Previously published on INSIGHTS. By Miguel Otero-Iglesias.

A new social contract is needed to find the balance between innovation and inclusion in the digital age, writes Miguel Otero-Iglesias.

It is undeniable that we are immersed in the fourth industrial revolution. The first revolution began in the 18th century and was marked by the invention of the steam engine and later the railway. The second came in the 19th century and was driven by electricity and the combustion engine. The third occurred in the last century and was characterized by the advent of the computer and internet. Now the fourth revolution is being shaped by digital platforms and artificial intelligence. With each revolution came major social upheaval, winners and losers. With each revolution, the political and social framework of our society was forced to change to fit a new reality.

The current view in Europe is that this digital and social transformation cannot take place “US style,” i.e., laissez faire, because it would subject us to…