differentiation

The essence of differentiation:.

According to Emiya, the core of capitalism is "differentiation. Capital constantly seeks to multiply itself by creating new differences.

Differentiation between merchant and industrial capital:.

Merchant capital: exploits spatial differences. Profit by buying at low prices and selling at high prices.

Industrial capital: creates time differences. It generates profits by increasing labor productivity through technological innovation and division of labor, which in effect lowers the value of labor.

Differentiation as the essence of production:.

Production under capitalism is essentially the production of difference, argues Karatani. It is the differentiation, not the production of goods themselves, that leads to the proliferation of capital.

Differentiation in the Information Industry: The

The modern information industrial revolution is also the result of this pursuit of differentiation. Information differentiation has become a source of new value.

Transition from Tangible to Intangible:.

While tangible assets dominated the 20th century, intangible assets (data, algorithms, brands, patents, etc.) are now increasingly important. This is another form of differentiation.

The rise of IT platform companies represents a new form of differentiation that creates significant value without physical capital.

Limits of Differentiation:.

However, the rapid proliferation of the information industry is extinguishing cultural differences around the world, which can undermine the very foundation of capital's survival.

Looking to the future:.

This concept of "differentiation" is a central element of Karatani's analysis of capitalism and provides an important perspective for understanding the economic system from the past to the present and into the future.

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