The document discusses the transition from an economy based on debt and financial assets to one based on innovation and knowledge assets. It argues that knowledge will become the most important currency and factor of production in the 21st century. Various concepts are introduced for how an innovation economy might function, including innovation banks that lend money based on knowledge assets rather than financial collateral, and innovation bonds to fund new ventures. The document speculates on how social, economic, and institutional changes may unfold over the next 20 years as this transition accelerates.
15. Looks Like Money All financial assets have a quantity and a quality assigned to them so they can be analyzed by entrepreneurs
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18. 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
19. Likelihood some combination of people can successfully execute a business plan at a known cost determined by supply and demand Knowledge Markets
27. The Social Network Very small input Very high output Infinite combinations of parallel and series circuits across a knowledge inventory
28. The Multiplier Effect; Tangential Innovation Aircraft Composite Technology Transportation Recreation Energy Health Care
29. A Self-Regulating System Transparency, collaboration, quality, honesty Corruption, Fraud Incompetence Punishes Bad Information: Rewards Good information:
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32. 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 =
33. Innovation Bonds Diversify risk away, combine cash flows, divide into bonds, issue to investors, finance more innovation
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36. 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?
Editor's Notes
The title of this presentation is Innovation Economics. Here we ask the question; “What comes after the Knowledge Economy?”. The Earth’s image in the hands of a young person represents where we are today. There simply is no single person, country, ideology, or philosophy can meet the challenges of the future – everyone will be required to participate and everyone has a stake in the outcome. Innovation Economics presents a very optimistic future. There are a series of simple things that we can do today using existing tools that can have profound impact on future economic growth and the sustainability of our resources. Unfortunately, corporations and government are just not structured to make these changes for us, we’ll need to work together on this one - and at the end of this presentation, we will call for your help in building the Innovation Economy. This discussion is for the knowledge worker. You make your money through your knowledge, experience, relationships, and creativity. You set your priorities based on these things. Many of you are looking around your World with a deep sense that something very new, something very exciting, and something hugely lucrative is coming down the road. We believe that Innovation Economics is it.