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Weightless Economy

Candlefocus Editor

The weightless economy is an economic model in which the products and services are largely made up of the intangible, such as ideas, designs, software and art. It is often compared to the traditional “weighty economy” which focused on the tangible, such as agricultural and industrial production. This shift largely occurred as a result of the advancements in information technology leading to increased digitization, automation, and communication.

The advantages of the weightless economy are numerous and encompass more than costs savings alone. It is often easier to replicate and scale up intangible products than physical products, and, since innovation relies on data, the weightless economy is well-suited to rapid innovation. The development of the internet, combined with powerful software tools, has meant the cost of entry into a weightless economy business is low, allowing smaller startup companies to compete with larger competitors.

Taxation can be a major challenge in a weightless economy. Traditional economies are taxed based on the production or sale of tangible products, making it easier to levy taxes with relative certainty. In a weightless or digital economy, things become more complicated. Many governments are still struggling with the best way to ensure a level playing field between established businesses, startups and tech giants.

The weightless economy is essentially the latest way of doing business, and its rise has only just begun. From the perspective of entrepreneurs, the weightless economy provides an opportunity to quickly develop an idea and have it reach a global audience. For larger businesses, there is the risk of disruption as smaller startups compete for market share. From a policy perspective, there is still much to be done to ensure that the weightless economy is a tool that is available to all and encourages sustainable growth.

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