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Finally got round to finishing 'Capitalism without Capital' by @stianwestlake @haskelecon. I cannot recommend it enough. One of those books that changes the way you think about the world, and clarifies things you have been struggling to understand.... https://www.amazon.co.uk/Capitalism-Without-Capital-Intangible-Economy/dp/0691175039
The book explores what the growing importance of intangibles in the economy (things like design, brand, software, R&D, business processes, training) mean for firms and the economy (and policymakers and managers and investors etc)....
For intangible-rich businesses, it really underlines the importance of information flow across the business, the importance of retaining key knowledge workers, the need to help nurture 'serendipitous interactions' (v.hard in lockdown -- answers on a postcard)....
... more autonomy for people, fewer targets, more access to the boss (again much harder in lockdown), flatter structures, leadership that nurtures loyalty and effort, is not directive (certainly not sure I have managed this in my career).
For businesses, or parts of business, who are not so focused on intangibles, it likely means very rigid structures to ensure quality (think Starbucks procedure for making coffee)....
For those of us working for innovation institutions, it argues that the great drivers of technological leaps forward -- the company lab (think Bells Labs, ICI, Xerox parc etc) are likely a thing of the past, as can only be sustained with monopoly/national champions profits.
Instead public funding of innovation institutions, such as universities and, ahem, Catapults, likely to be even more important driver of productivity. Provision of real world test beds essential...
As a result of the public sector stepping into the R&D breach more, an ability to interact with those institutions and public sector funders likely to be important advantage for private sector success.
The policy implications are clear, although not easy -- get serious about procurement as a greater driver of innovation (see US military), and shift focus of training and education to adult education, not just more time at school/university. Many more....
And more intangibly, the importance of nurturing norms, social capital, shared values.... all to help the sharing of ideas across the economy (not easy, but essential in my view and in the work of complexity economists like @EricBeinhocker) cc @Jesse_Norman
For energy, which is slowly shifting from being exclusively a very tangible industry (power stations, pipes, wires) to a digitally and data-enabled world, those who understand the potential of intangibles to deliver better consumer outcomes are likely to thrive. The race is on...
