The internet. The second wave. 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 big sectors of the economy. Playbooka different point be successful. 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 . Said when people come for second opinions, 25 of the time they were 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, much more precise in terms of the diagnosis and what drugs or therapies people should take. 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. Not that much. The samepeople it is as it was 10 or 20 years ago. About aur book you talk 2040 scenario, you say google is not going to be that big Company Everybody talks about. Steve theres always things that rise and fall. Half of the u. S. Traffic was through a a well. Not nearly as important as it was in its peak. Fall. Ies rise and cities rise and fall. There is this Natural Evolution of things. Of the who the leaders paccar, its hard to predict. Some of them will be new brands. Not just in a few places, it is crazy. Almost 80 23 states. York, 47 states. Obviously we solve that in the recent election. We need to make sure we have a more inclusive innovation economy and we are backing startups creating jobs everywhere, not just doing that in the Silicon Valley. Statistic,ead that going to california, massachusetts, new york, i was surprised Washington State wasnt included. 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 disruptive things. Some of that is destroying jobs. That will accelerate with artificial intelligence, robotics, trucks and cars. That is inevitable. Has always done that. Technology made it easier to do for me. Farming. What we need to do is make sure we are offsetting jobs being lost 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 even only. More evenly. 90 of Venture Capital went to men. 10 to women. 1 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 has 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. Americans are having two distinct conversations about technologically driven change. Does this go to the Digital Divide . And the innovation divide. Parts of the country dont have access to broadband. We have this debate, we need to invest in better roads and bridges. We also need to invest in a digital infrastructure. To make sure it is broadly available across the countrys widow have people who have these connections that are the platforms that enable them to do innovative things. That is part of the dynamic. We talk about the rise of the rest. How do you make sure everyone has access, so you dont have these places where the wealth and innovation is happening in the rest of the country feels left behind . We have been using the term internet of things. You use the term internet of everything. Steve internet of things is interesting concept. 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. Electricity was a new technology. Once it goes out, we take it for granted. That is one of the dynamics in the third wife. The internet is embedded in everything. The policy members understand the dynamics. We get the rules right. What about Cyber Security and cyber terrorism, all of these are big deals. Policy wasnt that important. The fda, Something Like that, financial services, making sure protections, 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 the policy issues you dealt with . , it was important. It just became largely unimportant. Back on the early days of the internet, the government did fund the basic research that created the internet. To breaknment decided up the phone companies. That unleashed a lot of competition in the internet which drove down prices. It is embedded in a flat rate. That only happened because of the judicial decision, we would not have seen competition, prices come down. It was illegal for consumers or businesses to connect to the internet. It was restricted to government use and educational use. , weou work for a student are quite sure how this is going to work. A relatively light touch in terms of regulation. It is an example of the government playing a central role making the internet possible. The energy, what is the right balance . 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 process. 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. Finally i moved the d. C. Area to start a startup. It was a big failure. For the people i met, i started America Online in 1985. It took a decade before anybody knew what we were doing. It was 1992. We have less than 200,000 customers. It is just an example that sometimes revolutions have been an evolutionary wave. It wasnt so true in the second wave. They really were overnight successes. They are big companies. S fundamentals are you are going to need more perseverance. The first wave, partnership, policy, perseverance. Theyre going to be very important again in the third wave. That is part of the reason i wrote the book. Telling some stories from the past that could help inform the future, including the idea of those three ps. Wattage you develop here in washington . I was able to learn about a company in Tysons Corner area. You could connect to game machines, i thought it was a good idea, but just as we were coming to market, atari employed it. It turned out to be an unsuccessful thing. Some of the people at that company were here as well. Why i wasaccident here. The d. C. Area played a pivotal role. Northern genia. A lot of other Communications Innovators were in the d. C. Area. D. C. Played a significant role in that. The center of gravity shifted from networks and on ramps to software. It will have more regional entrepreneurship. Detroit, pittsburgh, atlanta, minneapolis, st. Louis, 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 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 are great ideas, great companies. There are examples showing breakout potential. In baltimore with under armour, we started there. Theres a company in targetpolis called exact. 3 billion, nearly 2000 employees in indianapolis. In detroit, the company that tried to displace take displaced autoworkers, retrain them to build watches and other products. They are growing like gangbusters. The story is not just about tech , Silicon Valley, it is all the sectors of our economy. We do need to make sure there , and maybe astors part of the agenda of the Trump Administration, one of the areas that will hopefully get focused on, how do you create investment , all these other places. Called the investing and opportunity act. They created their own incentives to invest in these emerging cities. The Trump Administration has announced the american tech council. Is that perhaps a mover . Once we need to have more constructive engagement, some of these third wave sectors. More of that dialogue. Elon musk was criticized for engaging. I think it is important. I want to have them 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. Win then continue to global battle for talent. The white house is going to reach out to innovators. Who havege people interesting ideas and perspectives about what is going to happen to make sure those perspectives are understood who are trying to figure what the rules of the road should be for this third wave. 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. 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 transportation systems, it is not unreasonable the government would have some regulations around those industries. We need to make sure they are the right industries. From that focus to a third wave focus, when it is a fundamental part of everyday life, theres going to be some dialogue. We need to figure how to keep that opportunity. We dont want through to make our kids sick. We dont want drugs 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 . We create the jobs and Economic Growth here. Usehat is the vehicle you to invest in these companies . There is an Investment Company called revolution, and revolution ventures, focusing on earlier stage ventures. We talk about those as being speedups, not startups. Country andound the see angel investments. What are some companies that revolution has invested in that we have heard of . Steve some of them are still emerging. It was focused on car sharing. We have backed companies in the greens. A, suite a concept that is going quite new yorkboston, yo mr. To spread around the country. More recently, detroit and other companies. 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 we make sure everyone has access to capital . There is another foundation. We invest in ideas that can change the world. Years, additional founders. E launched how do you encourage more investors back but dont just focus on profit but on purpose and measure that impact . Thing aroundole corporations that builds impact into their charter. We have done a lot of research on millennials. When you were developing a you well, what was your relationship with steve jobs . In the earliest days come here just been fired by apple. When he came back in, his company was acquired by apple. 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 way. 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 . Has,of the instincts he 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. Steve the late 80s, we got started at aol, every competitor at the time was prodigy. We couldnt compete headtohead. We created apple personal edition. I think it was the first time apple license their brand name to another company. They decided maybe that was a mistake. We had debates. Wanted to sell only in apple stores, things like that. 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 the restmake it area is history. Instead of being a disaster, it into being a catalyst. Edwards . Elwood steve pretty famous. His voice, pretty famous. Mail, thee youve got welcome messages. He was the husband of a woman who worked in our Customer Services department, and heard me talking that had we make this more engaging . 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. It a few months later he at one of the most famous voices in america. Year ofwas the toughest your life business wife . Aole when we merged with time warner. I took a backseat. Company daythe today, that hasnt worked well. The idea made sense for the execution didnt. Visionsdison said execution, hallucinations. 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 hers. In with the government doesnt have any single mechanism to address the internet of things are the challenges it is presenting. Have,ot of the concerns i i 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. Approacha fragmented to regulation that might have worked in the past. Integratedrequires systems approach. Because some of the things that are involved. That are there are some things that are technology issues. Having a more integrated view of that is also true. We have to take a step back and figure out a way to make sure we have the right Regulatory Framework so this country can leave lead the way. I think we can. Ago,ind people, 250 years america itself was a start up. We led the way in the agricultural 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. Case ishird wave, steve the author. Cspan, where history unfolds daily. In 1979, cspan was created as a Public Service by americas Cable Television companies. Brought to you today by your cable or satellite provider. If you missed our live coverage, we will show you President Trump speaking at the uss Gerald R Ford carrier. Tonight on cspan. Cspan3 sunday for an American History tv live special , the 1967 detroit riots, 50th anniversary. , the university of michigan and Detroit Free Press editorial page editor. Former Detroit Police chief isaiah ike mckenna and tim kiska. And the 1967 detroit riots. 50th anniversary. Live sunday. Now, ways congress can rede