Archives

September 2008

The Knowledge Inventory; Part 4

by Dan Robles on September 19, 2008

Now, the machine readable resume is complete using numbers, symbols, and probabilities; we can quantify and qualify knowledge in the exact same format as a financial instrument. Now the knowledge looks like money. This individual is obviously a:

{20:95%,12:80%};[302+330]70%:(607+17)80%+[500/519]90%

Specialist in Social Interaction, communities of practice, and economics at the 70th percentile related to educational research at the 80th percentile. They have Background in applied mathematic and physics at the 90th percentile. They are a trained ethicist at the 75th percentile. English is 90th percentile and Spanish is 60th percentile.

Each person’s resume can now be combined to represent the collective intelligence of a team. This is not unlike an investment portfolio, baseball team, or insurance policies. This expression carries all of the information that an entrepreneur needs in order to estimate the probability that the team can execute a business plan.

The inventory can be used in many ways such as finding supply and demand in a certain geographic area, securing business loans or venture capital, buying insurance, or place a financial value on the venture. As the organization learns, the new knowledge is retained in the equation through weighted averages – like the secret sauce of success – and can be used again in another venture. If one person leaves the project, they can be simulated by others.

Later, we will see how an uncountable number of applications and new-to-the-world businesses may emerge.

The fun is just beginning…..

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A Few Predictions for the Innovation Economy

by Dan Robles on September 18, 2008

Social Network 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 for knowledge assets meaning that employers and employees will have equal information about cost, availability, and demand.

Creative knowledge workers will earn micro-royalties for their participation in thousands of brainstorming sessions and product development discussions. Earnings will be shared openly and the percentile Search Engine.

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; the best students attract the best mentors and universities. Apprenticeship will become commonplace.

The knowledge inventory and Percentile 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.

Knowledge workers will outsource management.

The Fed will peg the dollar to productivity, not gold or silver – interest on deposits will track productivity increases due to innovation.

Social priorities will impact what gets invented or what stays on the shelf; Global Warming, Alternative Energy, Sustainable environments will have net positive business cases.

The flaw in market economics will be reversed. Technological change will precede economic growth eliminating the economics of debt (ref video). The financial system will be restored to a sustainable condition.

We know that innovation is the engine of all wealth creation and it will live in an integrated system. Knowledge will be reformatted to emulate a financial instrument.

A good article from business week

A great Blog: Jay Deragon and the relationship economy

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The Capitalization of Knowledge – Innovation Bonds

September 18, 2008

With a computer readable knowledge inventory, local communities of practice, a percentile search engine algorithm, and the virtuous circle of finance, then future innovation cash flows can be predicted much more accurately and with far lower risk than with, say, the venture capitalists acting alone. Were risk is predictable, cash flows are predictable and the [...]

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The Capitalization of Knowledge – The Virtuous Circle

September 18, 2008

We have set up a new game for entrepreneurs to play called Innovation Economics. We have defined a currency and an inventory where knowledge is visible outside the construct of the corporation – and resident in social networks. We have also described a way for entrepreneurs to visualize the knowledge asset and the supply and [...]

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Intellectual Property in the Innovation Economy

September 18, 2008

Today there is a big scare that bad people will run off with your intellectual property and make a ton of money with it. Another problem is that the Patent system is so slow and so expensive that the vast majority of innovators simply do not have access to patent protection – many people just [...]

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Social Networks and the Multiplier Effect on Innovation

September 18, 2008

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 [...]

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The Innovation Bank

September 18, 2008

So now, what are the entrepreneurs going to do with this percentile search engine? Entrepreneurs wander the earth looking for valuable things that are being used at a low level of productivity and they move those assets to a higher level of productivity and then pocket the difference, called profit. Think pet rock, condo conversions, [...]

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The Percentile Search Engine

September 17, 2008

The Percentile Search Engine is a way of using a computer to make predictions about all types of combinations of knowledge Assets. Conceptually, the percentile search engine is where all of the equations that we use to analyze financial assets are now applied to knowledge assets. The main characteristic is that the Percentile Search Engine [...]

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The Credit Score Analogy; Part 2

September 17, 2008

Now we look for a similar situation for Knowledge Markets. In the cuurent times, the hiring manager is the person to know if you want to get a job. The manager would read your resume and compare it with “bell curve” in their brain about what has worked or not worked in their past. This [...]

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The Credit Score Analogy; Part 1

September 17, 2008

We have defined the currency, the factors of production, and the inventory of the Innovation Economy; we destroyed the old resume system and turned it into a computer language that makes knowledge appear like money in the eyes of the entrepreneur. Now, we need a system that keeps the game free and fair. For example; [...]

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The Knowledge Inventory; Part 3

September 17, 2008

In American society there is a persistent ideology of winners and losers; there can only be one winner and the rest are losers. We rank things in a very linear way; 1st, 2nd, 3rd, etc. Sports analogies dominate many business expressions; low ball, hail mary pass, ball’s in your court, etc. Our culture is to [...]

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The Knowledge Inventory; Part 2

September 17, 2008

Suppose we used the Dewey Decimal System to write a resume. A person could be described as a series of numbers instead of words and computers can search the numbers as they do key words today. For example: 302, 307, 330, 607, 17, 500, 519 This person has experience in social interactions, communities, economics, educational [...]

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The Knowledge Inventory; Part 1

September 17, 2008

We identified the 5 essential elements of a market economy. Then, we discussed the currency of the Innovation Economy; people trade information and turn it into knowledge and new ideas using factors of production; Intellectual Capital Creative Capital and Social Capital. Now we’ll discuss the inventory strategy for knowledge assets. Most companies have an inventory [...]

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Economics of Innovation

September 16, 2008

Every time humans invent better ways of doing things, the economy gets a little bigger. This is a simple idea. The cave dwellers discovered that they did not have to travel as much hunting and gathering if they could sharpen a rock enough to chop a tree down for firewood or for spearing animals.  That [...]

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