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The end of debt economics
Citation preview
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?