very engaging as a product design to be an interface that your AI will then go out into the world. It's something that is intangible between it and Codex; it just feels warm and engaging, where Codex can often be as good from OpenAI, but it just,feel a little bit rough around the edges. Whereas Claude Code makes it fun to build things from scratch, where you just
So three ways we can bring you back to charging appropriately for it because when you charge appropriately for the value you deliver, you are serving yourself and your prospects. Intangible is when you help someone have more confidence, have more courage, make a difficult transition in their lives.
The second is they're all going to begin with S, these things, just to help you clear in their mind. Intangible assets are what economists call sunk.It's often difficult to get them back or recover their value.
easy list right here yeah nice i love them has anyone called not yes god beautiful everything's everything's nice and intangible and subjective it's brilliant it's great it's you know I remember that time when I read some of them literally it was naming each color and they were really specific about the color of the boat color of the car and they had it all planned out so this is
I'll tell you what. The intangible economy isn't just a second. Secondly, so why is the intangible capital a different type of capital?
Carol Corrado has looked at this for the US going back to the 1940s, and shows a steady rise-- that's the blue line-- in intangible assets overtaking tangible assets. So we have a thing here, where we point out that this rise in intangible assets predates the IT revolution.
be telling you about-- it's going up, it's going down, and all of that. Some intangibles have been added over the years. So software is counted as an asset, something that firms are investing in.
Now in "On War," he's very critical in parts of his book on war about intelligence. These intangibles -- the will, the spirit, courage, and so on.
Since the predictions can tackle certain tasks while at the same time impacting others in an intangible way or eventually, they can have a symbolic impact on others which is also intangible , we must be clear about this prospective scenario so that the leaders of the organization-- For example, the highest authority, the CEO of a transportation business.
that it's a relatively new one. And the intangible concern that you can see in the modern history of leak prosecutions is that sort of forbearance, that understanding where
So it's easy to think about tangible environmental factors like your parents, your teachers, your schools, but what I'd like to convince you is that something intangible , DNA, is the major factor responsible for differences between children in their performance at school. The environment is important too, but the way it works is very different from the way we thought it worked before we
So you've got a lot more bankruptcies. have a very intangible economy.
And similarly, if you go to the gym in 2007, you see the buildings and the machines. But you see some intangible things as well, actually. So when you go into the door, the software registers you in the door and tells you you haven't been-- you've only been doing an hour that week
But since lots of people are going around writing books with the word "capital" in them, we thought we'd try and push our book a little bit. We think intangible capital is the capital of the 21st century. As these types of graphs illustrate, there's more of this type of thing coming along.
You might say, the nature of investment is changing all the time, then why should we bother? And we argue the intangible investment is interesting because it's got some different economic properties. So now we get to put our economist hat on for a second.
And that-- essentially, it was impossible to get any of that money back. So the intangible asset was much more difficult to get that money back. So that's, as I said, what economists call as sunk.
knowledge, the design, the training, the marketing, the branding. If you put these intangible assets together, then you can get a particularly valuable product. OK, why don't I pass over to Stian to say some more about what this means to the economy and society.
So it's very difficult for any one person to get 51% of the power once Bitcoin gets so large. Bitcoin is this completely intangible concept.
So it's very difficult for any one person to get 51% of the power once Bitcoin gets so large. It is just this intangible component of trust.
And this is something like this in the air that is non-tangible. It's intangible . And it's very fascinating when the click happens. I guess all of you Googlers of the world, you are the same kind of DNA, rare species.
I think the thing that makes you love these guys-- aside from, obviously, these actors are likable. It's an intangible that you have to cast. But Ari goes home to his wife and kids every night.
Come on down, you know? But Jeremy has an intangible , like I said, to be a lovable asshole.
So the empirical results seem to bear out the theory. The first kind of intangible asset is a brand. And a brand is valuable if it either increases your willingness to pay or lowers your search costs.
If we go, we say on our current level on the x, we go up the y-axis to where you have no idea how our solution what was heretofore an intangible product.
So all I care about is that it gets implemented when you say it's going to, and it works out great. But it's intangible . It's not buildings.
So let me give you an example of what we mean by intangibles and just-- obviously, in the tech sector, there are lots of intangibles , like I say, software, and data, and all that kind of thing. But it's not just a story about the tech sector.
That still feels a little intangible to me, going online with a generous mindset.
that it's a relatively new one. But the one thing you mentioned is intangible concerns.
that it's a relatively new one. And so one of the intangible concerns is how that understanding broken down somewhat.
It's recognized as a part of intangible cultural heritage for Armenia.
Together, they won the Indigo Prize in 2017 for their work on economic measurement, much of which went into the book they are here today to discuss titled, "Capitalism without Capital: The Rise of the Intangible Economy." Please join me in welcoming to Google, Mr. Jonathan Haskel and Stian Westlake. Thank you very much indeed, ladies and gentlemen.
Now, this would be, basically, of no interest whatsoever, were it not for the fact that this change is actually rather hard to discern. GDP still doesn't include most intangible assets. Let's start with the assets which GDP does include.
You can scale this thing over and over again. So the first interesting consequence about intangibles is that companies who have these intangible assets can potentially scale up very substantially. Secondly, I mentioned this economics term, "sunkenness." A word about Nokia, great European success story, back in the day of course, that at one point
A tangible asset-- it was able to dispose of it and sell it off. But it had a big intangible asset, namely the Symbian Operating System, which after the merger with Microsoft, became Windows Mobile. And that-- essentially, it was impossible to get any of that money back.
And you might think that the core of the EpiPen, which hasn't signed it, as it were, the chemical formula to stop anaphylactic shock. The core of it is an intangible asset, namely an idea, namely the chemical compound that's in it. And you might think, well, that's just protected by a patent.
Those have been some possible explanations. We think that the rise of intangible investment helps explain this puzzle, for a number of reasons. And I'm going to go back to the four S's that Jonathan talked about earlier.
So the first-- this kind of idea of scalability that Hal and others have written about-- we think is hugely important from this point of view. If you think of an intangible intensive business, like Uber in the hustle transport sector or Starbucks in the cafe and beverage sector, Uber's got a bunch of valuable intangibles related to its network of drivers, its data, its software.
But at the same time, the aggregate level investment in a productivity would be low. What all of this means is an intangible economy is one where inequality is potentially higher.
Because qualifications can be quite intangible .
There was all this other intangible stuff happening.
together and remove any kind of intangible higher mind. Did you -- were any of those, uh, preconceived notions you might have had broken or re-enforced or
But how do we translate the intangibles ?
And then all the little intangibles too, like a really quick, responsive camera app, quick focus, and the confidence that gives you to successfully get harder shots,
If you think of an intangible intensive business, like Uber in the hustle transport sector or Starbucks in the cafe and beverage sector, Uber's got a bunch of valuable intangibles related to its network of drivers, its data, its software. Starbucks has got very valuable intangibles in the form of its brand, its operating processes, and its supply chains.
Uber's got a bunch of valuable intangibles related to its network of drivers, its data, its software. Starbucks has got very valuable intangibles in the form of its brand, its operating processes, and its supply chains. Those assets are much more valuable at scale, where if you can deploy them across a big business, than they would be for a little small local taxi firm near me,
But at the same time, the aggregate level investment in a productivity would be low. There's a very curious link between intangibles and this very tangible form of inequality of property wealth.
What it does expense directly is intangibles like R&D, money that you spend on patents.
And there's so many intangibles , really.
So all I care about is that it gets implemented when you say it's going to, and it works out great. I was just never very good at intangibles .
There's something, that intangible thing, the je ne sais quoi of being in a live audience.