Innovation Economics Next

Innovation Economics:

What Comes After Debt Economics?

Innovation Human Productivity

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

YearsYears

CurrencyInventory

InstitutionsEntrepreneursBusiness Plans

Silicon ValleyResearch LabsJapanSteve’s Garage

== InnovationInnovation$$

IntegrateIntegratedd

Not Not IntegratedIntegrated

CurrencyInventory

InstitutionsEntrepreneursBusiness Plans

• Information = facts and data

• Knowledge : The rate of change of Information.

• Innovation : The rate of change of

knowledge.

Currency of Trade:

Land

Factors of Production - 20th Century

LaborLabor

CapitalCapital

Social

Capital

Factors of Production – 21st Century

Intellectual Intellectual

CapitalCapital

Creative Creative

CapitalCapital

CurrencyInventory

InstitutionsEntrepreneursBusiness 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, 519302, 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

Computer Readable Résumé

Numbers and symbols instead of words:

{20,12};[302+307], (330):[607+17]+[500/519]{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%{20:95%,12:80%};[302+330]70%:(607+17)80%

+[500/519]90%+[500/519]90%

CurrencyInventory

InstitutionsEntrepreneursBusiness Plans

DebtDebt

AssetsAssets

Net incomeNet income

LiabilitiesLiabilities

BankruptciesBankruptcies

Credit “pulls”Credit “pulls”

Financial Financial stabilitystability

+ 30 more+ 30 more

Credit CardsCredit Cards

InsuranceInsurance

Public RecordPublic Record

EmployerEmployer

BanksBanks

CreditorsCreditors

Social SecuritySocial Security

Likelihood that you will defaultLikelihood that you will default

On your obligationOn your obligation

Credit MarketsCredit Markets

Likelihood some combination Likelihood some combination of people can successfully of people can successfully

execute a business plan at a execute a business plan at a known cost determined by known cost determined by

supply and demandsupply and demand

Knowledge MarketsKnowledge 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.

CurrencyInventory

InstitutionsEntrepreneursBusiness Plans

The Financial Bank

Surplus Surplus (Supply)(Supply)

Deficit Deficit (Demand)(Demand)

Connect WithConnect With

Knowledge Knowledge SupplySupply

Knowledge Knowledge DemandDemand

The Innovation Bank

Connect WithConnect With

CurrencyInventory

InstitutionsEntrepreneursBusiness Plans

In Parallel In Parallel The Brain Storming SessionThe Brain Storming Session

SS DD

In Series; In Series; The Product Development CycleThe Product Development Cycle

Very small input Very high outputVery small input Very high output

The Social NetworkInfinite combinations of parallel and series circuits across a knowledge inventoryInfinite combinations of parallel and series circuits across a knowledge inventory

AircraftAircraftComposite Composite

TechnologyTechnology

TransportationTransportation

RecreationRecreation

EnergyEnergy

Health CareHealth Care

The Multiplier Effect; Tangential Innovation

Transparency, collaboration, Transparency, collaboration, quality, honestyquality, honesty

Corruption, FraudCorruption, FraudIncompetence Incompetence

Punishes Bad Punishes Bad Information:Information:

Rewards Good Rewards Good information:information:

A Self-Regulating System

CurrencyCurrency

Inventory Inventory

InstitutionsInstitutions

Business PlanBusiness Plan

EntrepreneursEntrepreneurs

The Capitalization of Knowledge

Financial Bank:

Have the knowledge – Search for the money

Innovation Bank Have the Money – Search for the Knowledge

The Virtuous CircleThe Virtuous Circle

The more The more knowledge knowledge

that you that you find, the find, the

more more money you money you can borrowcan borrow

The more The more money that money that

you can you can find, the find, the

more more knowledge knowledge

you can you can borrowborrow

==

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

Innovation Bonds

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

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

YearsYears

What Comes After The Knowledge Economy?

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?