June 23, 2016
Anyone of a certain age remembers when free America Online software — delivered on 3.5" floppy disks and then in CD form — seemed to arrive in the mailbox on an almost-daily basis. Although its genesis was in online gaming, the company soon evolved into an online services company and, by the early 1990s, was one of the leaders of the tech world, innovating and helping to build the infrastructure for the online world we know today. In the words of the company's co-founder and former chair, Steve Case, AOL was part of the "first wave" of innovation driven by the Internet.
By the early 2000s, a "second wave" of Internet-enabled innovation featuring apps and mobile phone technologies had sparked a new communications revolution, with companies such as Apple, Amazon, Google, and Facebook leading the way and birthing a new generation of billionaires. Even as this second wave was cresting, however, a third wave of innovation was forming in its wake. In his new book, The Third Wave: An Entrepreneur's Vision of the Future, Case lays out his vision of an emerging era in which almost every object is connected to the Internet and the network of all networks "stops belonging to Internet companies.…The entrepreneurs of this era are going to challenge the biggest industries in the world, and those that most affect our daily lives. They will reimagine our healthcare system and retool our education system. They will create products and services that make our food safer and our commute to work easier."
PND spoke with Case, who chairs the Case Foundation and, with his wife, Jean, is a signatory of the Giving Pledge, about what these changes mean for the social sector and how nonprofits, large and small, can partner with business and government to solve some of our most pressing challenges.
Philanthropy News Digest: What you have labeled the "third wave" of Internet-enabled innovation will affect many areas of interest to the social sector, including health and health care, education, and food and agriculture. Do you see this next wave of innovation as a boon for nonprofits and social entrepreneurs?
Steve Case: I think it can be. Obviously, there are different folks focusing on different things in different ways. And there will always be an important role for nonprofits to deal with issues that, frankly, only nonprofits can deal with. But some of the sectors you mentioned — health care and education, food, agriculture — I think there's a role there for entrepreneurs to build companies that can have an impact.
One of the big things I talked about in the book — and which the Case Foundation has been championing for years — is the importance of partnerships. Partnerships between startups and other organizations — whether it's other companies, nonprofits, or government — will become more important in the nonprofit sector generally and will have a significant and, I think, positive impact on some of the sub-sectors you mentioned.
PND: The Case Foundation has always emphasized the importance of working across sectors. How do you think the changes brought about by the third wave of Internet-enabled innovation will affect its own work?
SC: I think we'll continue on the path we've been on. We've been talking about some of the issues around cross-sector collaboration for the nearly twenty years the foundation has been around. In the last few years, we've focused on things like impact investing, inclusive entrepreneurship, leveling the playing field so every entrepreneur who has an idea has a shot, and we'll continue with those efforts and try to use all the levers available to us.
Jean [Case] has spent a lot of time on impact investing. Part of her focus is advocating for policy changes that actually free up and expand more impact investing capital. The kinds of things we're focused on at the foundation are very much in sync with the kinds of things I address in the book.