Can Ideas be Capital? Factors of Production in the Postindustrial Economy: A Review and Critique

Abstract

Economic and social relations are undergoing radical change, expressed in such concepts as “knowledge economy,” “weightless economy,” “postindustrial society,” and “information society.” The literature suggests the arrival of a distinct new factor of production—intellectual capital—replacing or perhaps supplementing land, labor, and capital. We give a historically informed theoretical exposition of capital as the durable result of past production processes, transforming future production while not being transformed itself and associated with a particular economic actor. We then construct a taxonomy of the possible characteristics and location of intellectual capital in postindustrial production.