Access instead of ownership: new economy trend

Furthering discussion on the creative economy, I think it is necessary to examine how access has become a prime influence of change in this new paradigm. At a nuts and bolts level, the role of property and ownership needs to be reassessed. Like Bruns' (2007. 1) view that the definition of production as we traditionally accept it is no longer appropriate in a climate where individuals can simultaneously produce and consume information (produsage), the terms property and ownership of economic inputs now surpasses industrial parameters of plant and materials.

The rise of the creative industries, the knowledge economy, and other corresponding phenomena has seen too, the rise of intangibles. Intangibles are objects, that aren't of the physical form.

Hartley (2002. 118) defines intangibles as "assets such as knowledge, competence, intellectual property, know-how, the people in a company, its research and development brands, reputation, customer relations, etc." Intangibles are far more valuable a commodity in the new economy than tangible assets such as plant and land.

Returning to my original view that defintitions of property and ownership should be revised, the new economy has facilitated a trend away from traditional bricks and mortar "ownership", in the sense that it is no longer necessary to "own" assets like physical buildings, machinery or materials, or buy and sell them to make money. In the new economy; ideas, knowledge, intellectual capabilities and initiative are what increasingly makes money.

Jeremy Rifkin has argued that in the new economy, both physical and intellectual property are increasingly likely to be accessed by businesses instead of exchanged through sale (2000. 5). Ownership of physical capital, he argues, which was central to the industrial way of life, has become marginal in the new economic process. Modern companies are tending to see physical capital as an operational expense rather than an asset, with a trend toward borrowing rather than purchasing (Rifkin. 2000. 5). Intellectual capital, such as intangible assets, are coveted drivers in the new economy. "Concepts, ideas, and images - not things - are the real items of value in the new economy" (Rifkin. 2000. 5).

According to Rifkin, who takes a critical view of the new economy, intellectual capital is infrequently exchanged, rather it is closely monitored by the suppliers (owners) and leased or licensed to other parties (users) for their limited use (2000. 5).

It is noticeable everywhere that businesses are already in transition from owning to accessing. Real estate is being sold off, inventories are being reduced, equipment is commonly leased, and outsourcing has become a regular business activity.

Rifkin's view (2000. 5), which is supported by Howkins (2001. 19) is that where the traditional market used to consist of buyers and sellers, now there exists a trend towards suppliers and users. Rather than buying and selling transactions in the business marketplace, such arrangements like strategic alliances, agreements and cooperation exist. The access trend has seen companies share their resources, which has created large networks between suppliers and users.

Therefore, this trend away from owning assets, to merely having access to such assets, has seen a reconstitution of economic power. While "cheap, durable goods will continue to be bought and sold in the market, more costly items like appliances, automobiles, and real estate will be held by suppliers and accessed by consumers in the form of short-term leases, rentals, memberships, and other service arrangements" (Rifkin. 2000. 6). This change demonstrates how ownership of products has been redefined and "everything is becoming a service" (Howkins. 2001. 201).

References:

Bruns, A. 2007. The future is user-led: the path towards widespread produsage. http://produsage.org/files/The%20Future%20Is%20User-Led%20(PerthDAC%202007).pdf (accessed 25th April 2008).

Hartley, J. 2002. Communication, Cultural and Media Studies: the key concepts. 3rd ed. Routledge: New York.

Howkins, J. 2001. The Creative Economy: how people make money from ideas. Penguin: Camberwell.

Rifkin, J. 2000. The Age of Access: how the shift from ownership to access is transforming modern life. Penguin: London.