Land, labor, and capital are no longer effective proxies for human productivity, creativity and intellect – end of story. We need to stop talking about social media as if Monetization is some kind of mystery.
An Economic Paradigm Breaks Down
The road to monetization is not paved upon on the roadmap of the industrial revolution. Something new needs to happen, we’ve got to move on:
Innovation economics is a growing economic theory that emphasizes entrepreneurship and innovation. Innovation economics is based on two fundamental tenets: that the central goal of economic policy should be to spur higher productivitythrough greater innovation, and that markets relying on input resources and price signals alone will not always be as effective in spurring higher productivity, and thereby economic growth.
Innovation economists believe that what primarily drives economic growth in today’s knowledge-based economy is not capital accumulation, as claimed by neoclassicalism asserts, but innovative capacity spurred by appropriable knowledge and technological externalities. Economics growth in innovation economics is the end-product of knowledge (tacit vs. codified); regimes and policies allowing for entrepreneurship and innovation (i.e., R&D expenditures, permits, licenses); technologicalspillovers and externalities between collaborative firms; and systems of innovation that create innovative environments (i.e., clusters, agglomerations, metropolitan areas).