The Founder and Executive Chairman of the World Economic Forum has called on governments to make three “absolutely necessary changes” to prepare for the future.

Delivering the main address ‘The Dawn of the Fourth Industrial Revolution’ at the World Government Summit, Professor Klaus Schwab said: “The opportunities are immense and we have to prepare ourselves already now. History meets us now. Governments are challenged - they have to change.”

The three changes he advised are:

1. Governments [need to] recognise role they have to play in innovation:

Schwab explained: “In future it will not be a divide between advanced and emerging countries, the divide will be between innovative and non-innovative countries – and whether governments can provide a better life for their citizens in future.”

2. Governments have to reorganise themselves:

He continued: “An old trade hierarchical approach will not foster innovation. Governments have to reorganise as platforms. Take Apple for example, they are not successful just because they produce great phones. They have a platform with thousands and thousands of apps.”

Similarly, he said, governments too need to provide certain apps and gauge which ones serve their citizens best.

3. Governments have to put whole emphasis on development of human capital:

Schwab said: “In the future it will be talent and availability of talent which creates competitive advantage of a country. Capitalism is replaced by talentism because talent is most precious resource of a country. Re-skilling and up-skilling people through life long education, and integrating all parts of the population, including women, in talent is a challenge.”