Misyurov D.A. Dialectical formulas based on the binary notation as the development formulas // Credo New. 2012. №2
The article suggests dialectical formulas based on the binary notation as the development formulas: formula with... more The article suggests dialectical formulas based on the binary notation as the development formulas: formula with dominant and the non-dominant elements; universal formula; formula with symbolic weight of elements; tautological formula. For example, it suggests an opportunity to use the dialectical formulas for modeling and artificial intelligence creation, etc.
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![](http://photos.academia.edu/337116/202023/393785/tiny_mariafelicia.de_laurentis.jpg?1326314467 "<strong>Mariafelicia De Laurentis</strong><br/>University of Naples "Federico II""){kind=small}
Download (.doc) Innovation and entrepreneurship in small firms: the influence of entrepreneurial attitudes, external relationships and learning orientation
Nybakk, E. 2009. Innovation and entrepreneurship in small firms: the influence of entrepreneurial attitudes, external relationships and learning orientation. Philosophiae doctor (PhD) thesis, Norwegian University of Life Sciences 2009/07: 176 s.
In order to uphold economic growth and employment in the districts and nationally, one is dependent on small and... more In order to uphold economic growth and employment in the districts and nationally, one is dependent on small and competitive firms and sole owner enterprises. These represent the majority of firms and are a vital source for new creativity and development in both traditional and new sectors. How one should promote entrepreneurship and innovation among these companies has been a central theme in political debates. The foremost goal with this thesis is to advance knowledge about the factors that trigger creativity and innovation in small firms, with the main focus on firms that offer non-timber forest products and services (NTFP&S). Article I was based on a questionnaire for forest owners in Telemark, Vest-Agder and Aust-Agder (three counties in east Norway) and shows that the likelihood of starting up with NTFP&S is greater among forest owners that recognize opportunities and are risk takers. Articles II and III were based on a questionnaire for firms that work with nature-based tourism. The first of them builds on Article I and shows that forest owners that recognize opportunity and are risk takers have a greater likelihood of changing the way they supply their products and services. Article III shows the effect of external relationships on innovation and how innovation affects economic accomplishment. The relationships are also exemplified by a case study. Article IV was based on a study of a random selection of forest owners with more than 25 hectares of forest in souteast Norway. The study shows that external relationships and learning orientation have a positive effect on innovation and again on economic success among forest owners, related to NTFP&S. Article V was based on a questionnaire for small, knowledge-intensive firms and shows the impact of external relationships on product, process and market innovation. Each of the articles presents implications of the findings and suggestions for further research.
Entrepreneurial attitude, innovation and performance among Norwegian nature-based tourism enterprises
Published in Forest Policy and Economics (2008) Volume: 10, Issue: 7, Pages: 473-479
Entrepreneurship and innovativeness have seen considerable attention in the literature. However, little research has... more Entrepreneurship and innovativeness have seen considerable attention in the literature. However, little research has focused on micro-scaled enterprises, especially in the context of nature-based tourism. This work investigates how entrepreneurial attitude influences innovativeness and performance in Norwegian nature-based tourism enterprises. Data collection consisted of an e-mail survey and resulted in 178 usable responses. Respondents that exhibit a stronger entrepreneurial attitude appear more likely to change the way they organize their enterprise and tend to have higher income growth. Results point to potential policy actions that could positively impact rural development as well as individual firm actions that may enhance performance.
Inter-organizational innovation promoters in small, knowledge-intensive firms
Jenssen, J.I. & Nybakk, E. 2009. Inter-organizational innovation promoters in small, knowledge-intensive firms. International Journal of Innovation Management 13: 441-466.
This paper examines the relationship between external relations and innovation in small, knowledge-intensive Norwegian... more This paper examines the relationship between external relations and innovation in small, knowledge-intensive Norwegian firms. Our findings indicate that external relations are beneficial for innovation. The analysis shows that it is necessary to treat innovation as more than a concept. Our independent variables related differently to product innovation, process innovation, and market innovation. We found that market participation in product development has a positive impact on product, process and market innovation. We also found that top management interaction with other firms had a positive effect on market innovation and that top management interaction with external R&D had a positive effect on product innovation. This finding probably indicates that access to R&D resources is vital for product development in the context of knowledge-intensive products. The results also show that participation in conferences and courses positively influences process and market innovation and that systematic environmental scanning positively influences product innovation.
Climate for innovation and innovation strategy as drivers for success in the wood industry: moderation effects of firm size, industry sector, and country of operation
E Nybakk, P Crespell, E Hansen (2011)
Silva Fennica 45 (3) p. 415-430
This study examines the relationships between firm financial performance and a) the climate for innovation and b)... more This study examines the relationships between firm financial performance and a) the climate for innovation and b) innovation strategy in the wood products industry. The focus is on the moderator effects of firm size, country of operation, and industry sector. Using a sample of 460 responses from chief executive officers and top managers of Norwegian and US firms, we conducted a regression analysis to probe for interaction effects. The sample included primary and secondary manufacturers of various sizes. Consistent with previous studies, we found a positive impact for both a climate for innovation and an innovation strategy on firm performance. In terms of moderation, only one interaction was found to be significant, representing a moderator effect of industry × size on the climate-performance relationship. Further testing showed that secondary, large manufacturers exhibited a weaker, yet still positive, relationship between climate for innovation and performance. This low level of significant interactions suggests stability of the relationship among the main factors depicted in the model, with important implications for managers and future research. These findings indicate that a positive climate for innovation and a management committed to innovation through an innovation strategy have a positive effect on the bottom line of wood products firms. This effect holds true regardless of industry, size, or country, so most firms can benefit from the implementation of these pro-innovation practices.
A multinational investigation of softwood sawmilling innovativeness
Hansen, E.N., Nybakk, E., Bull, L., Crespell, P., Jélvez, A. & Knowles, C. 2011. A multinational investigation of softwood sawmilling innovativeness. Scandinavian Journal of Forest Research 26: 278-287.
Softwood sawmilling is important to the economy of many nations and huge volumes of softwood lumber are produced... more
Softwood sawmilling is important to the economy of many nations and huge volumes of softwood lumber are produced annually. Accordingly, the economic success of softwood sawmills, as they compete with substitutes such as steel and concrete, is of interest to various industry stakeholders, especially managers, and researchers. Given the strong connection between innovativeness and firm performance in the literature, this study investigates innovativeness in sawmills in Australia, Canada, Chile, Norway, and the USA.
Mail surveys were used in each of the countries to collect data regarding product, process, and business systems innovativeness and firm performance. Findings suggest that sawmills focus equally on product and process innovativeness, firm size positively impacts innovativeness, and that overall, process innovativeness is what drives firm performance in this sector. Findings suggest that managers should focus on being innovative since this positively impacts firm performance.
Innovation strategy, working climate, and financial performance in traditional manufacturing firms: An empirical analysis
E Nybakk, J I Jenssen (2012)
International Journal of Innovation Management 16 (2) p. 26 pp
In this study, we address the effect of innovation strategy and an innovative working climate on financial performance... more In this study, we address the effect of innovation strategy and an innovative working climate on financial performance in the Norwegian wood industry. Innovation strategy embodies four dimensions: the degrees to which innovation in the form of products, processes, and business systems are embedded in the management values and priorities as well as the degree of expenditure in R&D. An innovative working climate is exemplified by team cohesion, supervisory encouragement, resources, autonomy, challenge, and openness to innovation. Previous studies have indicated a lack of research in traditional manufacturing firms on both innovation strategy and a supportive working climate. Our survey was answered by 241 CEOs. The connectional model was tested with structural equation modelling, and all hypotheses received support. This result implied that innovation strategy and an innovative working climate enhanced financial performance in traditional manufacturing firms.
Innovation strategy, working climate, and financial performance in traditional manufacturing firms: An empirical analysis
E Nybakk, J I Jenssen (2012)
International Journal of Innovation Management 16 (2) p. 26 pp
In this study, we address the effect of innovation strategy and an innovative working climate on financial performance... more In this study, we address the effect of innovation strategy and an innovative working climate on financial performance in the Norwegian wood industry. Innovation strategy embodies four dimensions: the degrees to which innovation in the form of products, processes, and business systems are embedded in the management values and priorities as well as the degree of expenditure in R&D. An innovative working climate is exemplified by team cohesion, supervisory encouragement, resources, autonomy, challenge, and openness to innovation. Previous studies have indicated a lack of research in traditional manufacturing firms on both innovation strategy and a supportive working climate. Our survey was answered by 241 CEOs. The connectional model was tested with structural equation modelling, and all hypotheses received support. This result implied that innovation strategy and an innovative working climate enhanced financial performance in traditional manufacturing firms.
Pacific Lithium Ltd - Case resource library
Mellalieu, P. J. (n.d.). Pacific Lithium Ltd - Case resource library. Retrieved July 1, 2009, from http://web.mac.com/petermellalieu/Teacher/Examples/Entries/2007/10/24_
How do an inventor and an entrepreneur with a bright idea tackle two giant lithium mineral processing companies to... more
How do an inventor and an entrepreneur with a bright idea tackle two giant lithium mineral processing companies to take the US$ 10 billion per year lithium battery industry? The case study reports the journey from start-up to early growth of a company established in New Zealand to commercialise leading edge lithium battery technologies for the mobile electronics and electric vehicle industries. At the start of the company’s foundation, lithium demand was expected to grow substantially in response to the rapid growth in demand for end-user products requiring the light, long-charge features of lithium batteries: video camera, mobile phones, laptop computers ... and the “holy grail”: electric vehicles.
The case details aspects of global lithium production and consumption, the key personalities, the startup and the key challenges facing the early years of Pacific Lithium.
The case concludes on an optimistic note. However, in order not to upset a good story, I will avoid revealing here the subsequent developments in the story.
The case can be used for teaching purposes in several ways. Students can be asked to update the case to the current day. Alternatively, the full case can be presented to students as a sequence of parts, A, B and C.
The case can be used for teaching purposes in several ways. Students can be asked to update the case to the current day. Alternatively, the full case can be presented to students as a sequence of parts.
The Case Library documents present the case as a series of parts, plus additional research materials.
My teaching strategy for first-year courses
Mellalieu, P. J. (2010, September 14). My teaching strategy for first-year courses. Innovation & chaos ... in search of optimality. Retrieved March 5, 2011, from http://pogus.tumblr.com/post/1117803030/my-teaching-strategy-for-first
My overall teaching philosophy (here) underpins my approach to the teaching of students in first-year courses.
I have particular aims for students who are engaged in their first year of studies at a tertiary institution. My comments are specifically focussed on students entering a three year bachelors programme.
My aims are
Establish expectations for the requirements for academic success when considered over students’ three-year programme
Provide foundation stones and scaffolds useful for future studies
Help students identify their strengths, interests, and goals for their tertiary study
Help students develop a personal learning agenda for how they will orchestrate their studies beyond my class
Help students build interpersonal networks of support with peer and senior students
I will discuss each of the foregoing aims with respect to my first-year course Unitec BSNS 5391 Innovation and Entrepreneurship.
Strengths-based professional development in a faculty of creative industries and business (Part 1)
Mellalieu, P. J. (2010, August 24). Strengths-based professional development in a faculty of creative industries and business (Part 1). Innovation & chaos ... in search of l’excellence. Retrieved from http://pogus.tumblr.com/post/980175705/history-of-bsns-5391
A reflective essay on a decade of using strengths-based teaching through Unitec Institute of Technology’s New Zealand... more
A reflective essay on a decade of using strengths-based teaching through Unitec Institute of Technology’s New Zealand Centre for Innovation & Entrepreneurship located in the Faculty of Creative Industries and Business, Auckland, New Zealand.
I teach a course Innovation and Entrepreneurship BSNS 5391 that now comprises one compulsory component of Unitec’s Bachelor of Business degree. The course is novel in several respects. However, here I reflect principally on my use in the course of a strengths-based teaching approach informed by the principles of positive psychology, and the online StrengthsFinder 2.0 ‘talent’ assessment instrument.
The course was designed several years ago. Until 2010 it was an elective component of the degree. The course tended to attract a several international exchange students from Europe and the Americas, and local students very focussed on creating their own small enterprise. With typically five students per year, the course was taught on a tutorial basis.
When the course was made compulsory this year, I expected a larger class size. In fact, about 40 students enrolled. I anticipated that there might be some reluctant participants who would assume the course was a small business administration course. More than half indicated their ambition to work in a corporate, whilst less than one-quarter indicated their interest in either starting a new enterprise, or working in a small business. Consequently, I state BOLDLY in the course handbook that the course focus is innovation in existing companies, corporates, and new ventures. Secondly, that the agent of innovation is ‘someone’ called an entrepreneur … or intrapreneur if you act within an exising enterprise. Thirdly, that your role may be that of someone who collaborates with the entrepreneur to act as a high-performing new venture team.
Pacific Lithium: Stored Energy for the Mobile Society - Case study
Mellalieu, P. J., Sun, J. G., & Willis, A. (2000). Pacific Lithium: Stored Energy for the Mobile Society - Case study. New Zealand Strategic Management, 4 (Winter)(3), 51–64. Retrieved from http://tinyurl.com/pllcase2
Pacific Lithium Limited is a recently-established company that has recruited some of the best of the world’s... more
Pacific Lithium Limited is a recently-established company that has recruited some of the best of the world’s technologists to commercialize leading-edge lithium battery technologies for the mobile electronics and electric vehicle industries.
How do an entrepreneur and an inventor with a bright idea to extract lithium from seawater tackle the two giant lithium mineral processing companies to take the US $10 billion per year lithium battery industry?
The world market for high performance batteries has been estimated as growing at a rate of 25% per year and is likely to reach a world demand of US $10 billion by the year 2002. With the growth in demand for portable powered equipment, and the imminent introduction of electric cars in the early decades of the next century, lithium-based products appear to have a promising future as an energy storage medium. New Zealand-based Pacific Lithium Limited – PLL - is emerging as a world class competitive player in this ‘energetic’ market.
PLL was established in 1994 to develop a world-competitive business based on the extraction of lithium from seawater, using a new adsorption technology developed by chemical engineer John Bloom. By late 1999, through the fundraising efforts of entrepreneur Robin Johannink, the company had raised $US 25 million from 600 shareholders, including a substantial stake from Vertex Asia (a technology subsidiary of the Singapore government) and a further stake from a key customer: Japanese trading company Nissho Iwai.
The case continues with a description of some of the properties of lithium and its products. Next, we present the historical sequence of events covering the establishment of Pacific Lithium, and the industry and market conditions prevailing at several points in the journey.
Note:
A case resource library is available for the story of Pacific Lithium.
Mellalieu, P. J. (n.d.). Pacific Lithium Ltd - Case resource library. Retrieved July 1, 2009, from http://web.mac.com/petermellalieu/Teacher/Examples/Entries/2007/10/24_Case_study__Pacific_Lithium_Ltd__Stored_energy_for_the_mobile_society.html
The case library includes further documents such as:
Mellalieu, P. J. (1998). Beyond the Case Method: A Master Class for Enterprise Development. Proceedings of the Annual Educators Conference of the New Zealand Strategic Management Society, 6th Annual Conference. The University of Auckland N.Z.: New Zealand Strategic Management Society. Retrieved from http://unitec.academia.edu/PeterMellalieu/Papers/1571134/Beyond_the_Case_Method_A_Master_Class_for_Enterprise_Development
Willis, A., Mellalieu, P. J., & Emerson, L. (2000). Walking the Streets: Shareholder Profiles and Perspectives on a High Technology Startup Company. Proceedings of the Annual Educators Conference of the New Zealand Strategic Management Society, 2 (Vol. 1). Presented at the Strategies for sustainability and success: the role and impact of strategic thinking in the development of sustainable enterprise, Canterbury University, Christchurch: New Zealand Strategic Management Society. Retrieved from http://web.mac.com/petermellalieu/Teacher/Examples/Entries/2007/10/24_Case_study__Pacific_Lithium_Ltd__Stored_energy_for_the_mobile_society_files/R_WILL2.pdf
Mellalieu, P. J. (2001). New Myths for a Very New World: The Mythic Journey as a Basis for Learning About Entrepreneurial Start-Ups. Proceedings of the 9th International Conference on Thinking. Presented at the Breakthroughs: The 9th International Conference on Thinking, Auckland, NZ. Retrieved from http://tinyurl.com/heropll
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A strategic research and development plan for the New Zealand pipfruit industry
Hill, R., Jones, G., Hewitt, E., Banks, N., Scott, D., Mellalieu, P. J., Ferguson, I., et al. (1996). A strategic research and development plan for the New Zealand pipfruit industry (Strategic plan) (p. 48). Hastings, New Zealand: Pipfruit R&D Strategic Planning Group.
This related paper describes the process used to develop the strategy documented in the paper:
Mellalieu, P. J. (1997). Research-based innovation strategy and the New Zealand pipfruit industry. New Zealand strategic management, 3(2 (Spring)), 12. Retrieved from http://tinyurl.com/pjm-pipfruit
The future success and economic viability of the New Zealand pipfruit industry depends on innovation: the introduction... more
The future success and economic viability of the New Zealand pipfruit industry depends on innovation: the introduction of new or improved products, processes and services to meet the needs of both existing and new customers. The strategic plan described focuses on opportunities for Research and Development (R&D) to help achieve premium returns from New Zealand's fresh pipfruit exports. The plan provides strategic direction to research users, funders, and providers. The plan excludes consideration of processed pipfruit products.
The project team asked the question "What are the critical issues affecting R&D-based innovation in the New Zealand pipfruit industry?" In response to the question nine critical issues were identified. The issues impact on the industry's R&D investments and research management infrastructure. In considering the nine issues four strategic R&D goal areas were identified: (1) Improving the timeliness and cost-effectiveness of new product and process development; (2) Advancing the adoption of environmentally-sustainable production, handling, and delivery practices in relation to market access requirements; (3) Optimizing market returns through improved prediction and control of product quality; (4) Adopting investment-informed approaches to R&D management, technology transfer, and intellectual property management. The plan identifies specific goals and measures of success for each of the goal areas identified.
Research-based innovation strategy and the New Zealand pipfruit industry
Mellalieu, P. J. (1997). Research-based innovation strategy and the New Zealand pipfruit industry. New Zealand strategic management, 3(2 (Spring)), 12.
For the strategic plan described in this paper, see the related:
Hill, R., Jones, G., Hewitt, E., Banks, N., Scott, D., Mellalieu, P. J., Ferguson, I., et al. (1996). A strategic research and development plan for the New Zealand pipfruit industry (Strategic plan) (p. 48). Hastings, New Zealand: Pipfruit R&D Strategic Planning Group. Retrieved from http://unitec.academia.edu/PeterMellalieu/Papers/1569486/A_strategic_r
The New Zealand pipfruit industry takes around twenty years to develop a new apple variety up to full commercial... more The New Zealand pipfruit industry takes around twenty years to develop a new apple variety up to full commercial production. The industry’s success is increasingly dependent on the introduction of new pipfruit products. How can the industry plan for effective research, science, and technology (RS&T) investments for supplying products into an international marketplace which is increasingly volatile?
Pacific Lithium (B): Think Global! Act Global!
Mellalieu, P. J., & Sun, J. G. (1999). Pacific Lithium (B): Think Global! Act Global! Proceedings of the Annual Educators Conference of the New Zealand Strategic Management Society, 7th Annual Conference, 1 (Vol. 1). Presented at the Think global! Act global! The role and impact of strategic management in the development of small enterprise and new ventures, Palmerston North, N.Z.: New Zealand Strategic Management Society.
“A group of investors are backing a radical new lithium extraction technology in the hope of breaking a world monopoly... more
“A group of investors are backing a radical new lithium extraction technology in the hope of breaking a world monopoly on the precious metal....a trial shipment of one tonne of the material was sent to Japan last year... Mr. Johannink said the lithium market was worth US $500 million” - National Business Review (November, 1994).
In Pacific Lithium (A), John Broome had offered Robin Johannink the opportunity to develop his technology for extracting lithium from seawater, and thereby enabling entry into the world lithium market, especially for lithium-based batteries. Johannink researched the lithium market and the cost advantages of Broome’s technology and concluded that a business opportunity existed. He was also impressed by Broome’s passion for the project, his philosophy being to “get the right people, with the right skill, doing the right things... in the early stages of development of a risky venture, risk can be mitigated through non-risky people”
Johannink agreed to support Broome’s technology and develop the project. Broome transferred all his know-how, proprietary knowledge and entitlement to the technology in return for shares in the proposed company. The company would raise the capital and provide Broome the facilities needed to develop the technology into a commercially viable business. Johannink developed a rudimentary business plan, and spent the next nine months doorknocking to raise seed capital from twenty six investors (including his own funds) to get the prototype up and running. Eventually, Pacific Lithium Limited was set up in February 1994.
The National Business Review (November, 1994) introduced the company and revealed the involvement of The Helicopter Line Executive Director, Christopher Alpe, as chairman of the Pacific Lithium Limited board. Alpe directed New Zealand’s leading tourist operator, which included interests in motor homes, helicopters, jet boats, hotels and theatres and the Kelly Tarlton aquariums.
Following a shareholders’ meeting in November, the company announced its intention to:
∑ Construct and commission the first plant in the world (costing NZ $10 million) to extract and process lithium from seawater by December 1995.
∑ Produce 3,000 tonnes of lithium carbonate a year.
∑ Operate at a minimum of 50% capacity after commissioning.
∑ Make its first shipment to the international market in January 1996.
∑ Market its proprietary technology offshore, probably with joint venture
partners.
∑ Explore prospects for applying its technologies with ECNZ’s geothermal
waters, which contained much higher concentration of lithium. (ECNZ is New Zealand’s principal electricity generator, producing electricity mainly from hydrothermal sources, a few gas-coal-oil thermal sources, and two geothermal sources)
∑ List on the New Zealand sharemarket “sooner rather than later” (NZ Herald, December 1994).
In a report in the NZ Herald, Johannink expressed his view that “Lithium was seen as a strategic mineral of the future, particularly with the growth in demand for lithium rechargeable batteries. Lithium batteries performed far better than conventional batteries, and their wide availability would lead towards the rapid development of batteries for the electric car industry”
By 1995 the following company vision had emerged: “To provide lithium-based energy storage systems that will generate environmental benefits across the globe”.
Note:
This is the SECOND installmant in a series of cases. For a Case Resource library providing Part A, Part C and other resources, see:
Mellalieu, P. J. (n.d.). Pacific Lithium Ltd - Case resource library. Retrieved July 1, 2009, from http://tinyurl.com/pllcase1
On the innovativeness of foreign affiliates: Evidence from companies in The Netherlands
In examining the distinctive contributions of foreign subsidiaries and domestic firms to innovative performance in... more In examining the distinctive contributions of foreign subsidiaries and domestic firms to innovative performance in Dutch manufacturing, the paper shows that foreign ownership is an important factor in explaining inter-firm differences affecting innovativeness. It characterizes innovativeness by distinguishing between products that are new to the firm (‘imitative’ innovations), and those products that are new to the market (‘real’ innovations). It uses firm-level data for 4780 firms which took part in the Community Innovation Survey (CIS-2) for 1996 in The Netherlands. It concludes that foreign subsidiaries are more innovative, they are more likely to introduce ‘imitative’ as well as ‘real’ innovations compared to domestic firms. In comparison with the population of innovative companies, however, there is greater heterogeneity among foreign subsidiaries, i.e. they are not more likely to introduce ‘real’ innovations if they cannot utilize knowledge transfer from an associated company.
Towards market repositioning in Central and Eastern Europe: international cooperative ventures in Hungary, Poland and the Czech Republic
Research Policy, Volume 30, Issue 5, May 2001, Pages 711-724
The paper examines the influence of international cooperative ventures on indigenous firms in Central and Eastern... more The paper examines the influence of international cooperative ventures on indigenous firms in Central and Eastern European (CEE) countries. It has been widely recognized that multinational enterprises (MNEs) predominately utilize these ventures to rationalize their international production. However, research has rarely focused on the gains of CEE firms in these ventures. The paper applies the concept of distinct capabilities to characterize the ability of CEE firms to adequately absorb technological knowledge and skills from these ventures. In examining the characteristics of distinct capabilities empirically, the paper uses a sample of 35 firms in Hungary, the Czech Republic and Poland in seven different high-technology industries. The paper suggests that CEE firms in technology-intensive industries were rarely able to increase their technology base as a result of their venturing activity.
Information Rules: A Strategic Guide to the Network Economy
Telecommunications Policy Volume 24, Issue 5, June 2000, Pages 457–459
Without doubt, Information Rules will quickly obtain textbook status in economics and management classes — like... more Without doubt, Information Rules will quickly obtain textbook status in economics and management classes — like Michael Porter's Competitive advantage or Hal Varian's Intermediate Microeconomics. There was a need for such book that could dismantle the “hype” in the current fast changing information and technology markets and could skilfully disprove arguments on a “friction-free” economy or on an “entrepreneurial” competition in industries effected by information technology. Both authors have been well equipped to write such book in being for a long time at the forefront of the theoretical discussion on the economics of information, technological change, game theory and competitive strategy, and in actively participating in anti-trust legislation in the industry. The result of their joint efforts has, however, been ambiguous. To be sure, both authors have produced a well-written, partly even amusing book that is easily accessible to the reader, while elaborating on rather complicated economic constructs such as “lock-in” and “positive feedback”. They use these constructs to convincingly demonstrate that the dynamic competition driving the industry is more oligopolistic, than entrepreneurial by nature and therefore regulatory intervention might be warranted. For readers in need of a textbook that explains the economics of networks based on ‘classical’ equilibrium economics, Information Rules provides the required knowledge. This also represents, however, the Achilles heel of the book: The economics of networks are inherently dynamic, a state of equilibrium is the exception, and disequilibrium is the rule. In other words, equilibrium concepts in the tradition of ‘classical’ readings provide some answers with respect to the Schumpeterian notion of dynamic competition and “temporary” monopolies. They seem at present unsuitable to examine questions such as how the evolution of network systems leads to an inefficient resource allocation and to what extent ex ante regulation might remediate this situation. The current debate precisely tackles these issues and provides rather contradictory answers to policy makers. In this respect, the book falls behind the discussion on network economics which has traditionally forced economists and policy-makers to reconsider traditional economic, policy and regulatory concepts.