A new form of capital is crystallizing: knowledge capital—the stock of actionable intelligence that generates ongoing returns through application and licensing. Intangible investments now constitute the dominant form of capital in advanced economies. Unlike physical capital, knowledge capital does not deplete with use—ideas are nonrival and can generate increasing returns. Unlike financial capital, it compounds through recombination: new ideas emerge from novel combinations of existing ones. Creative destruction is the engine of this process, formalized as endogenous growth—each wave of innovation obsoletes prior configurations while building on accumulated understanding. The knowledge economy exhibits positive feedback: self-reinforcing dynamics where success compounds. As knowledge capital becomes the dominant factor of production, we approach a flywheel of human progress—a cycle of discovery, application, and reinvestment that accelerates with each turn.