Can We Change The Economic System?

by Jay Deragon on 10/01/2008

As we watch the debate about the systemic problems with our current economic system one wonders if it is time to “change the system”. Our economy has long been based on debits and credits, outcomes of the results of activity. The outcomes are variable while the answers to creating less variability lie within the “processes and decisions” that create the outputs. Is innovation a major driver for creating a new economy?

Dan Robles writes: The current financial system has reached the limits of it’s effectiveness. Interest on debt has exceeded the system’s ability to pay. But debt is simply a promisory note on future productivity – any caveman will tell us that the only way to increase productivity today is to innovate yesterday, not tomorrow.

In modern times, this means that the only way to sustainably create more money tomorrow is to innovate today. This is the tiny little flaw of Wall Street that Innovation Economics will correct.

There are a few simple web applications discussed here which will allow human knowledge to become tangible outside of the organizational construct of a corporation, government, or even academia. Anyone who develops these applications will generate a great deal of wealth.

These applications are as follows:

  1. The knowledge Inventory
  2. The Percentile Search Engine
  3. The Innovation Bank

Believe it or not, human knowledge is a great tangible asset upon which to peg a currency – better than Gold, Silver, Oil, or Debt.

While this may seem like strange at first, the reality is that everything changes. Many of our most durable paradigms will be challenged:

  • The resume will dissapear becoming a “pull” system rather than a “push” system.
  • Creative knowledge workers will earn royalties instead of wages.
  • Knowledge workers will outsource management jobs.
  • The university “degree” will be replaced by “strategic knowledge asset combinations”.
  • Schools will forgo tuition for an equity position in students.
  • Venture Capitalists will be replaced by publically financed innovation bonds
  • Wall Street is a steward, not a master.
  • Most importantly, communities will decide what gets innovated and what does not – or conversely, which markets get disrupted and which do not.

This is just the beginning – millions of new business opportunities will be created and nearly every existing business is made more efficient.

Innovation Economics is transformational. For example; In the early 1800’s Eli Whitney performed a remarkable demonstration for members of Congress. He took 10 working muskets, disassembled them, scrambled the pieces and reassembled 10 working muskets. It may seem trivial to us today but that simple feat astonished the world, led to the industrial revolution, and unlocked a vast amount of wealth creation.

Innovation Economics is the modern day equivalent, think about it.

Many people have a deep sense that something very new, something very exciting, and something hugely lucrative is coming down the road as Web 2.0 converges to Web 3.0. Our hope is that we can capture it in our communities before it passes us by and becomes “Incorporated” in the old business model.

If we work together, Innovation Economics could be the best way to capture the engine of wealth creation for ourselves and our communities. Now is the time to build the Innovation Economy. Our research is open to you.

When you step back from today’s results one can see that it is broken policies, processes and poor leadership of the system that created the results. As we look at what is happening globally as a result of the internet we can see a new medium, a new innovation which is creating brand new dynamics and the creation of new knowledge. The knowledge creation is the result of collaborative technology and massive communication never before experienced since the beginning of time.

Just maybe a new economy Is forming based on using knowledge to create innovation rather than using information to create credits and debits.

What say you?

{ 1 comment }

Brycen January 21, 2009 at 4:07 am


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