In the bioeconomy, informational signaling about assets, not product sales, constitutes firm value.

Evidence

The provision of information and ”management of sentiment” illustrates why assets (e.g., IPRs, licensing, partnerships, etc.) are so important in the valuation of life science firms (cf. product sales); in effect, it is the information about assets and how that information is disseminated, analyzed, and understood that constitutes valuation, and hence value, in the bioeconomy. — Kean Birch, Rethinking Value in the Bio-economy, 106

Categorization

  • XREF: This is the core claim of the assetization thesis the reader is studying — assetization displaces commodification as the operative regime of value. — connects to: Life sciences firms may never produce products, so valuation is prospective rather than embodied — Kean Birch, Rethinking Value in the Bio-economy:…, 38; Understanding value requires studying the assets underpinning firm valuation, not commodity production. — Kean Birch, Rethinking Value in the Bio-economy:…, 39; Asset value is constituted by active management within organizations, not by biological properties. — Kean Birch, Rethinking Value in the Bio-economy:…, 47 (+9 more)
  • DEFINE: Defines the theoretical move: valuation in the bioeconomy is constituted by information about assets rather than by realized commercial output.

Broader Connections