Throughout history, innovation and technology have shifted the concentration of wealth. In the 1900’s, the Industrial Revolution shifted wealth from the farm to the factory (i.e. machines). Those who learned the new skills of mass production machinery accumulated the wealth.
Today, the next big shift in wealth accumulation is underway. Wealth creation is shifting from the tangible economy (i.e plants and equipment) to the intangible economy of intellectual property. Like the shift that occurred in the Industrial Revolution, wealth will be accumulated by those with the new skills of making money with IP.
Wealth creation of the 21st century will be dominated by intellectual property across all types of industries and business. Intellectual property has become the most important resource, replacing land, energy and raw materials. As much as three-quarters of the value of publicly traded companies in America comes from intangible assets, up from around 40% in the early 1980s.
Intellectual Property (IP) is the highest value wealth class in the 21st century economy. Some estimates put the value of IP at more than $5.5 trillion in the US alone, making it the biggest asset class in the world. IP and the related intangible assets are now the biggest part of corporate wealth creation and business growth.
Profit is now a game of out thinking your competitor and less about out producing him. The old business model designs a product and sells it to create a major product stream. The new business model is built on intellectual property (IP) to generate much higher value than the traditional “product only” business. Today’s market investors are looking more and more at companies with intellectual property. Businesses that focus on creating and controlling rights to IP will be the most successful in this new economy.
Free E-Course: The Licensing Mindset – How to Think Like an IP Entrepreneur
This e-course will open your eyes on why the most successful businesses are built on a licensing business model. You’ll hear how Mrs. Fields, Bill Gates, Dale Carnegie, Google, and others transformed intellect property into business fortunes. You’ll find out about new ways to transform your intellectual property into money-making products and services, and why every IP owner commercializing their IP helps others to do the same.
Rand Brenner is an IP professional whose passion is helping inventors, startups, and businesses of all sizes use licensing to turn their IP into income-producing products, services, and technologies. His decades of experience run the gamut from medical devices to food technology to consumer products. He’s licensed some of the biggest Hollywood entertainment blockbusters including the Batman Movies (1 and 2), and the number one kid’s action TV show, the Mighty Morphin Power Rangers. Rand speaks about licensing and is a featured speaker at investment conferences, trade shows, colleges, and startup events. He’s a published writer with articles appearing in several prestigious trade magazine including The Licensing Journal, Intellectual Property Magazine, and License India. Rand also mentors at the Cal State Fullerton School of Business and Economics and is a judge for their startup business plan competitions.