James Bessen

In an age of dwindling economic competition, instead of breaking up corporate giants, we need to compel them to share their technology, data, and knowledge

How Corporations Use Software to Dominate Industries, Kill Innovation, and Undermine Regulation

The New Goliaths

Daniel Bower

One of my favourite non-fiction books of the year finished just as the year draws to a close. Bessen argues that as innovation evolved to become the domain of companies rather than individual inventors, the productive forces of innovation have diffused less throughout the economy. This has resulted in superstar companies taking dominant positions within their markets because of the increased complexity their products and services can achieve. And importantly, the downstream effects of this are not just weakened competition, but also inequality and polarisation.

It’s a novel and convincing argument that made the book a gripping read. What’s more, I also found Bessen’s argument that regulating for open-platforms (think AWS) as opposed to closed ones (think Walmart’s inventory management software) to be a more palatable attempt to regulate big tech than the more traditional “break em up” agenda. 

Bessen is unashamedly pro capitalism and pro business. But he recognises the problems that the last 40 years of economic policy has wrought too. 

One of my favourite non-fiction books of the year finished just as the year draws to a close. Bessen argues that as innovation evolved to become the domain of companies rather than individual inventors, the productive forces of innovation have diffused less throughout the economy. This has resulted in superstar companies taking dominant positions within their markets because of the increased complexity their products and services can achieve. And importantly, the downstream effects of this are not just weakened competition, but also inequality and polarisation.

It’s a novel and convincing argument that made the book a gripping read. What’s more, I also found Bessen’s argument that regulating for open-platforms (think AWS) as opposed to closed ones (think Walmart’s inventory management software) to be a more palatable attempt to regulate big tech than the more traditional “break em up” agenda. 

Bessen is unashamedly pro capitalism and pro business. But he recognises the problems that the last 40 years of economic policy has wrought too. 

Highly recommended.

The New Goliaths How Corporations Use Software to Dominate Industries, Kill Innovation, and Undermine Regulation

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