Thanks to the digital network revolution, the dismantling of trade barriers and the waning of economic nationalism, we've seen the emergence of a global commons that some call the flat world. The question is: who wins and who loses? In the early years of this shift, 0that was about low cost. But now, low cost is running its course, relying on the belief that a rising tide lifts all boats - it's running its course, too. In other words, there are no longer any shortcuts. Now comes the hard part. What should leaders of companies and countries do? I believe there are four steps we can take to move up to this new challenge.

First, more enlightened and strategic thinkers are deciding how they're going to differentiate themselves, in order to get the world to invest in them, to buy from them, to hire them. Increasingly, success comes down to one word: innovation. Companies - and countries - are making hard choices in order to optimise themselves for innovation. Will they invest in physical and technical infrastructure? Will they create an open, progressive policy environment in everything from taxation to intellectual property? How about your skills base?