What if the most important capital in the modern economy is barely visible?Today's most valuable firms often depend less on factories than on software, data, AI models, judgement, routines, user feedback, platform access, standards, open-source systems, and trust. These assets create wealth, but they are hard to own, measure, protect, or value on a balance sheet. They can be copied without being consumed, improved through use, enclosed by platforms, degraded by cyber failure, or lost when people leave.A Knowledge Theory of Capital: The Value of Natural and Artificial Intelligence, Volume 1 develops a theory of knowledge-bearing capitalism. It begins with Adam Smith's account of labour, stock, specialization, markets, and national wealth, then asks what changes when productive knowledge becomes central. Knowledge becomes capital-like only when it yields productive services under conditions of access, capability, governance, demand, maintenance, and recombination.The theory introduces knowledge-bearing stock: productive knowledge embodied in people, encoded in artefacts, institutionalized in organizations, sustained in commons, or maintained as public infrastructure. It explains how knowledge is generated, converted into governable form, deployed, improved through feedback, enclosed or shared, and returned as input to future generation.The central warning is the Smithian inversion: private accumulation of knowledge-bearing capital can strengthen present production while narrowing the fields and learning loops that make future innovation possible. This reframes AI feedback capture, API closure, patent thickets, cybersecurity loss, maintainer shock, and accounting invisibility as one capital problem.At roughly 450 pages, this volume offers economists, technologists, cybersecurity leaders, investors, policymakers, and curious readers a framework for understanding where modern wealth resides, how it is governed, and how it can be lost before anyone records it.

What if the most important capital in the modern economy is barely visible?Today's most valuable firms often depend less on factories than on software, data, AI models, judgement, routines, user feedback, platform access, standards, open-source systems, and trust. These assets create wealth, but they are hard to own, measure, protect, or value on a balance sheet. They can be copied without being consumed, improved through use, enclosed by platforms, degraded by cyber failure, or lost when people leave.A Knowledge Theory of Capital: The Value of Natural and Artificial Intelligence, Volume 1 develops a theory of knowledge-bearing capitalism. It begins with Adam Smith's account of labour, stock, specialization, markets, and national wealth, then asks what changes when productive knowledge becomes central. Knowledge becomes capital-like only when it yields productive services under conditions of access, capability, governance, demand, maintenance, and recombination.The theory introduces knowledge-bearing stock: productive knowledge embodied in people, encoded in artefacts, institutionalized in organizations, sustained in commons, or maintained as public infrastructure. It explains how knowledge is generated, converted into governable form, deployed, improved through feedback, enclosed or shared, and returned as input to future generation.The central warning is the Smithian inversion: private accumulation of knowledge-bearing capital can strengthen present production while narrowing the fields and learning loops that make future innovation possible. This reframes AI feedback capture, API closure, patent thickets, cybersecurity loss, maintainer shock, and accounting invisibility as one capital problem.At roughly 450 pages, this volume offers economists, technologists, cybersecurity leaders, investors, policymakers, and curious readers a framework for understanding where modern wealth resides, how it is governed, and how it can be lost before anyone records it.