People ask me what the Innovation economy is, and of course I explain it to them in terms that make sense to me – while they stare back eyes-a-glaze. I see the world in terms of calculus where “derivatives” and “integrals” floating around like the dream sequence in an old Disney animation.
The Calculus will set you free
But if you take “calculus” literally, we can say that the Innovation Economy will be DERIVED from the knowledge economy by INTEGRATING the tools of the knowledge economy. So lets look at that for a second.
In my tool box, I have my knowledge, I have my friends, and I have the Internet. I also am surrounded by an economy with vendors, marketing, products, services, money, etc. All of it gets thrown into THE MEDIA where ‘controlled’ collisions (that appear random to the rest of us) produce a set of incentives and social norms that we all abide by. Some call it Culture.
….Now, along comes SOCIAL MEDIA
At first, Social media was written off as a cute little game played by bored geeks who could not find a better way to make friends. Then Corporations, Marketers and PR firms saw Social Media as another branding channel – and gosh darn cheap too. HR departments saw it as a great way to snoop on sleepy employees and the C-Suite called it a nuisance.
Blue Sky Theory
Then, out of the blue, the economy starts to disappear into thin air and nobody knows where all the “Market Value” has gone. Trying to “control the message” is like trying to control the temperature of the room by turning the thermostat with all the windows open. The Dollar is disappearing – but where is it disappearing to?
Yesterday’s article starts with the following sentence:
Making human knowledge and intentions tangible in a marketplace opens up the possibility of a whole new class of business plans. We call this Social Power by the Hour.
And it concludes with the following sentence;
The bigger your social network, the cheaper your Power By the Hour becomes. The bigger the social network, the more effective WOM marketing becomes. The bigger the social network, the more options are available to users. The greater the social network, the more SOCIAL VALUE a [ZipCar] membership will have [in comparison to independent car ownership]. The bigger the social network, the more social currency can trade hands as the Dollar fails.
Money represents productivity
Productivity is defined as the amount that a person can produce in a certain period of time. The next economic paradigm literally INTEGRATES the tools DERIVED from the knowledge economy into a new type of business plan. The result is Power by the Hour – think about it.
America, the Integrated
Let me close this post by saying that America itself is DERIVED from the rest of the World by INTEGRATING the knowledge of the world. America is an Integration Nation. Hold on tight, it’s going to be a wild ride.