The Idea Economy

The early emergence of markets, say back in the Middle Ages, was far from the mature money focused environment we now think of when we describe markets. In the capitalist environments today the profit motive is supreme; people start companies because they think they can offer a product or service that someone else is willing to pay for. It is difficult to rebut the belief that capitalist economies simply produce more and raise the standard of living of everyone. Look around the world today, the best places to live are undoubtedly capitalist economies. Even China, and places like Cuba, are starting to turn their backs on Mao and Marx due to the lure of the market-based, for-profit economy. Sure, this sounds rather cold stated in such a straightforward way, but perhaps this power can be leveraged to make the world a better place.

“When one speaks of a market economy, in other words, what is meant is an economy where the market is not only used for exchange; it also dominates production” - Swedberg

The argument is that the market became this ultra-productive powerhouse when, in the 19^th century, the majority of production was focused on producing commodities for resale rather than direct consumption (Swedberg 11). In the tech environments we now find ourselves ensconced in, the effect is apparently even greater. Innovative ideas, merged with the allure of the market, are resulting in new products and services that didn’t exist just a few short years ago. Now, with the Internet-of-Things (IOT) offering new insights when aligned with analytics and big data, there are perhaps prospective young companies that can solve problems of the new world. Autonomous cars are one invention that seems to have come out of nowhere and are being tested in the Waterloo region and nearby Stratford. However, just what type of environment can best trigger such new ideas? Especially concepts that will offer some benefit to humankind -- beyond simply corporate profits?

Some research suggests that we produce more efficiently, and can identify new patterns that can solve problems if we focus on where we feel more comfortable. Writing on generating new ideas and the attendant incubators of research, one thesis notes that “Arguably this effort is carried out more easily if we study a world to which we already feel connected” (Lindlof & Taylor 77).  If by connected we mean comfortable with technology and the vision to imagine a better world, then Waterloo is well positioned. This perhaps best summarizes where our future is trending, no longer simply the commodification of labour but rather the commodification of ideas – the ‘idea economy’. An environment where everyone wins, and where these ideas, hopefully, will successfully tackle global problems such as clean energy, food shortages and climate change; just to name a few. These issues, and others like them, require more than technology, they need people with ideas and the environment to encourage them. Waterloo’s idea economy will, hopefully, continue to emerge and address problems in increasingly new and innovative ways.

References

Taylor, B. and T. Lindlof. Qualitative Communication Research Methods, Chapter4. “Design II: Implementing Research Projects”

Mazzucato, M. The entrepreneurial state, Chapter 3, “Risk Taking State: From “De-risking’ to ‘Bring it On’

Swedberg, R. “The Economic Sociology of Capitalism” (Laurier University Course Materials, MLS)