"The central event in the 20th century is the overthrow of matter. In technology, economics, and the politics of nations, wealth in the form of physical resources is steadily declining in value and significance. The prowers of the mind are everywhere ascendant over the brute force of things. This Change marks an historic divide. For long centuries humans grew rich chiefly by winning control over terrritory and treasure, slaves and armies. Wealth and power came mainly to the posessor of material things or to the ruler of military forces capable of conquering the physical means of production, land, labor and capital. Today, the ascendant nations and corporations are masters not of land and material but of ideas and technologies. Computer software, a pure product of the mind, is the chief source of value added in world commerce. The global network of telecommunications carries more valuable goods than all the worlds supertankers. Today, wealth
comes not to the rulers of slave labor, but to the liberators of human creativity, not to the conquerors of land but to the emancipators of the mind. Electronics is the worlds fastest growing industry. yet what is an electron? An electron is a field, not matter. An electron is a field that gives probability distributions for possible measurements as a function of time. The field gives an index of the liklihood an electron will appear at one place rather than another. It is a field of information. The exemplary technology of the era is the microchip. More than any other invention, this device epitomizes the overthrow of matter. Humans resist the rules of the new microcosm and even rebel against it. They don't understand it. The new physics of the microcosm is contrary to all human intuition and metaphor. How do you explain an electron, in a material world?"
A new technology cannot displace an established technology with its installed base of plant and equipment, training, personnel, and satisfied customer, unless innovation is about ten(10) times more cost effective that its predecessor.
The established technology will have far more than ten times the effort and momentum behind it and will continue to improve fast enough to prevent the success of any marginal innovation.
Governing the process of creation is a prime truth of economic theory called SAYS LAW. It says that supply creates its own demand. It refers to the fact that including wages, rents and profits-the payments made in producing a good or service create enough buying power to purchase it. When one views this as a cyclical flow of funds one sees equilibrium. It also unleashes disequilibrium in the form of economic growth. Says law exalts the creativity of suppliers over the wants and needs of demanders or consumers. As entrepreneurs invent new things and learn how to make them more efficient, unit costs and prices drop and goods become more attractive. As goods become affordable to a wider public, more people work to acquire them creating goods to exchange. These new suppliers both provide and accquire new wealth at ever lower expense. The key to wealth is always the creativity and deligence of ever widening circles of suppliers, led by inventors and entrepreneurs
Creation is not a zero sum game. Ideas are not used up as they are used. Economic growth is not occuring with the using up of the material world. Entrepreneurship is a creative processs. To forsee an innovation is in effect to make it. If creativity were not unexpected, customers could demand it, and expert planners could supply it by rote. An economy could run by demand. But an economy of mind is necessarily impelled by SAYS LAW, driven by surprises of human intellect. It is a spontaneous process of discovery, of creative failure as Shockley put it, of creative destruction according to economist Joseph Schumpeteer. Under any name, however, innovation tends to devalue materials of the established system and create new means of production with higher content of intellect and ideas. This displacement of materials with ideas is the essence of all real growth.
......."I often dream about falling. Such dreams are commonplace to the ambitious or those who climb mountains. Lately, I dreamed I was clutching at the face of a rock, but it pulled loose, and in cold terror I fell into the abyss. Suddenly I realized my fall was relative, there was no bottom and no end. A feeling of pleasure overcame me. I realized that what I embody, the principle of life, cannot be destroyed. It is written into the cosmic code,
the order of the universe. As I continued my fall in the dark void, embraced by the vault of the heavens, I sang to the beauty of the stars and made my peace with the darkness.........."
- Heinz Pagels, author of "The Cosmic Code: Quantum Physics as the Language of Nature", a gifted physicist in his 40's who died in 1988 falling off a mountain.
The key entrepreneurial dimension that has resulted from the worlds movement into the microcosm and 21st centry physics is that learning must rise and matter decline as a share of the value of products. The learning curve is the most fundamental facet of microcosmic business strategy. It registers the overthrow of matter in an economy. At the beginning of any production process or development process, uncertainty is high. In communication theory, such uncertainty is defined as entropy.
The benefits of the learning curve largely reflect the replacement of uncertainty with knowledge. the result can be a process using less material, less fuel, less reworks, narrower tolerances, less supervision overcoming entropy of all forms with information. This curve, in all its implications, is the fundamental law of economic growth and progress.