Innovation and competitiveness to lead in the era of cognitive advantage

Today, decision-making in a company—even a small one—can be influenced by geopolitical tensions, chip shortages, data regulations, or technological dependency. In this scenario, innovation must not be treated as just another factor: it is the central variable that reshapes everything. The rules of the game have changed quickly and radically. 

This is how Xavier Ferràs, professor and associate dean of the Executive MBA at Esade, explained it in a masterclass delivered during the Esade Live Experience, an open-day event for partners, candidates, and alumni at Esade’s new campus in Madrid. 

From a cross-cutting, structural, and macro perspective, Ferràs offers a sharp reading of what is happening on the global stage: who controls what, why, and how it affects organizational competitiveness. Where is innovation taking us? 

The triple convergence: Data, AI, and supercomputers

Today’s technological revolution is not the result of a single invention, but of the simultaneous combination of three “forces”: large volumes of data, artificial intelligence (AI), and unprecedented computational capacity. 

One of the main drivers has been Moore’s Law, which predicted the doubling of microchip capacity every two years. This prediction remains valid and has accelerated exponentially, driven by heavy investments and geopolitical competition. The goal: to have the best chips not only to manufacture goods but to dominate strategic sectors such as medicine, defense, energy, or mobility. 

To this we must add the international race for supercomputing. Today, supercomputers like El Capitan (USA)—capable of performing 1.7 trillion operations per second—make it possible to run complex simulations, from cancer evolution to localized climate forecasting. And as Ferràs points out, “according to Moore’s Law, we’ll be carrying this supercomputer in our pockets in ten years.” 

When this computing power is combined with artificial neural networks trained on vast amounts of data, the result is artificial intelligence that goes beyond being just an automation tool and becomes a strategic ally. As Ilya Sutskever, co-founder of OpenAI, put it: “AI is comprised of digital brains running in supercomputers.” 

The next disruption with high impact potential is quantum computing, currently under development

AI is not a programming system, but rather a network of neurons that processes data at high speed, trains itself, learns from experience, and produces outputs based on the training it has received. 

This “brain” is already here, impacting productivity and costs. It is already capable of diagnosing better than a doctor, translating, writing, reasoning, or even formulating scientific hypotheses. As Ferràs notes: if Einstein synthesized energy into three variables (E=mc²), what might be discovered by combining fifty? 

The next disruption with high impact potential is quantum computing, which is still under development. With a much greater capacity than current computing for processing data, it is set to become a key technology across multiple sectors, including defense and cybersecurity. 

From management to AI organization

“Management and technology are converging, fusing together.” With this statement, Ferràs sums up the paradigm shift: it’s no longer about understanding technology as a tool, but as part of the strategic core of the business. The ten most valuable companies in the world are tech firms or invest massively in technology. One data point: seven of them are worth as much as Spain’s GDP. 

This transformation requires reconfiguring management. Decisions are no longer based solely on experience; they are made on “oceans of data,” AI models, and automated information flows. The classic sources of competitive advantage—cost, efficiency, differentiation—are giving way to what Xavier Ferràs calls cognitive advantage. 

Leading companies are already adopting this vision and building an organizational model that reflects it: a human layer for validation and oversight, a data lake collecting internal and external information, and an AI engine that processes, learns, simulates, and recommends. 

Sectors like healthcare, banking, and retail are building what Ferràs calls the AI Organization. And this change directly affects the executive role, which will have to validate, sign off, and take responsibility for decisions generated by algorithmic systems. 

Technology and geostrategy: The new global board

This new paradigm is not only transforming companies—it is also reshaping geostrategy. The stable world dominated by the Western model—democracy and market capitalism—which for decades championed globalization, outsourcing, and the market as the main regulator, seems to be coming to an end. 

Technology is critical. Supply chains have proven vulnerable to pandemics, wars, and strategic blockades. Today, lacking access to chips can leave an entire region without cars, medical devices, or defense capabilities. Technological sovereignty has become a strategic priority. The world has shifted from massive low-cost outsourcing to an urgent drive to internalize technology. The top priority is securing access to key resources, digital infrastructure, and frontier scientific capabilities. 

The EU remains dependent on third parties for critical components

In 2022, China surpassed the US in scientific production for the first time. Since then, major powers have responded with massive R&D investments. South Korea has announced $450 billion in semiconductor technology—the equivalent of Spain’s entire national budget. 

Meanwhile, the European Union remains dependent on third parties for critical components. At the same time, scientific output, AI model development, and R&D investments are increasingly concentrated in private hands and in industrial ecosystems outside of Europe. 

Toward a fascinating era

Despite all the risks and the speed of change, the potential of all this innovation is enormous. The use of AI is revolutionizing science by discovering new compounds, designing materials, predicting protein structures, and proposing medical solutions to previously unsolvable problems. 

But this golden age will not be for everyone. It will be for those who understand that leadership must not merely adapt, but anticipate. It’s no longer enough to adopt new technologies; it is also essential to change how decisions are made, how organizations are structured, and how they compete.