The Next Shift in Wealth Accumulation is Underway

wealth accumulationThroughout 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.

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Rand Brenner Author
Founder , Licensing4Profits
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 includes 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 Mighty Morphin Power Rangers. Rand is a featured speaker on licensing at investment conferences, trade shows, colleges and startup events. He’s a published writer with articles appearing in several prestigious trade magazines. Rand also mentors at Cal State Fullerton Business School and is a judge for their startup business plan competitions.

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