This mantra, still teached in the western understanding of economy, has become obsolete. Factors of production are now "tangible and intangible assets". And to use one of three "factors of production" (capital) at the same time as THE standard unit for the economic valuation is a scientific mortal sin. It is a systemic failure in the base of economics too.

It is high time for redesigning the economic theory so that it is useful not only in the old, but also in the smart economy.

I have found some blind spots (systemic failures) in the base of classic economic theory and solutions to solve them.

The project changes (i) the scientific base and (ii) the standard of classic rational economic reasoning. And it enables a next level of economic decision making and transparency.

• Theory workers who design economic mindware based on classic economic paradigms (not really impacted at first, because they will ignore disruptive approaches)
• Teachers of classic economic solutions (part will deny, part will rewrite their teaching papers)
• Consultants (part will sell their classic methodology until customers demand better solutions, part will join as early adaptors)
• Auditors - same as consultants, but later, because the audit process has to fulfill legal restrictions.
• Decision makers of any private and public organization (part will stay with classic economic reasoning and their consultants - part will use new reasoning and strategic options) will be able to make more integral and sustainable decisions.

That means that anyone who depends on the economic decision making will profit either directly or/and indirectly.

Long-Term Effect
Estimating the effects by expanding the paradigms of a core "science" that has such a huge impact on the behavior of companies, countries and people is not really easy. If the expansion has to have positive effects, and it should, the procedure must be chosen very wisely. In the end it will enable sustainable economic decisions, because it puts people's abilities and needs at the center of considerations. It will enable a more "human system".

• Inspiration 1:
  There are 'four Worlds' (enhancing Popper's three Worlds)
  World_1 = real world
  World_2 = experienced world
  World_3 = explained world
  World_4 = world of rules

  World_1 (real world of economy) has changed fundamentally since 1776 when the base of today's economic mindset was set up. In the consecutive development of the "explained world", still based on the paradigms of historic real world, we now have an economic model ("World_3") that is no more useful for explaining the (intelligent) "World_1" we are living in now.

• Inspiration 2:
  Didn't find important parts of my "Real World_2"-experience in the - later learned - academic "Explained World_3" of economic theory.
• Inspiration 3:
  The existence of "imaginary numbers" and the combination with the "real numbers" by Carl Friedrich Gauss as "complex numbers" visualized in the form of "vectors" on a "complex plane".
• Inspiration 4:
  Two friends of mine died of a heart attack during an overhead value analysis. They had to save 10% of payroll. I asked myself, "Why?" My answer was: "They could not express the loss of the potential of the company in numbers. There was no rational way to articulate these (intangible) loss and compare it with the monetary savings."

Decision: Development of an additional Balance Sheet for Intangible Assets.

1. The models and tools (basics and applications).
   A lot of work has already made, including proper intellectual property rights (invest more than 4.5 Mio.)
2. Set up of INSEDE (Institute for Sustainable Economic Development) as a legal unit for further developing innovative solutions on an open copyright base for private use. Professional use requires a small license fee in order to pay the staff and the developers who work for INSEDE.

Business Model for INSEDE is ready.

Progress depends on how much money is available for the startup phase.

Until today: private funds > CHF Mio. 6.2

Several thousand documents, real 3D Models, software, registered copyright, additional patents still possible....