Knowledge in the form of an informational commodity indispensable to productive power is already, and will continue to be, a major-perhaps the major- stake in the world wide. It is conceivable the nation state will one day fight for control of information, just as they battled over territory, and afterwards for control of access to and exploitation of raw materials and cheap labor. A new field opened for industrial and commercial strategies on the one hand, and political and military strategies.
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That country will have the greatest security whose informational and scientific situation is adequate to meet the demands that may be put on it—the country in which it is fully realized that information is important as a stage in the continuous process by which we observe the outer world, and act effectively upon it. In other words, no amount of scientific research, carefully recorded in books and papers, and then put into our libraries with labels of secrecy, will be adequate to protect us for any length of time in a world where the effective level of information is perpetually advancing.
According to this point of view, knowledge is, so to speak, a by-product of production or of investment. In research, on the contrary, it can be said that knowledge is the primary product. The distinction between products and by-products is not important for ordinary goods, because in a competitive regime the marginal costs of the two must be equal. But since knowledge does not have the normal properties of an economic good, it is necessary to study each mode of its production.
The more information a guy has, the more likely he is to say, "Hey, King Charlie, you really blew that call." That's why democracy happened. The control of information is something the elite always does, particularly in a despotic form of government. Information, knowledge, is power. If you can control information, you can control people.
It [knowledge] is clearly related to information, which we can now measure; and an economist especially is tempted to regard knowledge as a kind of capital structure, corresponding to information as an income flow. Knowledge, that is to say, is some kind of improbable structure or stock made up essentially of patterns — that is, improbable arrangements, and the more improbable the arrangements, we might suppose, the more knowledge there is.
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