The Double-Edged Sword of Information in the Innovation Economy

Almost everyone in the field of economics believes that information possessed by more people will lead to better overall outcomes. More freedom of information means that the decision makers upon which the economy hinges are able to make the right decision for themselves and everyone else involved. Even when people are competitive to the harm of others, they do so more predictively when a greater amount of information is accessible to everyone. A high level of informational openness makes fraud more difficult and enables mutually beneficial deals that would not have otherwise happened. However, the extreme informational openness of our current economy has a few downsides as well. The innovation economy in particular shows the benefits and difficulties of a high-information world.

As the basis of all human action, openness of information has a great benefit on the ability of investors to recognize potentially successful businesses. Nearly any system functions better when more people have access to more information with some sort of ability to distinguish between the information that is vital for them specifically. The economy of innovation is helped when information is dispersed because whenever someone creates a unique and beneficial idea, it is either copied or grown. Good ideas do not lay dormant, as they are adopted much faster than in an economy with slow travel information. Even when this higher level of information is asymmetrical, it increases flourishing. The select few who possess the information will determine how to monetize it, which will only be possible if they add more perceived value to people’s lives than  they are taking away. Particularly as the world has become more focused on Internet and technology products which can be created far faster than industrial items, constant innovation enabled by easy access of information has trended upwards.…