Category: innovation | 革新 | 독창성 | 改変

Innovation, alongside disruption are two of the most overused words in business at the moment. Like obscenity, many people have their own idea of what innovation is.

Judy Estrin wrote one of the best books about the subject and describes it in terms of hard and soft innovation.

  • Hard innovation is companies like Intel or Qualcomm at the cutting edge of computer science, materials science and physics
  • Soft innovation would be companies like Facebook or Yahoo!. Companies that might create new software but didn’t really add to the corpus of innovation

Silicon Valley has moved from hard to soft innovation as it moved away from actually making things. Santa Clara country no longer deserves its Silicon Valley appellation any more than it deserved the previous ‘garden of delights’ as the apricot orchards turned into factories, office campus buildings and suburbs. It’s probably no coincidence that that expertise has moved east to Taiwan due to globalisation.

It can also be more process orientated shaking up an industry. Years ago I worked at an agency at the time of writing is now called WE Worldwide. At the time the client base was predominantly in business technology, consumer technology and pharmaceutical clients.

The company was looking to build a dedicated presence in consumer marketing. One of the business executives brings along a new business opportunity. The company made fancy crisps (chips in the American parlance). They did so using a virtual model. Having private label manufacturers make to the snacks to their recipe and specification. This went down badly with one of the agency’s founders saying ‘I don’t see what’s innovative about that’. She’d worked exclusively in the IT space and thought any software widget was an innovation. She couldn’t appreciate how this start-ups approach challenged the likes of P&G or Kraft Foods.

  • Mamasan & things this week

    AI Mamasan

    A Mamasan is the owner of a neighbourhood bar who listens with empathy and occasionally doles out advice to their patrons. Kind of like the proprietor in the Midnight Diner anime by Yaro Abe. This was then adapted into a Japanese TV series and movie.

    When suit company Yofuku no Aoyama decided to create a virtual bar, they interviewed a real life Mamasan called Yoshiko extensively.

    They then took the conversations and incorporated them into a chat interface to dispense bar top wisdom. The bar is called ‘A.I. Yoshiko’s virtual bar‘, interestingly they didn’t look to get any kind of data through a site registration. I suspect that was to reassure users that what gets said in the bar, stays in the bar.

    AI Mamasan
    Aoyama Tailors

    As you’d expect with a chat bot, AI Mamasan Yoshiko will greet you and ask what’s on your mind. She gives you a lengthy list of common concerns, which you can then narrow down to more specific stress sources. More content similar to this here.

    Madrid walking tour

    Luxury hotel brand Mandarin Oriental produced a guided tour of the golden art triangle of Madrid. The Mandarin Oriental Ritz is situated across the road from the Prado Museum. The tour is on the VoiceMap app that provides an audio track based on the phone’s GPS location.

    Mandarin Oriental Ritz Madrid

    Easternkicks review of Drifting

    Probably one of the best film reviews I have read in a good while about the Hong Kong film Drifting that does a good job of contextualising the film and its environment of Sham Shui Po and the district of the same name. It made me hanker after the early Sunday morning walks that I used to take through the neighbourhood (usually because I got lost) before wandering through the secondhand electronics market. Take five minutes to go and read it now.

    Ghibli Museum

    If you’re fan of Studio Ghibli animated films then you’ll have heard of the Ghibli Museum. Japanese businesses have been hit hard and continue to be under financial stress. The Ghibli Museum is no exception and is looking for donations from Japanese people via the the hometown tax credit.

    Ghibli Museum news
    via Twitter account of the Mitaki City local government where the Ghibli Museum is based.

    The idea of the hometown tax (ふるさと納税) needs a bit of an explanation. Some aspects of it are not dissimilar to the UK tax system where you can get a tax credit on your charitable donations, that is claimed by the charity from the government. Current prime minister, Yoshihide Suga was a government minister at the time, introduced the hometown tax in 2007. Taxpayers who contribute more than 2000 yen can have their income tax and residence tax reduced. The amount deducted is the taxpayer’s entire contribution minus 2000 yen and set amount. To receive the subtraction, the taxpayer files a final tax return.

  • Female voices impact + more news

    Pinay female voices power

    The Philippines’ secret weapon against Chinese incursions | The Economist – having women radio operators seem to be more successful and less likely to rise tensions, seems to be down to training and the nature of female voices. It reminded me of how early HCI experiments by DARPA found that jet fighter pilots responded best to ‘mature’ female voices on warning alerts. An interesting aside is that the radio altimeter on Airbus aircraft actually use an English mature male voice instead.

    Academic research gives us an idea of what kind of female voices are likely to be more effective. Maybe this authority is conveyed by the female radio operator training and the female voices selected by the Coastguard?

    Women with masculine voice are perceived to be more rational and persuasive than those with feminine voice. In addition, masculine voice is rated as more competent than feminine voice, regardless of the actual gender 

    It’s not What It Speaks, but It’s How It Speaks: A Study into Smartphone Voice-User Interfaces (VUI) by Jaeyeol Jeong & Dong-Hee Shin of Department of Interaction ScienceSungkyunkwan University, Seoul,Korea (2015)

    Other research suggested that a preference for female voices occurred over time, this might be due to technological change in voices. The heavily synthesised ‘Speak n Spell’ type voices were male, better technology allowed for great choices and detail in female voices to be conveyed.

    …the survey found that people preferred human-like, happy, empathetic voices with higher pitches. However, these preferences were not static; for instance, user preference for voice gender changed over time from masculine voices to more feminine ones. Based on these findings, the researchers were able to formulate a high-level framework to classify different types of interactions across various computer-based technologies

    The role of computer voice in the future of speech-based human-computer interaction – Tokyo Institute of Technology

    Other research that it is attitude rather than a female voice that matters. Which begs the question is it compliance to the radio operator training rather than a female voice that is more important in this context? Filipino culture has a certain amount of machismo and having female voices delivering the radio instructions might be a way around this dilemma.

    introvert participants rated the introvert computer voice as more attractive, credible, and informative, while the extrovert participants rated the extrovert voice more highly. Expanding on these findings, it was found that the personality conveyed by the voice was the dominant percept

    Voice as a design material : sociophonetic inspired design strategies in Human-Computer Interaction by Selina Sutton, Paul Foulkes and David Kirk of the University of York presented at CHI Conference on Human Factors in Computing Systems Proceedings (CHI 2019). (PDF)

    The use of female voices in this way could be accused of playing to sexist tropes

    China

    Another day, another reminder of how Brand China has deteriorated – Fawning and complacent, the West has eased China’s path to power | The Sunday Times – while the statement is true, it also shows how much the tone has changed towards China amongst UK political elites

    China goes on the defensive as Covid vaccine diplomacy backfires | The Times – Beijing’s hopes of winning favour by helping the world’s poorer nations out of the pandemic have been hamstrung by questions over the efficacy of the jabs on offer

    Alleged assault on scientists overshadows China’s space race success | Financial Times – Police detained Zhang Tao, chair and party secretary at China Aerospace Investment Holdings, for his alleged attacks on Wu Meirong and Wang Jinnian last month, the state-run Xinhua news agency reported on Tuesday. Wang and Wu had refused to recommend Zhang for membership of the International Academy of Astronautics, a Stockholm-based group that recognises distinguished scientists

    For China’s Business Elites, Staying Out of Politics Is No Longer an Option – The New York TimesThe Chinese internet immediately savaged Didi and Ms. Liu — and then Mr. Liu. A hashtag, #Didiapppulledfromappstores, which was started by the official People’s Daily, was viewed more than one billion times over a 24-hour period on the Chinese social media platform Weibo. Weibo users called Didi a “traitor” and a “walking dog of the United States.” They urged the government to also punish Mr. Liu for selling out national interests

    Underground front: the Chinese Communist Party in Hong KongContinuing to operate secretly in Hong Kong can only cause unnecessary discomfort. Hong Kong people already accept the CCP’s undoubted authority in leading the affairs of state. While the party appreciates that Hong Kong needs to function differently from the mainland, its basic instincts, which are Leninist in nature, make it difficult for the party apparatus not to over- extend its reach into the city’s public affairs. The sharpest point of departure between the party’s way and Hong Kong’s way arises from their different governing experience. (PDF)

    Consumer behaviour

    Japanese fax fans rally to defence of much-maligned machine | Japan | The GuardianMembers of the resistance said there were concerns over the security of sensitive information and “anxiety over the communication environment” if, as the government had requested, they switched exclusively to email. Japanese ministries and agencies use faxes when handling highly confidential information, including court procedures and police work, and the Hokkaido Shimbun said there were fears that exclusively online communication would result in security lapses

    Patriotism Abroad: Overseas Chinese Students’ Encounters With Criticisms of China – Henry Chiu Hail, 2015research on international education suggests that host country students’ lack of interest in talking to international students is a major cause of international student segregation. Some Chinese international students, however, complain that although host students want to talk with them about China, they often exhibit misinformed, prejudiced and offensive views of Chinese current events. This has occasionally led to tensions between Chinese international students and host communities. Drawing on interviews and open-ended surveys of Chinese students at an American university, this study shows a variety of positive and negative cross-national interactions and uses social identity theory to explain why tensions may arise. Negative reactions to hearing criticism of one’s home country are often motivated by concerns for status, loyalty, harmony, or utilitarian politics. However, fostering a common group identity and the perception of mutual benevolence among students from different countries can promote positive cross-national interaction. Furthermore, international students may learn more about democracy and human rights through observing the host society rather than directly discussing these topics with host country members – basically the delta between western perceptions of China, versus domestic Chinese propaganda is going to drive that wedge deeper. Universities have Chinese students purely for the money as there is minimal wider benefit to their domestic student body. Which begs wider questions about the purpose and morality of many western third level education institutions

    Culture

    Trese: the true crime and folklore behind Netflix’s… – The Face – it reminded me of the animated Blade series and Ghost in The Shell. The Philippines could be an anime powerhouse

    Finance

    China’s Big Tech Crackdown Puts Dozens of U.S. IPOs at Risk – Bloomberg“The Chinese government could have stopped the IPOs from happening, like how they did with Ant,” said Sharif Farha, a Dubai-based portfolio manager at Safehouse Global Consumer Fund. “Instead, they allowed global investors to take pain, and consequently have broken trust with a lot of foreign investors. While we did not participate in any of these listings, we would imagine that several funds would consider exiting.” – it makes the Goldman Sachs ICBC deal look even more sketchy

    China Mulls Closing Loophole Tech Giants Use for U.S. IPOs – Bloomberg – on one hand I get it. Mainland Chinese are creating bubbles in areas like property and have poor returns because they don’t have stocks or ETFs that they can invest in. On the other hand this burns early stage foreign investors to the ground as they can no longer exit their money from China.

    Tell me lies, tell me sweet little VIEs | Financial Times – not terribly surprising. VIEs are the vehicle that Chinese companies use to go public abroad

    Chinese companies listing in the U.S. like DiDi face audit concerns – Protocol – basically you don’t know what you’re buying

    UK advertising watchdog to crack down on misleading crypto marketing | Financial Times

    Hong Kong

    Vitasoy faces boycott in mainland China following stabbing in HK | PR | Campaign AsiaFollowing the incident, an undated internal memo was circulated among Vitasoy employees expressing condolences to Leung’s family. A translated version of the memo, which leaked onto Chinese social media, mentions that “human resources has contacted [Leung’s] family and will follow up and provide assistance when needed.” The internal memo proved controversial, as Chinese social media users accused the brand of condoning violence and defending anti-China sentiments. – the red guard are already here. This wasn’t an endorsement of his act, but sympathy with the loss and grief that his parents must be feeling as they try and make sense of his actions.

    Crypto Keepers’ NFT-Backed Drama Series Hatched by AMM Global – Variety – the production company spun out of Hong Kong’s Asia Television – a former free to air TV station. Meanwhile in the UK, I heard that a production company is looking for people how have lost the password to their cryptocurrency wallet.

    Ideas

    If you hate the culture wars, blame liberals – Kevin Drum ….Over the last four years, white liberals have become a larger and larger share of the Democratic Party….And since white voters are sorting on ideology more than nonwhite voters, we’ve ended up in a situation where white liberals are more left wing than Black and Hispanic Democrats on pretty much every issue: taxes, health care, policing, and even on racial issues or various measures of “racial resentment.” So as white liberals increasingly define the party’s image and messaging, that’s going to turn off nonwhite conservative Democrats and push them against us. 

    ….If Democrats elevate issues or theories that a large minority of nonwhite voters reject, it’s going to be hard to keep those margins….Black conservatives and Hispanic conservatives don’t actually buy into a lot of these intellectual theories of racism. They often have a very different conception of how to help the Black or Hispanic community than liberals do – well worth a more in-depth read

    Culture Wars are Long Wars – The Scholar’s StageDemocrats under 40 take socialism very seriously. The Great Recession was their formative event; the old orthodoxy did not seem equal to the fear and heartache it caused. Thus, gradually, the younger cohorts have been won over to the socialist cause.5 All that keeps the socialists at bay is the power of their elders. That power cannot last. At some point in the next decade the transition point will arrive. Gradually will become suddenly, and America’s most popular party will be openly run by socialists – I don’t agree with a lot of the post, but it provides an interesting prespective

    Bristol Unpacked on whether white working class people are shut out of the equality debate, with Hartcliffe’s award winning filmmaker Paul Holbrook – The Bristol Cable – far too short a discussion session as podcast, it felt like they were just scratching the surface with this recording

    Erik Prince Had Pitched $10 Billion Private Army in Ukraine: Time – everything he does seems like it’s taken from the plot from William Gibson’s sprawl trilogy

    Innovation

    Institute for New Economic Thinking | How Intel finkncialised and lost its leadership in semiconductor technologyThe root of Intel’s failure in organizational integration lies in the financialized character of a third social condition of innovative enterprise, strategic control. Accepting stock yield as the measure of enterprise performance, in recent years Intel’s senior executives who exercise strategic control have lacked both the incentive and, increasingly we would argue, the ability, to implement innovative investment strategies through organizational integration. 

    Executive stock-based pay, in the form of stock options and stock awards, has created incentives for Intel’s CEOs to do large-scale buybacks to give manipulative boosts to the company’s stock price. Table 3 documents the total compensation, including realized gains from stock options and stock awards, of Intel’s CEOs over the past three decades

    Ireland

    Irish Times under fire for page of China propaganda | Ireland | The Sunday TimesThe newspaper, whose rate card sets a full-page colour ad at €34,000, ran the paid-for-content on page five of its news section under an “advertisement” heading last Thursday. The accompanying article by He Xiangdong, the Chinese ambassador, claimed the CCP enjoyed “solid” support from its people, and highlighted China’s vastly improved standards of living in recent decades – propaganda from draconian empires doesn’t go down that well in Ireland

    Luxury

    Supreme Italia Founders Sentences to Jail in Court | High Snobriety – this has been running for a long time. The key challenge was that they were headquartered in the UK. They could have got around this by being headquartered in a market that allows first registration as legitimacy for brands. More related content here.

    Philippines

    Duterte’s Pivot to China Yet to Deliver Promised Billions in Infrastructure – Bloomberg – from a Chinese communist perspective, why should they? They aren’t that good at being good to their word. Secondly, they are likely to view the Duterte regime as a vassal state and are getting everything they want out of the Philippines anyway

    Security

    Update Regarding VSA Security Incident | Kaseya – over 1,500 companies affected

    Code in huge ransomware attack written to avoid computers that use Russian, says new report – which begs the following questions / hypotheses? Are they in cahoots with Russian government? Was it that they didn’t want their own lives disrupted? Or are they petrified of the Russian security services coming after them, but relatively sanguine about foreign security services and law enforcement

    Technology

    The AI Wolf that Refuses to Play the Game Goes Viral – Google Docs – surely an issue of game design in terms of the way behaviours were rewarded and penalised rather than machine learning?

    The Tech Cold War’s ‘Most Complicated Machine’ That’s Out of China’s Reach – The New York Times – a great profile of ASML

    Musk has ‘mesmerised’ UK over electric power, says JCB chair | Financial Times – there’s a lot not to like about Lord Anthony Bamford, but I agree with him on this. Companies like BMW managed to extend this to cars. Bamford should be pitching this where there are hydrogen power plans like ireland

  • The rise & fall of American growth

    The rise and fall of American growth

    It has been five years since The rise and fall of American growth was written by Robert J Gordon. When it was first published it was a New York Times bestseller and won awards from the FT and McKinsey. I felt that it was particularly interesting to go back and visit now, given current economic circumstances and the view that its data provides on the techno-optimism versus techno-pessimism that is currently raging on.

    The Rise and Fall of American Growth

    Understanding the author’s perspective

    Robert J Gordon developed his career as an economist in a crucible. He started his career during a time of battle between Keynesian and the monetarist supporting economists. Keynesian ideas had reached their peak in the 1950s. It was challenged by economists such as Milton Friedman and George Stigler. Both of whom were from the Chicago School. The Chicago School was the University of Chicago. It became a centre for economic conservativism. The Chicago School At his time, drew on the likes of Hayek for its ideas.

    Gordon became a ‘New Keynesian’. They assume that there is imperfect competition in price and wage setting to help explain why prices and wages can become “sticky”. They do not adjust instantaneously to changes in economic conditions. Wage and price stickiness, and the other market failures present in their models, imply that the economy may fail to achieve full employment. They argue that macroeconomic stabilisation by the government and the central bank leads to a more efficient macroeconomic outcome than a laissez faire policy would.

    American growth and techno-optimism

    The techno-optimism viewpoint is that continuing technology innovation is going to bring about a new golden age. There are essays trading perspectives on this back-and-forth.

    Gordon’s research suggests that the kind of growth suggested by techno-optimists as an outcome is usually because of very special circumstances.

    When he looked at American growth through the 19th century; growth had occurred in short spurts and much of it wasn’t driven by technology, but was multiple factors coming together. He further posits that those factors that drove American growth are unlikely to be repeated in the future.

    The last spurt of this growth was during the irrational exuberance of the dot com era.

    As you’d expect from an economist, Gordon pulls together to support his ideas very carefully and it is based on empirical analysis. IT has driven little economic growth, which makes one wonder about the benefits of digital transformation as touted by management consultancies.

    Gordon’s work is also an argument against globalisation, at least for the American economy. It brings into question the American dream.

    Finally, with technology unlikely to drive the kind of stellar growth promised, it brings into question the massive premium set on growth stocks over the long term and venture capital investments in the technology sector and the current Silicon Valley model.

    Gordon’s current research is focused on looking at European and American growth so it will be interesting to see commonalities and differences. I expect to see a spurt of growth from second generation mobile devices that freed up small businesses by providing an instantaneous connection with the customer. Rather than relying on an answer machines or a member of their family as receptionist.

    The Rise and Fall of American Growth: The U.S. Standard of Living since the Civil War: 70 (The Princeton Economic History of the Western World, 70)

    More book reviews can be found here.

    More information

    Robert Gordon’s academic papers here.

    Answering the Techno-Pessimists (complete) – Noahpinion 

    Interview: Patrick Collison, co-founder and CEO of Stripe – Noahpinion

  • White Motorcycle & other things this week

    White Motorcycle Concepts WMC250EV

    I have watched this video by White Motorcycle Concepts a few times and still don’t quite get it. White Motorcycle have hollowed out the centre of their motorcycle, to allow air flow through the middle of the bike rather than cutting the air cleanly. The little that I have seen make it hard to discern the effect of Bernoulli’s principle on the shape of the White Motorcycle.

    Tenacious D channel the Beatles

    Tenacious D are better known for their homage pieces to metal bands. For a charity single donating to Doctors Without Borders – they try and channel The Beatles. Its hard as The Beatles had so many sounds that they changed abruptly and crashed into each other.

    I think they did pretty well.

    Stories, players and games

    Nigel Scott has put together an interesting set of ideas on business and marketing. There’s some bits I’d disagree with (are Google, Facebook et al really changing the game, or just costing marketers more?). Really worthwhile going through it all here.

    Akira behind the scenes

    This brief look behind the scenes looks like an excerpt from a longer programme. But it gives an idea into the work which went into making the animated film Akira. The precision and level of detail is mind boggling.

    Gimme 5 mixes

    Gimme 5, the label of long time streetwear distributor Michael Kopelman have a library of good mixes up on Soundcloud and I have been listening to their back catalogue. They’re worthwhile listening to for their eclectic mix of material.

    #MyAppleDaily art project

    Chinese artist Badiucao is publishing a blank template of the paper’s front page for each day that the Apple Daily isn’t published. The idea is to encourage people to publish their own front page instead.

    More from Badiucao here.

    my apple daily introduction
  • Machine learning powered services + more

    Machine learning powered services

    Intelligent Relations – Matt Muir nails this in his take down of their machine learning powered media relations platform – Vapid, largely-pointless busywork which despite its almost universal lack of import is nonetheless treated by its practitioners as somehow REALLY VITAL and with a reverence normally reserved for stuff that matters rather than with the disregard appropriate for an industry staffed largely by double-figure-IQ morons. Anyway, that’s all by way of preamble to the introduction of Intelligent Relations, a new company which is set to make PR even worse if you can imagine it. Intelligent Relations (it sounds…it sounds like an escort agency for the sort of people who bother applying to Mensa, is what it sounds like) is PR, but with AI! That’s right, AI! The MAGICAL SECRET SAUCE that makes EVERYTHING BETTER and definitely isn’t a sign that someone is attempting to sell you some magic beans! Just listen to this – “GPT-Powered Outreach, 24/7 analysis of all relevant public event data to identify opportunities and pitch your company’s stories faster than the competition…Relentless customized global outreach based on AI-ranked relevancy to your brand. Generate responses that start, nurture, and build personal relationships with media influencers. Put your execs and your company in the heart of the conversation. No agency. You own your relationships – not your PR firm…Precisely worded campaigns, aggressively scaled with technology. Faster than humans, more personal than email blasts.” So, er, you are outsourcing the writing of pitch emails, and followups, to a machine? Have, er, you read any non-tweaked GPT-3 generated copy recently? – All of this stuff about machine learning powered media relations reminded me of the start of my agency career.

    I was working with an agency that was part of the Interpublic Group. We were riding the technology boom of the mid-to-late 1990s. This was a series of booms that were inter-related.

    • Telecoms boom, came from deregulation, the rise of data services, globalisation and the internet
    • Enterprise software boom driven by Moore’s Law, the ability to interconnect systems and exchange data at rates previously unseen. There was a strong incentive to replace old systems due to concerns about the millennium bug
    • Mobile boom as GSM networks and their CDMA equivalent democratised the mobile phone and allowed for nascent data services
    • The dot.com boom as companies built service layers over the top of data networks. Much of the ambition was way ahead of where technology was
    • Hardware boom. Businesses and consumers needed to get online

    Our CEO at the time Larry Weber came over to the office in Covent Garden, met clients and held court. He turns around to the junior staff and tells them how soon they won’t have to worry about manually contacting journalists or compiling status reports. Instead, the contact work will be outsourced to the Philippines (thanks to the telecoms boom). And data that was entered once in the company intranet WeberWorks would through the power of Lotus Notes be diced into the reports that the clients needed.

    WeberWorks in its first iteration was a proof of concept, not a viable product. Though I believe that the successor agency Weber Shandwick stuck with developing the platform.

    22 years later and agency life faces much the same problems, except an algorithm is touted to replace Filipino call centre workers in this scenario. What does machine learning powered media relations have that a Filipino call centre doesn’t? How will the PR profession grow when the on-ramp for people to learn how it works is now taken over by a machine learning powered media relations service instead?

    A lot of PR technology is based on the expectation that (machine learning powered) content will be fed into a media sausage factory and coverage will come out. But relationships are important, as journalists get hundreds of pitches and press releases per day.

    Consumer behaviour

    Phoenix eyes’ on catwalk of mainland academy’s fashion gala draw fire for insulting China |AppledailySome netizens accused the university of humiliating China after a video of the event on YouTube showed that most of the models either had an eye shape known as phoenix eyes, or were using eyeliner to present the same appearance. The eye shape, which is identified by a slight upward lift at the outer corner of the eye, is considered a desirable facial feature. However, some people regard it as a harmful stereotype reinforced by Western culture and the fashion industry. One influential blogger on Weibo, China’s dominant social media platform, said that because this look conforms with the stereotypes of ethnic Asians it carries a meaning of serious humiliation – this might be what passes for woke in China. The story was originally published in the English version of the Apple Daily Hong Kong on June 21, 2021 three days before the paper closed down. I have linked to to a Wayback Machine archive of the article.

    Political trolling twice as popular as positivity, study suggests – BBC News – unsurprising as taps into system 1 thinking

    Economics

    Competition and concentration | Financial TimesThe 1980s financialisation of the US economy created a mindset that manufacturing did not matter — and that it should therefore be shifted to lower-cost labour markets. The high value-added stuff, including R&D, would remain onshore. It didn’t turn out like that. Like any other activity in life, manufacturers learn by doing, which means that the most effective innovation usually takes place alongside production. That’s why so many of America’s most impressive companies, including Intel, shifted a lot of their R&D to China – great take on globalisation here. It also gives a sense of where the FT’s view is on the process

    Private equity ‘raid’ on UK companies sparks furious row in City | Financial Times – best quote in the comments ‘The British should be relieved to have their assets stripped by relatively familiar, relatively transparent organizations. It may be the Chinese next.’

    The Evolution of Corruption in China | Foreign Affairscorruption comes in distinct flavors, each exerting different social and economic harms. The public is familiar with three main types. The first is petty theft: police officers shaking down people on the street, for example. The second is grand theft: national elites siphoning off massive sums from public treasuries into private accounts overseas. The third is speed money: petty bribes paid to regular officials to bypass red tape and delays and grease the wheels of bureaucracy. All three types are illegal, vociferously condemned, and rampant in poor countries. But corruption comes in another, more elusive variety: access money. In this kind of transaction, capitalists offer high-stakes rewards to powerful officials in exchange not just for speed but also for access to exclusive, lucrative privileges, including cheap credit, land grants, monopoly rights, procurement contracts, tax breaks, and the like. Access money can manifest in illegal forms, such as massive bribes and kickbacks, but it also exists in perfectly legal forms – I was thinking of the favoured firms during the British empire and the chaebols during the Park presidency in South Korea. The chumocracy of UK politics is closer to speed money

    Ideas

    Digital Addiction Hunt Allcott, Matthew Gentzkow, and Lena Song (NBER.org working paper)Many have argued that digital technologies such as smartphones and social media are addictive. We develop an economic model of digital addiction and estimate it using a randomized experiment. Temporary incentives to reduce social media use have persistent effects, suggesting social media are habit forming. Allowing people to set limits on their future screen time substantially reduces use, suggesting self-control problems. Additional evidence suggests people are inattentive to habit formation and partially unaware of self-control problems. Looking at these facts through the lens of our model suggests that self-control problems cause 31 percent of social media use. – or in other words social media is like big food, the illegal drugs industry, alcohol, tobacco and gambling (PDF)

    Innovation

    Losing sight of the Future – Noahpinion – interesting article but the author forgets about energy density as an issue in their own predictions whilst mentioning it as a flaw in prior ones

    Marketing

    The fashion marketing shake-up: As Instagram, Facebook costs surge, where next? | Vogue Business – marketing inflation is hitting the fashion industry as platform and influencer costs surge, but sales don’t. More online related content here.

    North Face Owner Pulled Xinjiang Criticism, Then Reinstated It – WSJ – VF Brands struggling to navigate divergent Chinese and western markets. Its not been a good week for VF Brands as the Futurelight logo court case with Futura is bring a lot of unwelcome attention to the North Face brand and may blow on to its Supreme brand.

    McDonald’s, Wendy’s Cut Back Value Meals, Focus on Pricier Food – this is partly inflation. But I think that they are working an angle to squeeze premium burger brands: Five Guys, Gourmet Burger Kitchen (GBK), Byron Burger and similar

    Retailing

    S.Korea retailer E-Mart buys eBay’s S.Korean business for $3 bln | Reuters – purchased by Shinsegae – part of Samsung chaebol

    Technology

    Panasonic defends $7bn Blue Yonder deal after questions over price | Financial Times – interesting that Panasonic bought Blue Yonder. Blue Yonder is a supply chain software provider

    Wireless

    EE to reintroduce Europe roaming charges in January – BBC NewsEE, which is part of BT Group, previously said it had no plans to reintroduce roaming charges in Europe. – No plans meant that they didn’t have their act together at that time, typical BT in other words