Social Multiplier Effect on Innovation

by Dan Robles on 07/24/2010

If we combine the parallel transaction with the series transaction we have what now looks like a  neural network. In practice, we know that strong networks of people freely exchanging ideas make organizations better, smarter, and more efficient. Networks are where knowledge and  wisdom is literally stored. A network is  fault tolerant, if one person leaves, the network survives. For a relatively small input into a network, we can produce a large output of new knowledge – we have a  learning organization.

However, in society, these interactions are largely accidental; people meet at Church, Starbucks, and Social Events or by word of Mouth. Other times, these interactions are concentrated inside a single community of very similar people such as a technical conference, group meeting, or lunch buddies and are often not well diversified.

Suppose the  interactions among people were not random, instead, they could be designed by the entrepreneur to produce a unique outcome. The Innovation Bank will combine people of complementary knowledge assets in a calculated manner in order to arrive at  specific business approaches and applications.

A special case of the above business method and resulting social network is called the Multiplier Effect. A financial bank enjoys a  multiplier effect with the ability to lend the 10 times more money than they hold in reserve. Money changing hands has a  multiplier effect on an economy. Again, financial analogies hold.

Suppose that a company owns  composite material technology for use on aircraft. Since they specialize in airplanes, they have no intention of pursuing other applications such as recreational equipment, energy production, or health care products.

Suppose that the company could deposit this asset in a bank and collect interest. The Search Engine can scan the business landscape to find companies with a knowledge deficit in the area of your technology and make loans of your technology. As the originator, you have the  option to see what those other companies invent and you hold the right to use their new ideas in your aircraft application.

With an innovation Bank, you can reduce your  Research and Development costs and create additional revenue in a tangential innovation market. With reduced cost and risk of innovation, you are likely to specialize more and more in innovation as your enterprise. In the event of a cyclic downturn in the business of an originator, instead of “laying off” knowledge assets, people can work in tangential industries where they will continue developing – literally putting “Knowledge in the Bank” – to be called back when market conditions improve. A mobile knowledge asset increases in value becoming smarter and more productive over time.

{ 27 comments }

jigolo July 30, 2010 at 6:29 pm

Thank you for this useful information.

travesti July 30, 2010 at 6:29 pm

Thank you for this useful information. In this website I hope to find more useful information.

ingenesist July 25, 2010 at 10:51 pm

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Matt Hendrick July 25, 2010 at 5:04 pm

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Melanie Thompson July 25, 2010 at 5:04 pm

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Georges Lagardère July 25, 2010 at 2:25 pm

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ingenesist July 25, 2010 at 1:16 pm

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Ben Shoemate July 25, 2010 at 5:38 am

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Parky July 25, 2010 at 5:38 am

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innovation ideas July 25, 2010 at 5:38 am

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wwjimd July 25, 2010 at 4:47 am

#Socialnetwork Multiplier Effect on #Innovation http://bit.ly/bHadN1 #innovationbank #metacurrency (cc @alanrosenblith @katin @anandavala)

Sweta Patel July 24, 2010 at 7:35 pm

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Business 3.0 Corp. July 24, 2010 at 6:32 pm

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David Breshears July 24, 2010 at 3:27 pm

1st of 2 interesting posts from Dan Robles this am: Social Multiplier Effect on Innovation http://ht.ly/2g2Sd

Dan Robles July 24, 2010 at 12:32 pm

@innovative entrepreneur….brilliant observation. I wish a billion more like you.

Currency is the storage and exchange of value – the innovation bank is too. At the end of the day, Gold, Oil, and debt are not the actual scarce commodity that is difficult to reproduce – it is Time.

I Like your site. My blog is http://ingenesist.com. I have many articles and videos on such subjects. It is also rare to encounter people who get it instantly such as yourself. We should collaborate it seems

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Social Media Insider July 24, 2010 at 11:24 am

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Holt Communications July 24, 2010 at 11:17 am

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Holt Communications July 24, 2010 at 11:17 am

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Innovative Entrepreneur July 24, 2010 at 7:15 am

The innovation bank concept is very intriguing. I suppose it is not like money in the bank that gains value from interest but rather looses value over time as other technologies become available. As with most technology issues, it seems that time is a factor. Perhaps some timely entrepreneurship can help solve the problem.

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