Collapsing Geography Second Life, Innovation, and the Future of National Power

Abstract

Once the domain of science fiction, advances in computer performance, connectivity, and 3-dimensional rendering now make physically-simulated, multiplayer, online virtual worlds available to a broad audience for nearly limitless applications. The virtual world Second Life has proven particularly flexible and is already in use for everything from live music performances to business collaborations spanning multiple continents. Remarkable examples of distributed learning and production demonstrate new collaboration models with the potential to profoundly impact innovation. This article will briefly introduce Second Life before examining how its unique affordances decrease the cost of communication and learning; how these cost reductions impact collaboration and innovation; what new structures and business models could be built to take maximal advantage of these cost reductions; and, finally, how these new models will change the way nations create and project power.

Keywords: Second Life, virtual worlds

JEL Classification: L86