Technocapitalism

Last updated

Technocapitalism refers to a contemporary economic and social system characterized by the dominance of technology-driven capital, where technological innovation becomes a central component of economic growth and wealth accumulation. This term encapsulates the interplay between technology and capitalism, highlighting how advancements in technology influence economic structures, labor markets, and social relations. A significant aspect of technocapitalism is the rise of the intangible economy, which is marked by the increasing importance of non-physical assets such as intellectual property, brand value, and digital services. This shift has led to new forms of economic centralization, where a few tech giants dominate markets due to their ability to scale rapidly and leverage synergies across different sectors. [1] [2] [3] [4] [5] [6]

Contents

Corporate power and organization

Luis Suarez-Villa, in his 2009 book Technocapitalism: A Critical Perspective on Technological Innovation and Corporatism argues that it is a new version of capitalism that generates new forms of corporate organization designed to exploit intangibles such as creativity and new knowledge. [7] The new organizations, which he refers to as experimentalist organizations are deeply grounded in technological research, as opposed to manufacturing and services production. They are also heavily dependent on the corporate appropriation of research outcomes as intellectual property.

This approach is further developed by Suarez-Villa in his 2012 book Globalization and Technocapitalism: The Political Economy of Corporate Power and Technological Domination, in which he relates the emergence of technocapitalism to globalization and to the growing power of technocapitalist corporations. [8] Taking into account the new relations of power introduced by the corporations that control technocapitalism, he considers new forms of accumulation involving intangibles—such as creativity and new knowledge—along with intellectual property and technological infrastructure. This perspective on globalization—and the effect of technocapitalism and its corporations—also takes into account the growing global importance of intangibles, the inequalities created between nations at the vanguard of technocapitalism and those that are not, the increasing importance of brain-drain flows between nations, and the rise of what he refers to as a techno-military-corporate complex that is rapidly replacing the old military-industrial complex of the second half of the 20th century.

The concept behind technocapitalism is part of a line of thought that relates science and technology to the evolution of capitalism. At the core of this idea of the evolution of capitalism is that science and technology are not divorced from society—or that they exist in a vacuum, or in a separate reality of their own—out of reach of social action and human decision. Science and technology are part of society, and they are subject to the priorities of capitalism as much as any other human endeavor, if not more so. Prominent scientists in the early 20th century, such as John Bernal, posited that science has a social function, and cannot be seen as something apart from society. [9] Other scientists at that time, such as John Haldane, related science to social philosophy, and showed how critical approaches to social analysis are very relevant to science, and to our understanding of the need for science. [10] In our time, this line of thought has encouraged philosophers such as Andrew Feenberg to adopt and apply a critical theory approach to technology and science, providing many important insights on how scientific and technological decisions—and their outcomes—are shaped by society, and by capitalism and its institutions. [11]

The term technocapitalism has been used by one author to denote aspects and ideas that diverge sharply from those explained above. Dinesh D'Souza, writing about Silicon Valley in an article, used the term to describe the corporate environment and venture capital relationships in a high tech-oriented local economy. His approach to the topic was consonant with that of business journals and the corporate management literature. Some newspaper articles have also used the term occasionally and in a very general sense, to denote the importance of advanced technologies in the economy.

Forms of tech capitalism

Tech capitalism can take many forms such as IP based financing where patents and registered IP of new technology is an instrument for building capitalism, [12] debt based equity where new and innovative technology is used as the security interest for securing financing or leasing, and ICOs such as Blockchain capital. [13]

See also

Related Research Articles

<span class="mw-page-title-main">Intellectual property</span> Ownership of creative expressions and processes

Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, copyrights, trademarks, and trade secrets. The modern concept of intellectual property developed in England in the 17th and 18th centuries. The term "intellectual property" began to be used in the 19th century, though it was not until the late 20th century that intellectual property became commonplace in most of the world's legal systems.

Intellectual capital is the result of mental processes that form a set of intangible objects that can be used in economic activity and bring income to its owner (organization), covering the competencies of its people, the value relating to its relationships, and everything that is left when the employees go home, of which intellectual property (IP) is but one component. It is the sum of everything everybody in a company knows that gives it a competitive edge. The term is used in academia in an attempt to account for the value of intangible assets not listed explicitly on a company's balance sheets. On a national level, intellectual capital refers to national intangible capital (NIC).

An information society is a society or subculture where the usage, creation, distribution, manipulation and integration of information is a significant activity. Its main drivers are information and communication technologies, which have resulted in rapid growth of a variety of forms of information. Proponents of this theory posit that these technologies are impacting most important forms of social organization, including education, economy, health, government, warfare, and levels of democracy. The people who are able to partake in this form of society are sometimes called either computer users or even digital citizens, defined by K. Mossberger as “Those who use the Internet regularly and effectively”. This is one of many dozen internet terms that have been identified to suggest that humans are entering a new and different phase of society.

<span class="mw-page-title-main">Knowledge economy</span> Approach to generating value

The knowledge economy, or knowledge-based economy, is an economic system in which the production of goods and services is based principally on knowledge-intensive activities that contribute to advancement in technical and scientific innovation. The key element of value is the greater dependence on human capital and intellectual property as the source of innovative ideas, information, and practices. Organisations are required to capitalise on this "knowledge" in their production to stimulate and deepen the business development process. There is less reliance on physical input and natural resources. A knowledge-based economy relies on the crucial role of intangible assets within the organisations' settings in facilitating modern economic growth.

An intangible asset is an asset that lacks physical substance. Examples are patents, copyright, franchises, goodwill, trademarks, and trade names, reputation, R&D, know-how, as well as any form of digital asset such as software and data. This is in contrast to physical assets and financial assets.

Democratic capitalism, also referred to as market democracy, is a political and economic system that integrates resource allocation by marginal productivity, with policies of resource allocation by social entitlement. The policies which characterise the system are enacted by democratic governments.

Intellectual property assets such as patents are the core of many organizations and transactions related to technology. Licenses and assignments of intellectual property rights are common operations in the technology markets, as well as the use of these types of assets as loan security. These uses give rise to the growing importance of financial valuation of intellectual property, since knowing the economic value of patents is a critical factor in order to define their trading conditions.

"The Californian Ideology" is a 1995 essay by English media theorists Richard Barbrook and Andy Cameron of the University of Westminster. Barbrook describes it as a "critique of dotcom neoliberalism". In the essay, Barbrook and Cameron argue that the rise of networking technologies in Silicon Valley in the 1990s was linked to American neoliberalism and a paradoxical hybridization of beliefs from the political left and right in the form of hopeful technological determinism.

Criticism of technology is an analysis of adverse impacts of industrial and digital technologies. It is argued that, in all advanced industrial societies, technology becomes a means of domination, control, and exploitation, or more generally something which threatens the survival of humanity. Some of the technology opposed by the most radical critics may include everyday household products, such as refrigerators, computers, and medication. However, criticism of technology comes in many shades.

<i>Monopoly Capital</i> 1966 book by Paul Sweezy and Paul A. Baran

Monopoly Capital: An Essay on the American Economic and Social Order is a 1966 book by the Marxian economists Paul Sweezy and Paul A. Baran. It was published by Monthly Review Press. It made a major contribution to Marxian theory by shifting attention from the assumption of a competitive economy to the monopolistic economy associated with the giant corporations that dominate the modern accumulation process. Their work played a leading role in the intellectual development of the New Left in the 1960s and 1970s. As a review in the American Economic Review stated, it represented "the first serious attempt to extend Marx’s model of competitive capitalism to the new conditions of monopoly capitalism." It attracted renewed attention following the Great Recession.

<span class="mw-page-title-main">Innovation economics</span> Economic theory

Innovation economics is new, and growing field of economic theory and applied/experimental economics that emphasizes innovation and entrepreneurship. It comprises both the application of any type of innovations, especially technological, but not only, into economic use. In classical economics this is the application of customer new technology into economic use; but also it could refer to the field of innovation and experimental economics that refers the new economic science developments that may be considered innovative. In his 1942 book Capitalism, Socialism and Democracy, economist Joseph Schumpeter introduced the notion of an innovation economy. He argued that evolving institutions, entrepreneurs and technological changes were at the heart of economic growth. However, it is only in recent years that "innovation economy," grounded in Schumpeter's ideas, has become a mainstream concept".

<span class="mw-page-title-main">Daniele Archibugi</span> Italian economic and political theorist

Daniele Archibugi is an Italian economic and political theorist. He works on the economics and policy of innovation and technological change, on the political theory of international relations and on political and technological globalisation.

<i>Capitalism, Socialism and Democracy</i> 1942 book by Joseph Schumpeter

Capitalism, Socialism, and Democracy is a book on economics, sociology, and history by Joseph Schumpeter, arguably his most famous, controversial, and important work. It's also one of the most famous, controversial, and important books on social theory, social sciences, and economics—in which Schumpeter deals with capitalism, socialism, and creative destruction.

Innovation management is a combination of the management of innovation processes, and change management. It refers to product, business process, marketing and organizational innovation. Innovation management is the subject of ISO 56000 series standards being developed by ISO TC 279.

<span class="mw-page-title-main">Technology and society</span>

Technology, society and life or technology and culture refers to the inter-dependency, co-dependence, co-influence, and co-production of technology and society upon one another. Evidence for this synergy has been found since humanity first started using simple tools. The inter-relationship has continued as modern technologies such as the printing press and computers have helped shape society. The first scientific approach to this relationship occurred with the development of tektology, the "science of organization", in early twentieth century Imperial Russia. In modern academia, the interdisciplinary study of the mutual impacts of science, technology, and society, is called science and technology studies.

<span class="mw-page-title-main">Xiaolan Fu</span> Chinese economist

Professor Xiaolan Fu is a British-based Chinese economist, and Fellow of the Academy of Social Sciences. She is the Founding Director of the Technology and Management Centre for Development (TMCD). She is a Professor of Technology and International Development and Fellow of Green Templeton College at the University of Oxford.

Science and technology in Kazakhstan – government policies to develop science, technology and innovation in Kazakhstan.

The Indigo Era is a concept publicized by businessman Mikhail Fridman, describing what he views as an emerging new era of economies and economics based on ideas, innovation, and creativity, replacing those based on the possession of natural resources. Fridman is the co-founder of LetterOne, an international investment business, and first publicized the idea in early 2016. The word "indigo" was initially chosen based on the term indigo children, which has been used to describe people with unusual and innovative abilities.

William E. Halal is an American aerospace engineer, air force officer, academic, author, consultant, and speaker. He is Professor Emeritus of Management, Technology & Innovation at George Washington University as well as the Founder and President of TechCast, a web-based system that uses knowledge to forecast breakthroughs on emerging technologies and social trends.

<span class="mw-page-title-main">World Intellectual Property Report</span>

The World Intellectual Property Report (WIPR) is a biennial analytical publication by the World Intellectual Property Organization, an agency of the United Nations. Each report examines a different theme, focusing on trends in a particular area of intellectual property and innovation. The report uses macroeconomic analysis and includes case studies to examine the role of intellectual property and other intangibles in the global economy.

References

  1. ↑ Suarez-Villa, Luis (2001). "The Rise of Technocapitalism". Science & Technology Studies. 14 (2): 4–20. doi: 10.23987/sts.55133 .
  2. ↑ Suarez-Villa, Luis (2003). "The E-economy and the Rise of Technocapitalism: Networks, Firms, and Transportation". Growth and Change . 34 (4): 390–414. doi:10.1046/j.0017-4815.2003.00227.x.
  3. ↑ Stubbs, Alec (2020). "Technocapitalism, the Intangible Economy, and Economic Centralization". Perspectives on Global Development and Technology. 19 (1–2): 32–44. doi:10.1163/15691497-12341538.
  4. ↑ Haskel, Jonathan (2018). Capitalism without Capital: The rise of the Intangible Economy. Princeton: Princeton University Press. ISBN   9780691175034.
  5. ↑ Suarez-Villa, Luis (2012). Technocapitalism: A Critical Perspective on Technological Innovation and Corporatism. Philadelphia: Temple University Press. ISBN   9781439900437.
  6. ↑ Suarez-Villa, Luis (2016). Globalization and technocapitalism: The Political Economy of Corporate Power and Technological Domination. London: Routledge. ISBN   9781315585123.
  7. ↑ Suarez-Villa, Luis (2012). Technocapitalism: A Critical Perspective on Technological Innovation and Corporatism. Philadelphia: Temple University Press. ISBN   9781439900437.
  8. ↑ Suarez-Villa, Luis (2016). Globalization and technocapitalism: The political economy of Corporate Power and Technological Domination. London: Routledge. ISBN   9781315585123.
  9. ↑ John D. Bernal, The Social Function of Science (New York: Macmillan, 1939).
  10. ↑ John B. S. Haldane, Dialectical Materialism and Modern Science (London: Labour Monthly, 1942).
  11. ↑ Andrew Feenberg, Critical Theory of Technology (New York: Oxford University Press, 1991).
  12. ↑ Business Bank, British. "Using Intellectual Property to secure finance" (PDF). UK Govt Publishing Services. British Business Bank. Retrieved 18 February 2019.{{cite web}}: |last1= has generic name (help)
  13. ↑ Popper, Nathaniel (27 October 2017). "An explanation of ICOs". No. NY Times Online. NY Times. New York Times. Retrieved 18 February 2019.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.