Forbes contributor Joe McKendrick writes that MIT researchers have developed a new metric for analyzing the value of the digital goods and services people use. McKendrick writes that the research provides “an idea of what digital goods -- those free or paid-for subscription services available via the internet and mobile -- add to our economy.”
Prof. Erik Brynjolfsson speaks with Sabri Ben-Achour of Marketplace about his work quantifying the economic benefits of goods and services that GDP does not measure. “We haven’t been measuring the value of the environment or digital goods,” says Brynjolfsson. “That means policy makers, when they are trying to see where is value coming and how is the economy growing, they have been missing that understanding.”
Wall Street Journal reporter Mike Bird writes that MIT researchers have proposed a new metric for GDP that would incorporate free digital goods and services. Bird explains that the researchers found that Facebook “would have boosted U.S. economic growth by between 0.05 and 0.11 percentage points a year” under the new metric.
Writing for The Wall Street Journal, Prof. Thomas Malone examines how AI could transform business hierarchies. “AI may create some more centralized hierarchies, and even more situations that call for flexible structures,” writes Malone. The overall goal, though, will remain “figuring out how to combine the different capabilities of people and computers into ‘superminds’ that are smarter than anything we’ve ever had before.”
Quartz reporter Eshe Nelson writes that MIT researchers have proposed redesigning GDP to incorporate free digital goods and services. Prof. Erik Brynjolfsson explains that updating GDP provides a “realistic idea of what creates value in society and what doesn’t. A lot of digital goods we’ll find are creating a ton of value.”
Axios reporter Kaveh Waddell writes that a group of economists led by Prof. Erik Brynjolfsson has proposed creating a new metric to measure GDP that accounts for the value of free digital goods and new technologies. The researchers estimate that “hidden benefits from Facebook alone have added 0.05–0.11 percentage points to GDP every year since its 2004 launch,” Waddell explains.
MIT researchers have found that companies with experienced technologists on their boards tend to have better financial outcomes, reports Sara Castellanos and Angus Loten for The Wall Street Journal. “Directors on digitally savvy boards have an understanding, tested by experience, of how digital technologies impact the way that companies will succeed in the next decade,” explains research scientist Stephanie Woerner.
In an article for Fast Company, Clifton Mark highlights a study by Prof. Emilio Castilla examining the impact of meritocratic practices. Castilla and his colleagues found that “in companies that explicitly held meritocracy as a core value, managers assigned greater rewards to male employees over female employees with identical performance evaluations.”
Writing for The Washington Post, research affiliate Ashley Nunes examines the impact of countries around the world banning the Boeing 737 Max 8 from operating in their airspace. “If airlines start to believe that there is something inherently wrong with Boeing’s prized offering — or, even worse, if consumers start to identify the new 737 models as unsafe — it will have serious ramifications for Boeing,” writes Nunes.
Financial Times reporter Janina Conboye highlights how alumni networks at business schools like MIT’s Sloan School of Management can be instrumental in helping young women land jobs after graduation. “There’s a secret code among those from some schools to help each other out,” explains Sloan graduate Angela Xu.
Diane Greene SM ’78, a life member of the MIT Corporation, speaks with Becky Quick of CNBC about the future of AI. Greene explains that companies can now combine data with computational power, so that an “algorithm can learn from the data. Once you start doing that you start getting insights you’ve never gotten before that can leapfrog what you’re able to do.”
Writing for The Conversation, Prof. Thomas Kochan examines how lessons learned from labor negotiations could be applied to resolving the government shutdown. “A skilled labor mediation team would use a strategy that allows each party to hold to their publicly stated commitments and positions while engaging in private off-the-record conversations that actually ignore what they said in public,” Kochan explains.
Prof. Bill Aulet speaks with Financial Times reporter Seb Murray about how business schools can help prepare students to become entrepreneurs and highlights MIT’s delta v program, an educational accelerator that allows business school students to work with engineers, designers and scientists to create companies. “Entrepreneurship is about creation, leadership,” says Aulet. “We need programs that convene heterogeneous teams.”
Financial Times reporter Andrew Jack spotlights MIT alumnus Socrates Rosenfeld, who founded a cannabis distribution startup that has become the subject of a new case study taught at MIT. “We try to create live cases where the answer is not known in advance,” explains Prof. Scott Stern. “They were looking at an industry with a good degree of uncertainty.”
Writing for the Financial Times, research scientist Ashley Nunes explores the cost of providing support and safety personnel for Waymo’s driverless taxi service. “Technology does not purge the need for human labour but rather changes the type of labour required,” writes Nunes. “Put another way, unless something changes, driverless will not mean humanless.”