WEBVTT - U.S. Startups Need Immigrants, AOL Co-Founder Says 0:00:00.120 --> 0:00:02.920 Brought you by Bank of America, Mary Lynch. Investing in 0:00:03.000 --> 0:00:07.840 local communities, economies and a sustainable future. That's the power 0:00:08.080 --> 0:00:12.360 of global connections, Mary Lynch, Pierce Fenner, and Smith Incorporated 0:00:12.760 --> 0:00:27.400 Member s I p C. Welcome to the Bloomberg Surveillance Podcast. 0:00:27.840 --> 0:00:31.520 I'm Tom Keene with David Gura. Daily we bring you 0:00:31.560 --> 0:00:36.600 insight from the best in economics, finance, investment, and international relations. 0:00:37.040 --> 0:00:41.600 Find Bloomberg Surveillance on iTunes, SoundCloud, Bloomberg dot Com, and 0:00:41.680 --> 0:00:48.879 of course on the Bloomberg I'll leg it to my 0:00:48.920 --> 0:00:51.479 Morning mus Street is an entree to Steve Case on 0:00:51.720 --> 0:00:55.280 technology and the people we need to make America about it. 0:00:55.360 --> 0:00:57.880 This is from the wonderful Noah Feldment of Harvard, one 0:00:57.920 --> 0:01:02.560 of my favorite favorite people on law and constitution. As 0:01:02.560 --> 0:01:05.000 they argued in a column I wrote at three am 0:01:05.040 --> 0:01:08.560 after the election, it's all about the Constitution now, the 0:01:08.640 --> 0:01:12.480 protection of sanctuary cities and these example of how the 0:01:12.560 --> 0:01:16.360 Constitution protects minority rights, in this case, the rights of 0:01:16.440 --> 0:01:20.640 cities that dissent on immigration policy with US. Is Steve Case, 0:01:20.680 --> 0:01:23.839 a o L co founder and author of The Third Wave. 0:01:23.880 --> 0:01:26.400 I can't say enough about the accessibility of his book, 0:01:26.680 --> 0:01:29.080 and I would suggest out of Punaho that you grew 0:01:29.120 --> 0:01:33.080 up in the sanctuary state. Hawaii is the absolutely crucible, 0:01:33.480 --> 0:01:36.559 almost almost a test tube if you will, of these 0:01:36.600 --> 0:01:40.840 these these emotions that are buffeting America right now. If 0:01:40.880 --> 0:01:44.880 Hawaii was a sanctuary state for so many, particularly out 0:01:44.880 --> 0:01:49.160 of Asia. Tell us about your thoughts on sanctuary cities 0:01:49.360 --> 0:01:52.320 and what we do if we build walls around them. Well, 0:01:52.320 --> 0:01:54.080 I did have the opportunity to grow up in Hawaii, 0:01:54.120 --> 0:01:55.480 which is sort of a melting pot. There are a 0:01:55.480 --> 0:01:57.240 lot of different people, a lot of different countries, and 0:01:57.360 --> 0:02:00.400 even as a as a young Caucasian guy, was actually 0:02:00.400 --> 0:02:02.440 in the minority. They're not the not the majority. So 0:02:02.560 --> 0:02:04.240 I had a sense of what was possible when you 0:02:04.480 --> 0:02:08.520 brought different people, had different perspectives, different backgrounds, different outlooks together. 0:02:08.560 --> 0:02:10.720 I think that's with what's made not just Hawaii great, 0:02:10.720 --> 0:02:13.360 but American great. We've always been a great immigrant nation. 0:02:13.360 --> 0:02:14.720 Now we need to figure out how to strike the 0:02:14.800 --> 0:02:17.400 right balance in terms of enforcing the rules of of 0:02:17.440 --> 0:02:20.120 the road while also still being welcoming. Uh. I'm a 0:02:20.200 --> 0:02:23.680 little concern that the applications to the schools are particularly 0:02:24.160 --> 0:02:26.560 PhD s things like that from other countries are are down, 0:02:26.639 --> 0:02:29.120 you know, requests for visas are down. We need to 0:02:29.120 --> 0:02:31.320 make sure we are welcoming to people while still for 0:02:31.520 --> 0:02:34.560 enforcing our laws. And that's particularly important in the technology 0:02:34.600 --> 0:02:36.560 sect of the innovation sector. That's where a lot of 0:02:36.800 --> 0:02:39.880 a lot of of the fortunate companies were started by immigrants. 0:02:40.560 --> 0:02:43.679 Almost of Silicon Valley companies were started by immigrants. So 0:02:43.720 --> 0:02:45.600 we need to figure out how to strike this this 0:02:45.600 --> 0:02:47.120 this balance. I hope that will be more of a 0:02:47.160 --> 0:02:50.200 focus going forward. Steve Case, of course, the co founder 0:02:50.240 --> 0:02:52.560 of a Well Enough, chairman and CEO of Revolution, the 0:02:52.600 --> 0:02:55.799 author of the Third Wave, an entrepreneur's vision of the future. 0:02:55.800 --> 0:02:58.280 And I should also add someone who's advised Person Obama 0:02:58.320 --> 0:03:01.240 on innovation and entrepreneurship, a member of the former President's 0:03:01.240 --> 0:03:03.840 counsel on Jobs and Competitiveness. He joins us here in 0:03:03.840 --> 0:03:05.920 our Bloomberg eleven three oh studio. Is great to see you, 0:03:06.000 --> 0:03:08.520 Good morning, New York. Let me start with with the 0:03:08.520 --> 0:03:10.799 government angle. Here. We talk a lot about how to 0:03:10.880 --> 0:03:15.000 catalyze or encourage innovation entrepreneurship. As you've been thinking about this, 0:03:15.040 --> 0:03:17.359 has been dealing with it. What role should the government play, 0:03:17.400 --> 0:03:20.480 What can the government do well to to kick start innovation. Well, 0:03:20.520 --> 0:03:22.280 one thing it could do and hopefully we'll do this 0:03:22.360 --> 0:03:24.359 year is sort of level of playing field in terms 0:03:24.360 --> 0:03:26.440 of access to capital. Right now, if you're in a 0:03:26.480 --> 0:03:28.799 place like New York City or Boston or San Francisco 0:03:28.880 --> 0:03:31.359 and the whole Silicon Valley area, you do pretty well 0:03:31.400 --> 0:03:33.280 and the entrepreneurs there can raise the capital and need. 0:03:33.320 --> 0:03:35.640 But most of the country, most entrepreneurs can't. Last year, 0:03:35.680 --> 0:03:38.720 the data is pretty sobering that seventy eight percent of 0:03:38.760 --> 0:03:41.600 venture capital went to just three states California, New York, 0:03:41.600 --> 0:03:45.160 and Massachusetts. The other forty seven states got So we 0:03:45.160 --> 0:03:46.840 need to what we we're focused on what we call 0:03:46.880 --> 0:03:48.880 the Rise of the rest to help those entrepreneurs in 0:03:48.920 --> 0:03:51.080 those places. The other is to in this third wave 0:03:51.120 --> 0:03:53.040 it's just to be merging now, which will be the 0:03:53.080 --> 0:03:56.160 next evolution of the Internet and really disrupt you know, 0:03:56.200 --> 0:04:00.920 some sectors like education, healthcare, transportation, food, agg culture. Getting 0:04:00.920 --> 0:04:03.480 the regulations right will be critical. How do you keep 0:04:03.480 --> 0:04:05.520 bad things from happening and make sure that the food 0:04:05.520 --> 0:04:07.480 your kids eat at school and make them sick or 0:04:07.680 --> 0:04:09.960 you know, driver list cars don't create havoc, but have 0:04:10.080 --> 0:04:12.680 a bias towards enabling good things to happen and and 0:04:12.960 --> 0:04:16.080 unleashing that innovation. Actually, the government did that pretty well 0:04:16.080 --> 0:04:17.760 with the Internet when they kind of, you know, put 0:04:17.800 --> 0:04:19.960 the money in to build the basic research that made 0:04:19.960 --> 0:04:23.400 the Internet possible and then commercialized the Internet and had 0:04:23.560 --> 0:04:25.920 had a light touch approach to regulation in those early 0:04:26.000 --> 0:04:28.320 days thirty plus years ago. Hopefully that will be the 0:04:28.320 --> 0:04:30.400 case in some of these new emerging sectors as well, 0:04:30.400 --> 0:04:33.080 because that will enable the United States to remain the 0:04:33.080 --> 0:04:36.160 most entrepreneurnation. You've got a new partner revolution. That's J. D. 0:04:36.240 --> 0:04:37.760 Vans author I Field Bill LG. I think a lot 0:04:37.800 --> 0:04:40.360 of us have read the book and know of his 0:04:40.360 --> 0:04:43.040 his work. He's setting out to look for innovation new 0:04:43.040 --> 0:04:47.840 companies outside of California, New York, and Massachusetts. How's it 0:04:47.839 --> 0:04:49.120 gonna go about doing that? How do you do that 0:04:49.160 --> 0:04:51.000 at the firm? How do you look for for pockets 0:04:51.000 --> 0:04:53.919 of innovation outside of those three states? Well, there's two parts. 0:04:53.960 --> 0:04:56.320 We started an initiative about three years ago called Rise 0:04:56.400 --> 0:04:58.760 of the Rest, and I've traveled by bus six thousand 0:04:58.760 --> 0:05:05.360 miles visit at ease and plays like Detroit, Pittsburgh, Atlanta, Phoenix, Salbuquerque, Madison, Minneapolis, 0:05:05.400 --> 0:05:07.799 you know, Des Moines, St. Louis, really all over the country, 0:05:07.920 --> 0:05:10.000 trying to understand what's happening in each of the cities 0:05:10.000 --> 0:05:12.359 and trying to champion the the entrepreneurs in each of 0:05:12.360 --> 0:05:15.040 the cities, tell their stories, attract more capital to their 0:05:15.080 --> 0:05:17.039 to their companies into their their cities. So that's what 0:05:17.080 --> 0:05:19.479 we're doing at the Revolution. And jd. Vance just joined 0:05:19.520 --> 0:05:22.400 just recently. We announced that last month. He of course, 0:05:22.440 --> 0:05:24.240 when he wrote the book Killed Billy Elogy, it was 0:05:24.279 --> 0:05:26.480 a huge bestseller. I think it's sold a million copies 0:05:26.520 --> 0:05:28.800 already and really told the story of a lot of 0:05:28.800 --> 0:05:30.640 people in this country that do feel kind of left 0:05:30.640 --> 0:05:35.279 out and left behind by technology, by digitization, by by globalization. 0:05:35.360 --> 0:05:37.359 And and he was at the only time there was 0:05:37.360 --> 0:05:39.640 writing the book. He actually was in Silicon Valley working 0:05:39.720 --> 0:05:44.200 for Peter til focused on UH and venture capital investments. 0:05:44.200 --> 0:05:45.760 But when I met him last fall, he said he 0:05:45.760 --> 0:05:49.120 was planning to leave Silicon Valley move home to Ohio, 0:05:49.200 --> 0:05:51.479 which is where he was born and raised, because he 0:05:51.520 --> 0:05:53.719 wanted to not just defind the problem as he did 0:05:53.760 --> 0:05:55.480 in the book Hell Bill the Elergy, but be part 0:05:55.520 --> 0:05:57.840 of the solution, and one part of that solution. The 0:05:57.960 --> 0:06:00.280 others as well is trying to level the play feel, 0:06:00.320 --> 0:06:02.520 get more capital, going to more entrepreneurs in Ohio and 0:06:02.560 --> 0:06:04.719 other places. So he'll be moving back and forth between 0:06:04.760 --> 0:06:07.320 Ohio where he'll be based, in Washington See where where 0:06:07.360 --> 0:06:08.919 we'll be based, but spending a lot of time on 0:06:08.960 --> 0:06:10.600 the road talking about his book and talking about the 0:06:10.680 --> 0:06:13.120 rise of the rest and championing these entrepreneurs that really 0:06:13.120 --> 0:06:15.719 have the opportunity to build the next great iconic companies 0:06:15.880 --> 0:06:18.000 if we pay attention and if we fund them. Do 0:06:18.120 --> 0:06:24.520 you associate uh in Ohio the same pixie dust that 0:06:24.640 --> 0:06:28.839 I see in San Francisco, which is top flight academics. 0:06:28.880 --> 0:06:32.039 Ohio happens to have that. Yeah, it's an advantage that 0:06:32.080 --> 0:06:34.479 they've got a case Western Reserve and the and the 0:06:34.520 --> 0:06:36.600 rest of the good people and the great expertise in 0:06:36.680 --> 0:06:39.480 sectors where Cincinnati. My first job actually out of college 0:06:39.480 --> 0:06:42.200 was Procter and Gamble in Cincinnati. A lot of consumer technic. 0:06:42.320 --> 0:06:46.640 What do you do for proctoring? Game? Brand management? What 0:06:46.640 --> 0:06:49.080 what the hell is brand man? It was basically when 0:06:49.120 --> 0:06:51.520 I was twenty one years old that I was still 0:06:51.600 --> 0:06:54.640 learning what was basically they assign you to work on 0:06:54.640 --> 0:06:56.360 a particular product I was there at the same time 0:06:56.360 --> 0:07:00.640 that you sold toothpaste. I worked with called it at 0:07:00.640 --> 0:07:03.120 the time, the toilet goods division they had that they 0:07:03.160 --> 0:07:05.000 they because they're a good market if they renamed it 0:07:05.080 --> 0:07:06.960 beauty here after a while, but it was like, you're 0:07:07.000 --> 0:07:10.040 too taste in shampoo. And I worked on a hair 0:07:10.120 --> 0:07:13.119 permanent product that failed in test market, and I also 0:07:13.200 --> 0:07:17.040 worked on a couple other other kind of hair care products. 0:07:17.080 --> 0:07:18.800 But I learned a lot of particularly about market. Even 0:07:18.840 --> 0:07:21.320 the people used to tease when all was kind of 0:07:21.520 --> 0:07:24.000 in the nine ninies really rapidly expanding. We were giving 0:07:24.000 --> 0:07:26.440 out free trial disc all the time, UH, and that 0:07:26.520 --> 0:07:28.880 was sort of a lesson we learned from PG. They're 0:07:28.880 --> 0:07:31.320 great at getting people to try their product for free sample. 0:07:31.400 --> 0:07:34.920 So essentially Well got got big because of the pmber 0:07:37.080 --> 0:07:39.680 My experience. But going back to your question, Ohio has 0:07:39.720 --> 0:07:43.040 great uh talent there, but historically there's been a brain drain. 0:07:43.120 --> 0:07:45.080 People grew up there, went to school there, but felt 0:07:45.080 --> 0:07:47.840 like they had to move to California or New York 0:07:47.840 --> 0:07:49.800 for some other place to to, you know, kind of 0:07:49.840 --> 0:07:52.240 find their opportunity. Now they're realizing they don't have to 0:07:52.320 --> 0:07:55.480 leave because of the innovation is really now happening everywhere. 0:07:55.640 --> 0:07:57.640 Just so you understand, David, and you're way too young 0:07:57.680 --> 0:08:00.240 to understand this. We used to use Steve's ale well 0:08:00.320 --> 0:08:02.400 dis that you get in the mail. Those would be 0:08:02.400 --> 0:08:05.800 beer coasters for Jenny Crema. You could you could just say, 0:08:05.840 --> 0:08:07.400 look that we got. We got a whole brace of it. 0:08:07.480 --> 0:08:09.760 We have like six or twelve of them for for 0:08:09.800 --> 0:08:13.480 all Reduce for users. They're the great coaster FORTI case 0:08:13.480 --> 0:08:16.040 with some Bloomrick surveillance. We talk about geography here. If 0:08:16.040 --> 0:08:20.400 I'm starting a company, um am, I looking for a 0:08:20.400 --> 0:08:22.000 place to put it, do I say, oh, look it's 0:08:22.000 --> 0:08:23.680 it's less expensive to do it in Detroit. I'm being 0:08:23.720 --> 0:08:25.200 encouraged to do it in Detroit. I'll go there, or 0:08:25.240 --> 0:08:27.080 I might go to d C, or might go to 0:08:27.120 --> 0:08:29.559 Silk How how does that calculus work? How does somebody 0:08:29.560 --> 0:08:31.160 decide where to start a company in the r teth 0:08:31.360 --> 0:08:34.040 I think the big the biggest driver in this next 0:08:34.080 --> 0:08:36.080 ten fifteen, twenty years, what I've called in the book 0:08:36.080 --> 0:08:38.880 the third wave, will be domain expertise. If you're really 0:08:38.880 --> 0:08:42.520 trying to disrupt healthcare, for example, being in Cleveland near 0:08:42.559 --> 0:08:45.719 the Cleveland Clinic or in Baltimore near Johns Hopkins, or 0:08:45.880 --> 0:08:49.439 near United Health in Minneapolis. When partnership has become more important, 0:08:49.440 --> 0:08:52.600 being closer to those partners will become important. We're seeing 0:08:52.600 --> 0:08:55.440 this in cities now like Pittsburgh that is known as 0:08:55.480 --> 0:08:57.520 the sort of the steel capital help power the whole 0:08:57.559 --> 0:09:00.960 Industrial revolution because of Carnegie mal and their expertise and 0:09:01.080 --> 0:09:03.560 robotics and their history of making things. There's a lot 0:09:03.600 --> 0:09:06.880 innovation there. Even Uber, kind of a prototypical Silicon Valley 0:09:06.880 --> 0:09:10.280 company is focusing its innovation around dry West Cars and 0:09:10.640 --> 0:09:13.280 in Pittsburgh. So you're starting to see the agriculture what 0:09:13.440 --> 0:09:16.320 some people call agg tech. Uh, there's innovation happening in 0:09:16.360 --> 0:09:18.959 Silicon Valley, but there's also innovation in place like Louisville 0:09:18.960 --> 0:09:21.839 and Lincoln, even St. Louis which ra Monsanto's based. There's 0:09:21.800 --> 0:09:23.880 a lot of engineers and understand a lot about farming. 0:09:24.040 --> 0:09:27.040 In your book, the last and then you're you're brilliant 0:09:27.040 --> 0:09:29.360 on this. You've got like ten pages of photographs and 0:09:29.400 --> 0:09:34.560 the last three pages is kids in Pittsburgh, kids in Ohio, etcetera, etcetera. 0:09:34.679 --> 0:09:37.520 Aren't they there because they can actually afford to get 0:09:37.559 --> 0:09:39.840 to the end of the month paycheck that this is 0:09:39.880 --> 0:09:42.000 like a huge deal. That's a big part. Now, some 0:09:42.040 --> 0:09:43.360 of them are there just because they happen to be 0:09:43.400 --> 0:09:45.360 there and they're starting companies, but some of them are 0:09:45.360 --> 0:09:47.760 there because they believe they can build companies there and 0:09:47.760 --> 0:09:49.400 at the cost of living is much lower. And I've 0:09:49.400 --> 0:09:51.680 seen this also if we travel around. The winner of 0:09:51.679 --> 0:09:54.200 our Rise of the Rest Pitch competition in Detroit actually 0:09:54.200 --> 0:09:57.680 started company in San Francisco but moved to Detroit, partly 0:09:57.720 --> 0:09:59.240 for cost of living it was going to be less 0:09:59.240 --> 0:10:01.840 than half a aust for rent and salaries and and 0:10:01.960 --> 0:10:04.240 so forth, partly because he was from there and wanted 0:10:04.280 --> 0:10:06.080 to go back there and raise his family there, and 0:10:06.080 --> 0:10:08.240 probably because he wanted to be part of the renaissance, 0:10:08.280 --> 0:10:12.040 the rebuilding, the reimagining of of of Detroit. We're starting 0:10:12.040 --> 0:10:13.600 to see that all over the country what had been 0:10:13.640 --> 0:10:16.240 a brain drain at that brain drain now slowing, and 0:10:16.280 --> 0:10:18.360 even we're beginning to see a very early signs of 0:10:18.360 --> 0:10:21.120 a boomerang of talent where people who felt they had 0:10:21.160 --> 0:10:23.880 to go to the coast now are beginning to realize that, 0:10:23.960 --> 0:10:27.520 you know, this regional entrepreneurship is beginning to accelerate and 0:10:27.520 --> 0:10:29.760 and they can really start a company anywhere. How is 0:10:29.800 --> 0:10:31.760 the the environment for we're starting a company and growing 0:10:31.800 --> 0:10:35.440 a company chain since you started all and when when 0:10:35.480 --> 0:10:38.680 we got started, venture capital was was still uh, relatively 0:10:38.679 --> 0:10:41.240 early days. It's a relatively recent phenomena. When we started 0:10:41.240 --> 0:10:43.280 in the Washington, d C. Area, it was not very 0:10:43.360 --> 0:10:45.240 start up friendly. It was, you know, kind of a 0:10:45.240 --> 0:10:47.760 big company town, kind of a government town. So for 0:10:47.920 --> 0:10:50.640 all our venture capital came from other places, Boston, Chicago, 0:10:50.679 --> 0:10:54.200 San Francisco. None of it came from the the DC area. Uh. 0:10:54.240 --> 0:10:56.280 And even when I graduate from college, I talked about 0:10:56.280 --> 0:10:57.680 this in the in the book. I had read a 0:10:57.720 --> 0:10:59.880 book called The Third Wave by Alvin Toffler when I 0:10:59.880 --> 0:11:03.040 was in college, and it talked about essentially the Internet, uh, 0:11:03.080 --> 0:11:05.120 And I was mesmerized by it. I wanted to do it. 0:11:05.160 --> 0:11:08.040 But when I graduate night there was no Internet companies 0:11:08.080 --> 0:11:09.840 to go do and there was no startup culture, so 0:11:09.880 --> 0:11:11.800 I couldn't really do my own thing. So it's really 0:11:12.000 --> 0:11:14.760 changed quite dramatically in the last few decades. What's amazing 0:11:14.800 --> 0:11:17.520 about this, David, is you read Elvin Toffler, you read 0:11:17.559 --> 0:11:21.280 The Third Wave, and you had your Karmen Gia. You 0:11:21.320 --> 0:11:22.760 know you had a Karmen Gee. And if you're a 0:11:22.840 --> 0:11:26.280 rich kid, you had a SOB and you put your talk. 0:11:26.360 --> 0:11:28.640 You could pick up girls just by putting your third 0:11:28.640 --> 0:11:30.800 wave on the back, you know, the back of the 0:11:30.840 --> 0:11:34.280 four seat car. They think you were sensitive. Gearshifter was 0:11:34.320 --> 0:11:37.880 on the dash right, Yeah, well, yeah, well that was 0:11:37.880 --> 0:11:42.120 a SOB. My first car was the exploding Pinto I 0:11:42.120 --> 0:11:44.240 got I got from four box. I didn't tell my 0:11:44.320 --> 0:11:46.480 parents about it because they've probably have been scared. A 0:11:46.679 --> 0:11:51.640 fine engineered vehicle that Pinto. Mike Michael Barr still drives one. 0:11:51.720 --> 0:11:53.440 I think I had two of them. You had two 0:11:53.440 --> 0:11:57.840 pints at one point. Uh, talk about energy. That was terrible. 0:11:57.960 --> 0:12:00.000 David Garrett and Tom Keene in New York with us 0:12:00.000 --> 0:12:02.960 THEEF Case of Revolution here in our Bloomberg eleven three 0:12:03.000 --> 0:12:04.760 oh studios and Steve I wanted to ask you about 0:12:05.320 --> 0:12:08.319 um sort of the conversation about manufacturing that we're having 0:12:08.400 --> 0:12:10.240 right now. The present talks an awful lot about bringing 0:12:10.320 --> 0:12:12.680 jobs back, and we don't hear a whole lot about 0:12:12.720 --> 0:12:18.120 the future manufacturing. We're about technological advancement, tour automation. Are 0:12:18.160 --> 0:12:20.440 we are we missing out? On some component of that 0:12:20.480 --> 0:12:23.640 conversation by not talking about those issues. Yeah, I think so. 0:12:23.760 --> 0:12:26.080 I think it's great for the president were trying to 0:12:26.160 --> 0:12:27.880 keep as many jobs in the country or you know, 0:12:27.960 --> 0:12:30.320 from moving off shore. But I think we have to 0:12:30.440 --> 0:12:33.280 not just kind of think about what was there thirty 0:12:33.360 --> 0:12:35.040 or forty years ago, but what's going to be there 0:12:35.080 --> 0:12:37.160 thirty or fourty years from now, and make the investments 0:12:37.200 --> 0:12:40.120 in the industries of the future. Now, advanced manufacturing is 0:12:40.160 --> 0:12:43.320 starting to show some momentum, and they're actually because of robotics. 0:12:43.360 --> 0:12:45.600 It's an odd dynamic, but because of some of the 0:12:45.640 --> 0:12:49.760 automation technologies, manufacturing that was moved off shore twenty years 0:12:49.800 --> 0:12:51.800 ago is now beginning to come back because there is 0:12:51.880 --> 0:12:53.559 less of a labor costs. So the bad news is 0:12:53.600 --> 0:12:55.280 there's fewer jobs. The good news is some of the 0:12:55.440 --> 0:12:57.880 jobs that were going away are are are coming back. 0:12:57.920 --> 0:12:59.880 So that's an example where there's sort of a kind 0:12:59.880 --> 0:13:03.320 of surprises emerged. But I think the real opportunity is 0:13:03.559 --> 0:13:05.600 in this third wave is to figure out where things 0:13:05.600 --> 0:13:08.520 are going and figure out what partnerships are necessary to 0:13:09.000 --> 0:13:11.839 lead the way. I think there's a broader social discussion 0:13:11.840 --> 0:13:15.320 around artificial intelligence and robotics and driverless cars, and how 0:13:15.320 --> 0:13:17.040 do you deal with the fact that a lot of 0:13:17.120 --> 0:13:18.960 jobs will be displaced. A lot of jobs will be 0:13:19.000 --> 0:13:21.000 lost because of those innovations. I think the only way 0:13:21.040 --> 0:13:22.800 to deal with that is to try to make sure 0:13:22.840 --> 0:13:26.240 you're offsetting that by backing entrepreneurs in these emerging Rise 0:13:26.280 --> 0:13:29.000 of the rest cities. So it's not just about job destruction, 0:13:29.040 --> 0:13:31.480 it's also about job creation. Startups are the big job creator. 0:13:31.520 --> 0:13:33.880 We just can't just focus on backing the startups in 0:13:33.920 --> 0:13:36.600 place like Silicon Valley and not in places like Detroit. 0:13:37.000 --> 0:13:38.880 As it's like to be a founder of a big 0:13:38.920 --> 0:13:40.640 We had Tim Armstrong here a couple of weeks back, 0:13:40.679 --> 0:13:42.959 and there was a rebranding and talking about oath and 0:13:43.000 --> 0:13:44.760 all of all of that stuff. But when when you 0:13:44.760 --> 0:13:47.280 when you found a company, how far out are you looking? 0:13:47.640 --> 0:13:49.440 Could you have envisioned what a o L is today? 0:13:49.480 --> 0:13:52.680 How many iterations it's been through, where it's headed now? 0:13:52.679 --> 0:13:54.600 How How forward looking are you when you're starting a 0:13:54.640 --> 0:13:57.079 company like well, you have to be pretty forward looking. 0:13:57.120 --> 0:13:59.400 And again, when we when we started at thirty two 0:13:59.520 --> 0:14:02.199 years ago, it was early days. Only three percent of 0:14:02.240 --> 0:14:03.920 people were online at all at the time, and they're 0:14:03.920 --> 0:14:06.079 only online about an hour a week. And so when 0:14:06.080 --> 0:14:07.959 we said we wanted to get America online, get the 0:14:08.000 --> 0:14:09.720 world online, we knew it was gonna be a tough task. 0:14:09.720 --> 0:14:11.559 But the surprise to me, frankly, it was it took 0:14:11.640 --> 0:14:13.280 longer to get going than I thought. It was really 0:14:13.280 --> 0:14:16.679 a decade before we finally It was just just it 0:14:16.720 --> 0:14:19.080 struck me as an obvious idea, but the reality is 0:14:19.160 --> 0:14:21.520 most people didn't think it was something most people wanted 0:14:21.560 --> 0:14:24.280 to bother with, So I just took a long, long 0:14:24.400 --> 0:14:27.000 term view. I think the challenge is to have that vision, 0:14:27.080 --> 0:14:29.520 have that that focus on long term, but couple that 0:14:29.600 --> 0:14:32.360 with with execution, and that Thomas Edison said, this is 0:14:32.400 --> 0:14:35.360 inentrigo vision without execution as hallucinations. And how you strike 0:14:35.440 --> 0:14:38.160 the balance between having the big idea, having a big vision, 0:14:38.640 --> 0:14:41.560 but also executing and having the patience and perseverance I 0:14:41.600 --> 0:14:43.400 think will become more important again in the third way. 0:14:43.440 --> 0:14:47.280 The second way, there are a lot of overnight successive snapchat, facebooks, cetera. Uh, 0:14:47.280 --> 0:14:48.640 and the third wave it's gonna be more like the 0:14:48.640 --> 0:14:50.680 first wave. It's going to take more like ten years 0:14:50.680 --> 0:14:52.680 in the making before you had that overnight six let 0:14:52.680 --> 0:14:54.680 me ask the question. And I'm doing this folks. I 0:14:54.720 --> 0:14:57.600 got my iPhone out of my fancy brown case. He's 0:14:57.640 --> 0:15:00.400 got his iPhone out and his tasteful black case. You 0:15:00.480 --> 0:15:03.840 got your iPad? On page two forty two of the 0:15:03.960 --> 0:15:07.760 Third Wave? What's your advice? For the third wave of 0:15:07.800 --> 0:15:11.400 the manufacturing shop known as Apple Computer? What do they 0:15:11.440 --> 0:15:13.080 do well? I think they're doing a great job. Did 0:15:13.080 --> 0:15:16.040 you have a Lisa? I did not own one. I 0:15:16.040 --> 0:15:18.040 certainly saw it when it got launched and was and 0:15:18.120 --> 0:15:23.040 then you saw that was the dog it was. It 0:15:23.080 --> 0:15:26.880 was the sort of an enterprise office of computer based 0:15:26.880 --> 0:15:29.280 on some of the Xerox parktect How do they avoid 0:15:29.360 --> 0:15:31.680 a Lisa? What's your What's your advice? And they have 0:15:31.800 --> 0:15:33.720 You have to keep pushing, you have to keep trying 0:15:33.720 --> 0:15:35.920 you can, and they have to open up some new markets. 0:15:35.960 --> 0:15:39.040 I've said for some time that Apple, even though their 0:15:39.040 --> 0:15:42.040 focus has been on sort of horizontal markets, has to 0:15:42.080 --> 0:15:44.400 start focusing on some vertical mark healthcare being one. I 0:15:44.440 --> 0:15:46.840 saw just over the weekend that there's some rumors that 0:15:46.840 --> 0:15:49.960 they're working on some technologies around diabetes, other kind of things. 0:15:49.960 --> 0:15:52.440 I think figure out how they take the expertise they 0:15:52.480 --> 0:15:56.080 have around interface and simplicity and and and accessibility and 0:15:56.120 --> 0:15:58.520 apply that to other other sectors. So I think it's 0:15:58.560 --> 0:16:01.200 not just about the horizontal heating platforms, whether it be 0:16:01.280 --> 0:16:05.200 a phone or iPad or computers themselves, about how you 0:16:05.240 --> 0:16:08.520 take that expertise into more vertical markets like like health care. 0:16:08.520 --> 0:16:10.840 It's one sixth of our economy. Everybody agrees it's broken. 0:16:11.360 --> 0:16:14.240 Innovation is necessary. Company like Apple could be a great innovator. 0:16:14.280 --> 0:16:15.800 There is that the rich You've mentioned healthy here a 0:16:15.840 --> 0:16:17.520 few times. That is that the richest vein now for 0:16:17.520 --> 0:16:19.400 for innovation to use. I think so just because it 0:16:19.520 --> 0:16:21.240 is such a big part of the economy and it's 0:16:21.280 --> 0:16:23.640 so broken, and there are clearly a ways to use 0:16:23.680 --> 0:16:27.520 technology to make you care more convenient uh and or accessible, 0:16:27.560 --> 0:16:31.080 more more affordable, and more personalized. That this one scary 0:16:31.080 --> 0:16:33.280 thing I talked about in the book is MD Anderson, 0:16:33.280 --> 0:16:35.720 one of the great cancer hospitals. When people come there 0:16:35.760 --> 0:16:37.920 for second opinions, twenty five percent of the time they 0:16:37.960 --> 0:16:42.600 reverse the first opinion. That a lot of people go, yeah. 0:16:42.600 --> 0:16:45.040 But now some of it's because there's some regional hospital 0:16:45.040 --> 0:16:47.280 that doesn't have the expertise in that. But some of 0:16:47.280 --> 0:16:50.040 it's because that the technology hasn't been embraced to really 0:16:50.280 --> 0:16:54.160 be much more specific around pathways and identifying what the 0:16:54.200 --> 0:16:56.920 problem is there for, what the diagnosis, what the what 0:16:57.040 --> 0:16:59.760 the solution, the therapy should be. So clearly there's a 0:16:59.840 --> 0:17:01.720 role for technology to play. The same time, one of 0:17:01.720 --> 0:17:04.359 the key lessons I talk about is that it's not 0:17:04.440 --> 0:17:06.680 just about the technology, is not just about the software. 0:17:06.680 --> 0:17:08.520 It's got to be people. It's got to be culture, 0:17:08.520 --> 0:17:10.919 and that, you know, the revolution healthcare will be getting 0:17:10.960 --> 0:17:14.080 doctors and hospitals to think differently. The revolution education will 0:17:14.080 --> 0:17:16.399 be getting you know, teachers and professors to think differently, 0:17:16.440 --> 0:17:18.320 not just getting the engineers to write I got I 0:17:18.359 --> 0:17:21.240 got forty seconds left? Is all on Steve Case in 0:17:21.359 --> 0:17:24.400 third wave? How do you manage your email? It's your fault? 0:17:25.160 --> 0:17:27.840 How I must have met? There are mornings I wake 0:17:27.920 --> 0:17:30.840 up and say, this is a stupid ideas. Who got 0:17:30.880 --> 0:17:34.240 this thing started? Now? I I have multiple accounts for starters, 0:17:34.480 --> 0:17:37.760 multiple accounts. I've been stealing newsletters things like that. I 0:17:38.080 --> 0:17:40.280 have go to one I want to account. Uh, And 0:17:40.320 --> 0:17:42.600 so it's one way to kind of, you know, when 0:17:42.600 --> 0:17:44.239 I have time in today, I'll kind of look at 0:17:44.280 --> 0:17:46.720 that and I also just try to afford to other 0:17:46.760 --> 0:17:49.280 people that somebody else kind of deal with it with much. 0:17:50.440 --> 0:17:54.800 But it's a great it's a great resource, but sometimes 0:17:54.800 --> 0:17:57.520 it can be a source of frustration for all of us. 0:17:57.640 --> 0:18:02.919 It's your fault, So hush. It is a fabulous book, folks, 0:18:02.920 --> 0:18:05.000 with a new epilogue that really brings it up to 0:18:05.119 --> 0:18:07.800 date with all that's going on in Washington. The Third 0:18:07.840 --> 0:18:12.119 Wave Steve Case and Entrepreneur's Vision. I'll change the title 0:18:12.200 --> 0:18:14.359 of what to Do with this Nation? Steve Case. The 0:18:14.440 --> 0:18:26.159 Third Wave, very important effort brought you by Bank of 0:18:26.200 --> 0:18:30.240 America Mary Lynch, dedicated to bringing our clients insights and 0:18:30.320 --> 0:18:34.480 solutions to meet the challenges of a transforming world. That's 0:18:34.520 --> 0:18:39.760 the power of global connections, Mary Lynch. Pierce Federan Smith Incorporated, 0:18:39.920 --> 0:18:47.520 Member s i PC, joining us now from the Union 0:18:47.520 --> 0:18:52.480