LECTURE L05
INNOVATION
Adjacent Possible
Steven	Johnson
The inventor must use the
components that exist in his
environment
Combinatory Process
New technology is created 

by combining other existing
technology in new ways
Gall’s Law
All complex systems that
work, evolved from simpler
system that worked
The Law of Disappearing Technology
When some technique is
mastered, it will “disappear” as
something obvious and trivial,
and other more useful things
that are built on top of it
The Resistance Corollary
Even outdated things that
should “disappear” don’t
due to supposed importance
Complexity of Technology
Local and linear
Global and Exponential
Population
Population explosion
7 billion people
Prosperity
GDP per person
Matt Ridley: When ideas have sex
TED Lecture
Slide from Matt Ridley’s 2010 TED talk
Exchange
Technology improves due to
exchange and specialisation
— globalisation
How does innovation happen?
The Brilliant Scientist working in his lab
http://en.wikipedia.org/wiki/Nikola_Tesla
Nikola Tesla
Tomas Edison
“I have not failed. I've just found 10,000 

ways that won't work.” 

– Thomas Edison
Change in Technology
Innovation
Something newly introduced, 

such as a new method or device
Innovation
Innovation
DisruptiveSustaining	
		 	 Evolutionary	
		 	 Revolutionary	
Innovation
Innovation
Sustaining Technology – Evolutionary
An innovation that improves a
product in an existing market in
ways that customers are
expecting
Red Oceans — commodities
An innovation that creates a new
market by allowing customers to
solve a problem in a radically new
way
May not be affordable enough to be
disruptive
Innovation
Sustaining Technology – Revolutionary
Ford	Model	T
Disruptive Technology
An innovation that creates a new (an
unexpected) market by applying a
different set of values.

Affordable so the impact is major

Innovation
"We take the ideas we've inherited or
stumbled across, and we jigger them
together into some new shape." 

– Steven Johnson
The Coffee House
Steven Johnson: Where good ideas come from
Where good ideas come from | Steven Johnson
TED Lecture, 2010
Environment of the space


Where people meet
Where ideas have sex
But innovation comes from people meeting
up in the hallways or calling each other at
10:30 at night with a new idea, or because
they realised something that shoots holes in
how we've been thinking about a problem.
— Steve Jobs
The Liquid network
A good idea is a network.
Innovations happens with
collaboration.
— Steven Johnson
The Liquid network
Innovations happen when
ideas are shared.
— Steven Johnson
The importance of cities
The Hummingbird Effect
The symbiosis between flowering plants and insects
that led to the production of nectar ultimately
created an opportunity for much larger organisms — 
the hummingbirds — to extract nectar from plants,
though to do that they evolved a extremely unusual
form of flight mechanics that enable them to hover
alongside the flower in a way that few birds can
even come close to doing. In other words, they had
to learn an entirely new way to fly.
The Hummingbird Effect
Unexpected consequence of 

new innovations
The Hummingbird Effect
The Hummingbird Effect
The Eureka Moment!
Sir Isaac Newton
The Slow Hunch
A lot of ideas linger on, 

sometimes for decades, 

in the back of people’s 

minds

— Steven Johnson
Source:	http://www.britannica.com/EBchecked/topic/187881/Douglas-Engelbart
Douglas Englebart 1965 Apple Macintosh 1984
Source:	http://www.businessweek.com/innovate/content/jan2008/id2008012_297369.htm	
The 10/10 Rule
Any technology that is going to have
significant impact over the next 10
years is already at least 10 years old
The 10/10 Rule
10 years to build a new

platform, 10 years for it

to be adopted
What do the following products have in common?
LSD
Post-it notes Viagra
Teflon
Penicillin
Serendipity
The accident of finding 

something useful or good 

without looking for it

— Steven Johnson
"In the fields of observation
chance favours only the
prepared mind”

— Louis Pasteur
Impact of innovation
Impact of Innovation
The Forth Quadrant
Liquid network
The Slow Hunch
10/10 Rule
Serendipity
NEXT
Diffusion of Innovation

L05 Innovation