How Innovation Works: And Why It Flourishes in Freedom

Matt Ridley argues that we need to see innovation as an incremental, bottom-up, fortuitous process that happens as a direct result of the human habit of exchange, rather than an orderly, top-down process developing according to a plan. Innovation is crucially different from invention, because it is the turning of inventions into things of practical and affordable use to people. It speeds up in some sectors and slows down in others. It is always a collective, collaborative phenomenon—a core tenet of business history—involving trial and error, not a matter of lonely genius. It happens mainly in just a few parts of the world at any one time. It still cannot be modeled properly by economists, but it can easily be discouraged by politicians. Far from there being too much innovation, we may be on the brink of an innovation famine.

Ridley derives these and other lessons from the lively stories of scores of innovations, how they started and why they succeeded or failed. Some of the innovation stories he tells are about steam engines, jet engines, search engines, airships, coffee, potatoes, vaping, vaccines, cuisine, antibiotics, mosquito nets, turbines, propellers, fertilizer, zero, computers, dogs, farming, fire, genetic engineering, gene editing, container shipping, railways, cars, safety rules, wheeled suitcases, mobile phones, corrugated iron, powered flight, chlorinated water, toilets, vacuum cleaners, shale gas, the telegraph, radio, social media, block chain, the sharing economy, artificial intelligence, fake bomb detectors, phantom games consoles, fraudulent blood tests, hyperloop tubes, herbicides, copyright, and even life itself.

Ridley unpacks the surprising patterns behind human ingenuity, revealing:

• A Bottom-Up Process: Discover why true innovation is not a planned, top-down event but a gradual, collaborative phenomenon that emerges from the human habit of exchange.
• Invention vs. Innovation: Learn the crucial difference between a new idea and the messy, trial-and-error journey of turning it into something practical, affordable, and useful for everyone.
• The Real History of Technology: Journey through the lively stories of transformative innovations—from steam engines and vaccines to search engines and gene editing—and see for yourself why they succeeded or failed.
• An Innovation Famine: Understand the forces that discourage progress and why, far from having too much innovation, we may be on the brink of a shortage.