The Innovator #4

SUPPLEMENT GRATUIT AU #22619 DU QUOTIDIEN
”LES ECHOS” DU 23 JANVIER 2018
NE PEUT ETRE VENDU SEPAREMENT
#4 – January 2018 – World Economic Forum Edition
Distributed in Davos and in Les Echos #22619
MEET YOUR DIGITAL TWIN
EVERYONE AND
EVERYTHING
WILL SOON HAVE
A DIGITAL IDENTITY
TINKERING WITH NATURE
Q & A WITH CRISPR-CAS9
CO-INVENTOR
EMMANUEL
CHARPENTIER
PLAYING DEFENSE
NEW CYBER CENTRE
SEEKS TO THWART
DIGITAL INFILTRATORS
PREPARING
FORTHE
FOURTH
INDUSTRIAL
REVOLUTION

THE IOTA FOUNDATION
IOTA is overseen by the IOTA Foun-
dation, a non-profit organisation
dedicated to building sustainable
ecosystems around IOTA, develo-
ping the DLT technology for real
life applications and maintaining
it license-free for all developers to
work with. The Foundation gathers
a team of world leading experts in
the respective fields and sets up de-
dicated working groups with com-
panies and research institutions in
those sectors to share know-how,
initiate experimentation and proac-
tively engage the startup communi-
ty, innovators and developers.
THE BACKBONE OF THE IOT
IOTA is a revolutionary new transac-
tional settlement and data transfer
layer for the Internet of Things. It’s
based on a new distributed ledger,
the Tangle, which overcomes the
inefficiencies of current Blockchain
designs.
IOTA is also the missing puzzle pie-
ce for the Machine Economy to fully
emerge and reach its desired poten-
tial. It is envisioned to be the pub-
lic, permissionless backbone for the
Internet of Things,that enables true
interoperability between all devices.
ZERO FEES - INFINITELY SCALABLE
Unlike blockchains, which are inhe-
rently limited by the bottleneck of
block size and rigid chain, which
leads to congestion and high fees
when usage goes up, IOTA’s Tangle
gets more efficient the more activity
occurs on the ledger. Perhaps more
importantly, because the Tangle eli-
minates the requirement of miners
and stakers, newly mined units of
currency and transaction fees do
not need to be extracted from the
system to pay validation fees. The
result is that IOTA has zero fees.
DATA INTEGRITY
IOTA’s main features (in its current
form) are feeless micropayments,
secure data transfer and data an-
choring. Combined with IOTA’s sca-
lability and partition tolerance, the-
se two features allow a plethora of
use cases to be derived which are
only possible with IOTA.
The main focus of IOTA is the Inter-
net of Things, with machines pay-
ing each other autonomously for
resources, services and/or access.
INTRODUCING IOTAINTRODUCING IOTA
Tangle
Txs
NetworkCapacity
Blockchain
www.iota.org / info@iota.org

LETTER FROM THE EDITOR
Will the Internet of Things set us free or lock us up?
ThatisthequestionpostedbyPhilipN.Howard,aprofessorattheOxford
InternetInstituteinhisbookPaxTechnica. Howardasksifweshouldfear
orwelcometheInternet’sevolution.TheInternetofThingsistherapidly
growingnetworkofhumansaswellasfactories,cars,animals,airplanes,
and everyday objects like sneakers that are now connected and able to
communicate overtheInternet.
Howard envisions a new world ofer emerging from this great
transformationinthetechnologiesaroundus,onehecallsPaxTechnica.
Thishighlyconnecteddigitalworldhastheimmensepotentialtoempower
citizens, making government transparent and broadening information
access. Howard cautions, however, that privacy threats are enormous
andthattheInternetofThingscouldbeusedtorepressandcontrolpeople.
Yet,healsoarguesthatifweengagewiththegovernmentsandbusinesses
building the Internet of Things we have a chance to build a new kind of
Internet and a more open society. The same can be said for all of the
technologiesdrivingtheFourthIndustrialRevolution.Theneedtoapply
systems thinking to AI, digital identity, cyber security, urban mobility,
precisionmedicine,andthefutureoffoodandproductionwillbeonthe
agendaattheWorldEconomicForum’sannualconferenceinDavosthis
year. Andrightlyso. Itisuptoallofustotakeresponsibilityforcrafting
thewayforward,beingveryconsciousofalloftheconsequences,intended
and unintended,of adopting new technologies.
ByJenniferL.Schenker
Editor-in-Chief,TheInnovator
THEBRIEF
GUESTESSAYBYKLAUSSCHWAB,WEF’S
FOUNDERANDEXECUTIVECHAIRMAN
COVERSTORY
PREPARINGFORTHEFOURTH
INDUSTRIALREVOLUTION
Q&AWITHKAYFIRTH-BUTTERFIELD,
HEADOFAIATTHEWORLDECONOMIC
FORUM
THEDIGITIZATIONOFEVERYTHING
THE30WORLDECONOMICFORUM
TECHNOLOGYPIONEERSTOMEETIN
DAVOS
PLAYINGDEFENSE
REFORMINGFOODPRODUCTION
Q&AWITHEMMANUELLE
CHARPENTIER,CO-INVENTOROF
CRISPR-CAS9
INNOVATIONWITHIMPACT
FISHINGFORINNOVATION
PERSONALIZEDMEDICINE
REVAMPINGRETAIL
RETHINKINGURBANMOBILITY
THEFUTUREOFMANUFACTURING
GUESTESSAY:LEADERSHIPINTHEAGE
OFAI
P.04
P.06
P.08
P.14
P.16
P.22
P.24
P.28
P.30
P.34
P.36
P.38
P.40
P.42
P.46
P.49
TABLE
OF CONTENTS
— P.03

P.04 — THE INNOVATOR
THE BRIEF
Artificial Intelligence (AI) is becoming the
“MotherofallTechnologies.”Itfeedsotherimportant
technologies (IoT, robotics, blockchain…) and gets
fed by others (quantum computing, chips…)
Artificial Intelligence has become a huge buzzword
since 2016/2017, with spectacular Star Wars-like
achievements on the one hand (AlphaGo Zero) and
horrorscenariosàlaElonMuskandStephenHawking
(who paint a very dark picture, where machines
take full control over mankind) on the other. In
2018, AI will enter its industrial phase: it will be
combined with existing technologies and hardware
solutions, incorporated into product development
andproductionprocesses,andthuswillhaveamuch
bigger impact on day-to-day business for companies
as well as more noticeable implications for society.
Yet,manyofthecurrentusecasesstillrelyonrelatively
simpledeeplearningtechnologies(backpropagation,
a30-year-oldtechnologythathadlackedrecognition
due to slow computers and little data availability)
where a machine is fed with hundreds of images to
recognizeacat,forexample.Thisisalsowhatfosters
thestrengthoftheAmericanandChinesetechgiants
because the current technologies are so dependent
on data, making people doubt the importance of
The Future Society at Harvard Kennedy School AI Initiative’s civic debate is a unique opportunity
for business leaders to contribute their perspective on AI governance to a global conversation. The Innovator
is a media partner of the initiative, which gives participants an open and collaborative opportunity to discuss
whatcharacterizestheriseofAI,itsdrivers,mainactors,anditsimplicationsintermsofemployment,security,
warfare, healthcare, transportation and regulation, among others. “Since this collective effort will culminate
inthepublicationofreportssubmittedtoahostofgovernments,parliaments,andinternationalorganizations
we have been closely working with, the debate is an unprecedented effort to shape policy on AI at the global
level and a chance for stakeholders to be heard,” says Co-founder and director Cyrus Hodes. “The AI
revolution holds massive transformational power. The civic debate is a collective effort that gives business
leaders an accessible platform to understand what the AI revolutions means for them, as well as tangibly
shape the way AI impacts society, nations, private sector and citizens.” The platform is open to everyone and
accessible through www.aicivicdebate.org
CharlesÉdouardBouée
RolandBerger
CEO
12+AI-RELATEDSESSIONSAREONTHE
AGENDA
THISYEARINDAVOS
2,500CONTRIBUTIONSTOTHEAI
INITIATIVE’SDEBATETODATE,
INCLUDINGVOTES
ANDPROPOSALS
AI’SIMPACTON
BUSINESS
AChanceForBusinessExecutivesToWeigh
InonAIGovernance
the actual, massive revolution that is going on. As
weenterthis“industrial”phase,alotofdisappointment
is to be expected, similar to the Iinternet era… yet
thewinnerswillwinbig.Companieswillgobankrupt
due to a lack of customers while the tech giants will
continuetoprintmoneywithtraditionaldeep-learning
AIforawhile.However,contrarytopopularopinion,
deep learning is not the only technology. As we are
gradually moving from deep learning technologies
to machine reasoning and genetic algorithms, there
will also be progress in the development of personal,
portable AI devices which, in the longer run, will
have the power to disrupt the current balance.
These new personal assistants will not necessarily
be connected to the Internet but will feature new
protocols and peer-to-peer technologies. They will
be intuitive, relatively inexpensive for consumers –
thusamassproduct–andabletoprotecttheirprivacy.
Theywillre-empowerconsumersandhelptraditional
companies regain direct access to them (e.g. an
apartment owner will be able to connect directly to
his short-term tenant whereas Airbnb manages
everythingforhimtoday).Hence,currentmonopolies
will be shaken up. The end of the tech monoliths,
and the end of platforms such as Uber/Airbnb might
be nearer than we think…! The development of
these AI devices might well take up to 10 years –
just like the evolution from mobile to smartphone.
But we should definitely keep an eye on them in
2018.

DAVOS TECH TALK
THEMERGEROFMANAND
MACHINE
Rachel,aDigitalPersonalAssistantfrom
SoulMachinesandIBMWatsonthatisableto
seeyou,listentoyou,detectyouremotionsand
respondinahuman-likemannerwillbeastar
participantinaprivateeventatDavos
organizedbytheSwisstechcompanyWISeKey.
Itisjustoneexampleofthebuzzattheannual
meetingaroundtheblurringlinesbetweenman
andmachine.
DISRUPTIONS IN MANUFACTURING
COULD CREATE A TWO-SPEED WORLD
AreportbytheWorldEconomicForum,developed
withA.T.Kearney,assesseshowwell-positioned
global economiesaretobenefitfromchangesin
productionbeingdrivenbytheFourthIndustrial
Revolution.Itconcludesthat90%ofparticipating
countriesfromLatinAmerica,theMiddleEast,
AfricaandEurasiahavealowlevelofreadiness
andsuggestshowtoremedythesituation.
LAUNCHOFTHEWORLDECONOMIC
FORUM’SCENTREFORCYBERSECURITY
Cybersecuritythreatsareoutpacingthe
abilitiesofgovernmentsandcompanies,
accordingtoCyberResilience:Playbookfor
Public-PrivateCollaboration,anewreportby
theWorldEconomicForumincollaborationwith
TheBostonConsultingGroup.Itsrelease
precedesthelaunchofanewGlobalCentre
forCybersecurityattheForum’s2018annual
meeting.
Togettechnologynewsincontexteveryweek,subscribetoournewsletter:http://innovator.news
— P.05
WHAT IS
KEEPING CEOS
UP
AT NIGHT?
PWC will once again release its
Global CEO Survey during the
annual meeting of the World
Economic Forum.
The survey results are based on
interviews with 1,293 CEOs in 87
countries.
TAKEAWAYS
of CEOs
are concerned or extremely concerned
about the speed
of technological change
of CEOs believe changes in core
technologies of production or service
provision will be very
disruptive to their businesses over
the next five years
of CEOs are extremely
concerned about
cyber threats versus
24% in 2017
76%
32%
40%
of CEOs are extremely
concerned about
the availability
of key digital skills in the workforce
76%

GUEST ESSAY
who created them will be firmly embedded within the many technologies
that surround us and which have become part of us. Our understanding of
previous industrial revolutions is that, while they create huge wealth and
opportunity, they also create significant harm: many people miss out on the
benefits entirely, and it is most often those populations with the least voice
orpowerwhobearthenegativeconsequences.Itisthereforenotgoodenough
for us to leave the evolution of our technological future to chance, or to trust
that market forces will create the future we want. Instead, we need to talk,
think and act today. That’s the motivation behind my new book, Shaping the
Fourth Industrial Revolution. It seeks to accelerate the way we understand,
discuss and make decisions around emerging technologies. It outlines the
most important dynamics of today’s technological revolution, highlights im-
portant stakeholders that are often overlooked in our discussion of the latest
scientific breakthroughs, and draws upon more than 200 leading global thin-
kers to explore 12 different technology areas key to the future of humanity.
Agile and Engaged
Thinking and acting around the Fourth Industrial Revolution demands a
new type of leadership – an approach we call “systems leadership.” Systems
leadership in this context doesn’t just mean leading on the design of the
technologies themselves, but also acting as a leader on how they are go-
verned and on the values they exhibit in how they impact people from all
backgrounds. Newwaysofthinkingandactingarerequiredfromallstakehol-
ders, including individuals, business executives, social influencers and po-
licymakers.
Governments need to adopt the concept of “agile governance” of technolo-
gies, matching the nimbleness and adaptiveness of the technologies them-
selves and of the private-sector actors integrating them. This means thinking
not just about what new rules might be needed, but finding entirely new
ways to create and update rules over time in collaboration with other sec-
tors. For businesses, the most important strategy is to experiment more,
while simultaneously investing in people. Only by directly experimenting
with technologies can organizations see for themselves what they can do.
Given that experimentation is best done by those closest to a business, this
also means making concerted efforts to upskill employees and embracing
an entrepreneurial mindset. Finally, for citizens, the most important action
is to be engaged on these issues, making their voices heard as voters, consu-
mers, employees, members of civil society organizations and community
leaders. Those of us lucky enough to be alive today have a responsibility to
future generations to ensure they can live and find meaning in a sustai-
nable, inclusive, technologically-driven future.
We should therefore all be part of building aspirational visions of the fu-
ture, influencing how technologies are developed and adopted. As we change
the way we talk, we change the way we think and create new opportuni-
ties to act. Let’s act, together, now, to make those aspirational visions of the
future real for as many people as possible, all around the world.
Klaus Schwab’s new book, Shaping the Fourth Industrial Revolution, was
released on January 15, 2018, and is available here:
wef.ch/shaping4IR
In the 47 years since I founded the World Economic Forum,
I have witnessed first-hand that when we change the way we talk, we begin
to think differently too. Likewise, changing the way we think leads to changes
in the way we act. This is true for all of us. The language we use and the
way we think about the world shapes our subsequent behavior.
It’s therefore extremely gratifying to see that, since the publication of my
2016 book The Fourth Industrial Revolution, we have started to change the
way we talk about technology and its impact on the world. More and more
people are becoming aware of the power of emerging technologies to trans-
form our economies, our societies and even who we are as human beings. .
It’s common now to ask how artificial intelligence might be used to influence
us, whether cryptocurrencies are more effective for promoting social inclu-
sion or criminal activity, or to worry about what kinds of skills we need to
develop in order to thrive in an era when technologies are both more per-
vasive and more powerful. The term “The Fourth Industrial Revolution” has
become common parlance, conveying the magnitude of the changes un-
derway.
The challenge, however, is that we don’t have a decade to slowly shift mind-
sets before moving to act on the issues surfaced by the Fourth Industrial
Revolution. The speed, scale and scope of change that is underway today,
coupled with the fact that entrepreneurs, companies and policy makers are
already creating rules, norms, techniques and infrastructure around new
technologies, means that in 10 years it will be too late. The structure of new
technologies will be more or less set, and the perspectives and values of those
ACallToAction
ByKlausSchwab
FounderandExecutiveChairman,
WorldEconomicForum

WE NEED
Y U
“If you want to be a startup billionaire, you have to solve a billion peoples‘ problems”
Thimo V. Schmitt-Lord MBE, Head of Bayer Foundations
We believe in the game changing power of innovation – we support pioneers who apply tech innovations to humanity’s
biggest challenges around heath and food.
In 2018 we are scouting for Startups, Innovators, and Impact Innovations particularly focused on agriculture and food
production for our seed funding programs and new book "The Beauty of Impact - Food". We are searching for innovations
that solve the food crisis and other global grand health-related challenges that we can promote and fund to bring to the
rising billions in need around the world.
The next opportunity to meet the Foundations CEO Thimo V. Schmitt-Lord and Open Innovation Hub Director and Speaker
Marc Buckley is at the 48 Forward Conference in Munich on February 22, and on March 9 at SXSW in Austin, Texas.
Seeking funding yourself for a crazy “innovation-4-good” idea?
Get in touch with us at bayer.foundations@bayer.com. More Info: www.bayer-foundations.com

PREPARING
FORTHE
FOURTHINDUSTRIAL
REVOLUTION
— P.09
Impossible Foods, a World Economic Forum Technology
Pioneer, makes a plant-based patty that cooks, smells, tastes and even
“bleeds” like real beef. It is one of a growing number of food startups
threatening the future of the $90 billion meat industry.
If plant-based protein production facilities and labs that manufacture meat
from animal stem cells take the place of farms, feed lots and slaughterhouses
the meat value chain could be dramatically transformed.
So could the environment.Indeed, if only 10% to 30 % of the world’s
population switches from eating real meat to alternative proteins it would
not only free up to 400 million hectares of land (about the equivalent of
1,000 sports stadiums ), it would do away with up to 960 megatons of Co2
emissions and save up to 12% of total fresh water used by agriculture,
according to a World Economic Forum report entitled “Innovation With a
Purpose: The Role Of Technology Innovation In Accelerating Food Systems
Transformation” scheduled to be released during the annual meeting
January 23-26. (See the related story on pages 34 and 35.) It is just one
example of how emerging technologies driven by the Fourth Industrial
Revolution are disrupting industries and bringing about change with wide-
ranging consequences. So what is driving the revolution? A combination
of technologies that include Big Data, the Internet of Things (IoT), artificial
intelligence and machine learning, blockchain, autonomous vehicles,
advanced robotics, additive manufacturing, advanced materials and
nanotechnologies, advances in science such as next-generation
biotechnologies and genomics, and new energy technologies.
Innovation With a Purpose
“These advances are merging the physical, digital and biological worlds in
ways that create both huge promise and potential peril,” says a Forum
description of the Fourth Industrial Revolution. “The speed, breadth and
depth of this revolution is forcing us to rethink how countries develop,
how organizations create value and even what it means to be human.”
The impact is driven home by clicking on a transformation map on the
Forum’s website (reproduced in The Innovator on page 8), which shows
all of the sectors touched by the Fourth Industrial Revolution. The map is
based on a knowledge tool recently launched by the Forum to help users
explore and make sense of the complex and interlinked forces behind
transformation. (https://www.weforum.org/about/transformation-maps)
The sweeping changes ahead require what Forum Founder and Executive
Chairman Klaus Schwab refers to as “systemic leadership” in his new book
COVER STORY
— Emerging technologies are disrupting many industries, bringing about rapid, large-scale
change with wide-ranging consequences, requiring systems thinking and increased collaboration
between stakeholders.
By Jennifer L. Schenker

“Shaping The Fourth Industrial Revolution,” which was released on
January 15. “The scale, complexity and urgency of the challenges facing
the world today call for leadership and action that are both responsive and
responsible,” Schwab writes in his book. “If ‘values-driven individuals’
across all sectors work together we have the chance to shape a future
where the most powerful technologies contribute to more inclusive, fair
and prosperous communities.” Food production is a case in point. Today
it is badly in need of transformation. “Billions of people are poorly
nourished, millions of farmers live at subsistence level, enormous amounts
of food go to waste and poor farming practices are taking a toll on the
environment,” says the “Innovation With a Purpose” report released at the
annual meeting.
Ensuring No One is Left Behind
Technology innovations, combined with other interventions, can play an
important role in enabling and accelerating food systems transformation,
helping achieve United Nations Sustainable Development Goals by 2030,
the report says. It points to areas such as gene-editing tools and
microbiomes that could give farmers the potential to meet an expected
40% surge in demand for food by 2050. (See the story on pages 34 and
35 and The Innovator’s interview with Emmanuelle Charpentier, the co-
inventor of CRISPR-Cas9 gene-editing tools, on pages 30 and 31.)
“But achieving a true transformation of food systems requires a holistic
approach,” the report concludes, “one engaging all stakeholders and
deploying a wide array of actions such as improved policy, increased
investment, expanded infrastructure, farmer capacity-building, consumer
behavior change and improved resource management.” Precision medicine
is another area in which the Fourth Industrial Revolution promises to have
a positive impact on health and well-being. It could usher in a new age
in which medicine can take into account genetic, environmental, and
lifestyle factors to treat people more effectively. But collaboration is
necessary to ensure that this rosy future is evenly distributed. Among the
issues that will be explored at the Forum’s annual meeting is how to make
sure populations from developing countries don’t get left behind. (See the
story on pages 38 and 39.) Avoiding a two-speed society is also a concern
when it comes to technologies transforming production. The global
consultancy Capgemini projects that smart factories have the potential to
add $500 billion to $1.5 trillion in value to the global economy within
five years. But a new report by the World Economic Forum reveals that
only 25 countries are in the best position to gain as production systems
stand on the brink of exponential change. Unless action is taken Latin
American, Middle Eastern, African and Eurasian countries could be left
behind. (See the story on pages 46 and 47.)
Governments must work not just to protect their economies but also to
safeguard public interest as new technologies are put into place. Today
control over people’s personal data and profit from its use and sale are in
the control of a few tech giants. The introduction of modern cryptography
and blockchain, an immutable digital ledger that allows third parties to
validate that an attribute has not been altered or misrepresented, promises
to change that, giving each person a sovereign digital ID. This
development, along with the assigning of secure identities to objects, is
expected to have far-reaching benefits for society and business, offering
greater efficiency, security and trust. However, adoption of these
technologies touches on issues that cross sectors and industries, requiring
cooperation between companies, government and civil society. (See the
story on pages 16-20.)
The introduction of autonomous vehicles onto city streets is also a public-
COVER STORY
DIGITALIDENTITY
Blockchainandmodernencryption
technologiespromisetoenable
everyoneandeverythingtohavea
uniqueID,creatingsignificant
benefits,butfirstgovernments,
companiesandcivilsocietymust
agreeonthepathforward.
CYBERSECURITY
Cybersecuritythreatsareoutpacing
theabilityofgovernmentsand
businessestoovercomethemunless
allstakeholdersbegintocooperate.

Security. (See the story on pages 24 to 26.) The Forum is also connecting
with industry, government, and civil society stakeholders on the impact
of artificial intelligence. It has hired the respected expert Kay Firth-
Butterfield to head up AI and Machine Learning at its new Center for The
Fourth Industrial Revolution in San Francisco. She sees her role as helping
companies and countries to only commission and create ethical, human-
centered and responsible AI. (See the interview on pages 214 and 15.)
Job Training for Tomorrow
While her efforts may go some way towards allaying worries that AI will
run amok, there is growing concern from all corners of society that
automation will wreak havoc on the global workforce.
The fears appear to be well-founded. Building on a January 2017 report
on automation, McKinsey Global Institute’s November report “Jobs Lost,
Jobs Gained: Workforce Transitions In A Time Of Automation,” evaluates
the number and types of jobs that might be created under different
scenarios through 2030 and compares that to the jobs that could be lost
to automation. It estimates that between 400 million and 800 million
sector – and not just a technology – issue. Cities should seize control of
their transportation future rather than letting it be steered by for-profit
companies launching disruptive services, according to the initial results
of an autonomous car project in Boston, which are scheduled to be
presented at the Forum’s annual meeting in Davos.
To integrate innovative private and public transportation services, the
Forum recommends deploying a mobility platform that gives access to
new entrants while allowing local governments to control the system to
ensure it serves the broader needs of the community. (See the story on
pages 42 and 43.) Cybersecurity also requires systems thinking because
threats are outpacing the ability of governments and businesses to
overcome them unless all stakeholders begin to cooperate, according to
a new report by the Forum in collaboration with The Boston Consulting
Group.
To that end the Forum will announce the creation of a new Global Centre
on Cybersecurity at the annual meeting Jan. 23-26. The Centre “will play
a vital role in connecting industry, government, and civil society
stakeholders to address some of the biggest challenges in cyber-security,”
says Alan Cohn, Co-Chair of the World Economic Forum’s Global Future
Council on Cyber-security and a former director of Emergency
Preparedness and Response Policy at the U.S. Department of Homeland
— P.11
PRODUCTION
Smartfactorieshavethepotential
toadd$500billionto$1.5trillionin
valuetotheglobaleconomywithin
fiveyears.ButmostLatin
American,MiddleEastern,African
andEurasiancountrieshavealow
levelofreadiness,sothereisa
dangerofcreatingatwo-speed
world.
FOODANDAGRICULTURE
Technologyinnovationscanplayan
importantroleinenablingand
acceleratingfoodsystems
transformation,butonlyifall
stakeholdersareengagedandactions
taken.
MOBILITY
Ifautonomousvehiclesoranyother
disruptivetransportationservices
evolveinisolation,theycouldclogcity
roadsandcauseahostofother
unintendedconsequences.
ARTIFICIALINTELLIGENCE
Between400millionand800million
peoplearoundtheworldcould
bedisplacedbyautomationandwill
needtofindnewjobsby2030.
Governmentsandenterpriseneed
tostepuptohelpwithjobtrainingand
reskilling.

P.12— THE INNOVATOR
COVER STORY
people around the globe could be displaced by automation and will need
to find new jobs by 2030, based on its most rapid automation adoption
scenarios. While new jobs will be available, based on McKinsey’s scenarios
of future labor demand and the net impact of automation, people will
have to find their way into those new jobs. “The report is a call to action,”
McKinsey senior partner Eric Hazan said in an interview, as the shift could
be on a scale not seen since the transition of the labor force out of
agriculture in the early 1900s in the United States and Europe, and more
recently in China. “Due to AI automation, out of those displaced 75 million
to 375 million people may need to switch occupational categories or learn
new skills by 2030,” says Hazan. “This is massive. Governments and large
companies will need to work hand in hand to help people transition
smoothly from one job to another and from one occupation to another.
There is a considerable need for re-skilling and training and is seems that
not a lot is being done.”
Anticipating the Impact of Automation
The report predicts that categories with the highest percentage job growth
going forward will include:
— healthcare providers
— professionals such as engineers, scientists, accountants, and analysts
— IT professionals and other technology specialists
— managers and executives, whose work cannot easily be replaced by
machines
— educators, especially in emerging economies with young populations
— “creatives,” a small but growing category of artists, performers, and
entertainers who will be in demand as rising incomes create more
demand for leisure and recreation
— builders and related professions, particularly in the scenario that
involves higher investments in infrastructure and buildings
— manual and service jobs in unpredictable environments, such as
home-health aides and gardeners
Companies have to anticipate the impact of automation on their workforce.
“People inside companies need to be re-skilled, companies need to create
the conditions for that and this new way of working,” says Hazan.
McKinsey’s study suggests that governments could craft policies that make
it easy for people to move jobs and professions by building digital jobs
platforms for those seeking employment and developing training programs
that focus on people rather than job categories. “There is a whole discussion
that needs to be had about whether government training programs are fit
to the challenge, given the amount of training and re-skilling that needs
to take place in the next 15 to 20 years,” says Hazan.
As in every industrial revolution, people will lose their job and will need
to find another one, he says. “The difference is that during the first and
second industrial revolutions nobody was taking care of the people who
lost their jobs. But we are now in a position as a society to help people
anticipate the changes ahead and receive specific training.”
Public education has to be overhauled to prepare people for the jobs of the
future. And governments need to ensure there are sufficient investments
in startups and the digital transformation of brick-and-mortar companies
“because the new jobs, the ones we don’t imagine yet – will only appear
if all of the traditional industries are investing in innovation and
technology,” says Hazan. Given the challenges ahead, it is a good bet that
the Fourth Industrial Revolution will continue to take center stage in Davos
not just this year but for years to come.
EricHazan,
McKinseySeniorPartner
“DuetoAIautomation,outofthose
displaced,75millionto375million
peoplemayneedtoswitch
occupationalcategoriesorlearnnew
skillsby2030.Thisismassive.
Governmentsandlargecompanieswill
needtoworkhandinhandtohelp
peopletransitionsmoothlyfromonejob
toanotherandfromoneoccupationto
another.”

Artefact is an agency marrying
consulting and data. Can you present
the different service offer of your
company?
Artefact’s offers can be categorized in 3
main and complimentary pillars:
• Marketing to optimise activation and
creative campaigns performances
relying on Data and Automatisation
• Strategy and Data Science Consulting
to make advertisers successful in
a data-dependent environment and
improve brands intuitions by concrete
and relevant data.
• Technologies to maximise productivity
and allow each to take better decisions
by developing Artificial Intelligence
solutions and Data Lakes.
Most of the time, we accompany our
clients on all those projects to keep
a global consistency in each of those
marketing strategies.
Artefact has experienced an
impressive evolution over the past two
years. How do you explain this hyper-
growth?
First of all, there is a very high demand
for global support from advertisers.
We are experts in data, media and
artificial intelligence. Furthermore our
organisational methods favour the
excellence of our services. Internally,
creative teams mix with digital
marketing experts, data scientists,
consultants and even AI researchers.
A unique core of expertise halfway
between marketing and engineering,
which gives us a headstart on our
competitors. As a matter of fact,
Artefact was elected in 2017 Innovative
Agency of the Year.
Artefact is designed to be a relevant
alternative to large communication
groups and consulting firms. How
does your offer meet the new needs of
marketing departments?
Artefact responds to the new challenges
of marketing departments: they need
agile and fast partners, experts who can
submit new ideas to them continuously,
who know how to use today’s
technologies and master
them perfectly in order to anticipate their
evolution. Consulting firms may not have
as much agility and expertise, and large
communication groups do not have the
same technology culture as we do, and
often have difficulty coming up with bold
strategies off the beaten digital track.
Artefact has just proposed to the
financial market a very ambitious 2020
strategic plan. What is your strategy to
double your gross margin in the next
three years?
We are actually aiming very high with our
ambition for the next three years. Here
are the major development axes of the
Group:
• Reinforce the support and productive
teams (Strategic Consulting, Data
Science, IA Experts) to support the
growth of the activity and develop pizza
teams* internationally;
• Develop R & D and proprietary
technologies (Automation and
Innovation ...) to maintain and enhance
the technological advantage;
• Expand internationally and recreate
France’s business model in all existing
markets;
• Expand externally thanks to the
acquisition of innovative companies
(technological startups, R & D products,
etc.).
* Developed by Amazon, Artefact applies
this concept everyday: it consists in
including one person of each expertise
in a team in order to have a 360
expertise at each step of the project.
ADVERTORIAL
Meet Artefact,
the digital agency of the future
François de la Villardière - Chairman of the board
Guillaume de Roquemaurel - Group CEO
Vincent Luciani - Group COO & CEO France
Philippe Rolet - Group CTO
www.artefact.is

AnInterview
With
KayFirth-Butterfield,
HeadofAIandmachinelearning
attheWorldEconomicForum’sCenter
forTheFourthIndustrialRevolution
Kay Firth-Butterfield
is head of artificial intelligence and
machine learning at the World
Economic Forum’s Center for The
Fourth Industrial Revolution, vice
chair of the global engineering
standards group IEEE’s Global
Initiative for Ethical Considerations
intheDesignofAutonomousSystems,
an expert advisor to Britain’s All
PartyParliamentaryGrouponArtificial
Intelligence and a member of the
technical advisory group to the
Foundation for Responsible Robotics.
She has worked as a barrister,
mediator, arbitrator, professor and
judge in the United Kingdom and
has advanced degrees in law and
international relations which focus
on the ramifications of pervasive
artificialintelligence.Shewasrecently
interviewed by The Innovator.
If autonomous AI software,
crunching data far more rapidly
than humans, can help eradicate
disease and poverty and introduce
societal improvements and
efficiencies, then we must embrace
it. But, at the same time, we have to
have governance. And right now
there is no such thing. As a lawyer,
judge and AI expert what do you
think is the best way to approach
governance?
— KFB: We need good governance,
not governance open to endless
challenge. This is the reason that I
joined the Center for the Fourth
Industrial Revolution. The way each
projectwillcreateamulti-stakeholder
team to co-design governance
mechanisms and then pilot them is,
I believe, the ideal way to create
useful legislation in a partner country
that is then scaleable to others.
Can you tell us more about the
World Economic Forum’s role in
helping shape AI’s future?
—KFB: We are seeking to tackle the
big-picture issues at the moment:
privacy, trust, bias, transparency,
accountability; rather than looking
at uses of AI. Using a pre-second
Industrial Revolution analogy, I take
the view that we need to get the
couplingbetweenhorseandcartright
beforewestartthejourney.Theprojects
that help inform boards and help
countries create best practices for
procurement of AI are important
because if we can help companies
andcountriestoonlycommissionand
create ethical, human-centered and
responsible AI then that is the type
ofAIwhichwillspread.Italsoenables
countries and companies to apply
culturally relevant standards to such
commissioning while encouraging a
norm across the globe.
ARTIFICIAL INTELLIGENCE
Keeping
AnEyeOnAI

For example, as chatbots are created
to support mentally ill adults and
children, should those interactions
be regulated? In such cases, medical
professional bodies should have a
share of the discussion.
One of the projects which has been
recommended to me by the Forum’s
Global Future Council on AI and
Robotics is to see if the Forum can
help scale around the world the
education of computer scientists
(especially those going into AI) in
the ethical human-centered design
ofAI.Itisaprojectthatwearescoping
with professors from universities
around the world. This would help
toeducatescientistsfromthebeginning
of their careers.
There are voluntary principles such
as the Asilomar Principles. And there
have been suggestions that just as
lawyers and doctors have ethics
training at universities and then
professional bodies enforce such
requirementsinpractice,sotooshould
there be a professional regulatory
body for AI scientists.
Most of the initiatives on AI and
ethics involve tech companies.
What role, in your opinion, should
big corporates in other fields play?
How should they get involved and
why?
—KFB: The way good or bad designs
of AI will spread across the world is
through the increased use of AI by
non-tech companies. If they set
standards for the sort of AI they buy
or develop then good design of AI
will spread more comprehensively
andmoreswiftly.InaHarvardBusiness
Review article last year, Andrew Ng
(whoformallyspearheadedAIefforts
at Google and Baidu) said that all
companieswillhavetostarttoappoint
a Chief AI Officer. I have said that
also need different AI strategies. It
is dependent upon their level of
technological development.
At the Center in San Francisco, we
are working with partners not only
from industry, academia, the start-
up community and civil society but
also with countries. Each project
team will build policy frameworks
and governance protocols with a
focus on partners who will pilot them
intheirjurisdictionsandorganizations.
Our vision is to help shape the
developmentandapplicationofthese
emerging technologiesforthebenefit
of humanity.
What sort of guidelines need to be
put in place to monitor AI research
and who should develop them?
—KFB: Universities need to consider
whether something like the IRB
(Institutional Review Board) system
should be applied to AI research.
A number of efforts are underway in
the tech community and academia
to grapple with the complex challen-
ges that AI poses. What is the best
way to ensure that there is some
sort of coordination between all of
these efforts?
—KFB: Each of these organizations
is doing valuable work in different
areas and aspects of AI. I see them
all as complementary to one another.
The way in which AI is developed
will be critical for the way in which
humanity thrives in the future. We
all want to see the massive benefits
that AI can bring to humanity while
minimizing the risks. Our work at
the Center for the Fourth Industrial
RevolutionandwiththewiderForum
isglobal,anditneedstobe.Allnations
need to be in a position to benefit
from AI and our work is inclusive.
At the same time, different nations
they will also need to appoint a Chief
Values Officer whose job would be
to supervise the ethical/responsible
use of AI and probably run an Ethics
Advisory Panel. The job of an Ethics
Advisory Panel would be to look at
the use of AI in each product at the
initial stage so that ethical, human-
centered and responsible design is
built into the application from the
start and not considered as an add-
on afterthought.
What, in your mind, are the most
pressing AI-related issues that
should be placed on the agenda in
2018?
—KFB:Therearemanypressingissues
that need to be on 2018’s agenda.
How can the developing world use
and develop AI? Governments need
to take a hard look at the education
system. Is it ready for the Fourth
IndustrialRevolution?Andwhatabout
the reskilling of workers? AI will
change the shape of what traditional
work is and the population will need
to be prepared. Governments need
to also look into developing an
infrastructure that enables talent to
thrive at home instead of leaving for
jobs elsewhere. If we do not tackle
this problem there is a significant
chance that the disparities of wealth
will simply increase.
SpecificallyinAI,workwillbeneeded
to address privacy concerns. We need
to find ways to ensure those creating
AI are drawn from a more diverse
population. We need to work on how
bias in algorithms caused by use of
historic data can be addressed. We
alsoneedtoworkonthetransparency
of algorithms.
AI is moving rapidly, but there is a
lot to do to ensure we maximize the
benefits while minimizing the risks.
“Ifwecanhelpcompaniesand
countriestoonlycommission
andcreateethical,
human-centeredandresponsible
AIthenthatisthetype
ofAIwhichwillspread.”
— P.15

IMPLANTABLETECH SOFTWAREPROGRAMS/
BOTs
INTELLIGENTAUTONOMOUS
MACHINES
CONTROLLED
MACHINES
PHYSICALOBJECTS
(24billionRFIDtagsin2020
100billionQRCodes)
— In the not-too-distant future every human with have his own unique digital ID and everything we buy from our cars to tuna in the
grocery store will have its own digital twin.
Credits: Spherity
ORGANISMS/
LIVINGSPECIES
(1billioncattle
8billionhumans)

THE
DIGITIZATIONOF
EVERYTHING— As people, animals, machines and software are connected, unique digital IDs
will become a key enabler of secure transactions and new services.
By Jennifer L. Schenker
— P.17
DIGITAL ID
“Everything Is Connected” says the neon lettering on a
sculpture in a leafy park in Wakefield, England. It is about to become true.
Literally. If pundits are right, everything from our own identities to the
diamond earrings on our earlobes to the sneakers on our feet, the tuna we
buy in the supermarket and the cars we drive, will all be digitized and linked
to the Internet. Up until now governments have owned peoples’ identities
through the issuing of social security numbers, passports, identity cards and
birth and death certificates. And some of the largest Internet companies,
including Google and Facebook, have been reaping most of the profits from
collecting, aggregating, analyzing and monetizing personal data.
But the use of modern cryptography and introduction of new technologies
such as blockchain – an immutable ledger that allows third parties to validate
that an attribute has not been changed or misrepresented – could help
humans obtain self-sovereign identity, digital identities that remain entirely
under an individual’s control. Giving identity to non-human objects has far-
reaching benefits for the 4th industrial revolution. In sectors such as
aerospace and manufacturing, the pairing of the virtual and physical worlds
already allows the analysis of data and monitoring of systems to head off
problems before they even occur. It can also prevent downtime, develop new
opportunities and help planning for the future by using simulations.In the
future digital twinning is expected to introduce end-to-end visibility in supply
chains, prevent counterfeiting and allow for interaction with customers that
buy an object – via that object – over the lifetime of a product, forming the
foundation for connected products and services.
The Potential Upside is Huge
Secure, immutable digital IDs could help achieve one of the United Nations’
Sustainable Development Goals: providing every person on the planet with
a solid and tamper-proof digital identity based on common, interoperable
standards by 2030. As a first step, the United Nations is seeking to develop
scalable identity systems by 2020. The aim is to help the some 1.1 billion
people – including many displaced persons – who currently have no means
of identification, meaning they can’t vote, go to school or receive
government services.
The introduction of secure digital identities could also make many existing
authentication processes obsolete and save everyone billions of wasted
hours annually, significantly improving privacy and security.
Today when people want their identities to be confirmed they have to
transfer information such as their name, address and social security. The
entity to which they sent that information retains it, meaning the data is
out there in silos, creating both risks in terms of data loss and forcing
companies that might not want to be in that position to store that
information. It also enables businesses to harvest peoples’ personal data
for commercial purposes that do not necessarily benefit the owner of the
data. All of that changes once the owners of the data are in control and
can decide to share only the information they want, when they want, with
whom they want. Modern cryptography – such as zero knowledge proof
systems or secure Multi-Party computing – enables an individual to provide
proof to a third party without sharing personal data. For example, a person
could prove they are over 18 without revealing their exact birth date.
It could make it safe to share medical records electronically and for
governments and global NGOs to introduce new electronic services based
on digital IDs. Estonia led the way, but now governments in many countries
including Canada, the Netherlands, Switzerland, Brazil, India, Dubai and
the U.S are trialing secure digital ID services. So are NGOs. In trials in
Pakistan and at a refugee camp in Jordan, the United Nations World Food
Program has tested a blockchain-based digital ID service coupled with the
use of biometric information to make cash-based transfers, through

DIGITAL ID
vouchers or pre-paid debit cards – to allow people in need to purchase
their own food.
It doesn’t stop there. Self-sovereign IDs looks poised to have a big impact
on the way everyone buys and sell goods. Secure IDs are expected to lead
the way for a process called intent casting, a means to allow buyers to
more effectively and efficiently broadcast their purchase plans and qualify
the sellers. With trusted digital IDs all the information needed, such as
proof of ownership, product history and buyer reputation, could be shared
between the buyer and seller without revealing personal information such
as full name, home address or email – all without the need for middlemen.
“Say I want to refinance a €800,000 home,” says Timothy Ruff, co-founder
and CEO of the U.S. digital ID startup Everynym. “I would be able to
release proof that I own it, proof that I am who I say I am and proof that
I can be trusted through some kind of a rating agency. Instead of buying
me as a lead or advertising through Facebook or Google, companies selling
home mortgages would be able to go straight to me and use the money
they would have spent on advertisers to give me a better deal.” He adds:
“This whole system of intermediaries in the form of search engines,
Facebook and AdWords would be flipped on its head. It is potentially very
disruptive.”
Once objects such as motorcycles have digital IDs they could be trusted
to make transactions on their owner’s behalf. So sometime in the not-too-
distant future an owner might text a motorcycle she owns and tell it to
go sell itself. With the permission of both buyer and seller, follow-on
services, such as bids to provide insurance to the new owner of the
motorcycle, could be provided. Trusted digital IDs could also open new
opportunities for existing businesses to create new revenue streams.
Banks or Amazon or Alibaba could offer identity management as a
separate, fee-based service. They could, for example, serve as brokers of
digital data, gathering – at a customer’s request – all of the digital
documents needed from different sources for an individual customer to
gain approval from an owner to rent or buy an apartment.
The World Economic Forum argued in a 2016 report that there is a strong
business case for banks to move into such services. Since then other
industries – including the travel and health sectors – have expressed
interest in how to best establish and use secure digital IDs, prompting the
Forum to launch a cross-industry initiative to find a way forward, says
Daniel Dobrygowski, the Forum’s project lead on Trust and Resilience.
While there is a need for an international approach, establishing
agreements will be anything but easy, due to technical, cultural and
commercial issues.
The Twinning of Things
Humans aren’t alone in needing digital identities. The world is not yet fully
reaping the benefits of the Internet of Things because supply chains are
not transparent or interoperable, there is no trustworthy machine-to-
machine communications mechanism and there is fear about the risk of
data tampering. What’s more, there is no way of having a provable,
traceable data trail, and no control over where the data goes.
That is expected to change once everything has a digital twin, a data model
of a real-life machine, product or service with a unique immutable identity,
says Carsten Stoecker, a council member of the World Economic Forum’s
Global Future Network and CEO of Spherity, a German startup that aims
to link the identity of everyone and everything to a digital twin.
Think of a digital twin as a bridge between the physical and digital worlds.
Sensors that gather data about real-time status, working condition, or
position are integrated with a physical item. The components are connected
to a cloud-based system that receives and processes all the data the sensors
monitor. This input is analyzed against business and other contextual data.
01
INTERNET&PLATFORMS
Globalinterconnectedness
viatheInternetandplatform
ecosystems.
02
IOTDEVICES
50billionconnecteddevices
worldwideby2020.
WilliamBout AndresUrena
THEFOURTH
INDUSTRIAL
REVOLUTIONIS
BEINGDRIVENBY
THEFUSIONOF
DIFFERENT
TECHNOLOGIES

DIGITALIDENTITY
STARTUPS
TOWATCH
SPHERITY
GERMANY
WHAT IT DOES : Buildingapeer-to-
peertransaction layer bridging the
physical, biological and digital spheres
in order to link the identity of everyone
and everything to a digital twin.
https://spherity.com
— P.19
and related transaction history verification while Chronicled, a San
Francisco-based startup, is using blockchain-supported digital ID
technology to tackle counterfeiting of everything from fine art to expensive,
original sneakers. By placing microchips onto or inside of virtually any
physical object, Chronicled can register critical identifying data about that
object onto the blockchain, authenticating it as the original and tracking
each step in its purchasing history.
Avoiding Replication of Existing Issues
While this all sounds great, it could be a while before everybody and
everything has a digital twin and interconnections run smoothly and
securely. In some countries there will be centralized digital ID programs,
but in cases where there is lack of trust in the government or in the ability
of the government to coordinate, a federated or more distributed approach
might be used. Agreement needs to be reached on consumer rights and a
new model developed for data owners to share and be compensated for
Information gleaned within the virtual environment can then be applied
to the physical world to improve performance of everything from an
airplane part to an entire factory.
GE helped pioneer the field of digital representation of a physical asset and
its context within an enterprise to understand the past and predict future
outcomes. In contrast to cloud-based systems, digital twinning in
combination with blockchain can and will be used in many other ways
because the technology enables reliable interoperability, trusted
transactions, proof of authenticity, full audit trailing and the collection of
lifecycle data for product development and for tax automation, says
Stoecker, who recently left a job as a manager in the machine economy
innovation program at the German energy company innogy SE to co-found
Spherity. Take the case of cars. Spherity’s digital twinning technology
allows the capturing of car data during a vehicle’s entire lifecycle. It can
provide a non-tampered mileage history, preventing odometer fraud; help
establish pay-per-use tailored insurance or leasing models; and permit the
running of artificial intelligence analysis on telematics data. The German
startup’s technology also allows machines to enable pay-per-use models
for renting or leasing, for service tracking and monitoring and predictive
maintenance analysis.
Spherity additionally plans to apply its technology to digitize green energy
assets for peer-to-peer energy trading and to create tracing apps for digital
twin supply-chain tracking. Other startups are using digital twinning to
track and establish the provenance of fast-moving consumer goods. For
example, Provenance, a British startup, puts a unique QR code on Near
Field Communication (NFC)-enabled smart stickers that are placed on
items like cans of tuna. Touching a smartphone over the stickers shows the
product’s journey from sea to supermarket. Luxury goods are also being
twinned. Everledger, a British startup, uses the blockchain to provide an
immutable ledger to digitally identify individual diamonds, their ownership
03
DECENTRALIZATION
Risingofdecentralized
technologiesandprotocolslike
blockchain
04
AI&MACHINELEARNING
Globalparticipationthrough
theInternet.
05
ROBOTICS
Theautomationofjobsis
expectedtohaveahugeimpact
ontheglobalworkforce.
Nasa JoelFilipe AlexKnight
Infographicsource:
Spherity

DIGITAL ID
their personal data, says Thomas Hardjono, Technical Director at MIT
Internet Trust Consortium - MIT Connection Science and the co-author,
with Alex “Sandy” Pentland, of the book “TrustData : A New Framework
for Identity and Data Sharing.” Other issues also need to be resolved. “I
am a physicist by training so I figured how hard can this be? I thought
identity was pretty simple but actually it is not,” says Spherity’s Stoecker.
Big Tech companies can attest to that. Microsoft tried to introduce a digital
ID system called Passport about 15 years ago; Intel, Sun, Oracle and AOL
attempted to develop such a service through a group called The Liberty
Alliance. Neither service caught on.
Fast forward to the present and there is no consensus on what is the right
technology to use or how evolving approaches might interoperate.
For example, Spherity is attempting to build a decentralized, encrypted
peer-to-peer transaction layer bridging the physical, biological and digital
spheres. The not-for-profit Sovrin Foundation is building a public distributed
ledger that aims to provide a standard way to create decentralized,
permanent, globally unique, cryptographically verifiable identifiers that are
owned and controlled by their creators. Its technology is being tested in
Finland. ConsenSys, a global formation of technologists and entrepreneurs,
is building software and enterprise solutions based on the Ethereum
platform. One of its products, uPort, a blockchain-based self-sovereign ID
system, is being piloted in Brazil and in Switzerland. SecureKey, a
Canadian startup specialized in digital information security, authentication
and identity management, is combining its tech with IBM’s blockchain to
roll out a nation-wide digital ID service in Canada involving the
government, telecom companies and the country’s largest banks. The
Swiss technology company WISeKey, which has developed its own dual
factor digital ID authentication technology, has teamed with the
government in the Indian state of Andhra Pradesh to explore the use of
blockchain to secure data and announced earlier in January that it will
launch a digital identification and secure cloud services for Chinese
consumers. That’s not all. U.S. tech giants are not ready to cede the market
to upstarts and are putting the building blocks in place for their own new
digital ID services. The World Economic Forum is in a unique position to
bring together governments as well as competing commercial players and
opensource actors to help people and objects obtain secure digital
identities and ensure that emerging platforms and services interoperate,
says Stoecker. In forging a path forward, it will be important to guard
against one company or group of companies dominating, he says.
Otherwise digital twins won’t just be replicating objects and people, they
will mirror the mistakes made when the Internet was launched by putting
control of personal data and the majority of profits in the hands of too
few players.
CONSENSYS
UNITEDSTATES
WHAT IT DOES : ConsenSysbuilds
softwareandenterprisesolutionsonthe
Ethereumplatform.Oneofitsproductsis
uPort,ablockchain-basedself-sovereign
IDsystemthatisbeingpilotedbythe
Braziliangovernment’sMinistryof
PlanningandinZug,Switzerland.
https://consensys.net
SECUREKEY
CANADA
WHAT IT DOES : AdigitalIDsystemthat
enablesconsumerstocontrolandshare
theirpersonalinformationwithout
goingthroughcentralizedsystems.Itis
expectedtolaunchacountrywide
serviceinCanadain2018
.
https://securekey.com
CIVIC
UNITEDSTATES
WHATIT DOES: Identityverification
andprotectiontoolsthatgiveboth
businessesandindividualsthepower
tocontrolandprotecttheiridentities
throughtheblockchain.
www.civic.com
EVERYNYM
UNITEDSTATES
WHATITDOES: Developingablockchain
networkspecificallyformanagingdigital
identitiesbasedontheSovrin
Foundation’sdistributedidentityledger.It
recentlypartneredwiththestateofIllinois
tocreate”self-sovereign”digitalbirth
certificatesforbabiesborninthestate.
www.evernym.com
DIGITALTWIN
Auniquedigitaltwinisadata
modelofareallifemachinelikea
car,productorservicewithits
ownimmutableidentity.
SOVEREIGNDIGITAL
IDENTITIES
ProductslikeSpherity’s”Digital
Me”areadigitalrepresentation
ofaperson.Theypromisetogive
peoplebackfullcontroloftheir
personaldata.

THE30WORLDECONOMIC
FORUMTECHNOLOGY
PIONEERS
TOMEETINDAVOSEach year the World Economic Forum’s Technology Pioneers community
recognizes around 30 innovative early-stage companies that are poised
to have a significant impact on business and society.
This year the following companies are scheduled to participate in the Forum’s
annual meeting, which takes place January 23-26.
Compiled and written by Jennifer L. Schenker
Schenker is The Innovator’s Editor-in-Chief. She has been a Forum Technology Pioneer judge for 17 years.
CYBERSECURITY
DEEP INSTINCT
ISRAEL
WHATITDOES:Applies the predictive capabilities
of deep learning to cyber security to protect
organizations against the most evasive malware
in real time, with high accuracy. It counts
California chipmaker Nvidia amongst its investors.
www.deepinstinct.com
DIGITALIDENTITY
ONFIDO
UNITEDKINGDOM
WHATITDOES:Digital identify verification and
backgroundchecks.Itsmachinelearningtechnology
automates checks on over 600 documents across
192 countries. Investors include Salesforce
Ventures and Microsoft Ventures.
www.onfido.com
FOODSECURITY
IMPOSSIBLE FOODS
UNITEDSTATES
WHATITDOES:Transforms nutrients from plant
crops directly into foods that have the same
nutritional value and flavors and textures of meat
and dairy products. It recently partnered with DOT,
the largest food distributor in the U.S.
www.impossiblefoods.com
PRODUCTION
KONUX
GERMANY
WHATITDOES:Offers an end-to-end Industrial
Internet of Things solution that combines smart
sensors and AI-based analytics to enable
predictive maintenance for industrial and rail
companies. Clients include Deutsche Bahn,
Europe’s largest rail operator.
www.konux.com
PRODUCTION
UPSKILL
UNITEDSTATES
WHATITDOES:Offers an industrial augmented
reality software platform to enterprises that
allows employees to access data, broadcast point-
of-view video or photos and receive live
assistance without having to move away from
their work.
https://upskill.io/
PRODUCTION
SYNTHACE
UNITEDKINGDOM
WHATITDOES:Developedanoperatingsystemand
languagespecificallytobringend-to-enddigitization
tobiotechnology,enablingfasterengineeringof
biologyforhealth,food,energyandmanufacturing.
Pharmaceutical,agriculturaltechandindustrial
biotechnologycompaniesuseitsplatform.
https://synthace.com
MOBILITY
NUTONOMY
UNITEDSTATES/UNITEDKINGDOM
WHATITDOES:Now a part of Aptiv, nuTonomy is
developingacompletesolutionforpoint-to-point
mobilityvialargefleetsofautonomousvehicles,inclu-
dingsoftwareforautonomousvehiclenavigationin
urbanenvironments,smartphone-basedridehailing
andfleetroutingandmanagement.
www.aptiv.com
ENERGY
ELECTRON
UNITEDKINGDOM
WHATITDOES:: Uses distributed ledger
technology to help transform existing energy
infrastructure from being a central intermediary
and adapts it to renewable energy sources and
the integration of new smart-grid technologies.
www.electron.org.uk
HEALTH
OMADA HEALTH
UNITEDSTATES
WHATITDOES:Uses smart technology, a
proprietaryhealth-relatedcurriculum,on-demand
accesstoapersonalhealthcoachandanonlinepeer
networktoinfluencethebehaviorofpeopleatrisk
forheartdisease,diabetesandotherchronic
conditions.
www.omadahealth.com
HEALTH
SECOND GENOME
UNITEDSTATES
WHATITDOES:Builtanovelmicrobiometechnology
platform,resultinginapipelineofdrugdiscovery,
includinganumberofmicrobiome-derivedproteins,
peptidesandmetabolites,withapplicationsacross
gastrointestinaldisease,immuno-oncology,
inflammationandmetabolicdiseases.
www.secondgenome.com
HEALTH
AUGMETIX
UNITEDSTATES
WHATITDOES:UsesGoogleGlasstoconnect
doctorswithremotemedicalscribeswhodocument
patients’visitsinreal-time,savingdoctorsthree
hoursofpaperworkperday,leavingmoretimefor
actualface-to-faceinteractionwiththeirpatients.
www.augmetix.com
INTERNET
FISCALNOTE
UNITEDSTATES
WHATITDOES:Usesartificialintelligenceandbig
datatodeliverpredictiveanalysisofthegovernmen-
talpolicylandscape.Itsinformationandanalytics
platformprovidesreal-timeinformationthathelps
attorneys,complianceprofessionals,andlobbyiststo
obtainanup-to-the-minuteunderstanding.
www.fiscalnote.com
DIGITAL
CHAIN
UNITEDSTATES
WHATITDOES:Chain’ssoftwareenables
institutionstoissueandtransferfinancialassets
onblockchainnetworks.NasdaqandCitiTreasury
andTradeSolutionshaveusedChain’stechnology
todevelopanewintegratedpaymentsolutionto
recordandtransmitpaymentinstructions.
https://chain.com
DIGITAL
MESOSPHERE
UNITEDSTATES
WHATITDOES:Mesosphere’s Datacentre
Operating System aggregates server hardware
and cloud-based virtual machines so that they
behave like a single, logical computer, allowing
micro services, containers and big data services to
be easily deployed and scaled.
https://mesosphere.com

— P.23
ENVIRONMENT
INDIGO AGRICULTURE
UNITEDSTATES
WHATITDOES:Uses plant microbiomes to
strengthen crops against disease and drought, to
increase crop yield for farmers. It aims to obtain
30% to 50% yield improvements over the next 10
years for cotton, rice, wheat and soy crops.
www.indigoag.com
ENVIRONMENT
ASTROSCALE
SINGAPORE
WHATITDOES:Develops technologies to monitor
and safely remove the roughly 750,000 space
debris objects greater than one centimeter in
diameter that are currently orbiting the Earth,
including dead satellites. Backers include Japan’s
ANA Holdings.
astroscale.com
PRODUCTION
DESKTOP METAL
UNITEDSTATES
WHATITDOES:Has developed an integrated
system of software, parameters and materials
that allows teams to go directly from computer
aided design to rapid prototyping and volume
production, accelerating product development
and manufacturing.
www.desktopmetal.com
PRODUCTION
CITRINE INFORMATICS
UNITEDSTATES
WHATITDOES:Applies artificial intelligence to
large-scale data to anticipate how materials and
chemicals will behave, helping companies achieve
their R&D, product development and
manufacturing milestones in half to one-fifth the
time of normal development processes.
https://citrine.io
PRODUCTION
UPTAKE TECHNOLOGIES
UNITEDSTATES
WHATITDOES:Apredictiveanalyticssoftware-as-a-
serviceplatformforglobalindustriesthataimsto
improveproductivity,reliabilityandsafetythrough
sensordata.Theplatformpowersoperational
insightswithasuiteofsolutions,includingpredictive
diagnosticsandfleetmanagementapplications.
www.uptake.com
PRODUCTION
ZYMERGEN
UNITEDSTATES
WHATITDOES:Inventedanautomatedprocessto
reprogramtheDNAofmicrobesinordertorapidly
testwhichoneshavetheabilitytocreatethebest
newusefulrawmaterialsforindustrieslike
agriculture,chemicalmanufacturingandhealthcare.
www.zymergen.com
MOBILITY
AIRWARE
UNITEDSTATES
WHATITDOES:Provides dronetechnologies
including navigationsoftware,operatorsoftware
forautonomous aircraftmonitoringandguidance,
andcloud-basedanalyticsandreportingforfleet
managementtohelpenterprisesplanandmanage
droneflightsandanalyzeresultingaerialdata.
www.airware.com
MOBILITY
CHRONOCAM
FRANCE
WHATITDOES:Developssystemsthatallow
machinesto”see”inmuchthesamewaythatthe
humanbrainprocessesimagesfromtheretina.
Applicationsincludemakinginteractionsbetween
humansandindustrialrobotssaferandsuperior
guidanceforautonomouscars.
www.chronocam.com
ENERGY
PHYSEE
THENETHERLANDS
WHATITDOES:Makes transparent double-paned
”power windows” that convert light into electricity
and ”smart windows” that use Internet of Things
sensors to measure climate conditions in order to
calculate optimal settings for buildings.
www.physee.eu
HEALTH
HUMACYTE
UNITEDSTATES
WHATITDOES:Usesproprietarytechnologyto
grow”off-the-shelf”humantissuereplacements
suchasveingrafts.Potentialtherapeutic
applicationsincluderepairorreplacementof
damagedarteries,coronaryarterybypasssurgery,
andvasculartrauma,includingbattlefieldinjuries.
www.humacyte.com
INTERNET
SLACK
UNITEDSTATES
WHATITDOES:A messaging platform that brings
together all team communications and organizes
them in one place; uses real-time messaging to
improve productivity and reduce internal email;
and provides easy-to-use archiving and search.
https://slack.com
INTERNET
ORBITAL INSIGHT
UNITEDSTATES
WHATITDOES:Uses deep learning to discover
social, economic and agricultural trends through
satellite-image analysis. It can study any type of
aerial imagery to deliver insights that can be used
to make market decisions.
https://orbitalinsight.com
INTERNET
QUID
UNITEDSTATES
WHATITDOES:Indexesmillionsofdocumentsand
createsaninteractivevisualmapofthedataonthe
fly,permittinguserstonavigatethroughthe
world’scollectiveintelligence,seerelationshipsthat
werepreviouslyhiddenandanswerstrategic
questions.
https://quid.com
DIGITAL
MAANA
UNITEDSTATES
WHATITDOES:Encodestheworld’sindustrial
expertiseanddataandtranslatesitintodigital
knowledge.Maana’sknowledgegraph—coupled
withadvancedAIalgorithms,semanticsearch,and
deeplearning—helpsindustrialcompaniesmake
fasterandmorerelevantdata-drivendecisions.
www.maana.io
DIGITAL
META COMPANY
UNITEDSTATES
WHATITDOES:: Augmented reality headsets that
serveasproductivitytools,allowingwearersto
moveandmanipulate3Dcontentintuitively,using
naturalhandinteractions.Investorsinclude
HorizonsVenturesLimited,Lenovo,Tencentand
ComcastVentures.
www.metavision.com
DIGITAL&ENTERTAINMENT
PENROSE STUDIOS
UNITEDSTATES
WHATITDOES:Founded by Eugene Chung, a
former Pixar executive and the first head of Oculus
Studios, the virtual reality giant’s cinematic
content production arm, Penrose Studios creates
short, episodic, narrative content in virtual reality.
www.penrosestudios.com

It’s every CEO’s nightmare. A data breach not only impacted
your company, it compromised the personal information of the nearly 1.5
million people connected to your network. That is what happened to
Equifax, a U.S. consumer credit reporting agency, last September. Data
breaches have become a commonplace part of digital life and such outside
threats, along with technology developments, leave companies more
vulnerable than ever.
There are a lot of negative implications of massively scaled networking,
says Adam Ghetti, founder and chief executive officer of Ionic Security,
a World Economic Forum Technology Pioneer and a member of the Forum’s
Global Future Council on Cybersecurity.
“Look at Equifax. A single breach at a single company can do irreversible
damage to the vast majority of adults in America by compromising
information that is deemed to be private and can’t be changed – you can’t
go out and get another social security number or date of birth. The
implications of these things have grown beyond security best practices,”
he says. Indeed, cybersecurity threats are outpacing the ability of companies
and governments to overcome them unless all stakeholders begin to
PlayingDefense
— The Forum’s new Global Centre for
Cybersecurity seeks to help companies and governments
better combat digital infiltrators
CYBERSECURITY
cooperate, according to a new report by the Forum in collaboration with
The Boston Consulting Group (BCG). The report covers 14 policy topics
that need to be addressed. It is against this background that the Forum
will officially launch its Global Centre for Cybersecurity during the annual
meeting in Davos on January 23rd to 26th. “The World Economic Forum
can use its unique convening ability, especially among the most senior
industry decision-makers and government policymakers, to help drive
real-world solutions to vexing cybersecurity challenges,” says Alan Cohn,
co-chair of the Forum’s Global Future Council on Cybersecurity and a
former director of Emergency Preparedness and Response Policy at the
U.S. Department of Homeland Security.
A Need For Guidelines
Addressingthesethreatsrequiresdialogueacrossindustriesandcompetencies,
and on subjects from the technical to the ethical, says the report. Currently,
dialogue between leaders in the public and private sectors is often off-
target and at cross purposes, the report says. Policy implementation also
varies by national context: every country has its own unique capabilities,
vulnerabilities and priorities.
Companies also need guidelines as they are constantly sharing sensitive
data and interconnecting with vendors and business partners, opening
themselves to tremendous vulnerabilities. “It has gotten so bad that I know
of $100 million contracts that have been held up for a year or more while
the buyer and seller negotiates what type of warranties to provide for
sensitive data,” says James Kaplan, who leads McKinsey’s Infrastructure
and Cybersecurity practice. “There are no standards so everything is a
bespoke negotiation.” Technology developments and the rate of change
are escalating concerns. “We are beyond human scale defense,” says Ghetti
of Ionic Security. “We have so many systems that are implemented by so
many different stakeholders that there is not a single group of humans
capable of wrapping their heads around all of the problems all of the
time.”
That is where artificial intelligence can help. “We need to figure out how
to get the systems themselves to take part in the active defense,” says
Ghetti.“What Imeanisthatwehavetorely moreonthemachinesthemselves
not just to tell us that there is something suspicious. We need the machines
to do something about it before a human can respond.”
But technology is a two-edged sword. Artificial intelligence will play an

increasingly large role on both sides, underpinning much more capable
defense but also enabling increasingly sophisticated cyber attacks.
Today, it takes a lot of time and money for criminals to find vulnerabilities
in software programs or networks and exploit them. With AI the process
of detecting flaws will be automated. So instead of looking for a tedious
needle in the haystack, the bad guys could start launching frequent “zero
day attacks” that target publicly known but still unpatched vulnerabilities.
Vulnerable To Attack
The introduction of a quantum computing could also cause headaches. It
has the potential to disrupt the use of encryption, a critical piece of data
security and protection against threats. So, the forum advises companies
and governments to prepare because existing methods of computationally
based encryption may soon no longer guarantees protection of data. Luckily,
there are other types of encryption currency being designed and tested
that are not subject to the same decryption risks from quantum computing,
and there are other approaches to data and system protection besides
— P.25
CYBERSECURITY
STARTUPS
TOWATCH
DEEPINSTINCT
ISRAEL
WHAT IT DOES : Applies the predictive
capabilities of deep learning to
cybersecurity to protect organizations
against the most evasive malware in
real-time, with high accuracy. It’s a
World Economic Forum Technology
Pioneer.
www.deepinstinct.com
encryption, says a Forum cybersecurity report. The way networks are
currently structured also exposes companies to attacks .
Open innovation models, which encourage businesses to bring in external
ideas and technologies, and the introduction of the Internet of Things
(IoT) — the name given for the interconnection via the Internet of computing

devices embedded in everyday objects, enabling them to send and receive
data — are also compounding cyber-security issues.
Collaboration is Key
Different technologies and technology protocols, including those that use
blockchain to allow individuals to retain control of personally identifiable
information, that let devices more securely authenticate onto networks,
and that distribute and synchronize ledgers across several (if not hundreds,
or thousands) of computers, may be better platforms for constructing
more secure and resilient information and data networks, according to
a Forum report.
Blockchain technology, the technology that underpins cryptocurrencies
like bitcoin, holds the potential to serve as this new type of distributed,
decentralized platform. Features like identity verification and validation,
device authentication, and secure ledgerkeeping, may be better suited to
resisting cyber threats. Nonetheless, critical infrastructure, whether owned
by the public or private sector, may increasingly find itself on the front
lines of cyber-conflict, no longer seen as civilian infrastructure but rather
as a legitimate target in conflicts between states, or within states, according
to a Forum report.
All of these things make it more important than ever for stakeholders to
collaborate on defense. For example, an effective intelligence-sharing policy
will help limit the spread of malicious software, and the greater adoption
of encryption may limit the ability to monitor and police network traffic,
says the Forum report. In practice, what this means for business leaders
and policymakers is that cybersecurity policy-making efforts should be
more collaborative and deliberative. Efforts should also be framed in the
context of an ongoing iterative process rather than ad-hoc and crisis-driven,
resulting in patchwork legislation, the report says. Ghetti agrees. “What
we have today is a surface level of collaboration but we have a very deep
set of challenges. What we need is authentic collaboration.”
J.L.S.
THETARAY
ISRAEL
WHAT IT DOES : UsesthepowerofAIto
providereal-timedetectionof
unprecedentedandunknownthreats
usingbigdataanalyticsthatsimul-
taneouslymonitordatafromallsources
withinanorganization.
www.thetaray.com
IONICSECURITY
UNITEDSTATES
WHATITDOES: Aims to solve data
security problems at the intersection
of cloud, mobility and analytics. It’s a
World Economic Forum Tech Pioneer.
www.ionic.com
CYLANCE
UNITEDSTATES
WHATITDOES: Applies AI algorithms to
predict, identify and stop malware and
mitigate damage from zero-day
attacks. It’s a World Economic Forum
Technology Pioneer.
www.cylance.com
DARKTRACE
UNITEDKINGDOM
WHATITDOES: Pairs behavioral
analytics with advanced mathematics
to automatically detect abnormal
behavior in organizations.
www.darktrace.com
CYBERSECURITY
“TheWorldEconomicForum
canuseitsuniqueconveningability,
especiallyamongthemostsenior
industrydecision-makersand
governmentpolicymakers,tohelp
drivereal-worldsolutions
tovexingcybersecuritychallenges.”
AlanCohn,
co-chairoftheForum’sGlobalFutureCouncilon
CybersecurityandaformerdirectorofEmergency
PreparednessandResponsePolicyatthe U.S.Department
ofHomelandSecurity.

2
3
4
5
1
Five Facts About Bitcoin
Brought to you by eToro
There are now hundreds, if not thousands, of decentralised, digital
‘cryptocurrencies’. They are all spawned from Bitcoin, the original
crypto. It was released as open-source software in January
2009 by the mysterious Satoshi Nakamoto – the unknown
person (or persons) who developed Bitcoin, and simulta-
neously invented the first blockchain database.
Initially individuals ‘mined’ Bitcoins, using powerful
computer software to crack complex algorithms
and ‘solve’ blocks in the blockchain, the digital
ledger that underpins Bitcoin. Nakamoto mined
the first block of Bitcoins – the so-called
‘genesis block’ – and was rewarded with 50
tokens. It is estimated that Nakamoto mined
1 million Bitcoins in the early years.
Less than three years after Bitcoin’s
launch, Satoshi Nakamoto vanished from
the internet – and has neither been heard
of since nor positively identified. At that
point the total value of all Bitcoin in
circulation was over $54.5 million.
Laszlo Hanyecz made the first documented
purchase of a good using Bitcoin on 22nd
May, 2010. The Florida-based programmer
paid 10,000 tokens in exchange for two
pizzas. Back then they were worth roughly
$25, but at the time of writing that is equal to
more than $40 million.
In the last 12 months, the price of Bitcoin has
surged dramatically – Roughly 1500% as of 4th
January, 2018. That compares favourably against
the S&P500 (22%) and UK100 (8%). By January 2018,
Bitcoin’s market capitalisation was $250 billion, having
hit an all-time high of $20,000 per coin in December 2017.
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acts About Bitcoin
There are now hundreds, if not thousands, of decentralised, digital
y are all spawned from Bitcoin, the original
. It was released as open-source software in January
2009 by the mysterious Satoshi Nakamoto – the unknown
veloped Bitcoin, and simulta-
Initially individuals ‘mined’ Bitcoins, using powerful
x algorithms
mined
Laszlo Hanyecz made the first documented
purchase of a good using Bitcoin on 22nd
ammer
y were worth roughly
$25, but at the time of writing that is equal to
In the last 12 months, the price of Bitcoin has
oughly 1500% as of 4th
ably against
the S&P500 (22%) and UK100 (8%). By January 2018,
apitalisation was $250 billion, having
hit an all-time high of $20,000 per coin in December 2017.

“Food production has a
stronger negative impact on the
environment and climate than any
other industrial sector,” says Marc
Buckley, an international expert on
verticalfarmingandrenewableenergy.
“The environmental damage is
calculated to be more than 224% of
the industry`s EBITDA.”
Buckley, an ardent environmentalist
who grew up on a farm, is out to
prove that it doesn’t have to be that
way. He and a small team of
experienced entrepreneurs are the
co-foundersoftheALOHAS(Adaptive
LifestyleofHealthandSustainability)
ECO-Center,aneco-friendlygigafactory
for energy, agriculture, food and
beverages being built in Germany
that could serve as a model for the
industry and be deployed in other
cities.
If it works as planned, once it opens
later this year the 400,000 square
meter plant will be able to feed and
hydrate 500,000 people comfortably
all year long. The ECO-center is
called a gigfactory due to the amount of energy it will be able to produce:
the equalivent of six factories – and because it is gargantuan in size. The
center will produce 80 megawatts per day of renewable energy, mixed
between solar, wind and hydrogen power and store 150 megawatts per
day in Tesla Powerpacks and Aquion salt water batteries. Only an estimated
15% of the generated electricity will be used by the facility. The rest will
return to the local grid. Buckley estimates the plant could provide the
yearly energy needs of 380,000 people. The ECO-center plans to extract
five million hectoliters of drinking water per year, the equivalent of 200
Olympic sized swimming pools. It will be able to produce over 299 metric
tons of food a year.
When built it is expected to be the largest vertical firm in the world (the
equivalent of ten factories under one room) and produce no greenhouse
gases. The factory is being designed by William (Bill) McDonough the
author of the book Cradle To Cradle: Remaking The Way We Make Things,
a globally recognized leader in
sustainable development.
The ECO-Center will incorporate
verticalfarmingmethods,thepractice
ofproducingfoodinverticallystacked
layers.Itexpectstoharvestonemillion
metric tons of salad and vegetables
a day. ECO-Centers could be built
elsewhereandserveasainfrastructure
or resilient back-up for major cities
in times of disaster, helping in the
aftermath of disasters, such as the
hurricanethathitPuertoRico,wiping
out most of its crops and shutting
down its electricity, says Buckley. He
says he approached several of the
world’s top food and beverage
companies about partnering on the
project. All refused. Buckley wasn’t
surprised because, he says that most
of them make a great show of green
pilot projects but even when they
are very successful don’t adopt the
models in other facilities.
So he decided to build the first
sustainableEuropeancirculareconomy
based innovation system for
agriculture, food and beverage production on his own, to prove it can be
done and run profitably. It plans to generate revenue from five different
sources: integrating renewable energy into the electrical grid and into
storage, providing co-packing and filling for the beverage and food industry,
becoming a wholesale supplier for supermarkets, restaurants and canteens,
selling its own food and drink products and generating income from a
500 person rest stop, ECO store, charging location for electric vehicles,
space rental, events, conferences and a visiting center.
“The ECO-Center will be a pioneer in the transition to global food reform
and set the example of how the agriculture, food, and beverage industry
can be healthy for humanity and our environment,” says Buckley. “It
addresses 12 of the 17 UN Sustainable Development Goals and I believe
this example will impact millions of people and help the industry reach
the 2030 agenda goal to remain below 1.5 degrees of warming.”
J.L.S.
ReformingFood
Production
ArenderingoftheALOHAS(AdaptiveLifestyleofHealthandSustainability)
ECO-Center,whichwillbebuiltnearHamburg,Germany.
ThefacilityisbeingdesignedbythearchitectWilliam(Bill)McDonough,author
ofthebookCradleToCradle:RemakingTheWayWeMakeThings,andaglobally
recognizedleaderinsustainabledevelopment.
— An eco-friendly gigafactory for energy, agriculture,
food and beverages being built in Germany could serve
as a model for the industry
FOOD AND AGRICULTURE

AnInterview
With
EmmanuelleCharpentier,
Thetechnology’s
co-inventor
The discovery of
CRISPR/Cas9 is revolutionizing life
sciences research and is opening
wholenewopportunitiesinbiomedical
gene therapies, with a huge potential
impact on the future of human health
and on food production. Emmanuelle
Charpentier, a French national and
a director at the Max Planck Institute
for Infection Biology in Berlin,
Germany,istheinventorandco-owner
of the fundamental intellectual
property comprising the CRISPR-
Cas9 technology and is co-founder
of CRISPR Therapeutics and ERS
Genomics, two companies that she
created, together with Rodger Novak
and Shaun Foy, to develop the
CRISPR-Cas9 genome engineering
technology for biotechnological and
biomedical applications.Charpentier
has been awarded over 60 different
honorsandher scientificcontributions
have been featured in TIME magazine
(2016 short list for Person of the
Year), Vanity Fair (2016 list of The
New Establishment; 2014 and 2015
list of the 50 most influential French
people), Foreign Policy (2014 list
of 100 Leading Global thinkers), and
many others. She recently agreed
to an interview with The Innovator.
Can you explain in layman’s terms
how CRISPR/Cas9 improves on
previous gene-editing tools?
—EC: One of the greatest hopes of
modern gene technology is the fight
against serious genetic diseases. In
order to push research in this field
forward more efficiently, the CRISPR-
Cas9 technology is a very promising
tool. CRISPR-Cas9 works much like
a text editing software: It can edit or
correct typos in your document. i.e.
yourDNA.Itfunctionsastarget-seeking
molecular scissors, kind of like a Swiss
army knife, that can be used to
introduce a variety of changes into
the genome of any cell or organism.
Compared to previous gene-editing
technologies,CRISPR-Cas9isextremely
versatile, easy to use and inexpensive
to develop, tailor and apply.
Furthermore, multiple mutations can
be introduced at the same time by
P.30— THE INNOVATOR
FOOD AND HEALTH
HowCRISPRCas9
CouldHelpCurb
DiseaseAndFeed
TheWorld

the medical field. Therefore, the
scientific community is working hard
to develop CRISPR-Cas molecular
toolsfurthertoimprovetheiraccuracy.
In your opinion is there a need for
legal and regulatory authorities to
step in and come up with guidelines
for balancing the interests of human
life with research, and avoid any
possible large-scale negative
implications for future generations?
How should such rules be devised
globally and who should have a say?
—EC: CRISPR is a very powerful tool,
and as such the technology has also
attracted private interest, both in the
field of agriculture and also in what
wecallhumanenhancement.Istrongly
believe that there is a need for more
discussions and international
lot of time and understanding to
elucidate those mechanisms before
one can actually think about applying
genetic therapies to treat diseases on
human beings.
At least one study showed there
could be unintended mutations
when you dice and splice the human
genome. To what extent is this fear
and ethical issues around gene
editing, such as the creation of
“designer babies,” holding CRISPR-
Cas9 back?
—EC: It is true that unintended
mutations were found with certain
CRISPR-Cas9 applications. But they
are quite rare and easy to identify.
Obviously,thegoalistoavoidunwanted
off-target effects, especially since the
consequences can be very serious in
using multiple guide RNAs, helping
to design complex disease models
that would otherwise require lengthy
proceduresandcomplicatedstrategies.
CRISPR/Cas9 shows promise for
treating everything from cancer to
Type 2 diabetes and malaria, and
trials have already begun on
humans. Is there a real chance it
could completely eradicate certain
diseases?
—EC: The potential of the CRISPR-
Cas9 technology is very promising
for the development of therapeutic
measures against serious genetic
diseases, for example cancer, HIV
infectionorsicklecellanaemia,among
others. For the latter, CRISPR
Therapeutics,thecompanyIco-founded
with Rodger Novak, has recently filed
an application for clinical trials here
in Europe – so yes, there is hope that
certain diseases may be treated
effectively in the future.
Nevertheless, we need to be aware
of the fact that the biological
mechanisms of diseases all work
differently. Furthermore, it takes a
regulations about the potential risks
of CRISPR-Cas9 as a gene-editing
technology. After all, we also bear a
certain responsibility as scientists: We
need to make sure that appropriate
safety and efficacy measures for any
potentialtherapythatinvolvespatients
are taken and that any use of the
technologythatisethicallyquestionable
is prohibited. In this regard, we can
currentlywitnessaverylivelydiscussion
about using CRISPR-Cas9 in human
germlines (the process by which the
genome of an individual is edited in
suchawaythatthechangeisheritable).
In my opinion, this is problematic
and we need clear regulations on an
international level. But I also believe
— P.31

FOOD AND HEALTH
Your co-discoverer, the American
scientist Jennifer Doudna, has said
publicly that the first real
significant impact of CRISPR-Cas9
could be in agriculture. How might
CRISPR-Cas9 specifically help the
global food crisis?
—EC: Wearecurrentlyfacingimminent
problems on a global scale, among
these a rapidly growing population,
climate change and world hunger
and we are in need of fast solutions
to secure the food chain. Scientists
are using the CRISPR-Cas9 gene-
editingtechnologyincropengineering,
because it can reduce the problems
that appear randomly through
conventional breeding. This, in turn,
means time and cost savings but also
more security. Also, it is possible to
breed plants that are less receptive
to parasites and fungi and more
resistant against climate change.
Analysts say regulations for
transgenic and gene-edited crops,
especially in European countries,
represent a challenge for companies
and scientists and have significantly
impacted the commercialization
process of crops modified by
CRISPR-Cas9. How should concerns
over genetically modified crops be
balanced with demands to ramp up
food production?
—EC: Therearesubstantialdiscussions
inEuropeaboutwhetherplantsedited
with the CRISPR-Cas9 technology
can actually be defined as genetically
modified organisms (GMOs). Many
argue that they are not because the
changes induced are in fact so tiny
that they cannot be distinguished
that research on human embryotic
cells may benefit the understanding
of early development in life. This,
in turn, could help elucidate the
mechanisms underlying the
development of certain diseases. To
resolve these ethically questionable
issues, we need a broad and global
debate involving all stakeholders,
ranging from scientists in disciplines
as diverse as agriculture and
biomedicine to policy makers,
physicians,researchersanddevelopers.
This is instrumental to ensure that
we are able to prevent abuse of the
technology without restricting and
hindering research and development
inthesafeandbeneficialapplications.
There definitely needs to be joint
global initiatives and guidelines to
ensure that the safe and ethical uses
of technologies are promoted and
the unethical or harmful applications
are prevented, even if this is not an
easy endeavor.
fromnaturalmutationsorconventional
breeding practices. Voices against
CRISPR,ofcourse,saythatanyediting
of genes is a potential risk. The EU
Court of Justice wants to decide this
year on how to regulate CRISPR-
edited crops, and I believe that we
should wait for that decision before
plansaboutincreasedfoodproduction
are made in detail.
CRISPR Therapeutics, the startup you
cofounded, accepted investment
from the German pharmaceutical
giant Bayer. What can you tell us
about this collaboration and the
focus of CRISPR Therapeutics’ work?
—EC: Casebia is a 50-50 joint venture
between Bayer and CRISPR
Therapeutics. It is fully funded by
Bayer with $370 million, and CRISPR
Therapeutics contributes intellectual
property for three therapeutic areas:
cardiology,ophthalmologyandspecific
hematologic indications. This year,
we expect Casebia to provide an
update on the progress in their
programs.
A recent study by Frost & Sullivan
research firm estimated the revenue
potential from CRISPR-Cas9 tools at
around $25 billion-$30 billion by
2030, including human therapeutics,
agriculture and plant genomics,
animal biotech, and research tools.
So it is not surprising that big
pharma companies such as Bayer,
Novartis and others are investing in
the technology. To what extent are
the current patent disputes acting as
a brake on development? How soon
might they be settled?
—EC: My work and that of my
colleagues is recognized as
foundational for the CRISPR-Cas9
field throughout the entire scientific
community and I am very happy that
it is well appreciated by both them
and the general public. I do not
commentonthepatentprocessexcept
to note that we are pursuing our
own application, which was filed
substantially earlier. While that will
take some time to resolve, we will
continue to focus on our science and
the important developments on the
path to transforming CRISPR-Cas9
into novel therapeutic options for
patients suffering from serious
diseases.
What breakthroughs connected
to CRISPR/Cas9 can we expect
in 2018 ?
—EC: In 2018, CRISPR Therapeutics
anticipates a landmark year in drug
development, beginning with the
first clinical trial of a CRISPR-based
therapeutic: CTX001 in beta-
thalassemia (a group of inherited
blood disorders). The company is
also going to file an Investigational
New Drug Application for the same
candidate in sickle cell disease in
the United States and anticipates
beginning that study in 2018. There
will be the associated milestones
with these events, including the first
patients treated. Further, CRISPR
Therapeutics anticipates a big year
in immuno-oncology programs with
the filing of an Investigational New
Drug Application on their first
allogeneicCAR-Tcelltherapy,CTX101
in CD19+ malignancies.
J.L.S.

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LET’STURNBUSINESS(LAW)
INTO A CREATIVE TOOL
-Créditphoto:GettyImages(1)Faisonsdudroitdesaffairesunematièrecréative(2)Nos115avocatscoordonnentleursénergiesetleurréseaupourvousapporterdessolutionssurlatotalitédevosenjeuxlégaux,enFranceetàl’international.
(1)
(2)

FOOD AND AGRICULTURE
FOODTECH
STARTUPS
TOWATCH
IMPOSSIBLEFOODS
UNITEDSTATES
WHATITDOES: Transformsnutrients
fromplantcropsdirectlyintofoodsthat
havethesamenutritionalvalueand
flavorsandtexturesofmeatanddairy
products.Itrecentlypartneredwith
DOT,thelargestfooddistributorinthe
U.S.
www.impossiblefoods.com
Global food systems today are unsustainable for both people
andtheplanet. They leave billions of people inadequately nourished, operate
at a high environmental cost, waste large amounts of what is produced
and leave many of their producers at or below the poverty level. That’s
the conclusion of a World Economic Forum report prepared with McKinsey
entitled “Innovation With A Purpose: The Role of Technology Innovation
in Accelerating Food Systems Transformation” that is scheduled to be
released at the annual meeting in Davos on Jan. 23-26.
The hope is that new technologies and innovations will help shape a very
different future and advance the United Nations Sustainable Development
Goals. “The Forum is trying to create an intellectual framing and stakehol-
der alignment,” says Antonin Picou, a McKinsey consultant who worked
on the report. “How do you get the most value out of technology change
and apply it for the global common good?” The envisioned transforma-
tion might not only fix what is broken, it could create economic value as
well, notes the report. New business opportunities generated in the course
of addressing the United Nations’ Sustainable Development Goals in the
food and agriculture sector could reach $2.3 trillion annually by 2030,
according to the Business and Sustainable Development Commission.
The food and agriculture sectors have been slow to harness the power of
new technologies, attracting significantly lower levels of investment and
inspiring fewer technology start-ups than other sectors.
The Forum’s research showed that there has been $14 billion in invest-
ments in 1,000 food systems-focused startups since 2010. To put that in
perspective, the healthcare sector attracted $145 billion in investment in
18,000 startups during the same time period.
The lower level of investment is due in part to the complexity of the sec-
tor. Startups can’t do it alone. Achieving a true transformation of food sys-
tems requires a holistic approach – one engaging all stakeholders and de-
ploying a wide array of actions such as improved policy, increased invest-
ment, expanded infrastructure, farmer capacity-building, consumer be-
havior change and improved resource management, the report says.
12 Impact Targets
The report identifies 12 areas where it believes technology innovation
could have the most impact. These include alternative proteins; food sen-
sing technology for safety, quality and traceability; nutrogenics for perso-
nalized nutrition; Big Data for advanced analytics and insurance; mobile
service delivery; blockchain-enabled traceability; Internet of Things for
supply chain transparency and traceability; precision agriculture for input
and water use optimization; microbiome technologies to enhance crop
resilience,;gene editing for multi-trait gene improvements; biological crop
protection and micro nutrients for soil management; off-grid renewable
energy for services. Among the technologies with impact are proteins that
InnovationWith
Impact
— Plant microbiomes, lab-grown meat, seafood
substitutes ,insect protein and dairy-free milk could help
feed the planet.

The Innovator #4

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