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Value and scarcity, what is going on if the society is rich.

2010-July-31
Samuel Slater (1768 – 1835) popularly called &...
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Creativity and new knowledge, become the most valuable resources, much as raw materials and factory labor were under industrial era.

The reduction of risk and uncertainty is particularly important for corporate organizations facing regulatory hurdles.  In many biotechnology firms, for example, the rate of approval can be as low as one out of eight thousand new compounds.  Such low odds are offset by turning out a continuous stream of new inventions and innovations, and by appropriating them rapidly. A possible result is a higher chance of more products finding no competitors in their market niches, even if for limited periods of time.  Thus, the main strengths provided by continuous invention and innovation lie in speed and numbers.  The larger the number of new products being marketed, and the faster it happens, the more likely it is that some of them will find no serious competitors over the short term.

Networks typically involve collaboration. For invention and innovation, networks have become the means to collaboration, helping diffuse knowledge, reproduce creativity, and pull together the resources needed to undertake research. With networks, therefore, value increases with abundance.  The larger a network becomes, the more valuable it is likely to be.  This characteristic of networks is diametrically opposed to the centuries-old notion found in mainstream economics, which assumes that value results from scarcity.

Regional inversion is a longterm phenomenon occurring in multiple dimensions: economic, political, technological, social and cultural.  It is a complex process and its effects may only become obvious after a long period of time.  At first the changes may be subtle, and they might only be detected through careful examination of data and trends for the lagging and predominant regions.  Later, the changes become so obvious that they are impossible to ignore.

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