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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.” quote by Carl Shapiro
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“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.”

Carl Shapiro

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.

Key Takeaway

Focus on building network connections.

Themes

economics technology innovation network effects

Mood

analytical forward‑looking

Type

strategic insightful

When to use this quote

  • business strategy
  • technology investment
  • entrepreneurship
  • policy making

Key Concepts

Scale economies network externalities digital transformation

Questions to Reflect On

  • How can firms leverage network effects responsibly?
  • What risks arise from over‑reliance on networks?
A Different Perspective

Network effects can be limited by market saturation and privacy concerns.

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