No, it is not. I borrow that title. I read that book, the third wave, in 1980, and i was mesmerized by the agricultural revolution followed by the industrial revolution. He was protecting the technology revolution, what we now know as the internet. I knew that is what i wanted to do. It took me time to get into that world. When i decided to write a book, i borrowed that title. Thankfully it was still alive. He provided a blurb for the book. What are your three waves . I focus on the internet. It is really two of the waves that we have seen and one wave that is coming. The first wave, getting America Online, getting the world online. Back in 1985, only 32 of people were online 3 of people were online. They were only online one hour a week. When we said we wanted to create a connected world, we knew it was going to be tough. It took us a decade. In the first wave no one knew or cared about the internet. By the end 2000, everybody was of it 2000, everybody was connected. , that set the stage for the second wave which has been the last 15 years or so, Building Software and services on top of the internet. Google, facebook, twitter. Mostly ons smartphones. That has defined the second way. Now we are seeing the third wave pick up steam, the internet integrated in seamless and pervasive ways, sometimes invisible ways throughout our lives. Changing health care, transportation, energy, food. Pretty important aspects of our lives. Pretty big sectors of the economy. It requires a different playbook we are going to be successful in this third wave. Can you give an example of a product that will see in the third wave . Take health care. Everyone focuses on the challenges of health care, how do use technology to make it more convenient to have Better Outcomes . Andy anderson said when people come for second opinions, 25 of the time they were a first they reversed a first opinion. But is a Data Analysis problem. There is a lot of work when one company met with tempest creating an operating system for cancer, using technology to be much more precise in terms of the diagnosis and what drugs or therapies people should take. That is an example. Education we know kids learn differently. How do we use technology to create a more personalized adapted way to learn . All kinds of things. Some of that is changed in the first wave. There are all kinds of things. If you look at the sectors, health care, education. Some of them have changed but others not that much. , for most people it is the same as it was 10 or 20 years ago. That is going to change in the third wave. In your book you talk about a 2040 scenario, you say google is not going to be that big Company Everybody talks about. Steve theres always things that rise and fall. Aol itself. Half of the u. S. Traffic was through a a well. Aol. Still around today, but not nearly as important as it was in its peak. Companies rise and fall. Cities rise and fall. There is this Natural Evolution of things. Exactly who the leaders of the pack are, its hard to predict. Some of them will be new brands. We just need to make sure we are leveling the Playing Field so there are entrepreneurs Building Great Companies everywhere. Not just in a few places. Year, almost 80 of Venture Capital went to three states. We need to figure out ways to support entrepreneurs everywhere. Obviously we solve that in the recent election. People were saying i feel left out and left behind by globalization. We need to make sure we have a more inclusive innovation economy and we are backing startups that are creating jobs everywhere, not just doing that in the Silicon Valley. When i read that statistic, about 75 going to california, massachusetts, new york, i was surprised Washington State wasnt included. Then you have another stat, which is only 15 of Venture Capital went to the red states. The 30 states that voted for donald trump what we are essentially doing, we are backing entrepreneurs in places like San Francisco, new york, boston, doing interesting, innovative but also disruptive things. Some of that is destroying jobs. That will accelerate with artificial intelligence, robotics, trucks and cars. That is inevitable. 200 years ago over 90 of people worked on farms. Technology has always done that. Technology made it easier to do farming. Technology will continue to advance. What we need to do is make sure we are offsetting jobs being lost in the middle of the country by backing startups who can create jobs in the middle of the country, not just the entrepreneurs on the coast. Theres got to be something that we figure out ways to make sure capital flows more evenly. The other statistic that is sobering, 90 of Venture Capital went to med here just 10 to women. 1 to africanamericans. Right now it does matter where you happen to live, who you know, what you look like in terms of getting access. We need to level the Playing Field so everybody, everywhere really does have a shot at the american dream. The process that can create jobs everywhere, and get more people a sense that they are part of the future. They are not going to be left behind. From your book americans are , having two distinct conversations about technologically driven change. Does this go to the Digital Divide . And the innovation divide. There are parts of the country dont have access to broadband. As we have this debate, we need to invest in better roads and bridges. But we also need to invest in a digital infrastructure. Things like broadband and make sure it is broadly available across the countrys widow have so they have a platform that enables them to do innovative things. That is part of the dynamic. We talk about the rise of the rest. Hottie make sure entrepreneurs everywhere have access to capital media, so you dont have these places where the wealth and innovation is happening in the rest of the country feels left behind . For the last several years we have been using the term internet of things. You use the term internet of everything. Steve internet of things is interesting concept. How you can integrate sensors in your homes. And things like smart cities. This third wave is the internet and everything. Even the internet as a phenomenon starts to become taken for granted, like electricity. A century ago electricity was a new technology. Once it goes out, we take it for granted. Unless it goes out. The internet is on that path. That is one of the dynamics in the third wave. The internet is embedded in everything. In fundamental things like how we stay healthy, what we eat, things like that. There are responsibilities that come with that. That is the big theme of the book. I want to make sure that the policymakers understand the dynamics of the third wave. I also want to make sure the innovators note they have to engage with policy makers to make sure that the rules of the road are structured and the right way. So innovation can flourish and some of the issues around privacy, what about Cyber Security and cyber terrorism, all of these are big deals. We are not going to have Driverless Cars on the roads or drones in the sky without some sort of Regulatory Framework. That will be different in the third wave that it was and the second wave. For facebook, instagram, or opentable. Policy wasnt that important. You didnt have to pass muster. The fda, Something Like that, financial services, making sure protections of investors. The dynamic around the innovators engaging with policymakers are more important than it was in the second. Government is going to play an Important Role in the third wave. It is different than the first and second waves. What were some of the policy issues you dealt with when aol was the policy, it was important. It just became largely unimportant in the second wave. I am predicting it will become important again in deep third wave. If you look back on the early days of the internet, the government did fund the basic research that created the internet. The government decided to break up the phone companies. That unleashed a a lot of competition in the internet which drove down prices. Cost 10tarted aol, it per hour to stay connected. Sorted embedded in a flat rate. That only happened because of the judicial decision, we would not have seen competition, prices come down. That is another role of the government. Finally congress, when we started aol, it was illegal for consumers or businesses to connect to the internet. It was restricted to government use and educational use. If you work for a government , youy or were a student could use the internet. But Congress Passed the telecom act. Decided the government we are not quite sure how this is going to work. So we will adopt a light touch in terms of regulation. No sales tax on ecommerce. They watched how it developed. As a result it skyrocketed. It is an example of the government playing a central role making the internet possible. Ushering in a connected society, but then having a handsoff approach to regulation. In sectors Like Health Care or energy or transportation, what is the right balance . How do you make sure you are unleashing new ideas to allow this third wave to flourish . You talk about aol being a decade in the making overnight success. When i first read that book in 1980, i knew in my heart the internet was going to happen. When i graduated from college, there were no Internet Companies to go to. There wasnt much of a startup culture. I worked for some big companies. Procter and gamble, the division of pepsico pizza. Finally i moved the d. C. Area to start a startup. That didnt work. It was a big failure. But two of the people by met, i started America Online in 1985. It took a decade before anybody knew what we were doing. It was a struggle. We were the First Internet Company to go public. It was 1992. We had been at it for almost a decade. We had less than 200,000 customers after a decade. It is just an example that sometimes revolutions have been an evolutionary wave. It wasnt so true in the second wave. Facebook and snapchat really were overnight successes. Starting in a dorm room and suddenly they are big companies. Partnerships become more important. Policy will become more important. Also you need more perseverance. Ps that defined the first wave, partnership, policy, perseverance. That is part of the reason i wrote the book. I realized i could tell a book about the future telling some , stories from the past that could help inform the future, including the idea of those three ps. Why did you develop here in washington . A little bit by accident. I was able to learn about a company in Tysons Corner area. It was called controlled video. This was when those people did not have personal computers. The idea was to create a Communications Capability that you could connect to game machines, i thought it was a good idea, but just as we were coming to market, atari employed atari imploded. Thenecause i was here, we started America Online here. It was a little by accident why i was here. In that first wave the d. C. Area , played a pivotal role. Darpa was in northern virginia. Others were in the d. C. Area. D. C. Played a significant role in that. The second wave, Silicon Valley played the most Important Role. The center of gravity shifted from networks and on ramps to software. The third wave im expecting it , will have more regional entrepreneurship. Bele they were continue to innovation and places like Silicon Valley, there will be innovation and the rest of than in the rest of the country. Places like detroit, pittsburgh, atlanta, minneapolis, st. Louis, albuquerque all kinds of cities , developing on the expertise they have, trying to attract the capital and talent, and in the process create the jobs that are so desperately needed. What are you finding out there beyond the coast . It is very encouraging. I wish more investors in new york city or San Francisco would get on planes to visit. They would find there are great ideas and great companies. There are examples showing breakout potential. In baltimore with under armour, we started there. Theres a company in indianapolis called exact target. It was acquired by salesforce for 3 billion, nearly 2000 employees in indianapolis. In detroit, a Company Takes displaced auto workers, three trains them to build watches and other products. They are growing like gangbusters. The store of entrepreneurship is not just about tech. We do need to make sure there are more investors, and maybe as part of the agenda of the Trump Administration, one of the areas that will hopefully get focused on, how do you create investment incentives, all these other places. There was some legislation introduced in a bipartisan way in the called the investing and Senate Last Year opportunity act. They created Capital Gains to invest in these emergency these emerging cities. The Trump Administration has announced the american tech council. Is that perhaps a mover . I applaud that. We need more construct of engagement between people. More dialogue. Elon musk was criticized for engaging with the president. I think it is important. I want to have him in the room. I want to make sure he is explaining the challenges and opportunities that are possible. Hopefully he is advocating for things that matter. Reform, so we can continue to win with a global battle for talent. Anything that white house can do is to reach out to innovators is a good thing. I encourage people who have interesting ideas and perspectives about what is going to happen in the future to make sure those perspectives are president , orthe those who are trying to figure out what the rules of the road should be for this third wave. Back to your book, as we move into the third wave, what are the battles i would like to see end is the animosity between Silicon Valley and washington d. C. Steve it is a problem. There are obviously some exceptions, but some dont want to engage and get frustrated by government. Obviously, to some extent that is the case. At the same time when you are dealing with health care, the drugs we take, medical devices we use, food systems or Energy Systems or transportation systems, it is not unreasonable the government would have some regulations around those industries. We need to make sure they are the right regulations. When you shift from that focus to a third wave focus, when it is a fundamental part of everyday life, theres going to be some regulation. We need more of a dialogue. Strike the right balance. To kill want drugs people. We dont want food to make our kids sick. We dont want drones crashing in playgrounds. Same time, how do we make sure the United States leads and has the framework that is friendly to disruptors and entrepreneurs . Friendly to innovators so that innovation can happen here and we create the jobs and Economic Growth here. What is the vehicle you use to invest in these companies . Its a mist of things. I have an Investment Company called revolution and revolution ventures, focusing on earlier stage ventures. Revolution growth on later stage. We talk about those as being speedups, not startups. We have a separate initiative where we travel around the country and see angel investments. I do that personally. What are some companies that revolution has invested in that we have heard of . Steve some of them are still emerging. We invested in zip car years ago. It was focused on car sharing. It was acquired and has grown quite rapidly. We have backed companies in the food area, suite greens. Started a decade ago by three young kind young guys out of georgia. A concept that is going quite rapidly, first in d. C. Then boston, new york mr. To spread around the country. More recently, in detroit and also in chicago doing some really interesting things around precision data. There is a mixed of different sectors we focused on on the venture side. The key focus is this rise for us. How do we make sure that entrepreneurs everywhere have access to capital . But also to shine a spotlight on them to attract other investors to Pay Attention as well. There is another vehicle called the case foundation. Steve the focus there is we invest in ideas that can change the world. The issues change over time. In the early years, additional divides, we launched founders. How do you encourage more investors back but dont just focus on profit but on purpose and measure that impact . There is a whole thing around benefit corporations that builds impact into their charter. We are also focused on civic engagement. We have done a lot of research on millennials. The third wave is part biography as well. Developing aol what was your relationship with steve jobs . Steve in the earliest days come here just been fired by apple. When he came back in, his company was acquired by apple. Over time he became the ceo then we engaged more. We Work Together on a number of initiatives including digital music. He obviously was one of the iconic entrepreneurs that had led the way. Some of the ideas he put in place at apple, they are going to be important in the third wave. Apple has hinted they will be focused on health care. How do they use the approach apple has around software and services and designed to help revolutionize the Health Care System . So even though we lost steve some of the instincts he has, that perspective will carry on. There is an incident in the book where the Apple Corporation puts you in your office at a catatonic state for a wild. For a wild. Steve the late 80s, we got started at aol, every competitor at the time was prodigy. Backed by ibm and sears. We couldnt compete headtohead. Our strategy was to do partnerships. We created apple personal edition. A venture between our company and apple. I think it was the first time apple license their brand name to another company. After a year or so they decided , maybe that was a mistake. We had debates. They wanted to sell only in apple stores, things like that. I got a call, saying we want to tear up the contract. We dont like the idea of this service anymore. It was a scary moment. We thought maybe we are not going to make it area the rest is history. We ended up calling it America Online and the rest is history. Instead of being a near disaster, it ended up being a catalyst. Who is Elwood Edwards . Steve pretty famous. His voice, pretty famous. He is the guy who recorded on our Software Things like youve got mail, the welcome messages. He was the husband of a woman , Karen Edwards who worked in , our Customer Services department, and heard me talking that had we make this more engaging . Y as it seemed 30 years ago. Maybe we should add real voices so when you connected to our service it was say welcome, and say youve got mail. She overheard me saying that. She said my husband does radio voiceover work. Im sure he would be happy to record something. I got a little postit note and wrote statements down. The next morning he came in with those cassette tapes. We played it. He had the perfect voice. We added it to the software and a few months later he at one of the most famous voices in america. What was the toughest year of your life business wife . Business wise. Steve when we merged with aol time warner. I took a backseat. Just being on the board, but not running the company day today, that hasnt worked well. The idea made sense for the execution didnt. I have quoted this great Thomas Edison quote, visit without execution is pollution nation. It was frustrating. For everyone involved. I have this passion for this idea of these companies and what together they could do but we couldnt get out of our own way. Eventually i decided to step aside and leave the board. That is when i went back in the garage and started backing the next generation want to renew next generation of entrepreneurs. Close with this quote. The government doesnt have any single mechanism to address the internet of things or the challenges it is presenting. Have one of the concerns i , which is why when the out, at a seven added a new chapter. A seven part agenda where i called the restart agenda to make sure they can be the third wave to read i dont think there is an appreciation of some challenges and opportunities that present themselves in the third wave. There is a fragmented approach to regulation that might have worked in the past. I dont think will work in the future. I think it requires integrated systems approach. Because some of the things that are involved. In the financial world there are , some things that are technology issues. That is also true in health care and other sectors. Make sure we have the right Regulatory Framework so this country can lead the way in the third wave. I remind people particularly in d. C. 250 years ago, america , itself was a start up. It was just an idea. We led the way in the agricultural revolution. We led the way in the industrial revolution. We led the way in the technology revolution. We need to lead the way in the next revolution, getting this right. Some of the is getting the innovators working with policymakers so we have a more cohesive approach for the third wave. The third wave, steve case is the author. [captions Copyright National cable satellite corp. 2017] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. Visit ncicap. Org] cspan, where history unfolds daily. 1970 nine, cspan was created as a public service. It is brought to you today by your cable or satellite provider. President trump has been spending the week in florida at his maralago resort. He invited people to play golf. Here is a look at the interaction with those who attended. [applause] [inaudible] thank you. I just want to thank you. Beyondf you are from like force. A couple of people like to play golf. I had about 50 people raise their hand. 75 people showed up. We closed the course. You can have a little tournament. Will make a determination as to who the best player is. Theia is to rick rick media is terrific. Any sports media . We will have a costar challenge. Enjoy the course. One of the great courses of the world, as you know. This is the 17th hole. All of you were watching my shot, right . And a birdie that i made. [laughter] know you wait. Its an honor to have you at the course. Do this againwill and a little bit. The job you did in florida, and frankly the job they did in 16,000 people. Unheard of. I just want to thank you. The coast guard is fantastic. You guys have a good time and let me know who won. Gets you a little trophy. Thank you, everybody. Thank you very much. [applause] coming up, new years weekend on cspan. Saturday at 8 p. M. Eastern, north Korean Refugees described life under the kim regime. Ofchina, tens of thousands north korean defectors are leaving without papers. They are being physically or sexually exploited. Urging. Is continually china and russia to support more economic sanctions, it should beijingmore to stop sending defectors back. Sunday, James Clapper on his career in the intelligence. About thes a point difficulty of being so precise, given the global interconnection representative by the internet. It is where everyone communicates. The difficulty of sorting out good people and that people and on monday, new years day, a tech fire summit on the revolution. And at noon, formal clinton he knew who he was fighting for he got there every day. He knew the people he wanted to help. Through thick and thin, when times were good and times were bad, all he cared about were could he deliver for the people who needed the government to be on their side . Watch this new years weekend on cspan. The cspan bus tour continues its 50 capitals tour in january. On each visit, we will speak with state officials during our live washington journal program. Follow the tour and join us on january 16 at 9 00 eastern. For our stop in raleigh, north carolina. Our guest is josh stein. We continue our washington journal author series today, the author of the Digital World war. Extremists, and the fight. Before beginning to the fight for the digital battlefield, define some terms for us. Especially the important distinction that you make in the title between islamist and extremist. Thank you for having me. I think the definitions are important. Islamists, i would like to think of them when you exist