Wednesday, March 07, 2007

I came across a thought: "Bionomic Analysis of Predatory Exclusion of Technologies"in which economies are viewed as a tropical rainforest, populated by numerous highly specialized technologies instead of highly specialized organisms. The relative advantages of one technology over another determine the dominance of that technology in a manner similar to species survival patterns in nature. This similarity to natural selection of the acceptance, viability and life cycle of a product or a technology in a marketplace has been one of high importance to economic analysts for many years. Models of self-organizing economies fit well into the bionomics paradigm because they are deterministic and can therefore show which technologies can survive in which markets and to what extent.


The expectation is: development of new technologies is faster in markets with a high ratio of labor/capital costs than in markets with a low ratio. In some markets with low labor costs old technology may persist indefinitely.
Land, Labor, Capital and Enterprise are basic building blocks of a company. US has high labor cost but low capital cost. Alternately, China has high capital cost and low labor cost. At a firm labor, firms could be Land driven, like Real Estate Companies in India scouting funds on Land Bank, Labor driven like Infosys, Capital driven like Semiconductor Fab companies, and Enterprise driven like Google.

As land used to be source of power in Feudal ages, and still in some countries like Burma/ backward states like Bihar, future power is going to come from Enterprise inventory. Since Enterprise energy is not a constrained commodity like land, power will be driven by merit, and thats a good thing to happen

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