Capitalism Without Capital audiobook cover - The Rise of the Intangible Economy

Capitalism Without Capital

The Rise of the Intangible Economy

Jonathan Haskel and Stian Westlake

★ 4.5 / 5(83 ratings)
Start ListeningDownload App
Categories:
Economics

If You're Curious About These Questions...

You should listen to this audiobook

Listen to Capitalism Without Capital — Free Audiobook

Loading player...

Key Takeaways from Capitalism Without Capital

Learning Tools

Reinforce what you learned from Capitalism Without Capital

Mind Map

Capitalism Without Capital
The Shift to Intangibles+
Core Characteristics+
Societal & Economic Impacts+
Policy & Future Solutions+

Quiz — Test Your Understanding

Question 1 of 9
According to the text, what is the fundamental shift currently occurring in modern economies?
  • A. A transition from service-based industries to manufacturing-based industries.
  • B. A movement away from physical assets toward nonphysical, intangible assets.
  • C. The complete replacement of human labor with automated physical machinery.
  • D. A decline in global trade in favor of localized physical production.
Question 2 of 9
How did early calculations of Gross Domestic Product (GDP) historically treat intangible investments like research and design?
  • A. They were considered the primary driver of economic output.
  • B. They were heavily taxed to discourage nonphysical production.
  • C. They were completely ignored in favor of physical investments.
  • D. They were measured only if they resulted in an international patent.
Question 3 of 9
Why are intangible assets like software or operating manuals considered highly 'scalable'?
  • A. They can be used repeatedly and simultaneously in multiple locations without additional production limits.
  • B. They can be easily liquidated and converted into physical assets if a company goes bankrupt.
  • C. Their financial value automatically increases in direct proportion to a country's GDP.
  • D. They require constantly increasing amounts of physical infrastructure to maintain.
Question 4 of 9
Why do banks often hesitate to lend money to intangible-heavy businesses?
  • A. Intangible assets generate too many regulatory hurdles and tax liabilities.
  • B. Intangible assets are usually 'sunk costs' that cannot easily be seized or sold in a secondary market if the business fails.
  • C. Intangible-heavy businesses typically operate in industries with strict government price controls.
  • D. Banks are legally prohibited from accepting intellectual property as collateral.
Question 5 of 9
In the context of the intangible economy, what is a 'spillover' effect?
  • A. When a company's physical inventory exceeds its warehouse capacity.
  • B. When an economic crash in one country triggers a recession in neighboring countries.
  • C. When a business's ideas, concepts, or trained employees are adopted or imitated by competitors.
  • D. When a tech company is forced to share its profits with the local government.
Question 6 of 9
What does the invention of the modern microwave oven illustrate about the intangible economy?
  • A. The danger of investing in sunk costs without a clear marketing strategy.
  • B. The power of 'synergies,' where different ideas and expertise fuse together to create radical innovation.
  • C. The negative impact of spillovers, where a defense contractor's idea was stolen by a kitchen appliance company.
  • D. The necessity of strict intellectual property laws to prevent international piracy.
Question 7 of 9
How does the growth of the intangible economy contribute to wealth inequality?
  • A. By eliminating the need for college-educated workers in major cities.
  • B. By causing property values to rise disproportionately in cities where innovation and intangible investments are clustered.
  • C. By shifting the tax burden entirely onto traditional manufacturing workers.
  • D. By preventing tech companies from offering stock options to their lower-level employees.
Question 8 of 9
Why do the authors suggest governments should focus on nurturing adult education rather than just changing school curriculums (like teaching all children to code)?
  • A. Because technology moves so fast that skills taught to children today may become obsolete or automated by the time they enter the workforce.
  • B. Because adult education is significantly cheaper for governments to fund than primary education.
  • C. Because children lack the cognitive development required to understand intangible assets.
  • D. Because the intangible economy relies exclusively on older, highly experienced workers.
Question 9 of 9
What solution do the authors propose to mitigate the risk of underinvestment in research and development (R&D) caused by the fear of spillovers?
  • A. Banning employees from leaving tech companies to join competitors.
  • B. Eliminating all intellectual property laws to make innovation completely open-source.
  • C. Scaling up government and public investment in R&D.
  • D. Imposing heavy fines on companies that imitate their competitors' products.

Capitalism Without Capital — Full Chapter Overview

Capitalism Without Capital Summary & Overview

Capitalism Without Capital (2017) is an account of the growing importance of the intangible economy. Today, for the first time, most developed economies are investing less in tangible, physical assets such as machinery and factories, than in intangible assets such as software, research and development capability. These intangibles are hugely valuable but do not exist in physical form. The blinks ahead explore the nature of this trend, as well as its effects on business, the economy and public policy.

Who Should Listen to Capitalism Without Capital?

  • Anyone interested in business and investment
  • Economists
  • Those seeking to understand the sudden rise of behemoths like Apple and Google

About the Author: Jonathan Haskel and Stian Westlake

Jonathan Haskel, a member of the Monetary Policy Committee of the Bank of England, is an economics professor at London’s Imperial College Business School. Stian Westlake, formerly the head of science-and-innovation think tank NESTA, currently serves as advisor to the UK government’s minister for universities, science, research and innovation.

🎧
Listen in the AppOffline playback & background play
Get App