Weightless Economy

AAA

DEFINITION of 'Weightless Economy'

A portion of the economy which exchanges intangible services and products, including software, databases and intellectual property. There are at least two key features of the weightless economy. First, products have a high initial cost to develop, but a very low cost to reproduce and distribute. Second, products can be distributed infinitely. These two factors mean that the weightless economy can be among the fastest growing and most profitable sectors of business.

INVESTOPEDIA EXPLAINS 'Weightless Economy'

The weightless economy is also described by some as a feature of a knowledge economy, where knowledge is widely traded as an intangible product, not just used as a tool to manufacture physical products. In such an economy, an individual who possesses that ability to produce intangible products through creativity and know-how is able to grow wealthy even without possessing significant economic resources. This aspect of the weightless economy is demonstrated by the stories of Apple and Microsoft, among others.

RELATED TERMS
  1. Incorporeal Rights

    Rights that can't be seen or touched, but are still enforceable ...
  2. Intangible Asset

    An asset that is not physical in nature. Corporate intellectual ...
  3. Brand Equity

    The value premium that a company realizes from a product with ...
  4. Calculated Intangible Value - CIV

    A method of valuing a company's intangible assets. This calculation ...
  5. Intangible Cost

    An unquantifiable cost relating to an identifiable source. Intangible ...
  6. Economic Justice

    Economic justice is a component of social justice. It's a set ...
Related Articles
  1. Patents Are Assets, So Learn How To ...
    Investing Basics

    Patents Are Assets, So Learn How To ...

  2. Using The Price-To-Book Ratio To Evaluate ...
    Forex Education

    Using The Price-To-Book Ratio To Evaluate ...

  3. Human Capital: The Most Overlooked Asset ...
    Investing Basics

    Human Capital: The Most Overlooked Asset ...

  4. Intangible Assets Provide Real Value ...
    Markets

    Intangible Assets Provide Real Value ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center