Macrowikinomics | Value Added Production

One specific (though hardly complete) way of explaining the Wikinomic paradigm is to describe the process of value added production. This is the idea that aggregation (“mashups”) and open information don’t necessarily lead to socialism but rather to an ever increasing value in products or services from those competing in the free market from a better starting point. Because multiple parties are involved and competing for your attention from advancements over a common foundation, the world benefits in greater ways over a shorter period of time because at every level, the foundation is reset and we advance again from a common start. This in effect greatly reduces “reinventing the wheel”, an occurrence that is so very common. It is argued that in order for efficiency to increase enough to compensate for our growing demands, we’ll need to accept this concept at ever increasing levels.

I can’t help but be reminded of VAT (taxes) of other countries. For better or worse, this is along the same line and does work to explain the concept.

Linux is touted as a common example. Linux, created by Linus Torvalds, is the foundation of so much more than we may ever realize. From our computers, phones and iPods, to our cars, refrigerators and toasters. Everyone in the marketplace has free access to Linux as a foundation and platform. This raises all ships to a new level and now innovation starts from this place - we don’t create a whole new operating system every time we set out to build the next car stereo.

Linus Torvald also says that open source (Linux) is not socialism it’s free market enterprise. Linux is merely a powerful tool in this regard, nothing more.