Showing posts with label nature. Show all posts
Showing posts with label nature. Show all posts

15 April 2016

"Life after death" springs eternal in nature, science and the real economy

The death of an old tree leads to a spurt of growth of young saplings; The death of a leading scientist brings new names on stage.

"Science advances one death at a time" - Niels Bohr

By George ILIEV

The death of a tree in a forest opens up the canopy and allows young sapling access to sunlight.

A similar phenomenon has been proven to exist in the various branches of science, according to MIT research (In death, there is life: Big-name scientists may end up stifling progress in their fields, reported by The Economist). It turns out that "the death of a dominant mind in a field liberates others with different points of view to make their cases more freely". This positive effect is not the result of redistribution of research funding that may previously have been monopolised by the famous scientist. It is rather due to the attention of the scientific community that the established authority used to attract ("intellectual oxygen") and possibly the unwillingness of younger scientists to challenge the established authority. This supports a century-old quote by Physics Nobel Prize winner Niels Bohr: "Science advances one death at a time."

Thus, in the forests of science, it is not access to nutrients underground that spurs the outburst of new growth; it is the open space above.


A similar phenomenon exists in macroeconomics and was first observed by US economist Mancur Olson. He explained the post-war economic miracle in West Germany, Italy and Japan with the destruction of ossified socio-economic institutional hierarchies. A sharp institutional break (such as defeat in war and occupation by a foreign power) spurs economic growth by destroying the existing distribution coalitions, i.e. vested interests. But then several decades later, new distribution coalitions will have emerged and, in turn, would need to be reformed or destroyed to let the economy move forward.

The king is dead. Long live the king.

8 August 2012

Introduction to Corporate Nature

CorporateNature is a blog exploring parallels between nature and business. Many patterns and systems in nature seem to be replicated in social organisations and in the corporate world. Concepts from evolution, game theory, agency theory, etc. appear applicable in both nature and in business, though I do not seek to establish causal relationships. My goal is to examine and research these common patterns at a conceptual, metaphorical level.

I hope some of the topics will pique your interest and make you leave a comment or send me an email. I would appreciate your feedback and your help in spotting the fractals in a fractal world.

George
george.iliev@alumni.lse.ac.uk