest cover
  and yields (CATIE)
• Coming soon Computerized sensors, equipped with
  radio transmitters, attached to individual trees
  and plants to notify farmers of problems or
  disease (SOURCE Intel)

67
TELEWORKING PROVIDESMULTIPLE ECONOMIC BENEFITS

• Teleworkers tend to be more productive
• Teleworking promotes work/life family balance,
  improving job satisfaction and performance
• Teleworking brings work to where the workers are,
  including rural areas
• Seniors and disabled find it easier to work from
  home
• SOURCE ATT, International Telework Association
  and Council (ITAC)

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TELEWORK CAN BRING DISABLEDINTO THE VIRTUAL
WORKPLACE

• Operation Job Match in Washington, DC
• Assists in the purchase of IT and office
  equipment and training
• Matches workers with disabilities with employment
  opportunities that permit teleworking
• SOURCE Crandall and Jackson, Criterion
  Economics, 2001

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PRINCIPLES FOR REGULATING HIGH TECH

• Keep the big picture in mind
• Do the intended benefits of the regulation
  outweigh negative impacts on product innovation?
• Dont mandate specific technological fixes or try
  to pick winners
• Will regulation freeze innovation and progress by
  dictating one solution?
• Ensure sound science and consideration of
  trade-offs
• Is there a valid technical foundation for
  regulation?
• When you restrict one substance, are the risks of
  substitutes greater?
• Focus on risk, not hazard in restricting
  substances
• Are there really environmental and human
  exposures?
• Harmonize with other countries if possible
• Will the proposed requirements establish an
  uneven playing field or create a potential
  trade barrier or damper on competitiveness?
• Openly consult with all interested stakeholders
• Decision-makers should solicit input at an early
  stage from all interested stakeholders,
  especially technical experts, who represent those
  who have a direct stake in the outcome