We analyze the production factor which is behind the phenomenon of the de-materialization of advanced economies: synergic combinations of electronic hardware and software, which are capable of manipulating symbols autonomously and modifying themselves - forms of 'intelligent' capital because they incorporate human capital in physical forms. This capital is heterogeneous from traditional capital. We analyze the origin of that heterogeneity and show that intelligent capital is potentially capable of increasing without direct investment. Its characteristics derive from developments in computing and automata theory which benefited from John von Neumann's research.
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Paper provided by Trinity College Dublin, Department of Economics in its series Economics Technical Papers with number
9818.
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Find related papers by JEL classification: O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General B31 - Schools of Economic Thought and Methodology - - History of Thought: Individuals - - - Individuals
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