5min chapter

COMPLEXITY cover image

Ricardo Hausmann & J. Doyne Farmer on Evolving Technologies & Market Ecologies (EPE 03)

COMPLEXITY

CHAPTER

The Growth of the Global Value Chains

In a complex place, one part of the economy that gets into trouble is not going to percolate the whole thing. Large firms allow for better match better complementarities and what large cities allow is for better complementarity. So an anesteciologist working on his own is not much better than a bad lecturer. He will just put you to sleep. A lot of inequalities you observe have to do with this inability to correct. In order to implement technology, you need know how. It takes ten thousand hours to become good at something. But moving brains is a very quick process.

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