The 3 Laws of Knowledge [César Hidalgo]
César Hidalgo has spent years trying to answer a deceptively simple question: What is knowledge, and why is it so hard to move around? We all have this intuition that knowledge is just... information. Write it down in a book, upload it to GitHub, train an AI on it—done. But César argues that's completely wrong. Knowledge isn't a thing you can copy and paste. It's more like a living organism that needs the right environment, the right people, and constant exercise to survive. Guest: César Hidalgo, Director of the Center for Collective Learning 1. Knowledge Follows Laws (Like Physics) 2. You Can't Download Expertise 3. Why Big Companies Fail to Adapt 4. The "Infinite Alphabet" of Economies If you think AI can just "copy" human knowledge, or that development is just about throwing money at poor countries, or that writing things down preserves them forever—this conversation will change your mind. Knowledge is fragile, specific, and collective. It decays fast if you don't use it. The Infinite Alphabet [César A. Hidalgo] https://www.penguin.co.uk/books/458054/the-infinite-alphabet-by-hidalgo-cesar-a/9780241655672 https://x.com/cesifoti Rescript link. https://app.rescript.info/public/share/eaBHbEo9xamwbwpxzcVVm4NQjMh7lsOQKeWwNxmw0JQ --- TIMESTAMPS: 00:00:00 The Three Laws of Knowledge 00:02:28 Rival vs. Non-Rival: The Economics of Ideas 00:05:43 Why You Can't Just 'Download' Knowledge 00:08:11 The Detective Novel Analogy 00:11:54 Collective Learning & Organizational Networks 00:16:27 Architectural Innovation: Amazon vs. Barnes & Noble 00:19:15 The First Law: Learning Curves 00:23:05 The Samuel Slater Story: Treason & Memory 00:28:31 Physics of Knowledge: Joule's Cannon 00:32:33 Extensive vs. Intensive Properties 00:35:45 Knowledge Decay: Ise Temple & Polaroid 00:41:20 Absorptive Capacity: Sony & Donetsk 00:47:08 Disruptive Innovation & S-Curves 00:51:23 Team Size & The Cost of Innovation 00:57:13 Geography of Knowledge: Vespa's Origin 01:04:34 Migration, Diversity & 'Planet China' 01:12:02 Institutions vs. Knowledge: The China Story 01:21:27 Economic Complexity & The Infinite Alphabet 01:32:27 Do LLMs Have Knowledge? --- REFERENCES: Book: [00:47:45] The Innovator's Dilemma (Christensen) https://www.amazon.com/Innovators-Dilemma-Revolutionary-Change-Business/dp/0062060244 [00:55:15] Why Greatness Cannot Be Planned https://amazon.com/dp/3319155237 [01:35:00] Why Information Grows https://amazon.com/dp/0465048994 Paper: [00:03:15] Endogenous Technological Change (Romer, 1990) https://web.stanford.edu/~klenow/Romer_1990.pdf [00:03:30] A Model of Growth Through Creative Destruction (Aghion & Howitt, 1992) https://dash.harvard.edu/server/api/core/bitstreams/7312037d-2b2d-6bd4-e053-0100007fdf3b/content [00:14:55] Organizational Learning: From Experience to Knowledge (Argote & Miron-Spektor, 2011) https://www.researchgate.net/publication/228754233_Organizational_Learning_From_Experience_to_Knowledge [00:17:05] Architectural Innovation (Henderson & Clark, 1990) https://www.researchgate.net/publication/200465578_Architectural_Innovation_The_Reconfiguration_of_Existing_Product_Technologies_and_the_Failure_of_Established_Firms [00:19:45] The Learning Curve Equation (Thurstone, 1916) https://dn790007.ca.archive.org/0/items/learningcurveequ00thurrich/learningcurveequ00thurrich.pdf [00:21:30] Factors Affecting the Cost of Airplanes (Wright, 1936) https://pdodds.w3.uvm.edu/research/papers/others/1936/wright1936a.pdf [00:52:45] Are Ideas Getting Harder to Find? (Bloom et al.) https://web.stanford.edu/~chadj/IdeaPF.pdf [01:33:00] LLMs/ Emergence https://arxiv.org/abs/2506.11135 Person: [00:25:30] Samuel Slater https://en.wikipedia.org/wiki/Samuel_Slater [00:42:05] Masaru Ibuka (Sony) https://www.sony.com/en/SonyInfo/CorporateInfo/History/SonyHistory/1-02.html