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Maybe the title of this link should be "When Value is Created, Who Captures it?" That is the more relevant question. When someone invents something new that cre
by bsbechtel 13y ago
Maybe the title of this link should be "When Value is Created, Who Captures it?" That is the more relevant question. When someone invents something new that creates more value for society, it can go to 5 different parties - customers, the business founder, shareholders, employees, and the government. Right now, most value creation is shared between customers, founders, shareholders, and the government, with very little going to the employees. If the innovation that created more value was invented by an employee within a firm, why is it that the other four parties are the ones to receive the majority of the wealth created by the innovation?
The Facebook 'like' button has arguably created billions of dollars in wealth for Mark Zuckerberg and Facebook's early shareholders. What percentage of that wealth went to the employees who came up with the idea? This is the question we should be asking.