two cultures policy centralized hierarchical generalist jurisdiction-based command and control status quo based legal infrastructure research decentralized autonomous specialized competence-based markets of ideas/reputation science based knowledge infrastructure

old common problem compartmentalization disciplinary jurisdictional –institutional solutions interdisciplinary research programs professional education interagency working groups European Commission

new common problem: too much, too fast, too diverse –policy compare business environment (pre-bust) tactical minimalism –research: too little, too slow, too limited but vast opportunity –diffuse programmatic/institutional/policy focus –domain “convergence” –focus on creation of future value

Digital Paradox: Blurred Categories expenses / assets public / private economic / social work / home local / global product / service common / proprietary firm / market

“blurring” expansion polarization hybrid/intermediate forms –stratification confused definitions ambiguity uncertainty –forward looking environment –loss of trajectory

Expanded Categories software transactions enterprise network knowledge market

Market Transformation heterogeneous economics – e.g., –telecom infrastructure –information products –knowledge services shifting units and categories –competition FOR the market –networks, alliances, consortia stratification –globalization –micro markets

Market transformation II indirectly monetized –advertising, channeling, personal information unmonetized –barter, “gift economies”, RF standards, open source intangibles problem: –difficulty of measuring future value indirectly indeterminacy of control, marketability, and liability

management law economic value knowledge technology policy

management future economic value knowledge technology intangible assets tangible assets and inputs

management future economic value knowledge technology intangible assets tangible assets and inputs policy law

some challenges in understanding a knowledge-based economy different kinds of knowledge –tacit, explicit, embedded… –knowledge as liability transaction costs –degree of commoditization value of attention/opportunity costs only certain parts are easy to measure –skew to measurable (esp. outputs) –skew to assets rather than liabilites problem of shared control

nexus of policy challenges copyright, privacy, contract, competition, patent, security, database rights, public S&T investment, tax incentives, standards, reporting rules, education and training