Category Archives: Must watch or read

The Rainforest by Hwang and Horowitt. Part 2: the Importance of Culture

After my introductory post about The Rainforest – The Secret to Building the Next Silicon Valley by Victor W. Hwang and Greg Horowitt, which focused on the importance of trust, here is a second piece about culture. The final part will describe how the authors claim they know the recipe to build rainforests. What is remarkable with the Rainforest is the ambition to explain that innovation is mostly cultural so that at the micro-level it cannot really be engineered, but at the macro-level rainforests can be built. I am not sure the authors are right, but the effort is really to be recognized.

One lesson of the Rainforest is that outcomes cannot be engineered. […] Serendipity itself cannot be engineered but an environment that is conducive to serendipity can be. [Page 65]

In their chapter 3 about People, they begin with Keystones, not Entrepreneurs. “What defines a Keystone? Over the years, we have observed certain individuals practicing a unique manner of human interaction that is critical to the growth of entrepreneurial innovation. […] These people are usually missing, or at least too scarce, in almost all regions that have failed at generating significant amounts of entrepreneurial innovation.” [Page 71]

These people are integrative, influential and impactful, they are brokers of social trust (by contrast to entrepreneurs who are people who absorb information, learn from practice and seek opportunities). “The San Francisco Bay Area has a vastly higher percentage of people who are involved in multiple firms. 4.5% of the actors counted in the Bay Area were involved in three or more startups, compared to 2.9% in Boston, 2% in San Diego, […] 1.2% in Austin […] 0.7% in Portland. […] The bay Area has a significantly higher share of individuals who are extremely connected and contribute to the growth of multiple startup ventures”. [Page 74]

The authors also show the diversity of psychologies, the diversity of backgrounds in people which are still connected and work together. “We see these unconscious behaviors at work with innovators everywhere in the world. Scientists versus entrepreneurs. Startups versus large corporations. Investors versus investees. These tribal conflicts can be obstacles to the development of Rainforests.” [Page 109] All the more that: “Similarly the process of building a startup company is one in which people must often rely on gut-level decision-making. Entrepreneurial innovation, by its nature, is virtually a never-ending series of educated guesses. Almost every decision is based substantially incomplete information.” [Page 106]

America is the building of a society not burdened by historical tribes. […] They are less chained to the past. Instead Americans tend to be identified by self-reliance. […] People still run to California today. It is commonly regarded as the land of pioneers, nonconformists, artists, and rebels. [Page 116] Culture is critical to the way economic systems function because it provides the rules of engagement between people that hopefully can maximize their collective well-being. [Page 118] The authors are not naïve but claim that all these people need to find the right balance. A venture capitalist is caught between trying to own as much of a company as possible and trying to leave enough equity in the hands of the entrepreneurial team to keep them fully incentivized. […] A VC wants to preserve a reputation. [Page 119] Innovative behavior is not driven by rational maximization. There are in fact other forces, which can be called extra-rational: competition, altruism, adventure, discovery, creativity, meaning, concern.

Here I cannot avoid mentioning the great (counter-)example of Orson Welles about the Scorpio and the Turtle… Hopefully nature is not everything, culture matters.

One mistake of policy makers is to underestimate these extra-rational motivations. “Governments and corporations often try to incentivize innovation by focusing on financial mechanisms, such as tax breaks, subsidies, grants and loans. But overall, this strategy has been poor. They cannot be only the ends in themselves.” [Page 127]

Traditional incentives, benefits and costs: [Page 124]
Benefits:
Some possibility of making more money
Costs
Sacrifice a stable income and career perhaps forever
Risk social disapproval from family, friends, potential spouses
Difficulty and fear of working with strangers outside conventional circles of trust, culture, ethnicity, language
Difficulty and extra effort in communicating effectively
Huge investment of time, effort, stress
Possibility of losing everything (depending on laws, regarding bankruptcy, partnerships, etc.)

Rainforest incentives, benefits and costs: [Page 126]
Benefits:
Perceived and possibly real opportunity of making more money (following role models that have validated the path already)
Joy of discovery, novelty, adventure, creativity, passion
Social approval (as a peer member of a community of innovators)
Joy of friendship, sharing, love working on a team, building new trust, common values and goals
Fulfillment from the possibility of making a difference in society, leaving a legacy for future generations
Thrill of competition
Freedom and independence
Costs
Little social punishment, often encouragement, from family and friends for taking a worthwhile risk
Some anxiety from meeting new people, but offset by the joy of making new friendships
Huge investment of time, effort, and stress, but viewed in a neutral or even positive light because pursuing a personal passion
Little risk of losing everything because new opportunities emerge in the process of experimentation
Much lower probability of failure from a broad community of fellow innovators.

And the authors claim what are needed are 7 rules [Page 156]:
– Break the rules and dream
– Open doors and listen
– Trust and be trusted
– Experiment and iterate together
– Seek fairness, not advantage.
– Err, fail and persist.
– Pay it forward.

People usually think of Silicon Valley as an anomaly in the otherwise “normal” history of the world, but what if we reversed that proposition? What if we envisioned Silicon Valley as the natural endpoint of a 50,000-year story? Perhaps it could be the latest stage in the evolution of human society, from a culture based on tribes to a culture based on pragmatic individuals. [page 152]

Look at Harari again if you have not not already…

Notes on the Rainforest by Hwang and Horowitt

I must thank here first Bogdan Ceobanu from the European Commission. After spending a few hours discussing the challenges (and opportunities) of innovation in Europe, he sent me his copy of The Rainforest – The Secret to Building the Next Silicon Valley by Victor W. Hwang and Greg Horowitt. Bogdan is one of the leading voices behind Startup Europe. Thanks 🙂

There may be nothing really new in this book about ecosystems, but the messages are strong and clear. You may need an infrastructure, but without culture, nothing will happen, no innovation will emerge. I might write a few posts about this book as I just began reading it recently. And as usual, here are my notes / extracts.

Despite hundreds of books and thousands of papers on the subject, real-world innovation is little understood. […] Having the right ingredients will not necessarily result in successful innovation. You need to prepare those raw ingredients, combining them in just the right way. […] We argue that the two pillars of innovation’s conventional wisdom – free markets and clusters – are unable to provide comprehensive answers to the mystery of systemic innovation. [Pages 18-20]

Funnily enough, I gave my own recipe in 2007: “Two main ingredients are needed, rich people and nerds; this has been said already. Do not add any bureaucracy, do not add concrete. In order to attract and keep enough nerds, there is a need for a large and nice plate. A university is a good choice. But it must not be a university like any other; it must be a superb university. There are some; a few are being built from scratch. It needs a unique personality, and it needs to be creative. Not only on its campus, but also in its surroundings, so that the ingredients feel comfortable in the plate. They should be fresh, i.e. they should be young and dynamic. Young and dynamic people are the founders of start-ups. Graham also mentions liberal environments, which, he claims, tolerate strange and brilliant individuals. Then the ingredients have to be put in the oven for a very long time. Silicon Valley began in 1957, Silicon Fen in 1960. It took ten years, maybe even twenty years, to make these two regions successful; it is about the time it takes to grow infants into adults. The oven should not be too hot, so that the desire is not killed, then the temperature should be increased to maintain the enthusiasm. A temperate, pleasant climate is therefore necessary. If all the conditions are in place, the result will probably be interesting”. [Page 176. Start-Up: What We May Still Learn From Silicon Valley]

The world of innovation does not happen at the macro-level. Innovation is a “body contact sport.” It is a micro-level phenomenon. When applied to innovation, rational choice theory might make sense if you’re a theorist thinking abstractly about the way the world should work. It does not accurately describe the way the world actually works. [Page 37] You cannot understand the macro without understanding the micro. […] the world is far more complicated – one must deal with a range of complex social and psychological factors, personal networks, and information flows. [Page 48]

Free market proponents sometimes support investments in scientific research as a way to stimulate new innovation. […] Scientific research, however, does not always lead to economic growth. Each $1 increase in scientific research does not necessarily result in a $1 increase in economic activity in the overall system. The research alone is not sufficient. […] In the real world, the path from discovery to commercial product is so long, tortuous, and serendipitous that the vast majority of world-changing technologies never see the light of day. Society has a surprisingly huge backlog of scientific discoveries that are “stuck in the pipeline”, stalled by the human barriers that prevent them from reaching the marketplace. [Page 40]

For instance, the state of Kansas actively invested in its high-tech entrepreneurs. The University of Kansas provided research grants to develop products for commercial application. The university promoted regional collaboration, entrepreneurial training and even direct assistance. The results of these endeavors, however, were nothing like those of Silicon Valley. And the vast majority of the world looks a lot more like Kansas than California. [Page 41] A cluster is a description of a phenomenon, not a prescription for policy. [Page 42]

Whereas a company is a group of individuals working together, a cluster is a region of individuals or companies working together. In both cases, these relationships result in lower transaction costs. And in both cases, those savings are derived from the fact that people are closer together, can communicate more easily, and trust each other more. [Page 46]

And again let me give you an extract from my book, now quoting Richard Newton: “The Bay Area is the Corporation. […When people change jobs here in the BayArea], they’re actually just moving among the various divisions of the Bay Area Corporation.” [Page 102 – Start-up]

I am not sure anyone has “The Secret to Building the Next Silicon Valley”, but I will post more when I am more advanced in reading the Rainforest!

“How I survived the coolitude of startups” by Mathilde Ramadier

The start-up world is so fashionable that a few clouds should gather above it. The thing is not new. In the past, I mentioned Silicon Valley Fever. There was also the recent Disrupted – My Misadventure in the Start-Up Bubble by Dan Lyons But, more worrying, the criticisms are more numerous and more serious. For example, the article The evidence is piling up – Silicon Valley is being destroyed about the Juicero and Theranos scandals. Without forgetting the more fundamental transhumanist / apolitical fever

Here is a new book, fun and serious…In French: Bienvenue dans le nouveau monde Comment j’ai survécu à la coolitude des startups (Welcome in the new world – How I survived the coolitude of startups) by Mathilde Ramadier. Mockery uses language. The “novlangue”, the “coolitude”. But this hides more unacceptable behaviors. Discounted wages, ridiculous working conditions. All this in the tone of humor, or more of chilling irony. Excessive? A little bit in the sense that not all start-ups act as the author describes, but revealing a reality that should not be underestimated … Here are some examples:

“We’re a start-up, so please bring your own laptop.” [Page 24]

“During the end-of-test interview, my CEO tells me that instead of the 1500 euros agreed upon at the start, I will finally be hired with a payroll three times lower. [… He] knows very well what he does and delivers a perfectly honed speech to sweep away my disappointment. […] So I refused a job paid 500 euros because I lacked motivation, belief and ambition. I did not deserve to participate in the adventure.” [Page 26-7] The CEO had previously added that “if I want to make a career, I will have to accept to bend down and give everything. Just like in “the Voice’.”

“But doen’t disruption also mean an acceleration imposed too suddenly on society? […] The sharing economy allows the connection of a client who has a need and a service provider (let’s say a small hand that needs money.)” [Page 28] And then she quotes Bernard Stiegler. How right she is!

“But this tendency, pushed to the extreme, has become the watchword of a despotic regime which does not admit ‘the weakest’, that is to say the refractory, and which relegates them to the bottom of the social pyramid. Because if everyone can, in theory, become a superstar, there is little talk of those for whom “siliconization” does not embody a dream… nor a sinecure.” [Page 36]

“As Orwell has taught us, the manipulation of language is the starting point of any totalitarian discourse. […] The disappearance of the ability to think for oneself can even be the core competence of a company.” [Pages 41-2]

“In many cases, these are bullshit jobs, these new ‘jobs’ in the service sector that pride themselves abotu contributing to the rational organization of the company, but which cannot be described easily because even the first concerned fail to explain clearly what they do neither can they find a real utility. […] Wages were evidently free from all egalitarian considerations and remained confidential.” [Pages 44-5]

“I’ve seen people say ‘never again’ and had to start over again. They had promised that they would not step back behind the counter of a bar after their first internships and still return, for lack of finding a job in their branch. I have seen young women and young men becoming financially dependent on their partner, sublet their car or room to live in their living room (since all aspects of life are now marketable), and knocking at the door of their parents at thirty. Pregnant women put money aside because their maternity leave did not allow them to live decently. These are the people I saw accept a precarious contract with a ridiculous paycheck in a startup because they were promised many things, and offered ‘evolution prospects’ if they agreed to ‘give everything’.” [Page 70]

The author also has interesting definitions. “One of the definitions of start-up might be this: it is a young company with high potential but still not profitable. The objective, from the beginning, is therefore rapid growth.” (Page 94) Mathilde Ramadier even has her own glossary (pages 151-5), often funny… For example:
Disruption: super-powerful innovation that breaks the codes of a whole market. An earthquake, the disruption puts everything flat and does not generally worry about the consequences of the chaos it induces.
Entrepreneur: courageous person with rare talent, who has an idea of genius before everyone, is working to achieve it and succeeds – or not.
Innovation: introduction of a new product or process on the market. A startup is necessarily innovative (for those who launch it anyway).

“During these four years in the startups, I was trapped in an infernal loop, tossed from one absurdity to another, finding here and there the same folklore … Paradoxically, we push the rational to the irrational, originality to conformism, thirst for the new to regression […] The solutions that the startupsphere promises us – to the crisis, unemployment, boredom, repetition of the same and even disuse, old age and ugliness, etc. – are also a deception: one can not pretend to live in the new world before having truly built it.” [Page 143]

How to Start a Business That Doesn’t Suck (and Will Actually Turn a Profit)

How to Start a Business That Doesn’t Suck (and Will Actually Turn a Profit).
A Modestly Simple Guide to Starting a Business

by Michael R. Clarke

I have not read many books about “how to” for start-ups and usually I am bored very quickly, not to say angry. The worst was probably best-selling, The Lean Startup by Eric Ries, and the best was his mentor, Steve Blank .

I just finished “How To Start a Business That Doesn’t Suck” and I liked it very much. And it is funny (not the way Komisar mentions putting back the “fun” in funerals.com in his great The Monk and the Riddle). It is funny because it is fun to read and it is (really) informative.

If there is one thing I missed with his advice, it is how you price a product or a service. But there is so much good stuff. He begins simply with “Why You Should Definitely NOT (Under Any Circumstances) Start a Business.” [Pages 2-7]. And he is right in warning entrepreneurship is not for everyoneone. You should be passionate, crazy…

But if you are still interested, buy his book. Here are just a few good examples:
Emphasize Learning Over Results [Page 9]
Realize, It’s All About Value (Not Effort) [Page 11]
– [Have] A Willingness to Move FAST! (and Look Stupid) [Page 13]
Don’t Listen to Anybody You Don’t Want (Including Me) [Page 19]

I liked very much his chapter 2 about finding an idea (not ideation!). Focus on things you know a lot about [page 26], you have strengths, and it doesn’t mean you have to be an expert. And Focus on things you are passionate about [page 29].

And then be sure to be specific enough about customer group [page 46] and do not waste time with those “that DIDN’T want a result bad enough” [Page 49]. You cannot open a donut shop, but maybe one for vegans with allergies [Page 54] (though my former, wise boss told me not to focus on Chinese food for dogs…)

I had the feeling of being a guinea pig when I read “Writers are a hidden goldmine of promotional potential. They’re also vain. (Trust me.) So email a writer/columnist in your industry and let ‘em know you liked something they wrote in that obscure trade magazine or blog. Then six months later tell ‘em about your new product. You might get some seriously awesome free promotion out of it!” [Page 71]

About products (chapter 5), I loved that customers do not care about products. They care about feelings… “I’d like to begin this chapter about “creating products and services…” …by telling you how unimportant they are. […]The only thing people care about is the result (and/or feeling) your product or service gives THEM.” [Page 84]

I was curious about his chapter 6, on business plans. I hate business plans but I liked his chapter. “Non-Sucky Business Plan Step No.1: Nail Your Elevator Pitch.” […] “Trust me: if you make a point of pitching 2-3 people a day, for the next 30 days, you will QUICKLY get a sense of what parts of your business idea people like (and don’t like).” [Page 105] And yes Clarke is right and I am wrong: “Just remember…it’s good to know the rules before you break them. And unless you have a compelling reason why ya gotta deviate from the pack, stick to the basics.”

I was also curious about what he has to say about funding, as many people hate investors. And he begins with: “Don’t read this chapter.” [Page 133] “But if I could go back and change just ONE THING in my business-building life, besides NOT fill my garage with Nascar™ fishing lures, it would be to have boot-strapped as many of my business ventures as possible and keep them lean, mean and debt-free clean.” OK right again…Still “But if I can give you one piece of advice, when it comes to prototypes, it’s this: make it LOOK good.” [Page 141]So be lean and beautiful…

I though he forgot covering teams and co-founders, but he did too! “These are not fun topics to discuss. (As a co-dependent, people-pleaser I like to avoid these types of conversations at all costs.) And it cost me thousands of dollars. (And three months of Kaiser therapy co-pays.) Because I entered into partnerships in which we had not established a clear plan for how we’d make decisions in the business. We didn’t establish who owned what when things went to crap. And we didn’t establish clearly how people would be paid if roles changed. (Yikes!) Please, if you bring on partners (even ones you’re related to) take the time to go over this uncomfortable territory.” [Page 162] and later “The key to hiring is not to hire your friends, but to “hire your weakness.” That means your staff should be:
• Hungry
• Supportive (without being a sycophant)
• And good at what you’re not.”
[Page 177]

You must also read his chapter 10, about stupid mistakes he made, and you not make… Sometimes Clarke says too much he is not an expert in finance, legal, manufacturing, marketing. He may not be. But he gives damn good advice!

As a conclusion, he gives the final good advice: “the only way to find out if your business — and you as a business owner — has the potential to succeed is to let go of the trapeze you’re holding on to, and reach out for the one right in front of you. […]You learn what your strengths are. (Fast!) And you learn what your weaknesses are. (Even faster!)” [Pages 187-8]

A really beautiful and good book…

The Beauty of Mathematics

Every year I try to convey what I believe to be the beauty of mathematics when I teach convex optimization at EPFL. I have already mentioned on this blog some beautiful books, popularizing the subject. Some recent readings have convinced me even more so let me try to convince you (again)…

Alain Badiou is a rather surprising choice to talk about mathematics but I love what he has recently written: “This quasi aesthetic feeling of mathematics struck me very early. […] I think of Euler’s line. It was shown that the three altitudes of a triangle are concurrent in a point H, it was already beautiful. Then that the three vertices were also concurrent, at a point O, better and better! Finally, that the three medians were equally so, at a point G! Terrific. But then, with a mysterious air, the professor told us that we could demonstrate, as the brilliant mathematician Euler had done, that these points H, O, G were in addition all three on the same line, which evidently was called Euler’s line! It was so unexpected, so elegant, this alignment of three fundamental points, as behavior of the characteristics of a triangle! […] There is this idea of a real discovery, a surprising result at the cost of a journey sometimes a little difficult to follow, but where one is rewarded. I often compared mathematics later to walking in the mountain: the approaching walk is long and painful, with a lot of turning, slopes; we think we have arrived, but there is still a turning point … We sweat, we struggle. But when we arrive at the pass, the reward is unequaled, truly: this gratification, this final beauty of mathematics, this surely conquered, absolutely singular beauty.” [Pages 11-12]

Another source of inspiration is Proofs from THE BOOK. Written in homage to Paul Erdös, the book begins with the two pages shown above. “Paul Erdös liked to talk about The Book, in which God maintains the perfect proofs for mathematical theorems, following the dictum of G. H. Hardy that there is no permanent place for ugly mathematics. Erdös also said that you need not believe in God but, as a mathematician, you should believe in The Book. […] We have no definition or characterization of what constitutes a proof from The Book: all we offer here is the examples that we have selected, hoping that our readers will share our enthusiasm about brilliant ideas, clever insights and wonderful observations.”

Sometimes I try to remember the most beautiful demonstrations I have “felt” since my high school years.

– The most luminous, the proof of the sum of the n first integers by Gauss

– Two demonstrations of the Pythagorean theorem,

– There would be many others like the infinity of prime numbers, the development in series of Π (), the beautiful concept of duality for convex sets (you can look at a set through its “internal” points or through the dual “external” envelope made of its tangents).

– But the most fascinating for me, remains the use of Cantor’s Diagonal:

[From Wikipedia:]

In his 1891 article, Cantor considered the set T of all infinite sequences of binary digits (i.e. each digit is zero or one). He begins with a constructive proof of the following theorem:

If s1, s2, … , sn, … is any enumeration of elements from T, then there is always an element s of T which corresponds to no sn in the enumeration.

To prove this, given an enumeration of elements from T, like e.g.

s1 = (0, 0, 0, 0, 0, 0, 0, …)
s2 = (1, 1, 1, 1, 1, 1, 1, …)
s3 = (0, 1, 0, 1, 0, 1, 0, …)
s4 = (1, 0, 1, 0, 1, 0, 1, …)
s5 = (1, 1, 0, 1, 0, 1, 1, …)
s6 = (0, 0, 1, 1, 0, 1, 1, …)
s7 = (1, 0, 0, 0, 1, 0, 0, …)

he constructs the sequence s by choosing the 1st digit as complementary to the 1st digit of s1 (swapping 0s for 1s and vice versa), the 2nd digit as complementary to the 2nd digit of s2, the 3rd digit as complementary to the 3rd digit of s3, and generally for every n, the nth digit as complementary to the nth digit of sn. In the example, this yields:

s1 = (0, 0, 0, 0, 0, 0, 0, …)
s2 = (1, 1, 1, 1, 1, 1, 1, …)
s3 = (0, 1, 0, 1, 0, 1, 0, …)
s4 = (1, 0, 1, 0, 1, 0, 1, …)
s5 = (1, 1, 0, 1, 0, 1, 1, …)
s6 = (0, 0, 1, 1, 0, 1, 1, …)
s7 = (1, 0, 0, 0, 1, 0, 0, …)
s = (1, 0, 1, 1, 1, 0, 1, …)

By construction, s differs from each sn, since their nth digits differ (highlighted in the example). Hence, s cannot occur in the enumeration.Based on this theorem, Cantor then uses a proof by contradictionto show that:The set T is uncountable.

But let me add another extract from Badiou (page 82): “I call truths (always in the plural, there is no “truth”) singular creations of universal value: works of art, scientific theories, policies of emancipation, love passions. Let us say to cut short: scientific theories are truths concerning the being itself (mathematics) or the “natural” laws of the worlds of which we can have an experimental knowledge (physics and biology). Political truths concern the organization of societies, the laws of collective life and its reorganization, all in the light of universal principles, such as freedom, and today, principally, equality. The artistic truths relate to the formal consistency of finite works that sublimate what our senses can receive: music for hearing, painting and sculpture for vision, poetry for speech … Finally, the love truths concern the dialectical power contained in the experience of the world not from the One, from the individual singularity, but from the Two, and thus from a radical acceptance of the other. These truths are not, of course, of philosophical origin or nature. But my goal is to save the (philosophical) category of truth that distinguishes and names them, legitimizing that a truth can be:
– absolute, while being a localized construction,
– eternal, while resulting from a process which begins in a certain world and therefore belongs to the time of this world.”

Homo Deus : a Brief History of Tomorrow by Yuval Noah Harari (Part 2 – the Future)

I remember hesitating to buy Homo Deus. I never really appreciated people trying to analyze what the future might be. I have similar concerns with Harari’s book. I am not the only one as the New Yorker was not all positive: Then he announces his bald thesis: that “once technology enables us to re-engineer human minds, Homo sapiens will disappear, human history will come to an end, and a completely new process will begin, which people like you and me cannot comprehend.” Now, any big book on big ideas will inevitably turn out to have lots of little flaws in argument and detail along the way. No one can master every finicky footnote. As readers, we blow past the details of subjects in which we are inexpert, and don’t care if hominins get confused with hominids or the Jurassic with the Mesozoic. (The in-group readers do, and grouse all the way to the author’s next big advance.) Yet, with Harari’s move from mostly prehistoric cultural history to modern cultural history, even the most complacent reader becomes uneasy encountering historical and empirical claims so coarse, bizarre, or tendentious. […] Harari’s larger contention is that our homocentric creed, devoted to human liberty and happiness, will be destroyed by the approaching post-humanist horizon. Free will and individualism are, he says, illusions. We must reconceive ourselves as mere meat machines running algorithms, soon to be overtaken by metal machines running better ones.

If I feel the same unease, I still beleive Harari asks important questions and he might even have been misunderstood in his real motivation… I link this reading to my recent great readings of Piketty, Fleury and Stiegler.

Whatever some more extracts:

“Because science does not deal with questions of value, it cannot determine whether liberals are right in valuing liberty more than equality, or in valuing the individual more than the collective.” [Page 281]

A strange section is the following: The experiment changed Sally’s life. In the following days, she realised she has been through a ‘near-spiritual experience… what defined the experience was not feeling smarter or learning faster: the thing that made the earth drop out from under my feet was that for the first time in my life, everything in my head had finally shut up… My brain without self-doubt was a revelation. There was suddenly this incredible silence in my head… I hope you can sympathise with me when I tell you that the thing I wanted most acutely for the weeks following my experience was to go back and strap on those electrodes. I also started to have a lot of questions. Who was I apart the angry bitter gnomes that populate my mind and drive me to failure because I’m too scared to try? And where did the voices come from?’
Some of those voices repeat society’s prejudices, some echo our personal history, and some articulate our genetic legacy.
[Page 289] Again individual, society and evolution…

We see then that the self too is an imaginary story, just like nations, gods and money. Each of us has a sophisticated system that throws away most of our experiences, keeps only a few choice samples, mixes them up with bits from movies we saw, novels we read, speeches we heard, and from our own daydreams, and weaves out of all that jumble a seemingly coherent story about who I am, where I came from and where I am going. This story tells me what to love, whom to hate and what to do with myself. This story may even cause to sacrifice my life, if that’s what the plot requires. We all gave our genre. Some people live a tragedy, others inhabit a never-ending religious drama, some approach life as if it were an action film, and not a few act as in a comedy. But in the end, they are all just stories.
What, then, is the meaning of life? Liberalism maintains that we shouldn’t expect an external entity to provide us with some ready-made meaning. Rather, each individual voter, customer and viewer ought to use his or her free will in order to create meaning not just for his or her life, but for the entire universe.
The life sciences undermine liberalism, arguing that the free individual is just a fictional tale concocted by an assembly of biochemical algorithms. Every moment, the biochemical mechanisms of the brain create a flash of experience, which immediately disappears. The more flashes appear and fade, in quick succession. These momentary experiences do not add up to any enduring essence, The narrating self tries to impose order on this chaos by spinning a never-ending story, in which every such experience has its place, and hence every experience has some lasting meaning. But, as convincing and tempting as it may be, this story is a fiction.
[Pages 304-5]

At the beginning of the third millennium, liberalism is threatened not by the philosophical idea that ‘there are no free individuals’ but rather by concrete technologies. We are about to face a flood of extremely useful devices., tools and structures that make no allowance for the free will of individual humans. Can democracy, the free market and human rights survive this flood? [Page 306]

The great decoupling

The practical developments might make this belief [liberalism] obsolete:
1. Humans will lose their economic and military usefulness, hence the economic and political system will stop attaching much value to them.
2. The system will still find value in humans collectively, but not in unique individuals.
3. The system will still find value in some unique individuals, but these will be a new elite of upgraded superhumans rather than the mass of the population.
[page 307]

Humans are in danger of losing their value, because intelligence is decoupling from consciousness. [Page 311]

Intelligence is mandatory, but consciousness is optional. [Page 312]

The current scientific answer to this pipe dream can be summarized in three simple principles:
1. Organisms are algorithms. Every animal – including Homo Sapiens – is an assemblage of organic algorithms shaped by natural selection over millions of years of evolution.
2. Algorithmic calculations are not affected by the materials from which you build the calculator. Whether you build an abacus from wood, iron or plastic, two beads plus two beads equal four beads.
3. Hence there is not reason to think that organic algorithms can do things that non-organic algorithms will never be able to replicate or surpass.
[Page 319]

As algorithms push humans out of the job market, wealth might become concentrated in the hands of the tiny elite that owns the all-powerful algorithms creating unprecedented social inequality. [Page 323]

Is there too much story telling with Harari’s new book. Is the cashier replaced by a robot, or by the customer? What about the Google flu tool, that is mentioned page 335. Did it really work?

The Ocean of Consciousness

The new religions are unlikely to emerge from the caves of Afghanistan or from the madrasas of the Middle East. Rather, they will emerge from research laboratories. Just as socialism took over the world by promising salvation through steam and electricity, so in the coming decades new techno-religions may conquer the world by promising salvation through algorithms and genes. Despite all the talk of radical Islam and Christian fundamentalism, the most interesting place in the world from a religious perspective is not the Islamic State or the Bible Belt, but Silicon Valley. [Page 351]

The humanist revolution caused modern Western culture to lose faith and interest in superior mental states, and to sanctify the mundane experiences of the average Joe. Modern Western culture is therefore unique in lacking a special class of people who seek to experience extraordinary mental states. It believes anyone attempting to do so is a drug addict, mental patient or charlatan. Consequently, though we have a detailed map of the mental landscape of Harvard psychology students, we know far less about the mental landscape of Native American shamans, Buddhist monks or Sufi mystics. And that is just the Sapiens mind. Fifty thousand years ago, we shared this planet with our Neanderthal cousins. They didn’t launch spaceships, build pyramids or establish empire. They obviously had very different mental abilities, and lacked many of our talents. Nevertheless, they had bigger brains than us Sapiens. What exactly did they do with all those neurons? We have absolutely no idea. But they might well have many mental states that no Sapiens had ever experienced. [Page 356]

Techno-humanism faces an impossible dilemma here. It considers the human will to be the most important thing in the universe, hence it pushes humankind to develop technologies that can control and redesign our will. After all, it’s tempting to gain control over the most important thing in the world. Yet once we have such control, techno-humanism would not know what to do with it, because the sacred human will would become just another designer product. We can never deal with such technologeis as long as we believe that the human will and the human experience are the supreme source of authority and meaning.[Page 366]

The Data Religion

[Dataism] is very attractive. It gives all scientists a common language, builds bridges over academic rifts and easily exports insights across disciplinary borders. Musicologists, political scientists and cell biologists can finally understand each other. […] Dataists are sceptical about human knowledge and wisdom, and prefer to put their trust in Big Data and computer algorithms. [Page 368]

Capitalism won the Cold War because distributed data processing works better than centralised data processing, at least in periods of accelerating technological changes. [Page 372] The Industrial Revolution unfolded slowly enough for politicians and voters to remain one step ahead. […] Technological revolutions now outpace political processes, causing MPs and voters alike to lose control. [See Stiegler again] […] The Internet is a free and lawless zone that erodes state sovereignty, ignores borders, abolishes privacy and poses perhaps the most formidable global security risk. [Here see Beaude] […] The NSA may be spying on your every word, but to judge by the repeated failures of American foreign policy, nobody in Washington knows what to do with all the data. [Page 374]

Dataism is also missionary. Its second commandment is to connect everything to the system, including heretics who don’t want to be connected. And ‘every-thing’ means more than just humans. It means every thing. My body, of course, but also the cars on the street, the refrigerators in the kitchen, the chickens in their coop and the trees in the jungle – all should be connected to the Internet-of-All-Things. […] Conversely, the greatest sin is to block the data flow. What is death, if not a situation when information doesn’t flow? […] Dataism is the first movement since 1789 that created a really novel value: freedom of information [Page 382] which has Harari correctly explains in neither freedom nor freedom of expression.

Humanism thought that experiences occur inside us. Dataists believe that experiences are valueless if they are not shared. Twenty years ago Japanese tourists were a universal laughing stock because they always carried cameras and took pictures of everything in sight. Now everyone is doing it. […] Writing a private diary sounds to many utterly pointless. The new moot says: ‘If you experience something – record it. If you record something – upload it. if you upload something – share it.’ [Page 386] Should I blog?

Dataism is neither liberal nor humanist. It isn’t anti-humanist. [Page 387] By equating the human experience with data patterns, Dataism undermines our main source of authority and meaning, and heralds a tremendous religious revolution. […] ‘Yes God is a product of the human imagination, but human imagination in turn is the product of biochemical algorithms.’ In the eighteenth century, humanism sidelined God by shifting from a deo-centric to a homo-centric world view. In the twenty-first century, Dataism may sideline humans by shifting from a homo-centric to a data-centric view. The Dataist revolution will probably take a few decades, if not a century or two. But then the humanist revolution too did not happen overnight. [Page 389]

A critical examination of the Dataist dogma is likely to be not only the greatest scientific challenge of the twenty-first century, but also the most urgent political and economic project. Scholars in the life sciences and social sciences should ask themselves whether we miss anything when we understand life as data processing and decision-making. Is there perhaps something in the universe that cannot be reduced to data? Suppose non-conscious algorithms could eventually outperform conscious intelligence in all known data-processing tasks – what, if anything, would be lost by replacing conscious intelligence with superior non-conscious algorithms? Of course, even if Dataism is wrong and organisms aren’t just algorithms, it won’t necessarily prevent Dataism from taking over the world. Many previous religions gained enormous popularity and power despite their factual mistakes. If Christianity and communism could do it, why not Dataism? [Page 394]

Humans relinquish authority to the free market, to crowd wisdom and to external algorithms partly because they cannot deal with the deluge of data. [Page 396]

As a conclusion, Harari ends his book with the 3 following questions:
1. Are organisms really just algorithms, and is life really just data processing?
2. What is more valuable – intelligence or consciousness?
3. What will happen to society, politics and daily life when non-conscious but highly intelligent algorithms know us better than we know ourselves?

If reading is not for you, you can still listen to Harari in a recent Ted Talk: Nationalism vs. globalism: the new political divide.

Homo Deus : a Brief History of Tomorrow by Yuval Noah Harari (Part 1 – the Past)

I wrote here how much I enjoyed reading Sapiens. Harari’s new book, Homo Deus: A Brief History of Tomorrow, is just as good.

In Death Is Optional, the exchange between Daniel Kahneman and the author, which summarizes many of Harari’s most original ideas, here is one of the most interesting ones – in relationship to start-ups: “in terms of history, the events in Middle East, of ISIS and all of that, is just a speed bump on history’s highway. The Middle East is not very important. Silicon Valley is much more important. It’s the world of the 21st century … I’m not speaking only about technology.” One may not like it, but it is interesting.

As usual, a few extracts:
“Most studies cite tool production and intelligence as particulararly important for the ascent of humankind. […] Humans nowadays completely dominate the planet not because the individual human is far smarter and more nimble-fingered than the individual chimp or wolf, but because Homo Sapiens is the only species on earth capable of co-operating flexibly in large numbers.” [Pages 130-1]

“Animals such as wolves and chimpanzees live in a dual reality. On the one hand, they are familiar with objective entities outside them, such as trees, rocks and rivers. On the other hand, they are aware of subjective experiences within them, such as fear, joy and desire. Sapiens, in contrast, live in triple-layered reality. In addition to trees, rivers, fears and desires, the Sapiens world also contains stories about money, gods, nations and corporations. As history unfolded, the impact of gods, nations and corporations grew at the expense of rivers, fears and desires. There are still many rivers in the world, and people are still motivated by their fears and wishes, but Jesus Christ, the French Republic and Apple Inc. have dammed and harnessed the rivers, and have learned to shape our deepest anxieties and yearnings.” [Page 156]

If we invest money in research, then scientific breakthroughs will accelerate technological progress. New technologies will fuel economic growth, and a growing economy could dedicate even more money to research. With each passing decade we will enjoy more food, faster vehicles and better medicines. One day our knowledge will be so vast and our technology so advanced that we could distill the elixir of eternal youth, the elixir of true happiness, and any other drug we might possibly desire – and no god will stop us. […] Modern life consists of a constant pursuit of power within a universe devoid of meaning. [Page 201]

Interesting comparison between the Scientific revolution, where Knowledge = Empirical Data X Mathematics, and the Humanist revolution led by Knowledge = Experiences X Sensitivity. In medieval Europe, Knowledge = Scriptures X Logic. [Pages 235-7]


Humanist revolution according to Harari [Pages 232-3]

Harari is sometimes too long in the development of his ideas, but it is worth following him. On pages 247-76, he explains how humanism is not a coherent view of the world. Three schisms have occurred: liberalism (where liberty is the most important value), socialism (where equality is first) and evolutionary humanism (where conflict is the raw material pushing evolution forward).

“By 1970 the world contained 130 independent countries, but only thirty of these were liberal. […] And then everything changed. The supermarket proved to be far stronger than the gulag. […] As of 2016, there is no serious alternative to the liberal package. […] China is the most promising ground for the new techno-religions emerging from Silicon Valley. […] God is dead. […] Religions that lose touch with the technological realities of the day lose their ability even to understand the questions being asked.” [Pages 264-8]

“Numbers alone don’t count for much in history. History is often shaped by small groups of forward-looking innovators. […] In 1881, Muhammad Ahmad bin Abdallah, […] meanwhile in 1875, Dayananda Saraswati in India, […] Pope Pius IX, in Europe […] or thirty years before, Hong Xiuquan […] Hundreds of millions clung to their religious dogmas. […] Hong led the deadliest war of the nineteenth century, the Taiping Rebellion. From 1850 to 1864, at least 20 million people lost their lives.” [Pages 270-1]

“Most societies failed to understand what was happening, and they therefore missed the train of progress”. [Page 273] Ask yourself what was the most influential discovery, invention or creation of the twentieth century? That’s a difficult question […] antibiotics, […] computers, […] feminism. […] What did religions bring? This is a difficult question too because there is so little to choose from. [Page 275]

And as a conclusion of chapter 7: “Since humanism has long sanctified the life, the emotions and the desires of human beings, it’s hardly surprising that a humanist civilisation will want to maximize human lifespans, human happiness and human power.” [Page 277]

Sapiens – A Brief History of Humankind by Yuval Noah Harari

Sapiens: A Brief History of Humankind is an extraordinary book. Very similar to Guns, Germs, and Steel: The Fates of Human Societies by Jared Diamond. It may not be directly related to innovation and start-ups, but below are some extracts I found striking. This is a must-read book…


By It is believed that the cover art can or could be obtained from the publisher.
Fair use, https://en.wikipedia.org/w/index.php?curid=48907980

“Consider the following quandary: two biologists from the same department, possessing the same professional skills, have both applied for a million-dollar grant to finance their current research projects. Professor Slughorn wants to study a disease that infects the udders of cows, causing a 10 percent decrease in their milk production. Professor Sprout wants to study whether cows suffer mentally when they are separated from their calves. Assuming that the amount of money is limited, and that it is impossible to finance both research projects, which should be funded?

There is no scientific answer to this question. There are only political, economic and religious answers. In today’s world, it is obvious that Slughorn has a better chance of getting the money. Not because udder diseases are scientifically more interesting than bovine mentality, but because the dairy industry which stands to benefit from the research, has more political and economic clout than the animal-rights lobby.

Perhaps in a strict Hindu society, where cows are sacred, or in a society committed to animal rights, Professor Sprout would have a better shot. But as long as she lives in a society that values the commercial potential of milk and the health of its human citizens over the feelings of cows, she’d best write up her research proposal so as to appeal to those assumptions. For example, she might write that ‘Depression leads to a decrease in milk production. IF we understand the mental world of dairy cows, we could develop psychiatric medication that will improve their mood, thus raising milk production by up to 10 percent. I estimate that there is a global market of $250 million for bovine psychiatric medication.’ […] In short, scientific research can flourish only in alliance with some religion or ideology.” [Pages 304-305]

So how science developed in apparently useless fields?

“The key factor was that the plant-seeking botanist and the colony-seeking naval officer shared a similar mindset. Both scientist and conqueror began by admitting ignorance – they both said ‘I don’t know what’s out there.’ They both felt compelled to go out and make new discoveries. And they both hoped the new knowledge thus acquired would make them master the world.

European imperialism was entirely unlike all other imperial projects in history. Previous seekers of empire tended to assume that they already understood the world. Conquest merely utilized and spread their views of the world. […] European imperialists set out distant shores in the hope of obtaining new knowledge along new territories.” [Page 317]

Ignoramus

[Page 279] “Modern science differs (mention Steve Weinberg here?) from all previous traditions of knowledge in three critical ways:
a. The willingness to admit ignorance. Modern science is based on the Latin injunction Ignoramus – ‘we don’t know’. It assumes that we don’t know everything. Even more critically, it assumes that the things we think we know could be proven wrong as we gain more knowledge. No concept, idea or theory is sacred and beyond challenge.
b. The centrality of observation and mathematics. Having admitted ignorance, modern science aims to obtain new knowledge. It does so by gathering observations and then using mathematical tools to connect these observations into comprehensive theories.
c. The acquisition of new powers. Modern science is not content with creating theories. It uses these theories in order to acquire new powers, and in particular to develop new technologies.”

[Pages 320-2] “The first modern man was Amerigo Vespucci.” [And not Columbus who contrarily to this lesser-known Italian sailor, was always convinced he had arrived in India and not on a new continent.] […] “Columbus stuck to this error for the rest of his life.” […] “There is poetic justice in the fact that a quarter of the world, and two of its seven continents, are named after a little-known Italian whose sole claim is that he had the courage to say, ‘We don’t know’. The discovery of America was the fundamental event of the Scientific Revolution.”

[This reminds me the day of my PhD oral presentation. A colleague of mine was surprised I dare answering ‘I don’t know’ to a question of a member of the jury. My colleague had also missed the point, I think…]

Chapters 14-16 describe how science, politics and economics are interconnected. They may be less surprising but are as convincing. Here is a disturbing extract: “Conversely, the history of capitalism is unintelligible without taking science into account. […] Over the last few years, banks and governments have been frenziedly printing money. Everybody is terrified that the current economic crisis may stop the growth of the economy. So they are creating trillions of dollars, euros and yen out of thin air, pumping cheap credit into the system, and hoping that the scientists, technicians and engineers will manage to come up with something really big, before the bubble bursts. Everything depends on the people in the labs. New discoveries in fields such as biotechnology and nanotechnology could create entire new industries, whose profits could back the trillions of make-believe money that the banks and governments have created since 2008. If the labs do not fulfill these expectations before the bubble bursts, we are heading towards very rough times.” [Page 352]