Knowledge Economy
You've heard this a hundred time
Economics
Posted at Jan 02 2008 03:14  Comments 0 / Trackbacks 0
J. Bradford Delong The "New Economy": Background, Questions, and Speculations
This particular explosion of technology has has profound consequences for how we organize production. It has consequences for the type of goods we value. We used to live in an economy in which the canonical source of value was an ingot of iron, a barrel of oil or a bushel of wheat. Such economies were based on knowledge just as much as our economy is, but the knowledge was of how to create a useful, physically-embodied good. We are moving to an economy in which the canonical source of value is a gene sequence, a line of computer code, or a logo. As Chairman Greenspan (1998) has often emphasized, in such a world, goods are increasingly valued not for their physical mass or other physical properties but for weightless ideas (see Coyle (1998)). In such an economy, what you know matters more than how much you can lift.

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