Today, land, labor, and capital make up the “Tangible” assets allocated by entrepreneurs in the production of all products and service. Meanwhile, Social Capital, Creative Capital, and Intellectual Capital of people and communities are called “Intangible Assets” on the corporate balance sheet.
As soon as you leave the Corporation, this condition reverses. What if the new generation of corporations were built on this reversal?
Suppose it is already happening.
The next economic paradigm will be built on Social Media as soon as people start getting together to build things. Social Capital, Creative Capital and intellectual capital will be allocated by entrepreneurs in the production of all products and services. Meanwhile land, labor, and capital will be the intangible assets.
This may not be so far out.
LAND: with Social media, Mobile internet, geolocation applications, mobile applications, and speed blogging – most activity is independent of physical land. Instead, Public “land” or private “land” behave as the intangible component where people assemble and produce things.
LABOR: no longer means that two physical parts are assembled into a machine. Instead two ideas are assembled into a third idea and redeployed as data, information, knowledge, innovation or wisdom.
CAPITAL: Seriously; what exactly is Capital these days except the thing that banks play with and politicians argue about? Capital is created from debt. The continuation of Capital Markets as we know them exists more as the absence of a reasonable alternative than an actual proxy for true value or productivity.
Instead; 500 Million people flock to Facebook, Twitter, Google, Linkedin, Foursquare, Gowalla, etc., to collect options and store social value. Uhm…Why?
The next phase for social media will become user generated productivity. That is when people get together outside the construct of government and corporations to build something. If we are lucky, this transition will happen before we are forced to “rebuild” something.
The Ingenesist Project specifies an Innovation Economy built on a platform of social media as the next economic paradigm. Material based on video series here