“Technological Change Must precede economic growth. We are going about the process of Globalization as if economic growth can precede technological change – this is not sustainable” – D. Robles

The Ingenesist Project is deploying our blockchain based ancillary innovation solution to important projects and institutions in the US. By representing intangible assets as tangible, and using a novel tokenization strategy, ancillary innovation can be equitably deployed thereby restoring the balance between technological change and economic growth.

Commercializing Innovation

The successful commercialization techniques of novel ideas or research has evolved over the ages into an elaborate techno-legal-fiscal monstrosity of regulations and gatekeepers.  It did not start this way and it may not need to continue this way.    

All innovation stands on the shoulder of some prior innovation – e.g., the wheel, wedge, and lever are still ubiquitous in modern life.  Innovation has always existed, but was greatly accelerated by the creation of the Scientific Method, considered as one of the most important advancements in human thinking.   The Scientific Methods required inventors to determine causation and enforce the discipline of disproving the null hypothesis as a condition of validity.    

The Patent system was created in the 1790 and is largely responsible for the industrial revolution by giving inventors a temporary monopoly so that they can develop their works.  The cotton gin, the steam locomotive, Portland Cement, the electric generator and propeller were patented during these times.  Eli Whitney, Faraday, Edison, The Wright Brothers, Henry Ford all benefited from the patent systems as did society as a whole.  

As secondary inventions were built over primary inventions, the velocity of innovation increased dramatically.  This cause a financial disconnect where the new inventions could not be funded directly from the revenue generated from prior inventions. Things became more complex in the age of computers and internet where all prior patents could be “re-invented” on a computer of over the Internet ushering an era of very rapid innovation across every industry. 

Today, the velocity at which total innovation occurs vastly out-paces the velocity of the mainstream financial means for funding – as was the original intent of the Patent System.  The result was an inversion whereas technological change once preceded economic growth providing a means to fund continued innovation.  Now “economic growth (capitalization)” must precede technological change in order to fund innovation.  This is an unnatural condition that gives rise to various debt related instruments and institutions such as “venture capital” who select winners and losers based on factors that may not be driven by the unity and advancement of society as intended by the patent system. 

Most new ideas are abundant, unable to be restrained, dynamic and interdependent. Most ideas include elements of human nature or intangible value that simply cannot be expressed in the legal terms of a patents.   There is now a very large gap between the patentable invention and the commercialized invention.  Nearly all of the activity in this gap is innovative and intangible in nature, that is; commercializing a novel invention is likewise novel.

Ancillary Innovation:

Where Secondary Innovation is defined as a new or deliberate application or modification of an existing ideas, methods, or device.  Ancillary Innovation refers to the provision of necessary support to the primary activities or operation of an organization, institution, industry, or system.  Ironically, ancillary innovation may be the greatest untapped opportunity for primary innovation since the invention of the Patent system. 

Commercializing Ancillary Innovation differs in many ways than primary or secondary innovation. 

For example, even if a marketing study demonstrates that a primary innovation will fail in a certain demographic, the ancillary innovators were successful regardless of the impact on the primary invention.  Killing a bad idea early is the hallmark of Capitalism.  In fact, the value of the Ancillary innovation staff becomes increasingly honed with each experience being applied to the next market study until the support professional is regarded as having wisdom. 

The nature of statistics is that an experimenter can observe a small sample of normally distributed events, and calculate the probability that the next observation will fall within a prescribed size, condition, performance, etc.  Managers are generally characterized by their experience and thus their wisdom I being able to, say, assign the correct allocation of resources or priorities, etc. 

Many accelerators, incubators, and venture capital firms serve in the capacity of ancillary innovation.  They are run by people whose past experience is sufficiently (statistically) populated with failures and successes such that the probability of success in the ancillary innovation process is increased when given a new set of circumstances. 

It is also worth mentioning that the value of the commercializing ancillary innovation far exceeds the value of the commercializing primary innovation, yet it is possibly the least understood.  Furthermore, an enormous amount of innovation never reaches fruition for lack of ancillary innovation resources.  It seems somewhat odd that so much technological innovation would be allocated to making a mundane passenger vehicle .5 seconds faster on its 0-60 time when the same technology could elevate entire communities from poverty.  The difference is the prioritization of ancillary innovation. 

Primary originators often receive a very small percentage for their contribution to the ancillary enterprise. The value of the commercializing ancillary innovation may be characterized by the quantity and quality of risk removed from commercialization; as compared to a risk-free hypothetical value of the primary investment alone. 

Reasons why most startups fail. 

The primary commercialization risks can be taken from a typical list of top reasons why startups fail.  The following example is from a VC firm Quake Capital https://medium.com/swlh/the-top-10-reasons-startups-fail-ab3196d70568

Each of these failure modes exist due to an absence of ancillary innovation of some kind.  Each requires a deep and highly specialized set of knowledge assets to mitigate.  No single experience set can mitigate all of them, and most inventors are lacking most or all of the skills required to cover the ancillary innovation roles.   

1. Lack of market need (42%): Metaphorically Is your product a vitamin or a Painkiller.   

2. Lack of cash (29%): Many startups run into money problems /short runway.

3. Wrong team (23%): Having a cohesive group of highly motivated, persistent, and diversely skilled people is crucial for startup success

4. Too much competition (19%): A second-mover advantage allows new competitors to quickly capture market share that you helped validate.

5. Pricing issues (18%): Figuring out how to price the product. 

6. Poor product (17%): founders sometimes release products that don’t fully appeal to customers.  

7. Business model (17%): Lacking a monetization strategy. Failing to find ways to scale. 

8. Ineffective marketing (14%): not understanding how to get one’s product into the hands of the target market.

9. Not customer-centric (14%): Many startups fail to obtain customer feedback and act on it.

10. Poor timing (13%): Airbnb’s success can be attributed to its impeccable timing, as it “came out right during the height of the recession when people really needed extra money. 

Conclusion:

The ancillary innovation process satisfies the demand of the scientific method by forcing the inventor to understand causation and disprove the null hypothesis of failure.  These ideals describe the role of the ancillary innovator.

The ability to assemble a specific combination of diverse knowledge assets deployed at the right time and the right place would not only mitigate risk, but if properly measured, would be able to quantify the value of risk mitigation in a tangible form that can be directly monetized.   

It is essential that the time required to deploy ancillary innovation is vastly decreased from current methods, systems, and institutions.  This is necessary in order to restore the natural and equitable intentions of the Patent system so that primary innovation can directly capitalize its own iterations. 

The Ingenesist Project is deploying our Blockchain Based Ancillary Innovation solution to important projects and institutions in the US. By making intangible assets tangible, ancillary innovation can be readily monetized therefore restoring the sustainable balance between technological change and economic growth.


The WIKiD Tool algorithm provides a mathematical framework for analyzing dynamic data related to social interactions in a network and memorialized on a Blockchain. This example uses an analogy to the position / velocity / acceleration equations that some people may remember from their school days.

These types of relationships are important for measuring things like innovation. Ask any VC for a definition of Innovation and they’ll probably say “I’ll know it when I see it” or “it’s a good idea with an economic outcome”. Neither of these things are measurable until long after the innovation occurs which is not practical. However, if we could measure something that is closely related (correlates) with innovation, perhaps we could use that to measure the thing we can’t see.

A similar thing happens on Wall street – how do you measure consumer confidence? Financial analysts noticed that the price of some commodities track closely with consumer confidence so they use that as a proxy for the thing they cannot measure directly. This is called a derivative – something whose value is derived from the value of something else. Suppose we use the same idea to measure things like Wisdom, Innovation, Knowledge, Information, and Data (WIKiD)?

As engineers interact with each other to form transaction records, the blockchain records the chronological order of every event, so we can now correlate all events with respect to time.  The connections that are made may be analyzed for both quantity and quality (magnitude and direction). We can now use common mathematical tools from finance and physics.

We have established that the blockchain records the time function for all events to an immutable ledger.  In order to represent vector magnitude we’ll follow a well known analogy to the displacement-velocity-acceleration formulas from physics and associated Calculus.

WIKiD stands for:

(W) = Wisdom
(I) = Innovation
(K) = Knowledge
(i) = information
(D) = Data

Data: In general, we can define data as points placed on such a coordinate system. Each point defines a position in space and the time where an event is recorded. The distance between data points can be called “displacement”, because of the relative distance between the points. In the simplest sense, we can see that Data (D1) and Displacement (D2) share an analogy.

Information: When you draw a line connecting two points, or you draw a line approximating a cluster of points, the slope of that line on a graph provided information about the phenomenon under observation. Is it getting larger slowly? Is it getting smaller rapidly? In essence, the slope of the line represents the rate of change in displacement with respect to time and gives the observation its “velocity”.

This may be represented by the relationship simply stated as:

i = dD/dt

Information is proportional to the rate of change in the data with respect to time

It should be clear that we are defining ‘information’ as a derivative of ‘data’.  a derivative in physics is the same as a derivative in finance, that is “something whose value is derived from the value of something else” That said, we now proceed down the latter of derivatives.

Knowledge: The analogy between velocity and knowledge is intuitive. Knowledge is a phenomenon that may be modeled as the derivative of ‘information’. Strictly speaking, the value of knowledge is derived from the value of the information from which knowledge was created. It is intuitive that one accumulates knowledge over a long period of absorbing information and integral data. Education is the process of absorbing information from a printed page or screen, and combining that with other previously accumulated information to form knowledge.

Hence, the following relationship holds and is simply stated as follows:

K = di/dt =d2D1/dt2

Knowledge is proportional to the rate of change of information with respect to time

Innovation: The analogy between acceleration and innovation is also intuitive but a little more difficult to put to words  (that is why we use equations). Consider an child who is knowledgeable in riding a bicycle on pavement. Suppose that the child, for the first time, encounters sand on the pavement while also executing a sharp turn. During the ensuing deceleration, the child experiences a very high increase in knowledge about their environment within an extremely short period of time. In any case, the child is forced to innovate a solution. Likewise, the motocross racer is constantly innovating to adapt to the conditions of the track.  You can read a book about riding bicycles, but none can adequately describe the moment when the child must create the experience anew.

For the fact of innovation, we provide the following relationship simply stated as follows:

I = dk/dt = d2i/dt2 =d3D/dt3

Innovation is proportional to the rate of change of knowledge with respect to time

Innovation Example: One of the gross errors that we make in business is due to the inability to differentiate an economic event from it’s constituent physical parts.  The classic example is innovation; Venture Capitalists often describe innovation as a new idea that has an economic outcome.  This is problematic because innovation is defined with one equation having two unknowns.  This is mathematically impossible to solve, except by laborious and expensive iterations.

The rational (mathematical) approach would be to test and observe high rates of change of knowledge in a community and use that as a proxy to identify the presence of innovation (as defined above). After that, the community may be tested for economic outcomes.  Unfortunately, I=dk/dt is not normally possible to observe in a hierarchical business structure.  However, when formatted and validated correctly, and applied to a network organizational structure, then I=dk/dt can be represented graphically and accurately identified even by a child.

Wisdom: When we think of wisdom, our minds conjure the image of an elderly person with a lifetime of experiences behind them. Somehow, our elders seem to be able to predict the outcome of a series of actions before those actions take place.   This is why we seek wisdom to lead our organizations and institutions.

Consider the manager of a factory floor who has 30 years experience. During those 30 years, they have seen many things succeed and many things fail. In fact, their experience represent a statistically significant sample of representative events that they have experienced in the past.   The wise manager is able to process new information with old information to predict the probability that the new idea will yield the desired results. The propensity for wisdom may be modeled as a time function in a similar manner.

W = dI/dt = dK2/dt2 = d3i/dt3 = d4D/dt4  

 Wisdom is proportional to the rate of change of innovation with respect to time

In general we could say that Wisdom is the second derivative of Knowledge and the fourth derivative of Data. Similarly, Innovation is the first derivative of Knowledge and the second derivative of information, and so on.  In order to identify innovation, we would measure high rates of change of knowledge.  Wisdom would be proportional to high rates of innovation, etc.  The utility of these functions should be apparent.

Conclusion

The WIKiD tools algorithm provides a set of relationships for what are now considered intangible assets that are integrated by a time function.  The Blockchain provides the master schedule for the time function to be recorded, leaving us with a somewhat routine task of identifying rates of change in observable events.  


After about 4 years of not posting to this site, I have decided to return to the original ideas that resulted in so much innovation in this space. For a quick review, the term “Ingenesist” is derived from the Latin word for Engineer – A Maker of Useful Things.

The TIP archives found here include almost 600 blog posts (site map) approaching 1/2 million words. You’ll find the original thesis for the international mobility of engineers under NAFTA between US, Canada, and Mexico. That project involved 6 universities, the California Board of Professional Engineers, The National Council of Examiners for Engineers and Surveyors, and the National Society of Professional Engineers – and with the cooperation and support of CETYS University, the Baja California State Government, and over 250 Engineers from Mexico who presented the US Engineering Board exams.

That work was further developed at the Boeing Commercial Aircraft Company and published at the Boeing Technical Excellence series of conferences by their Technical Fellowship. From this effort, TIP developed The Innovation Bank that would match most worthy knowledge surplus to most worthy knowledge deficit to form an internal market (network) for knowledge transfer. That work is memorialized in an old 2007 Patent Application

Later, TIP co-founded Social Flights – a ride sharing service for private jets. The innovation was our ability to predict most likely passengers and match them with most likely seats available on private aircraft. Supply and demand were both dynamic. Keep in mind that this was before Uber and we were acting within a highly regulated industry. Ultimately Social Flights was acquired.

TIP developed three key innovations:

The Value Game: An economic game where multiple self-interested agents must share a common asset. Their motivation and incentive would be to preserve the asset rather than consume the asset. This was supposed to simulate a sustainable economy such as what is desperately needed for our planet. The Value Game originated at Boeing and was tested with Social Flights and successfully deployed in several remodeling projects for condominium associations (shares asset communities)

The WIKiD Tools Algorithm. WIKiD Tools creates a mathematical relationship between (viewed backwards) Data, information, Knowledge, Innovation, and Wisdom. WIKiD tools is useful when you can’t measure something like innovation directly, you could measure a derivative such as the “rate of change in knowledge” as a proxy. In this way,the richness of Wisdom, Information, Knowledge, information, and Data can be more predictable.

Curiosumé is a combination of the words Curate and Resumé. The idea behind curiosumé is to convert the CV or Resumé to a form of code that can be overlaid on other information databases such as Wikipedia, Amazon ontology, even the Library of Congress. This allows us to measure intangible assets as they act in a community.

Then Came Blockchain:

We stopped publishing to The Ingenesist Project in 2016 in order to apply TIP innovations to emerging technologies such as Social Media, Blockchain, AI, etc. It appeared that the decentralization of the engineering profession would be an important step in achieving the original goals of sustainable global enterprise. During this time, I also started a small engineering consulting firm called CoEngineers, PLLC that served a traditional local market bringing engineering services to a retail clientele. CoEngineers, PLLC helped pay the bills while also serving as a sandbox for testing and developing TIP Innovations. Our first entry into blockchain was the creation of a token called Quant on the BitShares Blockchain.

SIBOS, NSPE Task Force, and National Association of Insurance Commisioners: Collectively each of these organizations represent the Banking Industry, The Insurance Industry, and the Engineering Profession. TIP published 3 whitepapers that became the basis for the next iteration. It was noted that each of these industries trade an invisible currency called Risk. It was found that TIP methodologies were better described by actuarial math (probabilities) rather than interest laden monetary metrics. This 3-way association became the genesis of the Insurance / Engineering Blockchain Consortium. This was later changed to the Integrated Engineering Blockchain Consortium or IEBC.

IEBC: Over the course of several years, IEBC was the umbrella organization for 150 engineers, scientists, and business persons who advanced the idea of a decentralized engineering network to mesh with the banking and insurance environments. IEBC published numerous seminal documents and spoke at dozens of industry conferences. The two main achievements were to publish a whitepaper with detailed specifications for a blockchain strategy that would accommodate all prior TIP innovations. The IEBC team built a prototype blockchain by cloning an existing successful chain and modifying it to suit MVP demonstration. IEBC ultimately ramped down for lack of funding. But everything we learned is now open for iteration.

Where to re-Start? TIP has always been a place where ideas are formed and implemented either by ourselves or by others. Many TIP Ideas survive to this day in the many hundreds of engineers and scientists who have participated in the conversations, the start-ups, the publications, lectures, and webinars over the last 15-20 years. We can see many past TIP contributors advancing in their careers, businesses, and leadership roles.

There is something that binds people to this network – it has to do with the underlying belief that Makers Of Useful Things are the cause, not the effect, of sound and sustainable economic activity. The flaw of market capitalism has the world operating in a mirror image of the economy that was supposed to happen. The solution is more about perception than it is about revolution.


Conjure valueMy prior post “The Tale of Two Cities” demonstrates that the intangible social value conjured into existence by the bridge that connects two fair cities far exceeds the ‘tangible’ value of that bridge.  Yet, only the tangible value of the bridge is accounted for on a balance sheet such as GDP.

The Conjuring of Intangible Values

This may seem trivial until you observe that people are paid for their intangible assets (knowledge, creativity, and engineering calculations) as a percentage of the far lower number while the bankers, government, and corporate interests compensate themselves as a percentage of the far higher number.  The difference appears to be unaccounted for.

The Tail of Two Cities article concludes that the value that is conjured into existence by both the bridge and the fractional reserve system must be equal, by definition; otherwise the metaphorical breezeway that connects the two worlds would fall.

Bitcoin suffers from a similar curse as The Tail of Two Cities.  The prevailing argument against the crypto-currency is that it has no intrinsic value.  I have personally argued that a currency must represent human productivity intrinsically or else no other human would be willing to work (be productive) in exchange for it.  An article by Paul Bohm “The Value Of Bitcoin is Decentralization” makes a good point that the intrinsic value of Bitcoin is based on the value conjured into existence by increased productivity to society by what can be accomplished with Bitcoin that otherwise would be impossible without Bitcoin.

So if the valuation of a bridge crossing the river and the valuation of Bitcoin crossing the broker both suffer the same curse that there is no accounting system for intangibles, wouldn’t it make sense to solve that problem first  – i.e., measure into existence the intangible value of the Ingenesist – and then release those millions of human intentions (bridges and Crypto-currencies, not withstanding), into the system of trade?  This is the problem that Curiosumé proposes to resolve.

I believe that we first need to solve the under-mining problem that there is no accounting system for intangible assets.  Only then can there be intrinsic value in the conservation of those assets

… then maybe none of this would seem so mysterious.


Nobody cares if the congress implodes. People care about the institutions that keep the water clean, lights on, food fresh, streets safe, children educated,  medical services delivered, etc.

Institutions are run by people and there is no practical benefit of government when their primary role is to abolish the institutions that people depend on.  In effect, they abolish themselves.

For the last 5 years, since the 2008 train wreck, tens of thousands of start-ups and social media ventures have arisen in direct response to institutional failures.

  • When people don’t like where their taxes are spent, they reallocate their contributions elsewhere 
  • When education funding gets slashed, new forms of education emerge.  
  • When a currency inflates too fast, new forms on non-inflatable currency are deployed.  
  • When corporation reject their social charter, new forms of production systems are created. 
  • When jobs disappear, people reallocate their knowledge assets elsewhere 
  • When the law favors the few, new justice emerge

…and it goes on and on…

Today, we have constructed a scaffolding and everyone is laying their innovations and social apps and collaboration tools on he scaffolding.  When the output of one app becomes the input of another app, and so on, the new economy will integrate sufficiently to effectively bypass the governmental institution that is failing within it.  At that point, a new economy will emerge.

The following list of social platforms was compiled by Bert-Ola Bergstrand from Social Capital Forum in this document. From my experience and observation – there must be millions of people across the globe thinking along these lines.  People who would respond to a new way of organizing if a complete system were to emerge – or if the old system were to slowly evaporate.

TRY THIS: Please take a look through his list and visit several sites randomly and see what pops up. Now, try to envision the integration that I described above where the output of one platform becomes the input of the next platform, and so on.  This is how the future will arrive.  This is the next step that we must take together – integrate.

http://www.ogunte.com (women focused)
http://www.socentix.com
http://www.volans.com/volans/
http://www.tallbergfoundation.org/
http://solabs.org/
http://www.hubbayarea.com
http://www.ideasproject.com/index.jspa
http://www.unconvention.co.in/
http://www.facebook.com/pages/Social-Bancorp/183421055082853
http://groaction.com/
http://www.facebook.com/pages/GroAction/215195255184778?sk=app_208195102528120
http://www.joyliving.net
http://www.biomen.org
http://the-hub.net/
http://www.williamjamesfoundation.org
https://www.facebook.com/pages/Call-to-Change/159881987362799
http://www.sitawi.com.br
http://www.globalgiving.org/projects/sitawi-loan-fund-for-social-enterprises-in-brazil
http://www.socialcapitalmarkets.net
http://w1sd0m.net
http://www.globalsustainabilityjam.org/
http://www.globalservicejam.org/
http://www.openworld.com/
http://factory.makesense.org/comingsoon
http://www.mygoodact.com/
http://www.makinglocalfoodwork.co.uk
http://thefinancelab.ning.com/
http://mindtimemaps.com
http://mindtime.com
http://www.wecreate.cc/
http://collabcafewelly.tumblr.com
http://nationbuilder.com/
http://wwww.socialenterpriseeurope.co.uk/
http://techaloo.com/
http://www.socialenterprise-chicago.org
http://www.facebook.com/ecoNVERGE
http://www.facebook.com/CAPix-Asia
www.relayfoundation.org
www.opencsr.com
http://www.goodfornothing.com/about/
http://www.linkedin.com/groups/Social-business-Benefit-corporations-80184?gid=80184&trk=hb_side_g
http://www.opportunejobs.com
http://www.p-ced.com
http://www.seeditproject.com/
http://www.facebook.com/BluePlanetLife
http://www.youtube.com/TheRationalFuture
http://www.i-open.org/
http://2le.ad/
http://www.co-society.com/about/our-story/
http://www.kennisland.nl/en/
http://bundlr.com/b/education3
http://incentivize.us/
http://p2pfoundation.net/
http://www.sensorica.co/
https://www.facebook.com/YouthOpportunitiesNews
http://www.facebook.com/Nationalyoungwomenscouncil1/info
http://www.jci.cc/guests/
http://www.harva.co.in/
http://www.gramweb.net/
http://solucionesverdes.co/
http://www.dreamacademia.at/
http://www.collectiveself.com/frequently-asked-questions/what-is-a-friendship-incubator/
http://www.blue-planet-life.org/en/welcome
http://www.facebook.com/AfricaIZWI
http://globalimpactcollective.org/
http://www.leadersinstitute.com.au/aspx/home.aspx
http://www.rehan.com/
http://www.idec2013.org/ (International Democratic Education Conference)
http://www.mediapoint.md/
http://greensmyles.com/
http://www.bagosphere.com/
http://shapeshifters.net/
http://portal.educar.org/
http://www.coffeeshopgurus.com/ (Social Enterprise promoting Youth & Women Entrepreneurship. Franchise/ License Available)
http://www.communityled.co.za/
http://www.lgtvp.com/
http://www.azimpremjifoundation.org/ http://www.facebook.com/groups/smallisgreat/ http://www.facebook.com/groups/sosialentreprenor/
http://dreamups.org/
http://producism.org/
http://metacurrency.org/
http://www.ingenesist.com/
http://p2pfoundation.net/
http://www.arthaplatform.com/
http://www.facebook.com/pages/Common-Unity-Project/407636092606114?sk=info
http://www.eq-cap.com/
http://www.livingmandala.com/Living_Mandala/Living_Mandala
http://maximpact.com/
http://www.mindmeister.com/190131707/living-bridges-planet
http://reconomy.net/
http://www.akhuwat.org.pk/
https://www.coursera.org/
http://www.iachievegroup.com/
http://pashafund.com/
http://dreamups.org/
http://www.innovativepeople.eu/
http://www.fsg.org/
http://www.giftingprosperity.com/
http://trap.it/2cLMAE
http://about.me/reachscale.com
http://www.thecitizensmedia.com/
http://wechangeworlds.com/
http://www.coolmeia.org/
http://www.molequedeideias.net/
http://www.silo.is/3×11/
http://www.cloud9startups.com/
http://www.facebook.com/SliceBiz
http://iluvmyplanet.com/press
http://www.buckybox.com/
http://www.societal-innovation.org/
http://createachangenow.org/
http://defindia.net/
http://thealternative.in/
http://www.dreamitventures.com/
http://www.svx.ca/
http://www.techpear.com/

Movements/Social Change
http://jellyweek.tumblr.com/
http://funkybusinessberlin.de/index_en
http://www.facebook.com/pages/Call-to-Change/159881987362799
http://www.uterus-myomatosus.net
http://www.WishesWell.com/invite
http://www.bankofideas.org.uk/
http://beyondsustainabilitymag.net/
http://socialforesight.net
http://thesociallab.dk/
http://www.jci.cc/guests/
http://scwf12.wordpress.com/activities/
https://www.facebook.com/groups/219724974712886/ (presente! – education)
http://www.yesworld.org/
http://seedfreedom.in/
http://www.facebook.com/pages/YUVA-Foundation/159965244127954
http://www.partnershipforchange.net/
http://www.icaf.org/ (the arts for the development of creativity and empathy)http://www.facebook.com/ICAF.org
http://www.thinkimpact.com/
http://changeinc.tigweb.org/
http://www.sekem.com/
http://www.peers.org/
http://www.greenpag.es/
http://www.youtube.com/watch?v=zS1WCyEJV3U&feature=youtu.be

 

Social Ventures/Social Enterprise/Social Business/

Here is a list of 200+ that the William James Foundation has worked with:

http://williamjamesfoundation.org/index.cfm?fuseaction=Page.viewPage&pageId=607
http://www.youcancook.org.uk/
http://www.solucionesverdes.org/
http://backpackfarm.com/
http://www.openworldcafe.com/
http://www.joyliving.no/
http://www.biomen.no/
http://www.wessociety.com/
http://www.idea.com.gr/ and http://www.idea.com.gr/i_landing_page
http://openworldvillages.ning.com/
http://globaler-wandel.blogspot.com/2011/11/barcamp-how-internet-changes-our
https://www.facebook.com/pages/Call-to-Change/159881987362799
http://www.betterworldbooks.com
http://www.makechange.tv/
http://w1sd0m.net
https://www.facebook.com/pages/W1SD0M/170262242214
http://www.treeswaterpeople.org/
http://www.intolife.no/
http://www.terracycle.net/en-US/
http://www.socentlab.com/
http://www.buckybox.com/
http://www.firstpowercanada.ca/
http://www.enspiral.com
http://www.purpose.com
http://www.luontoportti.com/suomi/en/
http://www.facebook.com/eco-sTrEAMs (@ eco-sTrEAMs)
http://www.facebook.com/eco.ViVaCity (@ eco-ViVaCity)
http://www.facebook.com/eco.Nable (@ eco-Nable)
http://www.facebook.com/groups/econologics/ (@ ECONOLOGICS – Incisive
http://www.digitalgreen.org/farmerbook/
 

Knowledge Converged!)

http://www.veggbox.appspot.com/
http://ideasociety.com/
http://www.tryggapengarimobilen.se/
http://www.advancednrgsolutions.com/
http://www.p-ced.com
http://www.facebook.com/pages/Aangan/176857645688413
http://www.youtube.com/watch?v=Mwi4d4mCUNk&feature=youtu.be http://www.mothercourage.no/
http://www.openideo.com/
http://www.laplandvuollerim.se/

 

Funds/Financing

http://www.goodcap.net/
http://www.bonventure.de/en/home (only German speaking regions)
http://www.vilcap.com village capital seed funding network for socent
http://www.toniic.com global impact investment angel network
http://hubventures.hubbayarea.com/ seed funding for socent in the SF Bay area
http://w1sd0m.net search 400 institutional impact investors
http://www.slowmoney.com
http://inventure.no/
http://www.fordfoundation.org/Grants/
http://www.soros.org
http://www.asef.org Asia-Europe FOundation

 

Inspiration/Strategy etc.

http://www.blueoceanstrategy.com/ making competition irrelevant
http://foundups.com/ FOUNDUPS® Open Startup – Changing the World Together.
http://100startup.com/tour/ Build a Startup with 100$, keep it lean
http://steveblank.com/ – Steve Blank is a teacher for entrepreneurship
http://projectofhow.com/ – Open library of creative methods.
http://www.cultural-entrepreneurship-institute.de/en/ – Theoretical Wisdom for the Global Society
http://www.respectserendipity.com – Serendipity as the ultimate source of inspiration
http://www.differentworkbook.com – Stories of people who deeply love their work & changing what work looks and feels like
http://www.differentoffice.com – Stories of self-created, soul-satisfying work spaces

 

Inspirational blogs

http://www.sadanamkaur.es/en/programs/excellence-in-learning
http://goodgeneration.org/
http://www.asmundseip.com/
http://truemaisha.blogspot.se/?spref=fb
http://hildygottlieb.com/
http://vicdesotelle.com/blog/
http://sharedtracks.wordpress.com/

 

Text/Knowledge/Books

http://en.wikipedia.org/wiki/Impact_investing
http://www.facebook.com/piceberlin – spreading knowledge for cultural return
http://apps.americanbar.org/abastore/index.cfm?pid=1620439&section=main&fm=Product.AddToCart – Social Enterprise: Empowering Mission-Driven Entrepreneurs


This is the final post of the Financial System Hack Series.  Contrary to conventional wisdom, the currency is the last hack, not the first.  Only after Zertify, Gamidox and Exoquant are established would it be possible to introduce a currency that could compete, if not hedge the dollar.

With Zertify we can estimate the probability that a collection of knowledge assets will be able to execute a business plan some time in the future.

With Gamidox, The Value Game is played where several communities interact around a shared asset such as a condominium, airplane, school, hospital, road, car, or any “product” that has socially redeeming value.

These interactions are measured such that we can assign “value” to the game with the Exoquant algorithm.

So taken together:

If we can predict the probability that the interactions carried out by communities of people (relative to a product) will have a known value in the future, we can represent it as a “cash flow” with a known volatility (risk).  Now, combining many interactions carried out by many communities around many products with known volatilities, we can pool the predicted cash flows into one large diversified cash flow.  Next, we can  cut the large flow into “bonds”, which we can extrapolate to net present value and to fund the community activities.  This very similar to the way that corporation form and raise money – except without the corporation.  While banks continue to issue Debt Bonds, communities will issue Innovation Bonds in parallel

Here is the hack:

In the old days everyone carried gold around with them to engage in trade.  Since gold was heavy, bankers let people keep the gold in their vaults and they wrote little chits that represented the gold.  After a while, people just traded the chits and it was no longer necessary to convert back to gold with each transaction.  Eventually, the gold standard was eliminated altogether and people just traded the paper that now represents their future productivity (debt), not necessarily gold.

The currency of abundance

Likewise, after a while it would no longer be necessary to convert the community currency into dollars.  As the dollar slowly starts losing it’s value under the weight of the debt load people will just trade community currencies.  All of these values are made visible and validated from Zertify, Gamidox, and Exoquant data.

The antigen will not be triggered because this is exactly the same way that corporations interact with banks to capitalizes and securitizes dollar debt, the difference is that we are capitalizing and securitizing community innovation by measuring data, information, knowledge, innovation, and wisdom.  A currency of abundance can then replace the currency of scarcity.

Nothing Changes and everything changes

Corporations and government can continue activities to the degree that they produce socially redeeming value by simply purchasing innovation bonds from the people with their dollars – if they’ll accept them.


In the first post of this series, we identified the 5 components of a financial system and suggested that Zertify, Gamidox, and Exoquant would serve to simulate their functions in a parallel economy before ultimately being adopted completely.

In this post we will identify the hack on the Wall Street Financial instrument regime.  Although exoquant is a bit technical, the basic hack is quite simple:

  • Everyone knows that money is created through the creation of debt.
  • Everyone also knows that debt is a promise to produce something more in the future.
Likewise:
  • Everyone also knows that innovations increase human productivity.
  • Everyone also knows that innovation is a promise to produce something more in the future.

Here’s the hack:

Therefore, a currency backed by debt and a currency backed by innovation are both backed by future productivity.  As such, two currencies backed by the same underlying asset are fully convertible with each other.  Water dissolves water and innovation dissolves debt.

Here is how the Wall Street algorithm works: 

  • People produce stuff in exchange for money
  • Bankers do not care about money, they care about the rate of change of money over time.  This is called the “interest” rate.
  • Stockholders do not care about interest rate, they care about the rate of change of interest rate over time, this is called growth rate.
  • Hedge fund managers do not care about growth rate, they care about the rate of change of growth rate over time, this is the margin on their bets; options, and derivatives, etc.
  • CDOs and other financial exotica become increasingly divorced from the fact that people produce stuff for money.

The Exoquant Analogy:

  • The value of information is derived from the rate of change of data over time
  • The value of knowledge is derived from the rate of change of information over time
  • The value of innovation is derived from the rate of change of knowledge over time
  • The value of wisdom is derived from the value of innovation over time.
In order to “see” innovation before it happens, all we need to do is identify and measure rates of change of information in communities…and so on. Technically, this is a derivative, i.e., something whose value is derived from the value of something else.   All of these metrics can be seen quite readily in the Zertify, Gamidox data sets.  Each is a “derivative” backed by the stuff that people produce rather than the fiction of debt.  The ability to predict future productivity is superior with an innovation backed currency and therefore superior to debt forced productivity – often compared to slavery.

The Silver Bullet

Innovation is a magic word.  The hack is true to the Wall Street math as well as American culture.  Anyone running for public office would not attack the proposition of an innovation backed currency.  Therefore, the hack will not trigger an antigen.
 The next and final post, The Currency Hack, will formulate this innovation currency in more detail.


Self-imposed exile, or land of opportunity?

Gross Domestic Product (GDP) refers to the market value of all officially recognized final goods and services produced within a country in a given period.  Simon Kuznets first developed the concept of the GDP for a US Congress report in 1934.  He immediately said not to use it as a measure for welfare. He later elaborated:

“Distinctions must be kept in mind between quantity and quality of growth, between costs and returns, and between the short and long run. Goals for more growth should specify more growth of what and for what.”

Sheer Madness at best

Today, the concept of Gross Domestic Product is vastly flawed to the point where the tail now wags the dog.  GDP now determines what we produce, who produces it, where it is produced, when and how it is produced.  Further, GDP snuffs out vast amounts of intangible value simply because it cannot be measured as GDP.

Global Policy is not enough

Recently, The G-20 meetings resolved to a very interesting point; to redefine GDP by a new set of metrics.  This will be a long hard journey if done solely in the political domain.   However, if we can make a business case for it, the entrepreneurs will jump on board.  Then, and only then, can the landscape change as rapidly and drastically as will be required to turn civilization around equitably and peacefully.

Corporate Policy is not enough

The irony is that those who perpetrate GDP metrics may be those who would benefit the most from dumping it.  In the following article from FastCompany, How Intangible Corporate Culture Creates Tangible Profits, companies who learn to transform intangible assets to tangible value become more competitive over companies that do not.  The article cites Southwest Airlines as the first airline to strip down all “tangible” amenities, yet they succeed by replacing them with intangible value such as superior customer experience.

Policy, Corporations, Culture and Entrepreneurs need to act as one:

Interestingly, the FastCompany article talks a great deal about culture.  They also use the terms; “information, knowledge, innovation, and wisdom” liberally throughout the text.  This is very inspiring to us at The Ingenesist Project because we use similar language to design and deploy business methods in industries as diverse as Aviation, Construction, and Philanthropy that readily convert between tangible and intangible value.

For Example:

  • The objective of Zertify is to replace the competitive incentives among communities and replace them with a knowledge inventory that matches mentors to protégé.  Teachers and students do not compete, they collaborate in order to be successful.
  • The Value Game creates an environment where one acting in the best interest of their collaborator, acts in their own best interest of value creation.
  • Our Exoquant algorithm provides a direct relatedness between information, knowledge, innovation, and wisdom.

The New Value Movement

When we talk about the New Value Movement, we are trying to specify a new class of business methods that can literally “manufacture” the things that people actually need without any distinction between tangible and intangible.  People need a game that they can win playing by the same set of rules. People need food as much as the need love – there is no walled garden of human needs, except the planet we share.

Then we can measure what people actually produce with it


The New Value Tool is a repetitive simulation of The Value Game (described herehere, and here) that may be used to determine in advance the true value that may be created when people interact with each other around a shared asset.

The Social Charter

This should not be too difficult to envision since The Value Game plays out daily in the modern corporation where workers acting in the best interest of the corporation (the shared asset) interact with each other in various departments to preserve the asset rather than consume the asset – this is how corporations create social value; through the employment of people and the social utility of their products.

Obviously, corporations that fail to fulfill their social charter likewise fail to sustain value creation in a community.  Those that do, tend to thrive in the Internet Age. The objective of the New Value Platform is to enable communities to organize, as do corporations, except without the burden of corporate governance or the priorities of outside investors.

Drag, Drop, and Dream

The New Value Tool is simple to use; just drag and drop from the Zertify Personal Knowledge Inventory into The Value Game and see what the Exoquant dashboard tells you about your simulation. It may take some practice at first to see how to make the numbers move, but soon it will become intuitive which scenarios create lots of New Value – and will likely sustain themselves in practice.  Scenarios that do not, will likely fail in a particular community and ought not be ventured to practice.

Community Algorithm

Exoquant provides a very simple algorithm relating the creation of data, information, knowledge, innovation and wisdom that govern the Value Game.  However, the weighting of these elements is a component of the “fuzzy math” that entrepreneurs bring to the game.  The empirical data resulting from the application becomes property of the players (community) as their “Secret Sauce” of value creation in their own uniquely optimum economic game.

On the path to a Social Currency

The New Value Tool May become an important system for analyzing existing ventures for optimum social value creation as well as predicting how collections of knowledge assets in a community can optimize their social value in collaboration with each other.  Eventually, the predictability of the outcomes will improve while diversification of projects will eliminate risks such that a social currency can be capitalized and securitized.


The question that persist for many college and university administrators is what actions must they take to optimize all of their relationships in a manner that reinforces their own value to their community.

The Value Game is an ideal solution for this type of scenario (if you are unfamiliar with TVG, please visit this primer link).  The first step is to identify the asset. The recent graduate is the university asset because they are the customer and the product being advanced.  After all, the life worth of that graduate will reflect upon the institution that prepared them for professional service.

Next, we identify the players that will interact with that graduate over the course of their lives.

A* = The Graduate

  1. The graduate will interact with their Alma Mater
  2. The graduate will interact with their alumni association
  3. The graduate will interact with Their broader community
  4. The graduate will interact with corporations and entrepreneurs

Now, Let’s review each of the relationships and the economic incentives that drive them:

A-1: The graduate relies on the university reputation with players 1,2,3 as an extension of their own capabilities.

A-2: The graduate relies on the influence and success of prior graduates who hold an affinity towards each other in fraternal social networks.

A-3: The graduate will interact with their community for friendships, residency, recreation, and support.

A-4: The graduate will rely on strong and equitable employers / entrepreneur base where they may self-actualize as productive citizens.

Now, let’s review the relationships and incentives that each of the players has with each other:

1 – 2,3,4: The university has an interest in preserving the community because a motivated and educated workforce attracts opportunity far and wide in the form of business, travel, tourism and economic growth (Jacobs Externality).

2 – 1,3,4: Alumni seek to preserve the value of their alma mater because of the direct reflection upon their careers.  It is in their best interest to support the university, it’s graduates, employers and the wider community.

3 – 1,2,4: The community relies on the university graduates and alumni to provide equitable and fair innovations that provide sustainable living standards.

4 – 1,2,3: Employers compete globally for talented, stable and engaged employees and service providers who are attracted foremost by a vibrant entrepreneurial economy and sustainable communities.

Data, information, knowledge, innovation, and wisdom

The Value Game is now played by university administrators who direct university facilities, influence, and resources to bringing at least 2 of these four groups together.  Each time there is an interaction, the university will capture the data associated with the interaction.  That data can be compiled to form information which gives the university administrator knowledge about what their next action must be.  University feedback to the community will tell all of the players what interactions create the most social value upon which all players will innovate in their best interest.

As the game continues over time, the university gains the wisdom to understand the values of their assets and surrounding community. The community will act in the best interest of the other players as a means of acting in their own best interest (Social Capitalism).

Data is the ultimate shared asset

Over time, the University will become the physical “Search Engine” for data, information, knowledge, innovation, and wisdom in a community instead of just a vetting mechanism for book learned material. The University can now deploy this wisdom to their own internal programs and curricula as well as becoming an external reference source for government, industry, and economic development.

*(The University of New Haven is in no way affiliated with this post except I (the author) am a graduate of the UNH Engineering school (go Chargers!) and needed a realistic example that probably would not sue me – thanks guys)