Ruling the Waves: Cycles of Discovery, Chaos, and Wealth from the Compass to the Internet

_Ruling the Waves_ by Debora L. Spar is a fascinating book on the history of business and politics in the fields of emerging technologies, one I honestly feel everyone should read, as it is invaluable for the sense of context and perspective it provides. Much has been made about how truly revolutionary the internet is, how that its very existence breaks all the old rules, that it is going to steer the world towards a new social order, perhaps even sever the link between the market and the state. Many prophets have proclaimed how the internet will create a realm where government has no force, where big business is powerless, and where many things - such as music - will essentially be free. Spar readily acknowledges that the net is indeed radical and that it will produce many changes in society, politics, government, and business. However, she sought through this book to show that the emergence of the internet is not without precedent, that it is perhaps just another arc along technology's frontier. By comparing the changes brought about by the development of transoceanic commerce during the Age of Exploration and the arrival of the telegraph, radio, satellite television, and publicly available encryption technology with the rise (and possible fall) of Microsoft (looking at both the issue of operating systems and web browsers) and the advent of MP3 technology, Spar showed how the worlds of government and commerce have coped again and again with what were at the time paradigm-shattering revolutionary developments. The end of the dominance of big business and government has been predicted several times before and in each case the prophets were wrong. In truth, there were significant changes and for a time governments were more or less powerless in some instances thanks to a gap between technology and policy, but these gaps did not last for long. While new technologies can wound government, they never kill it, and the very pirates and pioneers who for a time gleefully predicted its demise (or at least its powerlessness over them and their new realm of business) have in the end craved the stability and order offered by government. In essence, once they staked their claim in a new technological frontier, they wanted someone to protect that stake. Each of these revolutions followed a predictable pattern as Spar brilliantly showed, beginning the book with an overview of this pattern and then in the following chapters showing how this pattern was followed in each instance (and along the way providing some fascinating history and anecdotes). The first phase is that of innovation, the stage of "tinkerers and inventors," not a phase marked by much if any commerce. It is populated by people interested in technology for its own sake, a world of fellow enthusiasts. Often in this early stage the new technology and its adherents are either largely unknown to the public or not accorded much respect. When Samuel Morse first demonstrated the telegraph to Con

Professor Debrora Spar's explanation of key factors in the creation, building, and usage of key technologies over the last millineum. Her chronology starts with the beginnings of global navigation (pre Columbus) and the corresponding mayhem that ensued over the years via profit making, profiteering and pirating - all of which are not only inner-related but have gray boundaries been them. The chronology brings us through the development of communication first by telegraphy, then radio, television, cryptography, computers (a la Microsoft's trials and tribulations), internet and finally to the continuing saga of MP3 music. The book actually opens with the story of the Vatican's dismissal of a too-liberal French bishop Jacques Gaillot to the remote Sahara outpost of Partenia. Not to be silenced, Bishop Gaillot continues his ministry and in fact expands it, by bringing his case to the internet - Partenia has thus become his soap box to be read by many more people than he ever could have reached had he be allowed to remain in France and only speak to those he came in personal contact with. Thus it has been throughout history - the new technology and the messages they carry are unstoppable. Interwoven in this scholarly yet entertaining book are the concepts of each technologies stages of chaos, anarchy, self-regulation, deal making and deal braking, piracy, monopoly, and attempts at government control. Interestingly, in most cases the founders and early pioneers end up with little more than historical recognition.There is no simple solution, no way to predict the future; Spar suggests a number of stages and issues that seem to repeat. Interestingly while enjoying this book, I read a paragraph to my wife, slightly changing a few of the words and leaving off a few minor details that would have given away the time and the company. Halfway through, my wife blurted out, "Oh you're talking about Microsoft!". No, the paragraph was about Western Union, the telegraph company and the time was well before the beginning of the twentieth century!If such history appeals to you or if you're interested in some clues of how technologies mature, this is an excellent book.

An excellent, well-researched account of the recurring patterns that accompany technological development. This book is short on lofty, meaningless predictions on the digital age and long on meaningful insight into the struggles between the commercial and government sectors that usually shape new technologies.

Debora L. Spar's "Ruling the Waves: Cycles of Discovery, Chaos, and Wealth from the Compass to the Internet" is a fascinating and very well-written account of the ways in which new technologies create new markets and new commercial realms, which in turn spur demand for new rules, standards, and property rights to govern them. Drawing on the work of economic historian Douglass North, Spar argues that without rules (whether provided by government or private initiative), commerce cannot flourish. "Ruling the Waves" tells the stories of the development of a number of technologies that were revolutionary in their time (both past and present)--from advances in shipbuilding and navigation that made transoceanic sailing voyages possible in the fifteenth century, to telegraphy in the nineteenth century, to radio in the twentieth century, BSkyB's satellite and digital television, the Internet and encryption technologies, Net browsers and Microsoft Internet Explorer, and MP3 online music technology. Spar describes how each of these new technologies created a new commercial space on the "technological frontier," attracting pirates, pioneers, and competitors, and how, in each case, new rules were formed, often at the behest of private firms and often arbitrated and enforced by governments, so that the new markets could grow and profits could be made. In presenting these stories, Spar puts newer technologies, like the Internet and MP3, in historical perspective. Transoceanic sailing voyages opened the uncharted territory of the high seas to commercial pioneers and pirates alike, but eventually the great trading companies and governments and their navies were able to virtually eliminate the scourge of piracy by defining and outlawing the practice and enforcing these laws. In a similar way, "Ruling the Waves" argues, rules to define fair and foul play, standards, and property rights will likely come to regulate newer markets, because "markets need rules if they are to survive, and power ... flows to those who make the rules." Spar describes four phases in the development of new technologies and markets: innovation, commercialization, creative anarchy, and rules. Her examples illustrate how these phases have played out for different technologies and in different industries, as well as the interplay between business and government in the emergence of new markets. Spar discusses the problems--often problems of coordination, congestion, or monopoly--that have arisen in some of these new markets and shows how these problems were resolved, in many cases comparing American (more often private) and European (most often government-led) solutions. In some cases, new rules had to be created for new markets, such as the government's allocation and licensing of radio frequencies, while in others, old rules were applied to new technologies, such as the application of U.S. antitrust law in "United States v. Microsoft". The stories themselves are captivating, and S

Finally, a book that doesn't treat the Internet like the end of the old world, or the beginning of a new one. Instead, "Ruling the Waves" is a fascinating and innovative analysis that takes a refreshing look at the Internet well beyond the hype, placing it in historical perspective, and arguing that we've seen similar patterns playing out in lots of previous technologies: in ocean-going trade, telegraphs, radio and so forth. I found the parallels informative and deeply insightful. Clearly, the author knows a lot about current technologies, but she doesn't get all caught up in the usual hype that surrounds them. Most importantly, I gained a much better understanding and clearer perspective of the current interaction between politics and technology. The book makes a compelling argument as to why government will have to play a much large role in regulating the new economy.Ruling the Waves Rules! An absolute must read!