Innovation Economics: What Comes After Debt Economics?

Innovation  Human Productivity -50,000 -10,000 -1000 -100 -40 Now + 20 Years

-50,000 -10,000 -1000 -100 -40 Now + 20

Currency Inventory Institutions Entrepreneurs Business Plans Silicon Valley Research Labs Japan Steve’s Garage = Innovation $ Integrated Not Integrated

Currency

Inventory

Institutions

Entrepreneurs

Business Plans

Currency Inventory Institutions Entrepreneurs Business Plans

Currency

Inventory

Institutions

Entrepreneurs

Business Plans

Information = facts and data Knowledge : The rate of change of Information. Innovation : The rate of change of knowledge. Currency of Trade:

Information = facts and data

Knowledge : The rate of change of Information.

Innovation : The rate of change of

knowledge.

Land Factors of Production - 20 th Century Labor Capital

Land

Social Capital Factors of Production – 21 st Century Intellectual Capital Creative Capital

Social

Capital

Currency Inventory Institutions Entrepreneurs Business Plans

Currency

Inventory

Institutions

Entrepreneurs

Business Plans

Your Résumé is a Book About You Books Are Classified With The Dewey Decimal System

Your Résumé is a Book About You Books Are Classified With The Dewey Decimal System

Computer Readable Résumé Numbers instead of words 302, 307, 330, 607, 17, 500, 519

Numbers instead of words

302, 307, 330, 607, 17, 500, 519

Your Knowledge is Like a Network of Books And Relationships

Computer Readable Résumé Use Symbols to Connect (+) Addition; List of skills (/) Extension; Range of Skills Describes a System (:) Relation; e.g. Relation of ethics to art [] Algebraic sub grouping; (=) Language; e.g. =20 in English; 31 = in Swedish * ref: Universal Decimal Classification System

Use Symbols to Connect

(+) Addition; List of skills

(/) Extension; Range of Skills Describes a System

(:) Relation; e.g. Relation of ethics to art

[] Algebraic sub grouping;

(=) Language; e.g. =20 in English; 31 = in Swedish

Computer Readable Résumé Numbers and symbols instead of words: {20,12};[302+307], (330):[607+17]+[500/519]

Numbers and symbols instead of words:

{20,12};[302+307], (330):[607+17]+[500/519]

Looks Like Money All financial assets have a quantity and a quality assigned to them so they can be analyzed by entrepreneurs

Computer Readable Résumé A series of numbers, symbols, and probabilities…. {20:95%,12:80%};[302+330]70%:(607+17)80% +[500/519]90%

A series of numbers, symbols, and probabilities….

{20:95%,12:80%};[302+330]70%:(607+17)80%

+[500/519]90%

Currency Inventory Institutions Entrepreneurs Business Plans

Currency

Inventory

Institutions

Entrepreneurs

Business Plans

Debt Assets Net income Liabilities Bankruptcies Credit “pulls” Financial stability + 30 more Credit Cards Insurance Public Record Employer Banks Creditors Social Security Likelihood that you will default On your obligation Credit Markets

Likelihood some combination of people can successfully execute a business plan at a known cost determined by supply and demand Knowledge Markets

Percentile Search Engine The Percentile Search Engine is a way of using a computer to make predictions about all types of combinations of knowledge Assets.

The Percentile Search Engine is a way of using a computer to make predictions about all types of combinations of knowledge Assets.

Currency Inventory Institutions Entrepreneurs Business Plans

Currency

Inventory

Institutions

Entrepreneurs

Business Plans

The Financial Bank Surplus (Supply) Deficit (Demand) Connect With

The Innovation Bank Knowledge Supply Knowledge Demand Connect With

Currency Inventory Institutions Entrepreneurs Business Plans

Currency

Inventory

Institutions

Entrepreneurs

Business Plans

In Parallel The Brain Storming Session S D

In Series; The Product Development Cycle

The Social Network Very small input Very high output Infinite combinations of parallel and series circuits across a knowledge inventory

The Multiplier Effect; Tangential Innovation Aircraft Composite Technology Transportation Recreation Energy Health Care

A Self-Regulating System Transparency, collaboration, quality, honesty Corruption, Fraud Incompetence Punishes Bad Information: Rewards Good information:

Currency Inventory Institutions Business Plan Entrepreneurs The Capitalization of Knowledge

Currency

Inventory

Institutions

Business Plan

Entrepreneurs

Financial Bank: Have the knowledge – Search for the money Innovation Bank Have the Money – Search for the Knowledge

Financial Bank:

Have the knowledge – Search for the money

The Virtuous Circle The more knowledge that you find, the more money you can borrow The more money that you can find, the more knowledge you can borrow =

Innovation Bonds Diversify risk away, combine cash flows, divide into bonds, issue to investors, finance more innovation

Predictions for the year 2020 Social networks will become Corporations The resume system will disappear Universities will respond to supply and demand, Combinations of knowledge assets rather than degrees Teachers forego salary and take equity position in students instead. People will migrate toward what are naturally good at, no definite job description. Innovation Bonds will return 80% risk free – investors flood market with venture capital. The fed will peg the dollar to productivity, not gold. Social Priorities will drive investment priorities rather than Wall Street

Social networks will become Corporations

The resume system will disappear

Universities will respond to supply and demand, Combinations of knowledge assets rather than degrees

Teachers forego salary and take equity position in students instead.

People will migrate toward what are naturally good at, no definite job description.

Innovation Bonds will return 80% risk free – investors flood market with venture capital.

The fed will peg the dollar to productivity, not gold.

Social Priorities will drive investment priorities rather than Wall Street

-50,000 -10,000 -1000 -100 -40 Now + 20 Years What Comes After The Knowledge Economy?

-50,000 -10,000 -1000 -100 -40 Now + 20

What is Next? Ingenesist is an open source research effort seeking to start a World-wide conversation about the Innovation Economy. Are you an Ingenesist?