The underlying asset that supports both the Collateralized Debt Obligation and the Collateralized Innovation Obligation is a person and their ideas; one is an asset and the other is a liability. Both types of people go to work every day to interact with other people. They both share ideas and create better ways of doing things. People increase human productivity through fault tolerant networks and support systems. They transform information into knowledge and innovation – and both pay their mortgage.
Posts Tagged ‘cash flow’
The New Economic Paradigm: Part 7; Monetization of Knowledge Assets
We have specified a structure for a new economic paradigm by simply integrating the the knowledge economy into the same structure as the financial system. The result is a completely new way for entrepreneurs to create wealth.
The US Financial System – Tail Wagging Dog
Finance and Innovation in the US is engaged in the dangerous dance of tail wagging dog. Innovation is as Wall Street does; not the other way around. This is wrong, this is very wrong.
The Capitalization of Knowledge – Innovation Bonds
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 portfolio [...]
The Capitalization of Knowledge – The Virtuous Circle
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 [...]