Cognitive capitalism, an empirical and theoretical analysis

The purpose of this chapter is to provide a theoretical framework of cognitive capitalism and to discuss the conditions of stability and instability of the model. In the first part of the chapter we present a panel data analysis to support the hypothesis that welfare-state systems, by increasing knowledge, is positively cor- related with the increasing value of immaterial capital. In other words, the gen- eration of knowledge and its spatial diffusion are the basic features of cognitive capitalism. However, the capitalist system is inherently an unstable system, sub- ject to indecision and crises, in which transformations along time imply to renew its theoretical analysis. Cognitive capitalism defines a form of accumulation without a viable mode of regulation among social classes. Particularly knowl- edge exploitation and capital-gains allocation are deregulated. As we argue in the second part of the chapter, on the demand side the increasing polarization of income distribution penalize effective demand not only by reducing the level of consumption but also by negatively affecting the investment. Indeed, knowledge- learning process and network economies have to be supported. A too-high rate of precariousness can negatively affect productivity, with the risk to worsen financial gains, notwithstanding a pragmatic monetary policy.