The B-side of "The Pinocchio Theory" is "Rubber Duckie".

Bootsy Collins explained that the Pinocchio Theory is about reaping what you sow.

[1] The song's lyric, "Don't fake the funk or your nose'll grow" inspired the character of Sir Nose D'Voidoffunk in the P-Funk mythology.

George Clinton wrote that they were unwittingly building the P-Funk mythology "brick-by-brick".

He also claimed that Bootsy did not know the character of Pinocchio when they wrote the song and thought Disney had ripped P-Funk off when he finally saw the movie.