The Investor's Shelf — one book
Where Good Ideas Come From

Where Good Ideas Come From

Steven Johnson
2010
326 pages · about 5h 26m to read OL15392361Wgoodreads

Summary

Johnson argues that innovation is an environmental and network property rather than an individual one, and identifies seven patterns that produce it: the adjacent possible, meaning that innovation moves into the space of what current components make reachable rather than jumping arbitrarily; liquid networks, meaning environments where ideas connect and recombine; the slow hunch, meaning that most breakthroughs develop over years as incomplete intuitions before they resolve; serendipity, meaning accidental connection between unrelated ideas; error, which he argues produces innovation by forcing exploration outside the productive path; exaptation, meaning the repurposing of something developed for another use; and platforms, meaning that innovations create the conditions for further innovations built on top.

His evidence includes historical cases such as Darwin's notebooks showing the theory developing years before he reported the insight, the coffee house as a physical liquid network, the double-entry ledger, Gutenberg's use of the wine press, the invention of the printing press from existing components, and the development of GPS.

He also presents an analysis of major innovations across four hundred years classified by whether they came from individuals or networks and from market or non-market settings, and reports that networked non-market innovation dominates, particularly in the recent period, which he uses to argue against strong intellectual property protection.

The historical cases are chosen after the outcome and the seven patterns are broad enough to describe almost any innovation retrospectively. The classification exercise depends heavily on how each innovation is coded. The adjacent possible and exaptation are the two concepts with the most analytical use.

Key takeaways 8

  1. Innovation moves into the adjacent possible, meaning the space that currently available components make reachable, rather than jumping to arbitrary new positions.
  2. Environments where ideas from different sources connect and recombine produce more innovation than environments organised around individual work.
  3. Most breakthroughs develop over years as incomplete intuitions rather than arriving as sudden insights, which the retrospective accounts conceal.
  4. Errors force exploration outside the productive path, which is why environments that eliminate error also eliminate discovery.
  5. Exaptation, meaning the repurposing of something developed for another purpose, accounts for a large share of significant innovations.
  6. Platforms create the conditions for innovations built on top of them, which compounds the return on making something open.
  7. Johnson's classification of four hundred years of innovation reports that networked non-market settings dominate, particularly recently.
  8. The seven patterns are broad enough to describe almost any innovation retrospectively, which limits their predictive use.

Who should read it

Operators designing environments for innovation who want the network and adjacent possible framing rather than accounts of individual genius.

Where it sits in the reference 0

No entry holds this book yet. It reached the reference because someone recommended it.

Who recommended it 6 · 4 direct

Bookshelf
All book reviews — Gates Notes
Chai with Pabrai bookshelf — Entrepreneurship, Management and Leadership
Zappos Insights — 'The Zappos Family Library Book List' (archived Oct 2016 capture; the list Zappos published of the books it gives team members free of charge)
Guy Proopsreported
Book recommendations listed on their Good Books profile · aggregator only
Book recommendations listed on their Good Books profile · aggregator only

Similar books 6

Chosen by shared topics, the entries that hold them, and the people who recommended both.

Brain Rules
Brain RulesJohn Medina
Behave
BehaveRobert M. Sapolsky
Outliers
OutliersMalcolm Gladwell
A History of the Mind
A History of the MindNicholas Humphrey
Are We Getting Smarter?: Rising IQ in the Tw
Are We Getting Smarter?: Rising IQ in the Twenty-First CenturyJames R. Flynn
Born Together - Reared Apart: The Landmark M
Born Together - Reared Apart: The Landmark Minnesota Twin StudyNancy L. Segal