The Rise of Technocapitalism

Science Studies 2/2001

Luis Suarez-Villa

The rise of technocapitalism involves the commodification of knowledge in faster and more diverse ways than at any previous time in human history. This article provides insights from a macro-analytical perspective on the phenomena that mark the emergence of technocapitalism as a new form of market capitalism, and their influence on the commodification of knowledge for invention and innovation. The phenomena in question involve the rapid accumulation of inventions and of knowledge-sensitive infrastructure. The rapid reproduction of creativity and a faster diffusion of knowledge, both of which have been supported by a massification of technical education, are also important for the emergence of the new era. Their contribution to the commodification of technological knowledge is most obvious in the pervasive corporatization of invention and innovation, and even more so in the emergence of continuous invention and innovation as a standard component of corporate strategy.

Keywords: technocapitalism, knowledge society, commodification, innovation

Technocapitalism is an emerging form of most valuable resources of this emerging market capitalism, rooted in invention new era. As a result, the new industries and the development of new technolo- and activities that have risen in recent gies. Various phenomena mark the rise years are far more dependent on intan- of this new epoch and are harbingers of gibles than any of their predecessors. major changes in the social and eco- Technocapitalism is replacing the re- nomic structures of the twenty-first cen- production of capital as the most impor- tury. All of the identifiable phenomena tant function of society with the repro- have substantial implications for the duction of knowledge. Capital has be- modes and means through which knowl- come more ubiquitous than ever in hu- edge is used and commodified. man history, to the extent that theories Unlike the raw materials and labour and models based on its scarcity, formu- power, which were the main resources of lated as recently as three decades ago, industrial capitalism, technocapitalism have become obsolete. On the other hand, relies greatly on intangibles. Such intan- the scarcest resources today are knowl- gibles as knowledge and creativity are the edge and creativity. They are scarce pre-

Science Studies, Vol. 14(2001) No. 2, 4–20

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cisely because they can only be acquired vanced society. It should therefore not be over long periods of time and through surprising that the newest and most in- enormous effort and persistence. novative activities, such as biotechnol- More than ever, it seems that the ac- ogy, software design, microelectronics, cumulation and reproduction of techno- advanced computing, bioinformatics or logical knowledge will decide which so- nanotechnology are more dependent on cieties prosper. Those that emerge at the new knowledge and creativity than any top of technocapitalism’s global hierar- of the industries spawned by industrial chy will be the ones that can build up capitalism. By and large, therefore, we and reproduce new knowledge more ef- are witnessing a major transformation of fectively. No society that expects to pros- society that is highly dependent on per in this emerging new era can escape commodified knowledge, deployed to this imperative, in much the same way suit the profit motives of the agents of that those which advanced into indus- the new order. trial capitalism during the nineteenth This contribution will provide a suc- and twentieth centuries could avoid as- cinct overview of several phenomena, similating its premises. which support the emergence of techno- The emergence of the so-called knowl- capitalism. The first set of phenomena edge society is an important outcome of to be considered involves long-term pro- technocapitalism. The reproduction of cesses of accumulation. The accumula- knowledge is at the core of this phenom- tion of inventions and of knowledge- enon, and is as fundamental to the new sensitive infrastructure has been of fun- order as raw materials and the reproduc- damental importance for the emergence tion of capital were to industrial capital- of technocapitalism, and all of the other ism. However, for knowledge to be re- phenomena that are part of this process produced it must first become a com- of change rely greatly on them. A subse- modity. Commodifying knowledge is quent section will consider a set of phe- therefore a vital prerequisite for it to gain nomena related to processes of diffusion any exchange value. Under techno- and reproduction. The massification of capitalism, knowledge assumes the education, diffusion and corporatisation properties of a private commodity, much of technological knowledge, and the ris- as raw materials or labour power did ing importance of continuous innova- under industrial capitalism. Capital, raw tion are all vitally important to the emer- materials and labour power are therefore gence of technocapitalism, and to the relegated to a less important plane. new forms of knowledge reproduction As the commodification of knowledge and commodification that it is spawn- deepens, technocapitalism places it at ing. A final section will then provide the service of economic gain more than some reflections on the emergence of at any previous time in human history. the new era and its social implications. Today, technological knowledge and creativity account for more than two-thirds Processes of Accumulation of the value of most products and ser- vices, and its total value is already greater The first set of phenomena supporting than that of physical capital in every ad- the rise of technocapitalism involves ac-

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cumulation. Much as the accumulation which other new discoveries could be of capital in the nineteenth century was spawned. fundamental for the emergence of in- Figure 1 provides evidence on the dustrial capitalism, the rise of techno- long-term accumulation of inventions capitalism depends greatly on two dis- that has underpinned the emergence of tinctive processes of accumulation. Both technocapitalism. The graph shows the of these processes are long-term in na- total number of invention patents that ture and their importance can be seen were legally valid and available for use by examining some specific trends in the in the United States, in any given year twentieth century. between 1880 and 1995. In order to receive a patent, any idea or discovery Invention must pass a rigorous and lengthy evalu- ation of its novelty. A satisfactory evalu- A very large and rapid accumulation of ation that leads to a patent award can inventions during most of the twentieth then serve as a benchmark of invention century provided a fundamental plat- and its accumulation over time. The in- form from which the new era is emerg- dicator shown in Figure 1 therefore con- ing. At no previous time in human his- stitutes the total number of unexpired tory were so many new discoveries and patents that are legally available for use ideas found, introduced and made to in any activity. This measure was desig- work in practical endeavours. The new nated as the innovative capacity, mainly discoveries provided an enormous and because it comprises the total stock of increasing stock of knowledge from inventions that can be used to innovate Figure 1. Innovative capacity (total number of legally valid invention patents available) 1880-1995 (USA)

1400 Aggregate 1200 innovative capacity

1000

800 Corporate innovative capacity 600 Individual 400 innovative capacity

200

0 1880 1900 1920 1940 1960 1980 1995

Source: Suarez-Villa, 2000: 132.

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(or, in other words, to put an invention to the stock of existing inventions, the more some purpose) in any field (see Suarez- likely it is that new ones will be created Villa, 1990; 2000: chapter 3). It is there- and that the stock will in turn grow fore a gross societal indicator of the ag- larger. The reproduction of technologi- gregate stock of inventions available for cal knowledge (which is one of the use as innovations in any given year. phenomena underpinning the rise of The accumulation of inventions in- technocapitalism) feeds right into this creased rapidly during most of the twen- dynamic, since the new inventions it tieth century and particularly so after the generates enlarge the stock or mass of 1950s. Although the data shown in Fig- existing ones. The rapid accumulation of ure 1 pertains to the United States, in inventions also contributed toward the most every advanced nation the rise in more expansive commodification of invention patenting was also unprec- technological knowledge of the last four edented, attaining levels never reached decades of the twentieth century. A before. Historical works on the nine- larger stock of inventions from which to teenth and twentieth centuries have learn or draw upon by itself made com- shown how the accumulation process modification more valuable. unfolded, based not only on patenting At the same time, the vast and increas- but also on other indicators (see Jewkes ing accumulation of inventions of the et al., 1959; Schmookler, 1966; Mensch, late twentieth century provided a spring- 1979; von Hippel, 1988; Cantwell & board from which various processes of Barrera, 1997; Gaudillière & Löwy, 1998). globalisation started. One of the results The growing importance of patenting is the globalisation of intellectual prop- during the twentieth century was itself erty issues, including patenting. The a reflection of the rising value of tech- pressures to globalise and commodify nological knowledge as a commodity intellectual property are now reaching (see Warshofsky, 1994; Mandeville, 1996; into the most remote parts of the world, Rivette & Kline, 2000). If technological seeking to standardise any and all prop- knowledge had not acquired increasing erty rights related to technological importance, patenting would not have knowledge. In some respects, this move- been sought to the extent that it was ment is reminiscent of earlier efforts to during the twentieth century. Today, the globalise industrial production stan- incentives to patent are more important dards during industrial capitalism, than ever. By and large, the current rush through the spread of Frederick Taylor’s to turn most any tacit knowledge into a and Henry Ford’s ideas (see Kanigel, patent is itself a product of the rising 1997; Tolliday, 1998). commodification of knowledge and cre- The spread of invention patenting ativity, upon which the emergence of through new activities and industries in technocapitalism depends. recent years also reflects the growing Given that existing inventions are of- importance that the commodification of ten the source or point of departure for knowledge is taking up in contemporary new ones, the rapid accumulation of in- society. The acquisition of patents for ventions during the twentieth century “business methods“ and in particular takes on added importance. The larger those related to Internet commerce is an

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example of this trend. Another example Infrastructure is the acquisition of patents in the field of genetics, with biotechnology compa- The rapid accumulation of knowledge- nies obtaining patents on decoded genes sensitive infrastructure is a second ma- that can be used to develop new medica- jor support behind the emergence of tions (see Acharya, 1999; Robbins-Roth, technocapitalism. The stock of such in- 2000). Genetically-based medications frastructure rose substantially during and therapies are very likely to revolu- the second half of the twentieth century tionize pharmaceuticals and medical in most every advanced nation. Its rapid practice itself, by targeting illnesses accumulation provided another plat- through an individual’s specific genetic form that, together with the accumula- make-up, thereby rendering the mass tion of inventions, impelled the repro- production of many pharmaceuticals duction of knowledge and its com- obsolescent. This is turning some bio- modification to higher levels. The accu- technology companies into gene de- mulation of knowledge-sensitive infra- coding factories, with the sole objective structure also supported the spread of of obtaining as many patents on de- technological and scientific education in coded genes as possible, so that the pat- very important ways. Without it, the ents can then be licensed to other par- training of new cadres of scientists and ties. Such companies thus become both technologists would have been severely laboratories and clearing houses of ge- undercut. netic knowledge, providing a glimpse of The rise of public infrastructure spend- how the commodification of knowledge ing, shown in Figure 2, contributed much may evolve to become the commodi- to the rapid accumulation of this impor- fication of life itself. tant support of technocapitalism. Such In sum, the rapid accumulation of in- spending is directly related to accumula- ventions during the twentieth century tion, and reflects both the magnitude and was of fundamental importance to the intensity of the process. Total public rise of technocapitalism. To the extent spending on infrastructure in the United that one can provide any insights on this States (including all communication and emerging phenomenon and its signifi- educational facilities) rose ten-fold be- cance for the twenty-first century, it is tween 1945 and 1995. Most significantly, essential to recognise the importance of spending on public educational infra- the vast pool or stock of inventions from structure (including all schools, univer- which many current discoveries and in- sities and laboratories) increased fifty- novations emerged. This long process of five times during the same period of time accumulation is supporting the forma- (see Suarez-Villa, 2000: ch.5). These data, tion of many new fields and activities, however, exclude spending on private such as biotechnology, nanotechnology, educational infrastructure, which in the molecular electronics, bioinformatics United States was considerable over the and quantum computing, which prom- years after 1945, given the large number ise to be at the core of new technologi- of private schools and universities. Un- cal developments and industries during fortunately, such data have never been this century. completely accounted for or tabulated,

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and it is obvious that the increase in total tributed to the reproduction of knowl- (public and private) educational infra- edge, by providing the physical (or static) structure spending was considerably resources where it could be acquired, greater than that shown in Figure 2. exchanged and diffused. As with the ac- Although the data shown in Figure 2 cumulation of inventions, the rapid and are only for the United States, other ad- large-scale accumulation of infrastruc- vanced nations experienced similar or ture (and of educational infrastructure, even more impressive increases, par- in particular) provided a platform of fa- ticularly where infrastructure was se- cilities from which learning and the dif- verely damaged during the Second fusion of knowledge could occur. World War. Educational infrastructure A discussion of the accumulation of spending, in particular, contributed to a infrastructure cannot be limited to substantial accumulation of physical fa- physical (or static) infrastructure, how- cilities devoted to science and technol- ever. There is a second function of infra- ogy over the years since the late 1940s, structure, the dynamic one, which also in most every advanced nation. Such deserves consideration. Dynamic infra- spending and accumulation also con- structure helps accumulation and the

Figure 2. Public infrastructure expenditures 1920-1995 (USA), in constant 1958 billion $US.

6.0 (30)

5.4 (27)

4.8 (24)

4.2 (21)

3.6 (18)

3.0 (15) Aggregate infrastructure 2.4 (12)

1.8 (9) Educational infrastructure

1.2 (6)

0.6 (3)

0 1920 1930 1940 1950 1960 1970 1980 1990 1995 Source: Suarez-Villa, 2000:205.

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reproduction and commodification of emergence of technocapitalism de- knowledge, for example, by providing pends. opportunities to experiment, establish A vast accumulation of knowledge- contact, interact and diffuse knowledge sensitive infrastructure is another im- (see Suarez-Villa, 2000). The dynamic portant phenomenon supporting the functions are intangible and rely on emergence of technocapitalism. Infra- change to generate new ideas, subvert structure is often overlooked or taken for established ones or recombine different granted whenever scientific or techno- strands of knowledge. Balance and equi- logical development is considered. Nev- librium are therefore enemies of the sort ertheless, the enormous accumulation of continuous transformation that dy- of knowledge-sensitive infrastructure is namic infrastructure supports. Another an important contributor to the vast example of a dynamic infrastructural number of discoveries from which new function are the networks of researchers fields and activities are being spawned. that collaborate on projects, and which Moreover, the accumulation of infra- must generate new ideas to accomplish structure is becoming more important their objective. The embedding of inven- in an age when laboratories and equip- tors in local communities that have sup- ment can often determine the success of portive values and attitudes, such as an research projects, in contrast with the appreciation of novelty or a tolerance of times when inventors working alone in failure, also illustrate how dynamic in- sheds or basements could come up with frastructure helps support invention and significant discoveries with rudimentary the reproduction of knowledge. equipment. Thus, the accumulation of It must be noted, however, that the infrastructure has become a decisive fac- dynamic functions of infrastructure can- tor in the quality and quantity of new not occur without the static (or physi- discoveries that can be found. At the cal) one. Physical or static infrastructure same time, its accumulation is an essen- must be accumulated in order for the tial prerequisite for the reproduction dynamic functions to occur. The former and commodification of knowledge, is a prerequisite for the latter. Neverthe- particularly in the complex fields and less, the two have very different charac- research activities, which are the hall- teristics and functions to perform. mark of technocapitalism. Whereas for static or physical infrastructure stable access is essential for it to Processes of Diffusion and succeed in supporting invention, the Reproduction dynamic functions on the other hand thrive on frequent change. Without The second set of phenomena support- change, the interactions and cross- ing the emergence of technocapitalism fertilisation of ideas that are essential to involves those related to processes of reproduce knowledge cannot occur. diffusion and reproduction of techno- Thus, the static and dynamic functions logical knowledge. Four significant phe- of infrastructure complement one an- nomena can be considered at this time, other, and are essential for the kind of although the paucity of data poses many invention and innovation on which the challenges to their documentation. By

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and large, these phenomena can be knowledge was therefore largely circum- linked more directly to the commodi- scribed to a small and in-bred group of fication of knowledge, mainly because specialists in most every nation, who most of them involve activities that are typically controlled both access and the either a prerequisite for or very much a diffusion of knowledge in their field. part of the search for exchange value that However, the spread of industrial capi- characterises our knowledge-driven talism required some workers and other economies. personnel to be technically trained in or- Most of the phenomena of diffusion der to operate the factories that were so and reproduction also have a direct role typical of that era. In time, such training in the codification of new knowledge. As and the experience that was acquired such, they contribute to reveal its ex- through work spawned new technical change value more clearly than the ac- fields, and it gradually began to open up cumulation processes considered previ- technical training for the masses. Tech- ously. In part, the emergence of the so- nical institutes were created in many na- called new economy, which relies on the tions for that purpose, some of which exchange value of knowledge by creat- later on became full-fledged universities. ing new activities based on information Social, political and economic change technology, is a by-product of these phe- then opened up access to university edu- nomena. The often-cited knowledge so- cation in some societies (see, for example, ciety is also largely a product of the phe- Geiger, 1986, 1993; Lucas, 1994; Graham nomena to be considered in this section, & Diamond, 1997). The recognition given its reliance on the diffusion of gradually began to take hold that educa- knowledge to generate new kinds of so- tion, and particularly technological and cial relations. Taking a broad perspec- scientific education, should not be a tive, therefore, both the knowledge so- class-based privilege or the preserve of ciety and new economy paradigms are elites, but that everyone qualified should by-products of the forces that support have some access to it. the emergence of technocapitalism. Work on the history of science and technology has already provided many Massification of Education insights on aspects related to the spread of technological education and its in- The massification of technological edu- creasing access to the masses (see Hall, cation is an important phenomenon be- 1962; Kuhn, 1962; Lucas, 1994; Lenoir, hind the emergence of technocapitalism. 1997). An important point is, however, Such education was by and large reserved that the massification of technological for elites in most nations in the nine- education has provided a fundamental teenth century and through the first half base upon which technological knowl- of the twentieth century. Only a very edge and creativity can be built and re- small fraction of all eligible individuals, produced. Thus, technocapitalism, the not to mention the population at large, large-scale reproduction of technologi- could hope to have access to the sort of cal knowledge and its very commodi- education that would provide a capac- fication depend greatly on this phenom- ity to invent or innovate. Technological enon.

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Data on the opening up of access to learning movement. However, it is likely education is sparse, but some compara- that suitable adaptations may be found tive insights on its magnitude can nev- even for them, through local arrange- ertheless be found. Between 1913 and ments or remote-controlled conditions. 1995, for example, the average number The flexibility being introduced by this of years of higher education in the new form of massification is an impor- United States rose ten-fold (from 0.2 in tant feature, allowing many individuals 1913 to 2.0 in 1995) (OECD, 2000; Suarez- to pursue a university diploma from Villa, 2000). Other advanced nations also their homes or while they hold employ- experienced substantial increases in the ment. Its characteristic flexibility and same indicator. France, for example, saw adaptive qualities also reflect the grow- a nine- fold increase in the average num- ing importance that knowledge is gain- ber of years of higher education for its ing as a commodity, along with its rising population, while in Britain and Ger- exchange value. many this indicator rose by five and four times, respectively, during the same pe- Diffusion of Knowledge riod of time. In Japan, the increase in the average number of years rose six times The diffusion of knowledge is a vital link between 1913 and 1995. By and large, between the massification of techno- however, the largest increases in this in- logical education and the commodi- dicator occurred after the late 1940s, fication of knowledge. Over the past de- when access to higher education was cade it has been aided much by the expanded in many advanced nations spread of information technology into (see Clark, 1987; Geiger, 1993; Lucas, almost every human activity. It is impor- 1994). tant, however, to differentiate knowledge The massification of education is now from information. Information is usually being taken a step further with the “dis- shallow and confers only a very tempo- tance learning” approach being adopted rary advantage, when it confers any at by many universities, even the most elit- all. Knowledge, on the other hand, often ist ones. The creation of “e-diplomas” in provides a lasting advantage and re- the United States that can be acquired quires much effort and persistence over over the Internet, will likely make a uni- long periods of time to be mastered. versity education more accessible than Knowledge therefore has potentially ever before. Most anyone with some greater exchange value than information qualification will be able to pursue a whenever it can be commodified and university degree in many fields. It is put to some profitable use. uncertain how many areas of technology There is no doubt that the diffusion will be reached by this movement toward of knowledge has accelerated over the further massification, but it is likely that past two decades. Not only have the education in many fields of technology number of publications in various fields will be made much more accessible. Per- of technology increased rapidly, but it is haps only those fields, which require now possible to publish electronically supervised or intensive laboratory work and receive almost immediate feedback. will find it harder to join the distance Priority of appropriation and recogni-

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tion are much easier to obtain, as mas- 50 percent, respectively, during the same sive diffusion makes it possible to reach period of time. In Japan, it increased by almost everyone working in any given 90 percent. The United States’ lower rate area of technology. This sort of speed has of increase is misleading, however, be- accelerated the reproduction of knowl- cause during much of the 1970s and edge, by promoting the rapid exchange 1980s its lead in per capita scientific ar- and cross-fertilisation of ideas. Access to ticles published was between 28 and 360 diffusion has also increased enormously percent higher than those of Japan, Ger- through information technology. Socio- many and France (Suarez-Villa, 2000: economic disparities, however, remain chapter 1). Thus, starting from a much an important obstacle to diffusion, both lower relative base of published articles within advanced nations and on a global largely accounted for the larger rates of scale. In the emerging technocapitalist increase of the other nations noted order, those who fall behind in the tech- above. nology race, both nationally and globally, The accumulation of recognition and may find it very difficult to catch up, given experience are also important for the the cumulative and “winner-takes-all” diffusion process, since better-known character of discovery and appropriation. individuals tend to attract more atten- Thus, commodification also acquires a tion to their work and thereby enjoy prioritary character in technocapitalism. stronger diffusion. Progress over an As a result, whenever prioritary knowl- individual’s life cycle also helps create an edge is commodified, it is bound to have advantage, since recognition bears a di- much greater exchange value. rect and positive relationship with age As with so many other aspects of tech- (see Stephan & Levin, 1992). Thus, na- nology, the scarcity of data to provide tions with a larger pool of older and well- complete insights on the diffusion of recognised scientists and researchers knowledge remains a challenge. Only tend to have a stronger comparative ad- occasional bits of information can be vantage in diffusion. Not surprisingly, obtained and even then much of it is perhaps, the same nations are typically rather incomplete. One potential indica- those with the deepest and most dy- tor of the expansion of diffusion of namic processes of accumulation dis- knowledge is the number of scientific cussed previously. A high degree of “path and technological articles published per dependence” can therefore be found in capita during any given period of time. diffusion, where nations that advance In the United States, for example, this furthest as major sources of diffusion (as indicator increased by almost 30 percent in the case of the United States) preserve between the middle 1970s and the early their advantage over time. 1990s (OECD, 2000; Suarez-Villa, 2000). In general therefore, an acceleration in Other advanced nations experienced the diffusion of knowledge is an impor- larger increases. In Germany, for ex- tant support for the rise of techno- ample, the number of scientific and capitalism. Nations that were important technological articles published per sources of diffusion during the second capita rose by 105 percent, while in Brit- half of the twentieth century have tended ain and France its increase was 60 and to preserve their advantages, thus sup-

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porting the emergence of new technolo- the situation of most industrial capital- gies. Those nations also happened to be ist companies, where production and the ones that experienced a rapid accu- marketing were the most important con- mulation of inventions and infrastruc- cerns of corporate strategy (see Chan- ture, along with major increases in the dler, 1990; Kanigel, 1997; Tolliday, 1998). massification of technological educa- The corporatisation of knowledge is a tion, revealing a potentially (but perhaps major force behind the rapid accumu- not surprisingly) strong linkage between lation of inventions. In Figure 1, the accumulation, educational access and shape of the trend for the total number diffusion. of valid invention patents held by corporations (the corporate innovative ca- Corporatisation of Knowledge pacity) is revealing. The strong similar- ity between the corporate and aggregate The pervasive corporatisation of techno- trends is an indication of how strongly logical knowledge is a distinctive feature the accumulation of inventions relies on of our time. The vast majority of new corporate research (see Suarez-Villa, technologies, and particularly the most 2000: ch.3). By contrast, the individual valuable ones, are today spawned within innovative capacity trend, which repre- corporate structures. In many ways, this sents the total number of valid patents situation reflects the extent to which held by individual inventors (rather than technological knowledge has been com- corporations) remained stagnant since modified. In the companies and sectors the 1940s. It should not come as a sur- that are most representative of techno- prise, therefore, that individual inven- capitalism, technological knowledge tors, working independently and sup- and creativity are the most important ported by their own means, have be- resources, much as raw materials and come less important than ever for the labour power were for the factories of advancement of technology. industrial capitalism. Part of the reason for this develop- Research and development (R&D) ment is the increasing need of corporate departments have acquired more im- capitalism to reproduce and commodify portance than ever within corporate technological knowledge in more effi- structures. In every new technology sec- cient ways. Only when knowledge can be tor, such as biotechnology, microelec- reproduced can it become a commod- tronics, bioinformatics, software, nano- ity. The very act of reproduction ends up technology or advanced computing, making knowledge into a commodity, as R&D priorities have substantial weight it turns the creation of new (tacit) knowl- in the formulation of corporate strategy. edge from having only utility value into It is plausible, for example, to say that in something (an idea, product or process) most biotechnology companies R&D is that has exchange value. Only by corpo- “everything,“ and that companies live or ratising inventive knowledge and repro- die by the accomplishments (or lack ducing it within the context of R&D thereof) of their research agendas (see programmes can a company hope to Orsenigo, 1989; Acharya, 1999; Robbins- turn it into a commodity. Individual in- Roth, 2000). This is in stark contrast with ventors working on their own are a poor

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way to reproduce or commodify such edge), not unlike the association between knowledge, much as the independent production equipment and labour under craft shops of the eighteenth century industrial capitalism (see Sraffa, 1960). were not the most effective way to The rising corporatisation of techno- commodify labour. logical knowledge and creativity also re- The means of reproducing knowledge flects the global expansion of many com- are varied and can include, for example, panies during the last two decades of the the recombination of existing ideas or twentieth century. The reproduction and inventions. Another way in which repro- commodification of technical knowl- duction can occur is by improving or edge within corporate contexts has be- evolving an existing product to make it come more urgent, as companies com- work better. Recasting an existing idea pete fiercely for market share around the or product to fit new uses, often in a dif- world. By accelerating the reproduction ferent field from that for which it was of knowledge (and thus, eventually, the originally made, can also be a means of output of new inventions and innova- reproduction. All of these means can tions), companies can hope to compete achieve reproduction within the corpo- more effectively in a world where na- rate context through, for example, col- tional trade barriers are rapidly collaps- laboration or alliances between groups ing. This urgent need is also part and of researchers. In this context, however, parcel of the emergence of techno- the reproduction of knowledge has little capitalism, where new technologies dif- purpose unless it can result in some ex- fuse rapidly across boundaries, and change value (and ultimately profits) for where their appropriation (as property a corporate entity. rights to a new invention) must be zeal- In the process of reproduction, labo- ously secured for any company to be ratories and other equipment become able to profit from their use. commodities that are essential in order to reproduce knowledge and turn it into Continuous Invention and Innovation a commodity. R&D laboratories and equipment are part of the corporate in- One of the products of the rising corpo- frastructure that is necessary to sys- ratisation of knowledge is the pressing tematise the process of reproduction. need to sustain invention and innova- Their use value to the corporation is im- tion in a continuous or systematic way. portant, therefore, but mainly because Corporate objectives aimed at extracting they help reproduce and commodify more exchange value out of technologi- knowledge to extract some kind of ex- cal knowledge drive the need to engage change value out of it. R&D laboratories in continuous invention and innovation. are therefore only a utility to a corpora- To do so, firms have turned their R&D tion, to be used as needed or as fre- departments into operations whose quently as possible to reproduce knowl- overarching concern is to reproduce edge and turn it into a commodity. In a knowledge, by finding new discoveries way, therefore, a given commodity (R&D that can be turned into products. Occa- laboratories) is used to reproduce an- sionally, discoveries may be novel enough other commodity (technological knowl- to garner a patent award. Failures to find

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such discoveries are common, but the velopment of the Linux software system search for successful ones must never- (see Holtgrewe & Werle in this issue; also theless go on continuously, to increase Wayner, 2000; Raymond, 1999). A self- the probability of finding them (see organising, atomistic effort involving McKelvey, 1996; Robbins-Roth, 2000). thousands of software programmers This is occurring now to a degree that working online on their own spare time was unknown in the companies that but sharing a common framework is at were typical of industrial capitalism, the core of this process of continuous where R&D departments tended to be innovation. By rejecting individual or loose or detached operations, and inno- group appropriation and making the vation was more often a result of seren- software and all its improvements avail- dipity than of systematic research. able freely on the Web, they therefore The systematisation of research is es- provided only utility value for the new sential for companies that depend knowledge they generated. Thus, con- heavily on turning out new inventions tinuous innovation can occur outside and innovations at a rapid pace. Sys- corporate structures, although it is most tematisation can reduce the risk and commonly found within them. uncertainty involved in finding new dis- Evidence on the increasing impor- coveries, or in extracting exchange value tance of continuous invention and inno- from what previously only held some use vation is becoming more common, as value. Continuous or systematic innova- competition drives many companies to tion also requires a great deal of pro- depend more on new technologies (see gramming, organisation and viable Suarez- Villa, 2000: ch.2). Figure 3 shows agendas. Much continuous innovation the capacity increases for microchips therefore involves substantial organ- and magnetic memory disks between isational effort, which requires logistical 1986 and 1997. Rising capacity frontiers support, coordination with other corpo- for both of those products indicate the rate units, and accountability on the effect of continuous innovation on their spending of resources. Continuous in- producers. The rapidly expanding innovation also typically involves group creases in performance, also known as efforts, such as collaboration, the shar- “Moore’s Law“ (named after the semi- ing of ideas, and executing tasks that can conductor engineer who discovered lead to new (and potentially profitable) them), indicate that a doubling of capac- findings. ity in microchips occurred every eigh- Continuous innovation can also occur teen months. Exponential increases in outside the corporate framework, al- performance (so substantial that a loga- though this is very infrequent. Mostly rithmic scale had to be used in Figure 3), where expensive laboratories or facilities indicate how systematic research and are not required can such efforts occur experimentation, made essential by successfully. A group effort is typically fierce competition between companies involved, pooling the talents of many within both of the two sectors, overcame researchers. An example of this ap- serious obstacles to increase product per- proach is the “open source“ software formance at a rapid pace (see Ceruzzi, movement involving the design and de- 1998; Buderi, 2000).

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Figure 3. Capacity increases in microchips and magnetic memory disks

14/10.8-inch (36/27 cm)

1 Magnetic-memory disks

3.5-inch (9 cm)

0.10 Moore’s Law 2.5-inch (6 cm)

Microchips

0.01 1986 1990 1994 1997 Source: Suarez-Villa, 2000: 62.

The increasing importance of con- by some stock market analysts and in- tinuous innovation has also led to the vestors. Firms that do not have such ca- spread of predatory tactics between pabilities are often viewed as disadvan- companies that depend greatly on new taged, since they may find themselves technologies. Pre-empting competitors short-changed in today’s aggressively by introducing similar products, often competitive business culture. based on imitation, has become more Shrinking lead times between the mar- frequent than ever. To implement such ket launches of new products and those tactics, many companies have created of their first rival are an indication of the dualistic research operations, where more aggressive strategies spawned by “first-mover“ or basic (prioritary) re- continuous innovation. Figure 4 shows search coexists with “second-mover” in- how the lead times between the intro- novation (see Suarez-Villa, 2000: ch.2). duction of several major new medica- The latter is then aimed at imitation and tions and those of their first direct com- moving products from lab to market rap- petitors shrank during the past three idly, in order to either pre-empt com- decades. Such a rapid reduction in lead petitors or fend off their predatory ad- times was not unique to the pharmaceu- vances. In many cases, having a “defen- tical industry, but can also be found for sive” capability, such as second-mover most any technology-intensive sector research, is considered highly desirable today. The spread of aggressive compe-

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tition in technology-intensive activities spawned. As the pace of knowledge re- has therefore become an accepted (if not production increases, it seems reason- downright common) feature of corpo- able to expect that a faster and more in- rate business, and particularly so in tense commodification of knowledge those that depend greatly on producing will follow. Underlying this dynamic is a continuous stream of innovative prod- the attempt (ever more aggressive and ucts. competitive) to extract exchange value The rising importance of continuous from knowledge in faster and ever more innovation is part and parcel of the profitable ways. emergence of technocapitalism. To a great extent, continuous innovation re- Conclusion flects the achievement of a faster reproduction of knowledge and creativity The reproduction and commodification within corporate structures. Turning of knowledge are at the core of the tacit knowledge into explicit forms, emerging technocapitalist era. Knowl- standardising and codifying it is at the edge and its transformation into ex- core of this rapid process of reproduc- change value in ever faster and more tion which continuous innovation has valuable ways is what distinguishes this

Figure 4. Lead times between market launch of new medications and the appearance of their first competitor

0 2 4 6 8 10 Years Inderal-1968 (hypertension) Tagamet-1977 (ulcers) Capoten-1980 (hypertension) Seldane-1985 (hay fever) AZT-1987 (AIDS) Mevacor-1987 (cholesterol) Prozac-1988 (depression) Diflucan-1990 (fungal infections) Recombinate-1992 (hemophilia) Invirase-1995 (AIDS) Source: Suarez-Villa, 2000: 58.

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emerging new epoch from industrial to be able to tell the means from the capitalism. This process will likely ren- ends. Any confusion of these two very der many social structures obsolete, as different entities can result in identity some organizations, sectors and activi- crises the likes of which humanity has ties fall by the wayside of history and are never experienced. It will be up to us to replaced by new instruments of accu- define which ends we must pursue and mulation and power. We do not yet know which means we must use. Hopefully, the full effects or even the complete pro- this contribution will inspire other re- file of this emerging new era, but its im- searchers to look into the character and pacts are likely to reach into every aspect attributes of this emerging new era. of life and work. We may already see some signs of References those effects in, for example, the way corporate structures are changing to encom- Acharya, R. pass more knowledge and innovation. 1999 The Emergence and Growth of Biotech- nology. Northampton, Massachusetts: The most valuable corporations on earth Edward Elgar. today are already largely built around in- Buderi, R. vention, innovation and knowledge. Ac- 2000 Engines of Tomorrow: How the World’s cumulating technological knowledge and Best Companies are Using their Re- appropriating it are already seen as the search Labs to Win the Future. New York: Simon and Schuster. most important means to wealth and Cantwell, J. & Barrera, M. P. power. Disparities in access to new 1997 The History of Technological Develop- knowledge may well become more pro- ment in Europe and the United States. found, as the global technology race ac- Oxford: Oxford University Press. Ceruzzi, P. E. celerates and the have-nots of our world 1998 A History of Modern Computing. Cam- are left farther behind. The race to ap- bridge, Massachusetts: MIT Press. propriate new knowledge and its Chandler, A. D. “winner-takes-all“ character are already 1990 Scale and Scope: The Dynamics of In- increasing social tensions in many ad- dustrial Capitalism. Cambridge, Mas- sachusetts: Harvard University Press. vanced societies. Many entrenched so- Clark, B. R. cial and cultural values are being oblit- 1987 The Higher Education System: Aca- erated by the unquenchable thirst for the demic Organization in Cross- National rewards offered by this new paradigm. Perspective. Berkeley: University of Many questions remain open at this California Press. Gaudillière, J.-P. & Löwy, T. time but few can be answered in any 1998 The Invisible Industrialist: Manufac- complete way. What seems certain is that tures and the Construction of Scientific the new era may pose substantial chal- Knowledge. New York: St. Martin’’s. lenges to our social identities and the Geiger, R. L. way we view work, wealth and power. 1986 To Advance Knowledge: The Growth of American Research Universities, 1900- Technocapitalism is likely to provide 1940. New York: Oxford University many tools with which to reshape hu- Press. man culture, social relations and eco- 1993 Research and Relevant Knowledge: nomic action. But, in the end, they will American Research Universities since be just means. It will be up to humanity World War II. New York: Oxford Univer- sity Press.

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