Everyone seems to be concerned about economic conditions. Traditional media talks about it on every broadcast and every network. The current administration seems to focus on how to spend more. The consumers and businesses are feeling the pinch with rising cost of living and higher taxes. Instead of a trickle down economy the current scenario seems to be a trickle up economy, give more to the government and trust you’ll get more individually.
A real trickle up economy is driven by people and businesses, not government or institutions, creating economic growth from innovation. Innovation is about creativity and is fueled by communications. Creativity comes from conversational exchanges, one to one to millions.
When people collaborate around solving existing problems the outcomes lead to innovation in product, services, ideas, communications and productivity. The greater the innovation the higher the productivity gains. Think about what the internet has done over the last 20 years. It has accelerated communications and subsequently created mass collaboration.
How Will Innovation Tip The Economy?
Wikipedia defines an economy (or “the economy”) as a the realized economic system of a country or other area. It includes the production, exchange, distribution, and consumption of goods and services of that area. The study of different types and examples of economies is the subject of economic systems. A given economy is the end result of a process that involves its technological evolution, history and social organization, as well as its geography, natural resource endowment, and ecology, among other factors. These factors give context, content, and set the conditions and parameters in which an economy functions.
Read the above definition in context to what social media is creating. Social media is an eco-system driven by technology which enables social organization around conversations which create content and context for innovation. Conversations are the backbone of any economy. The new economy is now accelerated by the innovation which comes from mass collaboration funneled by conversations. The systemic shift happening before our eyes is global in scope yet local in application. When people are enabled to converse freely, openly and without borders the outcome is accelerated learning.
Accelerated learning spreads knowledge at the click of a mouse. The propagation of knowledge accelerates creative thinking. Creative thinking creates innovation. Innovation is propagated through communications. Historically this cycle took months if not years. Given the power and reach of social media the cycle now flows in seconds. Social media is creating violent disruption of traditional markets which previously drove the economy. Now the economy is driven by conversations. Read the definition of economy again and think about it.
When Will Innovation Tip The Economy?
Innovation takes time to create market demand and consumption. Consumption is a factor of economics which influences supply and demand. The bigger the demand the greater the need for supply. Innovation is in big demand otherwise the “doom and gloom” propagated by traditional media will be self fulfilling. The supplier of innovation is communications. The rate of exchange of conversations is directly related to the rate of innovation created.
What will be created from conversational currency is an expansive economy fueled by disruptive innovations that the masses will both create and consume. We can’t see it because it is yet to be capitalized. To begin to see it requires us to use knowledge to see the innovation on the horizon.
When will innovation tip the economy? As soon as the growth in conversational currency creates the innovation. It will take less time they we think, soon. Watch, listen and read.
What say you?