How Innovation Works

In his book "The Rational Optimist," Matt Ridley argues that innovation is the main event of the modern age and that we need to see it as an incremental, bottom-up, fortuitous process that happens as a direct result of the human habit of exchange. He derives these and other lessons from the lively stories of scores of innovations, from steam engines to search engines, and warns that we may be on the brink of an innovation famine.

Format: Paperback / softback
Length: 432 pages
Publication date: 04 March 2021
Publisher: HarperCollins Publishers

Innovation is the driving force behind the remarkable advancements in our living standards and the unsettling transformations in our society. It holds the key to shaping the twenty-first century. However, despite its profound impact, innovation remains a mysterious and poorly understood phenomenon. Policymakers and business leaders alike struggle to grasp its intricacies.

In his book, "The Rational Optimist," Matt Ridley challenges the conventional understanding of innovation as a linear, top-down process driven by plans and strategies. Instead, he presents a compelling argument that innovation is an incremental, bottom-up, and fortuitous outcome of the human habit of exchange. It emerges as a direct result of individuals interacting and exchanging ideas, technologies, and resources.

Innovation differs significantly from invention in that it transforms inventions into practical and affordable products and services that benefit people. It occurs at varying speeds across different sectors, sometimes accelerating and sometimes slowing down. It is a collective and collaborative endeavor, involving trial and error, rather than the solitary work of a genius. Economists have yet to fully model innovation, but politicians can easily discourage it.

Ridley draws upon a rich tapestry of stories and examples to illustrate the lessons learned from successful and failed innovations. From the steam engine to search engines, he explores the origins, challenges, and factors that contributed to their success or failure. Through these narratives, he highlights the importance of creativity, adaptability, and collaboration in driving innovation.

In conclusion, innovation is the cornerstone of our modern world, driving progress and shaping our future. Matt Ridley's book provides a valuable perspective on the nature of innovation, challenging our assumptions and offering insights into how we can foster and promote it. By embracing a more holistic and incremental approach to innovation, we can unlock its full potential and ensure a prosperous and sustainable future for generations to come.

Weight: 306g
Dimension: 128 x 196 x 31 (mm)
ISBN-13: 9780008334840