The Four Hidden Superpowers of Intangibles: What Every Entrepreneur Must Know

Unlocking the Secret Rules of Growth in the Digital Age

Picture this: two startups launch on the same day. One sells handmade furniture; the other builds a new app. Fast forward five years—the app is a household name, used by millions, while the furniture company is still local. Why? The answer lies in the four hidden superpowers of intangible assets, brilliantly dissected in Capitalism without Capital.

First is Scalability. Unlike a chair, which must be built one at a time, software can be duplicated endlessly at almost zero cost. That’s why tech companies can go global overnight, while traditional businesses grow slowly. Next comes Sunkenness: once you’ve invested in a custom algorithm or a unique brand, you can’t just sell it if things go south. This makes intangible-heavy businesses riskier—but also harder for competitors to copy.

Spillovers are the third superpower. When you invent something new, others can learn from it, adapt it, and sometimes benefit even more than you do. This is why open-source software and creative commons are so powerful—and why protecting your innovations is a constant challenge. Finally, Synergies: the magic that happens when different intangibles combine. A strong brand plus a killer app plus a smart team equals a business that’s more than the sum of its parts.

Understanding these four S’s is the key to startup success in the modern world. They explain why some companies dominate entire industries, why some investments seem to vanish, and why innovation is both riskier and more rewarding than ever. If you want to build a business that lasts, you need to master the rules of the intangible game. 3 1