By Bernard Avishai – In 1975, about twenty per cent of companies’ valuations could be attributed to intangible assets, such as knowledge; by 2007, the proportions were reversed.
Changes in the makeup of corporate assets matters, in particular, when discussing international inequality.
The gap between rich and poor countries is between knows and know-nots, not just between haves and have-nots.
It used to make sense to assume that, once a domestic business owned material assets, it wouldn’t need a very high learning curve before it was working more or less profitably. But, while that outlook worked for products like soap, it doesn’t hold up for something like smart phones: virtually anyone with a factory, a recipe, and cheap labor can make soap, but building smart phones requires knowledge. more> http://tinyurl.com/ls5kumk