Why Information Grows: The Evolution of Order, from Atoms to Economies

Front Cover
Basic Books, Jun 2, 2015 - Business & Economics - 256 pages
"Hidalgo has made a bold attempt to synthesize a large body of cutting-edge work into a readable, slender volume. This is the future of growth theory." --Financial Times
What is economic growth? And why, historically, has it occurred in only a few places? Previous efforts to answer these questions have focused on institutions, geography, finances, and psychology. But according to MIT's antidisciplinarian CÚsar Hidalgo, understanding the nature of economic growth demands transcending the social sciences and including the natural sciences of information, networks, and complexity. To understand the growth of economies, Hidalgo argues, we first need to understand the growth of order.

At first glance, the universe seems hostile to order. Thermodynamics dictates that over time, order-or information-disappears. Whispers vanish in the wind just like the beauty of swirling cigarette smoke collapses into disorderly clouds. But thermodynamics also has loopholes that promote the growth of information in pockets. Although cities are all pockets where information grows, they are not all the same. For every Silicon Valley, Tokyo, and Paris, there are dozens of places with economies that accomplish little more than pulling rocks out of the ground. So, why does the US economy outstrip Brazil's, and Brazil's that of Chad? Why did the technology corridor along Boston's Route 128 languish while Silicon Valley blossomed? In each case, the key is how people, firms, and the networks they form make use of information.

Seen from Hidalgo's vantage, economies become distributed computers, made of networks of people, and the problem of economic development becomes the problem of making these computers more powerful. By uncovering the mechanisms that enable the growth of information in nature and society, Why Information Grows lays bear the origins of physical order and economic growth. Situated at the nexus of information theory, physics, sociology, and economics, this book propounds a new theory of how economies can do not just more things, but more interesting things.


PART I Bits in Atoms
1 The Secret to Time Travel
2 The Body of the Meaningless
3 The Eternal Anomaly
PART II Crystallized Imagination
4 Out of Our Heads
8 In Links We Trust
PART IV The Complexity of the Economy
9 The Evolution of Economic Complexity
10 The Sixth Substance
11 The Marriage of Knowledge Knowhow and Information
PART V Epilogue
12 The Evolution of Physical Order from Atoms to Economies

5 Amplifiers
PART III The Quantization of Knowhow
6 This Time Its Personal
7 Links Are Not Free

Other editions - View all

Common terms and phrases

About the author (2015)

Cesar Hidalgo leads the Macro Connections group at the MIT Media Lab, where he is also an associate professor of media arts and sciences. He lives in Cambridge, Massachusetts, with his wife, Anna, and Iris, their daughter.

Bibliographic information