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Supply and Demand for Knowledge Assets

If we follow the Wall Street accounting model, the supply and demand for knowledge assets are cast against the factors of production; land, labor, and capital.  The typical corporate human resource department looks to the community for labor units within commuting distance to a factory, and who are willing to rent their time in exchange a minimum amount of money.

But Land is Obsolete

Technology has made the idea of “land” as a factor of production almost obsolete.  Knowledge assets travel over the Internet and can be deployed and organized in many ways across long distances without a factory.  Indeed there are server farms and automation houses where things are made if needed – but these are hardly factors of production as they once were.

What exactly is a Labor unit again?

Machines have replaced much of what we once called “labor”.  I am sitting at Starbucks where a smiling robot is the only thing missing from the age of automated lattes.  The social, creative, and intellectual capital required to create, design, maintain, and serve the technology is what ushers us into the knowledge economy and the associated innovation economy.

Capital is arbitrary

Everyone knows that money is created out of thin air when someone allocates their future productivity to the bankers balance sheet in exchange for a place to sleep.  When this game loses its entertainment value, “capital” as a factor of production will also become obsolete.

The Supply and Demand for Knowledge Assets:

Knowledge assets are deployed by teachers and replicated by student.  Teachers represent the supply of knowledge and students represent the demand for knowledge.  In between these two extremes are collaborations – that is, varying combinations of teaching and learning that ultimately results in a productive outcome such as a latte, automobile, or computer program.

If we sample a population of knowledge assets across some geographic area (Land) we would expect to find something that looks like a bell curve.

If the bell curve has a different shape, this tells us what things can be made and what things cannot (Labor).

So when people allocate their own productivity, they are in effect assigning their productivity to a community balance sheet (Capital).  They are saying “this is what we are willing to make because we have the freedom, liberty, and we intion to pursue our happiness”.

Hardly a Wall Street model.

The result is that the social, creative, and intellectual assets of people must now replace Land, Labor, and Capital as factors of production in the new value economy.  Trying to produce anything less would be inefficient in a Capitalist system – perhaps some may have noticed as much lately.


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  1. Howard Davis

    Since “knowledge assets” are no longer controlled necessarily by Universities–traditional academic dispensers of knowledge, and information/knowledge is ubiquitous, what kind of new educational models can we build to share our social, creative, and intellectual assets?

    • Hello Howard; Thanks for the comment. The University system is not necessarily doomed – the university degree, however, is somewhat archaic; it’s like walking around with a $100,000 bill where nobody has any change. The college degree is valuable because of the absence of anything else. Today, we see that unique combinations of diverse knowledge assets are responsible for the innovations that drive change, reduce risk, and increase productivity. Please see the video at the bottom of the Ingenesist home page. This talks about a way to format segments of knowledge into a knowledge inventory which will behave like a financial instrument in communities. The actual app we are building is a lot different but this will give you a clue. Let me know if you have any ideas. Thanks again; Dan

  2. Decentralizing the Knowledge Assets as well as the labor assets is the future. I suspect the 1% are staring into the abyss and wondering what the future holds for them and they probably fear this future too. Few like change and those in power and with the $ assets like it even less. But the old system has run it’s course and we are in the midst of a large shift in what is important to the world

  3. Thanks for your comment. I do believe that we can build a web application that can make this more relevant in our assessment of “value” inclusive, yet with a clear path towards divergence from those established powers. This is precisely what I would like to discuss further. Thanks again Dan

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