Around 1:19:00
Definition-creativity:
4 (not 5?) different conceptions of creativity are out there:

1. Manhattan Project version: clever people -> you organise & structure them -> together they achieve what nobody alone would be able to achieve -> record industry model -> producers -> the maestro behind it -> they should earn 90%
2. The mad genius: all in his head
3. Genius in the community: the community creates together -> Mississippi blues delta
4. The jam session: “Rather than the individual genius there is the synthesis of things that happens when you get ??? people together in a rather unstructured free form kind of way.
5. The live event: never to be repeated, will never be the same again -> you were there, you were part of the magic

Young people think 5. is what is creative. => There will be a shift. It’s not about perfection, it’s about being live and real.
“A younger generation, they think creativity is something messy, something that happens in the field, that they can talk about because they were there, they were part of it. And it’s actually reconfiguring the notion of creativity.”

TOC

1. Beyond Utopia
2. New Frontiers of Social Change
3. The Obsolete Monetary system
4. Resource-Based Economy
5. Motivation, Incentive & Creativity
6. The Human Aspect
7. The Venus Project

2
Definition-BIM
BIM is “The process of creating and using digital models for design, construction and/or operations of projects.”

21
“For decades, aerospace, automotive and shipbuilding companies have designed their complex products virtually, working closely with their suppliers, and used the models to drive their fabrication equipment. In effect they build the product twice, once virtually to ensure optimization, then physically in exact compliance with the model, at a high level of quality and production efficiency, in safe clean conditions with a skilled and well-trained workforce. This has contributed enormously to improved productivity, safety and product quality in those industries.”
“The Key Concepts of BIM
Most of the important benefits of BIM can be tied to three fundamental concepts:

1. Database Instead of Drawings
2. Distributed Model
3. Tools + Process = Value of BIM”

22
I would call it the increasing level of use of BIM. It starts with a simple model, goes on to a model in time (the virtual construction process of a building), adds project management, then links costs to to those project elements, allows photo realistic illustrations, and provides a model the owner can use for maintenance purposes.

• “Design models – architectural, structural, MEP and site/civil
• Construction model – breaking the design models down into construction sequences
• Schedule (4D) model – linking the work breakdown structure to project elements in the model
• Cost (5D) model – linking costs to project elements in the model
• Fabrication model – replacing traditional shop drawings and driving fabrication equipment
• Operations model – for turnover to the owner”

24
“Although it can be said that we are still in the “wonder years” of this industry transformation, one thing is clear, we are not going back.”

Mentions “storyworld” on page 521.
References offer some texts I can quote for:

• Dawson’s Creek
• Babylon 5
• Twin Peak

519
Definition-transmedia:
Definition-transmedia storytelling:
“Taken by itself, the term “transmedia” simply describes the process of content moving or expanding from one medium into another. As such, transmediation can describe practices ranging from adaptation (e.g., turning a novel into a film) to merchandising (e.g., creating action figures in the likeness of film characters). However, the notion of transmedia storytelling is more specific, and is used to describe the process of further developing a coherent narrative (or elaborating a narrative universe) by distributing related story components across multiple media platforms.”

520
“While most major media franchises of the 1980s expanded to include both licensed merchandise (toys, clothing, breakfast cereal) and transmedia components (films, television series, video games, comic books), many of the most popular franchises were actually financed and launched by merchandisers to help sell their products.”

521
“are these transmedia extensions being developed primarily to tell better stories, or to generate higher profits?”
“Meanwhile, each “platform” serves as an advertisement for the others, and hence for the whole, thereby allowing media corporations to make money from their advertisements.”

521f
“The most significant shift toward horizontal integration and media franchising came in the 1930s, when Walt Disney introduced a new business model that he described as total merchandising. Under this model, all Disney products served dual purposes: branded merchandise, television shows, animated movies, and amusement park rides all simultaneously functioned as entertainment and as advertisements for every other Disney product. Disney’s characters were not the first to be featured on merchandise or appear in multiple media, but they were almost certainly the first characters designed to serve as entertainment “brands.””

522
Description of The Lost Experience.

523
“The 1980s, in particular, brought an explosion of youth- focused media franchises. Countless film, television, and comic book characters were introduced (or reintroduced) as transmedia franchises, complete with comic books, multiple cinematic releases, animated television series, and a wide range of toys and branded merchandise. In fact, during the 1980s, many of the most popular entertainment franchises were launched not by media companies, but by merchandisers and toy manufacturers looking to build audiences (and markets) for their properties (see “1980s Media Franchises” sidebar).”
“But while branded bed linens, breakfast cereals, and soft drinks encourage children to consume products, it is important to recognize that toys, games, and many other franchise products can enable children to interact with, and take control of, a franchise’s stories, themes, and characters.”

524
“These [The Matrix'] problems indicate the degree to which transmedia stories must now carefully balance some viewer’s desires to dig deeper into the story world with other viewers’ desire not to feel left out.” -> You could simply ignore the casuals, but then you won’t get their money!

525
“From this framework, we might then understand today’s expansion of storytelling across media as providing greater opportunities for involvement, and as representing development in narrative form and technique, not just an explosion in cross-media promotion.”

526
“One of the clear signs that transmedia storytelling might be developing new ways to tell stories, and not just new platforms from which to reap profits, is that many writers and directors are becoming intimately involved in the transmedia proliferation of their products.” mentions Simpsons, Matrix, Lost as examples.
“as many transmedia tales have also been synergistic goldmines for their corporate parents, often the economics of the media industries have encouraged media corporations to vigorously pursue and solicit projects that can cross various media. Concerns regarding the hidden persuasions of product placement and the monopolistic tendencies of synergy continue to exist, but they are now being accompanied by some writers’ and consumers’ excitement at the prospect of yet more developed story worlds.”

Says ARG has become a term used for everything and has therefore lost its meaning.

Definition “ARG”:
“In fact, ARGs are not defined by what they are, but what they are not. ARGs are not videogames or computer games. They are not casual games. They are not traditional sports games, or board games, or playground games. But they are essentially everything else that involves some sort of game-like experience or play, and that is why we are seeing such a confusing collection of things being called ARGs.”

“I think that the term ‘ARG’ is an umbrella term de facto used for the class of games that do not fall under traditional game definitions, and the reason why it is gaining such prominence and momentum is because of a blossoming of non-traditional games.”

“In time, better sub-classifications will crystallise out of our experimentation, and genres of ARGs will emerge, just as the genres of videogames are now well-known. For now, though, we should recognise and savour the happy confusion that exists, and embrace the freedom that this wholly alternate class of games gives us.”

A comment by a developer probably:
“An ARG is a game that requires a greater-than-average intellectual and imaginative wattage from its players if they are to get from the experience as much as the creator hopes they will.
Which doesn’t bode well for the chances of them ever going mainstream…”
I think they CAN go mainstream, but they have to become easier accessible.

mssv.net (11.05.2010)

xii
“That is our general theory, namely that the analysis of rules is the explanatory basis of the nature and the causes of wealth in consequence of the coordination of rules, and that economic evolution in rules is the explanatory basis of how this wealth changes.”

xiii
“both behaviors and technologies co-evolve and mutually adapt to each other, a process that invariably results in both micro and macro structural change.”
Definition: “Our general theory of economic evolution is therefore intended as an integrated generic framework to define the rules of an economic system, how they are coordinated, and the causes and consequences of their change.”

xv
“Knowledge builds knowledge, and the consequence is economic evolution, both as an extent structure of knowledge and as a historical trajectory of knowledge.”
” We require micro analysis to study how individual carriers originate, adopt and retain novel rules, and to analyze the change in micro structure that results. We require meso analysis to study how populations of rules change and the transformations in industries, markets and institutions that result. We require macro analysis to study how meso units themselves are coordinated into a macro whole and the historical logic of growth and development as sequences of macro trajectories.”

1
Definition “economics”:
“evolutionary economics is best defined by what it is not – i.e. it is not a mechanistic analysis of economic coordination and change. It is not the study of the consequence of things already known, nor of their exogenous disturbance.”

2
Definition “economy”:
An economy can be defined “as a complex open system, or more specifically, as a non-linear, quasi-entropic, differentially replicative, partially stochastic, non-integral, non-computable, non-equilibrium, boundedly rational, learning focussed, behaviourally conditioned, self-organizational, strategically interactive, path-dependant, environmentally composed, institutionally structured, co-evolutionary, discovery-based, enterprise driven, technology and resource dependant, topologically complex adaptive ongoing process of variation, selection and replication in the growth of knowledge.”

3
“The complete axiomatics of evolutionary realism can be summarized as follows:

Axiom 1: All existences are matter-energy actualizations of ideas
Axiom 2: All existences associate
Axiom 3: All existences are processes”

4
“Evolutionary reality is composed of populations [axiom 1] and structures [axiom 2] of idea-actualizations (i.e. process-structures) that change with time [axiom 3].”
“Economic evolution is therefore not ‘just a metaphor’ from biological evolution. Rather both economic and biological evolution, along with all other evolutionary subject domains, share common properties represented by the three axioms of evolutionary realism.

5
Definition “evolution”, “economic evolution”, “subject”, and “object”:
“Evolution is the process of the adoption and embodiment of ideas into new carriers and in economic evolution that carrier is primarily the human mind.”
Subjects are “processes that centre about the human mind”.
Objects are “processes that relate to the external environment of things”.

“Subjects are not objects because objects have no mind, and, therefore, play only a secondary role in the process of economic evolution.” Capital is way less important than humans/knowledge.

6
“The human mind is [...] the seat of economic evolution.”

8

“Economic evolution is the co-evolution of subject and object rules. [...] Economic evolution is therefore a complex generic process at the nexus of subjects and objects. This makes an obvious difference between, for example: (a) engineering, which is the pure study of technological rules; (b) sociology, which is the pure study of social rules; (c) ethology, anthropology or behavioural psychology, which is the study of behavioural rules; and (d) cognitive psychology or neuroscience, which is the study of cognitive rules. Economics is the study of subject and object rule co-evolution, and therefore involves (at least) all of these.”

9

10

11
“All rules have carriers in the same way that all existences are composed of an idea and a matter-energy actualization of that idea. Carriers and operations are the material reality of a rule.”
“Schumpeterian economists ever since [Schumpeter] have centred their analysis about trajectories, and in particular technological trajectories.” Very good references!

12
“a rule process in three distinct phases:

Phase 1: Origination of a novel rule
Phase 2: Adoption of that rule into a population of carriers
Phase 3: Retention of that rule in a population of carriers”

“A trajectory is the process by which a novel rule is originated, adopted and retained in a carrier population, such that it eventually becomes coordinated in the economic system resulting in a new economic order.”
“The population sum of micro trajectories for a single rule through time is a meso trajectory, and a meso trajectory is the basic dynamical unit (i.e. process) of economic evolution.”

13
“[Evolutionary economics] shares with biology the fundamental ontological premise that it is ideas (or rules in analytic language) that evolve. But in economic evolution, these rules are generic in that they are created by the human mind, and neither the product of genetics or any other exogenous factor. For this reason, evolutionary economists emphasise that the locus of the wealth of nations is the human mind and its propensity to originate, adopt and retain new ideas.”
‘Idea’ in analytic language: ‘rule’.
‘Actualization’ in analytic language: ‘carrier’.

14
“economic evolution is both a self-organizing and creative-destructive process of a novel rule trajectory.”

16
“The fundamental questions in economics are not, in this view, the problems of choice in markets or efficiency in firms, but rather the coordination of the whole economy and how this changes.”
“So although we maintain that evolutionary economics is ultimately for macro analysis, we allow that the definition of macro may be scalable to ‘macro units’ smaller than the whole economy.
We call this partial evolutionary economic analysis [...].”

21-24
Meso must be at the centre of evolutionary economics.
There is no direct relationship between micro and macro.
There is a relationship between micro and meso, and meso and macro. (see p26)
Therfore evolutionary economics needs a double methodology: methodological individualism for micro-meso, and methodological pluralism for meso-macro.

24
“Indeed, the global macroeconomy is quite possibly the most complex system in the known universe, and certainly at least as complex as the human brain or the global ecosystem. Yet although no neuroscientist would describe the mind as a simple neuron- to-behaviour aggregation, and no ecologist would describe the ecosystem as a simple gene-to-ecosystem aggregation, the current mainstream paradigm of economic analysis is analogously that, namely the supposition that micro operations sum to aggregate economy.”

25
“The reason these otherwise naturally meso concepts have remained static and exogenous − even when it is observationally unambiguous that markets change, that industries change, and that technologies change, and moreover that the most immediate and pressing economic problems that agents face is in dealing with such change − is that the aggregate logic of the micro-macro framework cannot have it otherwise. It is the theory not the reality that is wrong.”
“As every entrepreneur and World Bank economist knows, it is ultimately the analysis of the problems of change that reveal the qualities of a good framework. The micro meso macro framework is, we argue, geared precisely toward the analysis of such change.”
“Evolutionary micro analysis, then, is the study of individual rules, carriers or systems that compose a meso unit. And evolutionary macro analysis is the study of coordination and change in the structure of all meso units as a whole.”

26
There are two foci of evolutionary economics: “a micro–meso focus about agent carriers and rules; and a meso–macro focus about rule populations.”

29
Definition “Homo Sapiens Oeconomicus”:
“Homo Sapiens Oeconomicus is generic man. It differs from the classical notion of Homo Oeconomicus in the sense that it explicitly recognises the element of Homo Sapiens, namely the ‘wise man’, and not just as a tool-making and tool- using animal, but as a rule-making and rule-using animal that experiences generic change. Homo Sapiens is capable of knowledge, and Homo Oeconomicus is capable of economic operations. Homo Sapiens Oeconomicus is capable of new knowledge for new operations and, therefore, is the carrier of economic evolution.”

30
“The uniqueness of Homo Sapiens Oeconomicus lies in these higher order abilities as manifest in the creation of 2nd order rules for changing and developing 1st order rules. The creation and transmission of these “generic rules” is the basis of what we call culture, a point that resonates across the social sciences, but it is also the foundation of economic analysis from the evolutionary perspective.”

31
“We now effortlessly live in cold climates, hunt fish, and fly at night, and that has nothing to do with biological evolution of the human organism, but rather is a consequence of economic evolution in our ability to originate, adopt and retain knowledge. Economic man is a generic animal.”
“The ideology of evolutionary economics, then, is neither the perfectibility of man or society imbued in the concepts of “rational man” or “socialist man”, but closer to the spirit of “renaissance” man with respect to the optimistic prospects of new knowledge and to the goodness and naturalness of both an open society and an open mind.”
Definition “agency”:
“The generic ability to use and adopt knowledge is not limited to agents however, but also extends to firms, organizations, households, networks, and other socially organized systems of agents, which we shall call agencies.”

32
“Technical change moves the economy, but so too does change in the rules that organize people. Evolution in social rules, including agencies, is also essential to economic evolution.” Sandberg was talking about the same when he said that technology changes faster than the consumers’ understanding of them.

33
“Agencies organize agents into structures of knowledge that otherwise do not exist through
any aggregation of those agents, but rather through the emergence of specific connections that yield generic value.”

36
“Economic evolution originates in a micro trajectory, as the process by which a micro unit acquires a new generic rule and thus changes its knowledge base.”

37
“In most cases, what is originated, adopted and retained is not a rule but a rule complex of subject and object rules.”
Definition “micro trajectory”:
“We define this process by which a micro unit becomes generically different as a three-phase structure – origination, adoption, retention – over two types of carriers – agents and agencies – in terms of three orders of rules – 0th, 1st, 2nd – and over four types of rules – CBST. This generic micro 3×2×3×4 space is analytically appropriate, we suggest, for the representation of any rule in any micro unit at any point in space and time in order to provide a useful micro foundation for meso and macro analysis of economic evolution.”

38
Definition “global/local generic novelty”:
“Global generic novelty is the first carrier of a novel generic rule. Local novelty is the first carrier of that in each new environment.”

41
“Learning is adaptation to a world, whereas adoption is a generically marginal process that changes the world. Learning is a process of adaptation, but adoption is a marginal process of differentiation and progress. Learning stabilizes known advances, but adoption drives them. Adoption, not learning, is therefore the core mechanism of microeconomic evolution via generic change in micro units.”

42
“Rule adoption into an agent or agency is also conditional upon the ability of the carrier to cope with the uncertainty of the event, to manage the process of change and to finance the resource cost involved.”
“To adopt a new rule is to become generically different. And generic difference is the driver of economic evolution.”

47
There are four aspects of creative destruction:

1. “A rule that cannot be generically communicated (i.e. encoded and decoded) is just a person with an idea; it is not entrepreneurship and it is not innovation.”
2. “This will often mean that the entrepreneur makes two contributions: (1) the ‘discovery of the opportunity’, often in the form of a new technical rule or a new use of existing technical rule; and (2) the creation and organization of the necessary accompanying rules for thinking, behaviour and social organization to render the novel rule viable. This may involve campaigns of persuasion that endeavour to change other agents’ thinking and behaviour, the provision of organizational and financial structures to make these changes possible, and the creation of new market structures to facilitate these changes.”
3. Natural (good) monopoly: “the entrepreneur [is] creating or opening up a new market about a new generic rule and then being the first to occupy it.”
4. “meso 1 proceeds in a fog of uncertainty with the expectation of profit. [...] Expected profit is not a necessary incentive to undertake this endeavour, but it is often sufficient.”

49
“Meso 2 therefore begins with high uncertainty, but toward the end of the adoption process the cumulative effect of experience and experiment will have greatly reduced that uncertainty and knowledge of the rule will settle into understandings.”
Meso 2 / competitive enterprise “is a competitive process in the literal sense of a race in which no one knows who wins until the end, although with the twist that there is no end to the race, only participant or player exit. Meso 2 is the exhilarating phase of market capitalism at its best and at its worst, both creative and destructive and ordered and chaotic all at once, creating new solutions for some, and new problems for others. This is the normal run of generic competition and the cutting edge of economic evolution as ideas are tried and tested. Competitive enterprise is competition to innovate and therefore the powerhouse of economic evolution.”

50
“By meso 3, the rule has formed into an institution, such that the carrier population replicates and the structures it requires are maintained.”
“By meso 3, uncertainty has been transformed into risk and generic profits have been extracted. The size of the market is revealed and good strategies have been learnt. Prices will become stochastic as the information conveyed by them is fully expropriated.11 Stable patterns of activity will predominate and transactions costs will fall as risk premiums vanish and efficiencies of scale and scope are produced. Maintenance and service niches will open up, and expertise will be well-defined. Expectations about the rule will converge, and any environmental, cultural or political implications will become pronounced. The rule will become embedded in material artefacts and human behaviours. Cognitive and behavioural rules will normalize into habits and routines, and social and technical rules will become dominant and standard. Meso 3, as such, will begin to look a lot like the world that neoclassical economics describes. Yet the difference is that this world is explained in generic analysis whereas in neoclassical analysis it is simply assumed.”

55
“The meso unit in a market can be usefully further characterized by its generic scale and velocity. Some ideas are bigger than others, and some ideas happen faster than others.”

56
“while technical rules may be fast and easy to adopt, new behavioural rules may take much longer, effectively slowing the entire process. A novel generic rule is adopted at the velocity of its slowest component, and so the complexity of a rule over the rule taxonomy will matter.”

59
“Entrepreneurship is most valuable in meso 1 and 2, but management is most valuable in meso 3.”
“Venture finance drives meso 1 and 2, but standard savings and investment drive meso 3.”

63
“Finance is an evolutionary enterprise that can only exist in the context of novel generic rules, and therefore in the face of uncertainty. Savings and investment are both generic and operational notions; but finance is a purely generic property, such that it has no role outside of an evolving economy and, in turn, no meso trajectory can happen without finance of some kind or other.”

67

68
“At the deep level, macro 1 involves the de-coordination of the extant logic of rule associations due to the new rule upsetting existing structures of what was known to be feasible, true or reasonable. The conventional response is at first to deny or attack it, then to adapt to it through awkward adjustments of position, then finally to assert that that was what was believed all along.” That’s what Hollywood has always been doing, see VHS and the Boston Strangler for example.

69
“Macro 2 changes things: it changes what people think and do, and also the systems they form.”

70
“The state of macro 3 is the state of macro order, a process that is both ever-embedding knowledge and ever-regenerating those rules so as to retain and maintain the coordination of the once-novel generic rule within a new macro order. By macro 3, the meso rule is embedded into the macro order at all levels and it is at this stage that the broader implications of the rule play out.”

76
“Phase 3 of a cluster is the ongoing retention and stabilisation of the operations of the cluster. The two extreme states of this are, first, that the entire cluster will be absorbed into a very large firm in order to internalise all the connections between the constituent rules and hence to more efficiently control or exploit them. And second, that the entire cluster may become controlled by government through regulation, planning, sponsorship, or direct ownership. This may then further be tied to policies relating to regional development, innovation, education, infrastructure and trade. Actual outcomes will invariably fall somewhere between these states, with some mix of private and public provision of connections.”

77
“We defined a macro trajectory as the effect of a meso trajectory on the system of all other rules. This was then analytically represented as a three phase process of decoordination, recoordination and ongoing macro coordination of both the deep generic order and the surface generic equilibrium. We examined the ways in which coordination failure can occur at each of these phases as a failure of rules or populations to connect. And we then further developed this to consider the co-evolution of systems of meso rules explicitly in terms of emergent clusters of meso units and trajectories. Overall, we sought to unpack the complexity of generic coordination in an open evolving economic system in consequence of a meso-macro trajectory.
We have argued in this chapter that economic evolution is a process of change and recoordination. A meso trajectory is the driving process of change, but a macro trajectory is the process of decoordination and recoordination that results. This process consists of a reconfiguration of the associations between rules (deep structure) and of the populations of carriers (surface structure).”

78
“The coordination of economic systems is a consequence of human cooperation and the imagination that sustains it. But the evolution of economic systems is a consequence of human imagination and the cooperation that sustains it. The macroeconomy can, therefore, only be understood as a co-evolutionary process.”

80
“Regime: Rule + Carrier population + Trajectory”

85
“Our theory of rules is as follows:

• Rules are originated by human minds
• There are two major classes of rule – subject and object
• There are four minor classes of rule – cognitive, behavioural, social and technical
• There are three orders of rules – 0th , 1st, 2nd
• There are three phases to a rule trajectory – 1 2 3
• Each rule can have many carriers – this is the rule population
• There are two types of rule carrier – agents and agencies”

85f
“So far, then, we have built up a theory of economic evolution that begins with a novel idea in a single agent that then develops into a theory of the meso unit as the rule is adopted and retained by a population of carriers. Such a meso trajectory disturbs (i.e. decoordinates) the macro order and engenders a process of recoordination that over a macro trajectory results in a new macro order. This process occurs in parallel, as multiple meso trajectories unfold at once, and in series, as one meso trajectory leads to the next. These meso-macro processes are defined respectfully as the coevolution of many meso and the process of regime transitions from one trajectory to the next. And that, in abstract, is our theory of economic evolution.”

86
“The statement that there is currently no general theory of coordination will surely annoy just about everyone [...].”

93
“Homo Sapiens Oeconomicus does not just inhabit an environment and then adapt to it, as did Robinson Crusoe, but actively seeks to change that environment in order to
explore both its generic capabilities and its generic potential. Economic man has knowledge. But it is not the case that he will never be satisfied with that knowledge, but rather that he never can be, because other agents will create new ideas and those will, eventually, compete with everything he has. The solution therefore is to continually develop new knowledge.
The study of economic evolution is the study of this process, which we think can be analysed as a micro meso macro process.”
“economic systems evolve when a new idea creates a new environment that opens a path to create further new ideas.” (summary about Hayek)

94
“all policy is intervention into the economic order to promote welfare.”

95
“We may therefore distinguish three levels of generic policy as based about the three orders of rules: 0th order constitutional rules; 1st order operational rules; and 2nd order mechanism rules (see 1.4.2 above). Policy that seeks to effect coordination and change in constitutional rules is 0th order generic policy. Policy that seeks to effect coordination and change in operational rules is 1st order generic policy. And policy that seeks to effect coordination and change in mechanism rules is 2nd order generic policy.”

98
“Difference is the elemental driver of economic evolution, and societies that are tolerant of different ideas and rules carried by micro agents possess a necessary condition for economic evolution.”

99
“Open societies drive economic evolution through the creation of space for novelty and the possibility of micro units becoming generically different. Freedom is not therefore just a moral, civic or political quality, but also a fundamental economic quality in the possibility of opening the future to new generic potential. The value of freedom is the possibility of novelty, and the power of novel generic ideas is that they are what endogenous growth theorists call ‘nonrival’, i.e. they can be adopted and used by other agents without operational cost to their originator. But generic ideas are operationally costly to originate, adopt and retain. New knowledge is neither free nor given, but requires generic investment in rules resulting in the de-coordination and re-coordination of the economic order, an ongoing and natural evolutionary process that Schumpeter called ‘creative destruction’, but which we have defined and given further analytical precision with the concept of a ‘meso trajectory’.”
“It is the possibility of novelty that is the origin of all wealth, and it is the market system – along with other institutional mechanisms of generic freedom, including rules for origination, adoption and retention – that constitutes the process of ongoing generic construction. This is the basis of all freedom, the origin of all wealth, and the central unit of evolutionary economic analysis.“

“Traditional models [of innovation] based on a distinction between publicly funded pure research and commercial development based on patents and other forms of intellectual property no longer appear relevant to the needs of a networked economy depending heavily on amateur production.”

“The 19th century model of cultural innovation“: The individual inventive genius (Faraday).

“The 20th century model of technical innovation“: Large scale research institutions (universities) + (private) industrial research laboratories.

The 21st century model of innovation: amateur collaborative innovation

“In most sectors of the economy, the rate of technological progress has slowed substantially [in the 21st century].” (Boeing 747, fridge)

“motives [for amateur collaborative innovation] like these do not co-exist well with a profit motive.”

“amateur innovation is unlikely to be promoted by policies that sharpen financial incentives. On the contrary, the greater the potential for well-informed market participants to extract profits from a given activity, the less willing amateurs will be to make uncompensated contributions.”

“Any correlation between the capacity of a site to capture AdSense revenue and the value of the site to its users is indirect and tangential at best.”

“innovation in a network economy typically requires contributions from widely distributed sources and yields benefits that are diffuse and hard to capture. There is no easy way of relating the rewards of innovation to the value of individual contributions.”

“The vast majority of market returns from internet services are tied to advertising.”

“Amateurs have little or nothing to gain from intellectual property rights and are correspondingly unwilling, and often unable, to pay others for the right to use patented or copyright items that derive much of their value from the collective contributions that make up the network.”

First step in policy for networked innovation: “it is necessary to encourage creativity in all its forms. Since the outcomes of creativity cannot be prescribed in advance, policies to encourage creativity must rely on providing space for creativity, including access to the necessary resources, free time for creative workers to pursue their own projects and the communications networks necessary to facilitate creative collaborations.”

“technical and cultural innovations are increasingly intertwined”

13
“The question is then: how is such ‘creative destruction’ occurring in media industries, if at all?”
“In spite of the success of a few media enterprises, creative industries in China are fragile when compared with the corporate structures and production relations of Hollywood. In developed economies the mass media are dominated by highly concentrated forms of organization.”
“In China, the options for development of audiovisual industries are still uncertain and subject to vagaries in national media policy. Media organizations may expand provincially; they may aspire to horizontal integration; but the bottom line is likely to remain a lack of capital, which forces them to seek out low-cost ways of competing in a crowded media industry.”

14
“In television industries for instance financial returns on program development and production are extended across, and within new territories. In cinema co-productions and runaway productions are a means of ensuring cost savings.”

15
“Globalization by franchising provides a very different model of development, one that is flexible, post-Fordist, and subject to user innovation.”
“Within the context of globalization, [...] there are four levels of economic activity: economic specialization, de-territorialized production (production of goods in lowest cost locations), partially traded or non-traded services, and routine manufacturing and services.”

economic specialization

“These blockbusters and global brand services are often incubated in ‘export-oriented, specialized industrial clusters’. Hollywood and Silicon Valley, which are result of institutionally embedded know-how, produce continuous learning and innovation. The output of these centres targets world markets.”

de-territorialized production

16
“Outsourced productions in cinema are the most noteworthy example of how international producers seek to minimize costs.”

partially tradable or non-tradable services

“The internationalized services as such need to partner up with local knowledge, in turn creating mutual benefits and cultural technology transfer.”

routine manufacturing and services

“it is possible to make products and services at any location in the globe.”

16f
“The demand for innovation drives the imperative to constantly examine the international market for opportunities.”

17
“This leads back to the conundrum of creativity: how do developing countries compete? If it is easier to compete in the cultural economy by making local versions of global products—or by acting as a low-cost location for footloose multinationals—then the specificity of culture is ultimately eroded. On the other hand, a focus on the national can have the effect of marginalizing the cultural product and ensuring that it fits only into a niche culture market, as illustrated by national cinema and world music. The dilemma for producers, moreover, is making a leap into high-value markets: independents located in developing countries do not have the resources to incubate, produce, and market so as to produce ‘winner-takes-all’ branded products and services. In many instances, new artists are discovered in the margins and expediency drives them or their agents into to the arms of international financiers, often handing over the valuable IP rents in the process.”
“Over-bureaucratization is endemic to the cultural sector and works against implementation of long-term business models.”

17f
“These factors, in combination with existing conventions within the marketplace, notably a propensity to rely on relationships make it difficult for cultural enterprises to generate start-up capital. Product innovation is therefore more likely to be incremental and imitation is favoured over innovation. The focus on imitation has led to the success of Japanese and Korean creative industries. Whereas these countries have managed to move to the next stage (innovation), China remains locked into a cycle of dependency.”
“The principal financiers of the Chinese film industry are government: direct support for approved films as well as indirect support for co-productions via tax breaks and reductions of expensive red tape; foreign investors: particular in co-productions and joint-venture arrangements; major business enterprises: through revenue-sharing arrangements and product endorsements in film; advertising companies: often through brokering of services such as post-production; and state-owned enterprises: many of these such as the People’s Liberation Army, are in fact highly profitable enterprises with interests in communications.”
“In 2003 80 percent of revenue from box office receipts came from the 20 imported blockbusters (Hua 2004). According to official statistics copyright earnings on imported films were 10 times more than those received from domestic productions.”

18f
“The politicization of film content, erratic censorship regimes, and the necessity of managing scripts to appease officials, impacts on production investment in two ways. First, it discourages domestic investors who are unwilling to sink their capital into scripts that are politically doctored; and second, it opens up a private investment market for the more adventurous producers. Since 1997 the partial privatization of China’s leading film studios (Beijing Forbidden City Film Corporation, Xian Film Corporation, Ermei Film Corporation, and Shanghai Film Corporation) has stimulated private investment and co-productions. Most of the capital investment has come from Hong Kong, Taiwan and Japan. While the majority of films in 2003 were still produced by the state-funded studios, there was a significant increase in the number of films (Ibid, 32) produced by privately invested companies. Some of the more notable independent production and investment houses are Beijing New Vista, Huayi Brothers and Taihe Film Investment Company, and Century Hero Audio-visual Investment Company (Yin 2004).”

19
“The success of China’s film industry and the capacity to create exportable content is contingent on unleashing creativity as much as stimulating finance.”
“Tarantino has undoubtedly been impressed by the willingness of the Chinese to work enthusiastically for low salaries in contrast to the spiralling costs in other international locations.”
“With a population of more than 1.3 billion China’s cinema box office revenue is just 25 percent of that of Korea, whose population is 47 million.”
“The success of the Korean new wave has seen film financing models going on-line, allowing ordinary people to buy into the movie-business (Kim 2003). Netizen funds are a way by which (mostly) young Koreans invest in film projects for a return based on the movie’s success after release.”

19f
“International connections are important in order to break out of the cycle of dependency on state funding. In 2003 more than half of the 140 feature films made in China received substantial investment from government but less than half the number of films legitimately screened in Chinese cinemas in 2003 were profitable, and as mentioned above, the heavy grossing films were international ‘blockbusters’.”

20
“the average cost of production was only rmb 3 million (USD362,000), or 0.5 percent of the average cost of production in the U.S.”
“Cellphone received investment finance from a number of sources with major contributions coming from Motorola, China Mobile, BMW, and Mtone (a Chinese internet content provider). Motorola invested rmb 4 million (USD484,000), China Mobile rmb 800,000 (USD97,000), while BMW contributed rmb 1.2 million (USD145,000). Sponsors received product placement and visible recognition in the film promotional messages. For instance, the protagonist of the film—a successful TV talk host who inadvertently left a message from a lover on his new Motorola cellphone—also drives a BMW. In addition, Motorola and BMW’s logo were displayed prominently on advertising billboards. Music copyright delivered a further rmb 8 million (US$968,000) (Meng 2004). In addition to securing financial support, the production company (Huayi Brothers and Taihe Film Investment Company), which is incidentally the advertising agent for China Mobile, sought to ensure returns on investment by working with a Guangdong-based DVD maker to produce cheaper legitimate versions in efforts to limit piracy (Shanghai Daily Jan 21, 2004).”
“Television is an industry that employs an army of people in China. The flow of investment is more dynamic than cinema as the market is shaped by domestic consumption and broadly supported by advertising.”
“Television stations are still technically owned by the state but they are now allowed to apply for licenses to operate as corporate entities responsible for their profits and losses.”

21
“This is not straightforward philanthropy, however, but investment based on guanxi (reciprocal) relationships.”
“In China cable television is ubiquitous but the business model remains low value because subscription to the 30 or so channels is under priced.”
“the mass audience for television – some 900 million — is shared among some several hundred stations. The bulk of income for television stations, and for producers, now comes from advertising.”

23
“Digital content industries provide new challenges for investment in the creative industries.”
“Chinese government is investing heavily in video games production in Shanghai and an animation centre in Beijing. These are joint public-private ventures that draw upon government largesse towards new industry/new economy development in the wake of Korea and Japan’s video games exports. The government recognizes that digital content industries are growth industries and that they have global impact; that is, products and applications developed in China can be marketed globally, in comparison to television and film, which is hampered by being nationally specific. In addition, digital content is invariably produced with the intent of repurposing in multiple platforms: cable, free-to-air, Internet, mobile phone etc.”
“Until recently oligopoly structures have not existed in China due to the need to control information.”
“Digital media is especially relevant to user-led innovation. There is a need to respond quickly to consumer demand and this gives China an advantage in that it has a large consumer base to test new products and applications.”

24
“while ideas may be generated in developing countries, finance to commercialize still comes primarily from multinational investors.”
“In order to avoid becoming a low cost location for media production (Miller et al 2001), China needs to further develop its own industrial base and to recognize the importance of intellectual property protection in developing local creativity. The synergy between creative enterprise and financial inputs into core creativity, R&D, incubation, and marketing now becomes central to meet the challenge of developing export content.” Not sure about that.
“how do countries move from a low national production base into competitive export markets? The transition encompasses a five-stage process.

1. low-cost outsourcing,
2. isomorphism and cloning practices,
3. legitimate co-productions and franchising agreements,
4. niche markets and regional breakthroughs,
5. cultural/ industrial milieu and local clusters can be produced to target high-value exports.”

“These media capitals (Curtin 2003) bring with them economies of scale and scope, the attraction of foreign investment, the certainty of rights management, and greater network and distribution complementarities.”

25
“Successful exports of Chinese film and television, moreover, are ultimately contingent on institutional reforms within China, which will bring these five growth stages into synergistic alignment in order to generate greater value and industry confidence.”

483
It is difficult to pinpoint “how many people are affected by runaway production because of the locomotive nature of the industry.”
“Entertainment executives counter the unions’ argument that the decline in production jobs is due to runaway production, saying that the decline is due to a decrease in the number of films made per year and other efforts to cut costs as above-the-line production costs rise while profit margins fall.”

483f
“Proponents of a petition filed with the Commerce Department in late 2001 supported regulations compelling tariffs equal to the amount of the Canadian subsidy of a particular film or television production to be paid in order for it to be distributed in the United States.”

484
“Other labor groups such as the MPAA, DGA, the International Alliance of Theatrical State Employees (IATSE), and the American Federation of Television and Radio Artists (AFTRA) opposed countervailing tariffs because a possible trade war could result in the loss of thousands of jobs.”
“The petition was withdrawn in January 2002 without prejudice.”

485
“One of the historical benefits of working with a union is that the producing company is assured a certain standard of work and experience, without having to bargain about the workers’ rates and benefits.”

486
“Co-productions are beneficial because they decrease the costs for all parties; foreign entities view them as a “vehicle for collaboration with Americans who excel in technical and creative expertise” and, as a result, better equip them to compete with Hollywood.”
“partnerships generally permit filmmakers greater creative control than if a major studio were the backer of the film or program.”
“From the corporate point-of-view, producing in the United States is no longer cost efficient.”

486f
“While a higher percentage of Canadian workers are unionized than their United States counterparts, the average wage for below-the-line workers is less than in the United States. Further, the “costs related to the acquisition and production of a movie prior to its release,” so-called “negative costs,” doubled between 1990 and 1999, as did the average distribution costs. Entertainment conglomerates dealt with this reality in the 1990s via vertical integration, layoffs, co-productions and other joint ventures, and by conducting more aggressive market research prior to production and distribution.”

487
“”We don’t want to do a TV show in Canada called ‘Pasadena,’ but we can’t justify to our parent company the extra $200,000 per episode it costs to shoot here.”"
“Production revenues in British Columbia, where the popular production city of Vancouver is located, were about $1.2 billion in 2000, compared to $43 billion in revenue for California, furthering the Canadians’ argument that their industry is infinitesimal compared to that of the United States.”

491
“The concept of tax credits for labor expenditures has been gaining support amongst legislators and within the entertainment industry.”
“Ever since the 1920s [...] the entertainment industry has been largely self-regulated.”

495
“North Carolina has consistently ranked as the third highest production center in the country since the mid-1980s.”

498
“From the signing of the Declaration of Independence, capitalism has ruled the federal government’s approach to the arts.”
“The U.S. government should be cautious in its approach, however, not to favor independent or television productions over high-budget feature films, since in the aggregate, high-budget productions do the most damage when they flee U.S. shores. Federal involvement through retraining and displaced worker assistance programs is the least intrusive option.”
“Accepting that runaway production will occur and dealing with the consequences may be a more prudent approach than trying to direct the economics of the entertainment industry from the outset of production.”

499
“In a competitive international marketplace it is neither realistic nor economically practical to completely halt runaway production.“