It’s not often you come across reports that you think everyone in the business community in Wales should read cover to cover.
However, “Wales 4.0 - Delivering Economic Transformation for a Better Future of Work” by Cardiff University academic Professor Phil Brown is definitely one of those rare jewels that fall into that category.
I was fortunate enough to be interviewed by Phil and we discussed, as the report does, how the rapid advances in digital innovation - defined as including any novel products and services, or more productive ways of doing existing things, along with yet imagined things based on digital technologies - were likely to impact the economy and future of work in Wales.
It is a superb report not only because of the level of detailed analysis but because of its boldness in rejecting the normal status quo approach of just doing what others do. Instead, it challenges Wales to ‘dare to be different’ and to come up with new approaches that will lead to greater prosperity across the entire nation.
Perhaps one of the key findings of the research, especially in relation to claims that automation will lead to job losses is that digital technologies will result in both job displacement and creation. However, what is more important is how they are used in the future to augment skills and improve job quality as not everyone, especially those with lower skills will reap the benefits
Indeed, one of the concerns is that without radical action by government, employers and individuals to maximise the impact of the opportunities presented by the disruptive forces of digital technologies, Wales will end up with an economy that is less secure, more portable and at a greater risk of automation.
So how can such radical action be achieved?
Certainly, none of the previous economic strategies developed by Welsh Government have specifically addressed how digital innovation will transform the Welsh economy and a new approach (which is termed Wales 4.0) needs to be taken which builds on Wales’ established and emerging strengths, and offers the opportunity to put the nation at the forefront of digital and industrial policy development.
To do this properly, mainstream digital needs to be in everything government does to the benefit of all rather than being seen as an isolated topic.
It must also align its digital policy and programme interventions in relation to digitalisation and prioritise those interventions which will have the greatest impact in the medium to long term. Finally, it must focus on scaling those things Wales does best and not be afraid to stop doing the things that don’t work.
In delivering such a strategy, Welsh Government must implement a number of different things. Whilst digital innovation must be seen as a responsibility of all Welsh Government Ministers and officials, this cannot be left to politicians and policymakers alone and there needs to be a national conversation with the wider citizenship to discuss the challenges and opportunities presented by digital innovation
To link up with the business community, six industrial innovation clusters - in data analytics and cybersecurity, clean energy and the circular economy, medtech and biotech, professional services and fintech, creative industries and advanced manufacturing – should be created to identify current strengths and the potential for advancing digital innovation at a regional, national and international level.
All of these should be supported by an Institute for the Future Economy to help position Wales on the global map as a digital nation and the Welsh Government’s international strategy should work with the six clusters to sell Wales globally.
To ensure a single business diagnostic and transformation process, existing business, skills and innovation support need to be integrated together, especially in ensuring that service-based firms get the same support as manufacturing industries have over the years.
In terms of skills, a range of important reforms aimed at building capacity within post-compulsory education are needed to prepare for the future of work in an age of lifelong learning.
Therefore, this is a bold vision for the future that does not shirk from the challenges facing businesses as we move through another industrial revolution. However, none of this will happen without suitable investment and the report estimates that £100 million of public funding is needed to make this whole approach work.
Clearly, the return on investment in terms of improving Wales’ economic prospects and the quality of working life will be considerably higher than this amount and the question is whether the Welsh Government and its partners will take the first step in realising this important vision for the future of the Welsh economy.
They certainly need to.