Collaboration Quote by Carl Shapiro
“There is a central difference between the old and new economies: the old industrial economy was driven by economies of scale; the new information economy is driven by the economics of networks.”
About This Quote
Source Speech: Economic Forum, 1996
The shift from manufacturing to information hinges on scale versus network effects, changing how value is created and captured.
In simple terms: Old economy relies on scale; new economy relies on networks.
Focus on building network connections.
Themes
Mood
Type
When to use this quote
- business strategy
- technology investment
- entrepreneurship
- policy making
Key Concepts
Questions to Reflect On
- How can firms leverage network effects responsibly?
- What risks arise from over‑reliance on networks?
Network effects can be limited by market saturation and privacy concerns.