Social Media is making knowledge tangible outside the construct of the corporation. People are not certain how to handle this except to compare it with the context of the post-industrial economies. Until we recognize that knowledge tangibility is the holy grail of finance and a stand alone economy in it’s own system, we truly stand the risk of losing this great wealth generating condition from our communities to be “incorporated” by the old business models from MS, Google, and Yahoo.
Something entirely new is happening and it is radical. Knowledge tangibility uproots the most time honored conventions in society today from the concept of working for wages, the elimination of the resume, the rationale of the university “degree” system, to the very definition of money itself. Hold you hats kids – it’s going to be a wild ride!!!
Social Networks will become the corporate structure of the future. They will spit out start-ups at an astonishing rate.
The “resume system” will be banished forever possibly earning the title of the cruelest human invention since the lobotomy.
The University System will be challenged – the relevance of the college degree will be questioned in an economy that favors unique combination of knowledge assets rather than everyone having the same “degree”.
Everyone will have visibility of supply and demand meaning that employers and employees will have equal information.
Creative knowledge workers will earn micro-royalties for their participation in thousands of brainstorming sessions and product development discussions. Earnings will be sharedopenly and the percentile Search Engine will replace the product patent
The new Patent will be the “Secret Sauces” – the algorithm that entrepreneurs will develop to select their knowledge assets when producing specific innovation.
Teachers will forego salary in favor of an equity position in their students. The best teachers will make the most money. Universities will forego tuition in favor of an equity position in students; again, the best university attracts the best student.
The knowledge inventory and search engine system rewards people for doing what they are most passionate about. The dominant strategy for all players in an Innovation Economy (that which produces the most revenue) is for participants to pursue what they are naturally good at and passionate for – as long as there is a market for it.
Innovation bonds will return 80% interest or more with near-zero risk. Institutional investors, insurance reserves, and foreign investors will flood the market with Venture Capital.
The Fed will peg the dollar to national productivity, not gold or silver.
Social priorities will impact what gets invented; Global Warming, Alternative Energy, Sustainable environments will have net positive business cases.
The flaw in market economics will be reversed. Technological change will occur before economic growth eliminating the economy of debt. The financial system will be restored to a sustainable condition. We know that innovation is the engine of all wealth creation and it must live in an integrated system. All we need to do is format knowledge a little bit differently than we do today.
This is not easy to see because we do not have anyone to copy – we need to invent it.