2min chapter

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Matt Ridley: How Innovation Works, Part 1

Naval

CHAPTER

Is the Bush Fire Only Burning in One Place at a Time?

I am amazed by how geographically concentrated innovation is at any one point in history. In silican valley, wehave a critical mass of thousands of innovative companies that will adopt products from each other. One idea won't work without the neighbouring company producing devices and programmes necessary to develop your idea. That network effect ends uf being very tight. And of course, the localp ians exploit it with high taxes and low services, constantly attacking and blaming technology for all evils. But it works for them because this has turned into the golden goose. It's the oil reservoir that will always be gushing. So they can get away with a lot until it no longer is gushing....

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