Customer Reviews

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

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Spar tries to organize her thoughts with a 'staged' scheme for technological diffusion:
1. Inventor/pioneer creates the technology
2. Merchant salesmen popularize the technology
3. Pirates then fight to monopolize the business
4. Responsible citizens call in a government regulator.

These stages are established via a cartoonish detour into 16th century piracy. Captain Kidd, Blackbeard and the British crown serve as exemplars, but it doesn't work. For a much better review of the relationship between technology, pirates and government, see 'The Governors General'.

Fortunately, things pick-up when we get to the real subject matter: electronic networks. The story really starts with Morse and his version of telegraphy. At this point, Spar can turn to the matters that really interest her: communication network regulations. The subject matter is of great interest and makes for easy reading.

This isn't a technical history as much as legal history. Spar isn't very interested in technical infrastructure, 19th century job descriptions or the evolution of technology packaging. Her interest seems to be 'good regulation'. I initially expected a broad brush history of electronic networks, but Spar is fairly selective in subjects. We only focus on monopolies, generally first established via a patent or government grant. The first is the telegraph monopoly of Morse, and the second Marconi's radio telegraphy monopoly. Neither Morse nor Marconi established long term monopolies. Later, she turns to less convincing monopolies in satellite television, computer operating systems, and music.

I remain unconvinced her stages have any predictive value. As she warms to her drama about lawyers saving America from reckless young technophiles and profiteering businessmen, her pioneer/businessman/pirate/regulator scheme become something of a moral tale, and as such is both fascinating and banal.

Spar omits any serious discussion of how networking companies used their role as 'news' distributors to secure the election of governmental figures willing to protect the corporation's economic agenda. In particular, Spar fails to investigate the role of newspapers as consumers of network services and molder of public opinion. The emergence of positive feedback loops between newspapers, political parties and network corporations never gets any attention. For example, the dictators of the 30s: Hitler, Mussolini and Stalin get little attention, but relied heavily on radio to maintain political power. One might ask if they were pirates or regulators, but the question never comes up.

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!

_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 Congress in 1838, many just laughed. Generally in this stage most if not everyone involved is unaware of any real commercial use for the new technology; when the radio first appeared it was seen as perhaps a useful adjunct to the telegraph, a way to communicate with ships at sea, not as a mass market for broadcasting music.

The second phase is populated by pioneers, individuals who have moved into the new technological frontier and have seen ways to make profits - often very large profits - from the new technology, carving new empires and entire new fields of commerce where previously none had existed, out of the reach of government and existing businesses. This phase is truly frontier-like; speed is essential, as many scramble to stake their claim, the individuals in question often being quite young (Marconi was 20 when he started marketing his radio in the UK while Marc Andreessen was 23 when he founded Netscape). Pirates exist of course too, drawn by the new wealth and near complete lack of rules. There is little to stop them as public policy simply has not caught up yet with the new frontier (such as when Rupert Murdoch started to broadcast satellite TV into the tightly controlled British market in the early 1980s).

The third phase is what she termed creative anarchy. This is the stage when the pioneers, those who are seeking to make a profit, start to demand rules. Property rights for instance are not an issue in the first phase, as many early inventors -such as with the telegraph or the internet - essentially distributed their breakthroughs for free. As the technology matures and early pioneers establish profitable enterprises in the new frontier, they seek protection from the chaos and pirates of the second phase. For instance while the relatively few users of radio in the 1910s could transmit signals to their heart's content as the radio waves seemed infinite and owned by none, by the 1920s established radio stations were keen to protect their stretch of the airwaves as what had once seemed infinite was now congested and crowded and early radio stations sought to keep from being drowned out by amateurs or competing stations. Before government stepped in this new market was in danger of grinding to a halt with the constant din of rival signals. Similar problems occur over issues of coordination; whose standard is going to prevail in terms of say operating systems, and with competition, as often a single dominant pioneer emerges and creates a virtual monopoly, solving some problems but creating others (as with Western Union, Marconi, and Microsoft).

The final phase is the establishment of rules, when government reenters the scene, nearly always at the urging of the dominant companies in a new field. The original rush away from government has come full circle as "the rebels return to the state," needing the state to secure their new wealth, to enforce issues of contracts, property rights, and provisions for standardization. Spar believed that the internet will reach this phase.

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.

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 Spar is a very good story-teller. Her prose is lively, witty, and accessible throughout. "Ruling the Waves" is entertaining and reader-friendly, while making a well-crafted, sophisticated, and convincing argument about what happens when technology leaps ahead of existing law and how rules often get created in new markets because business (broadly speaking) wants them. As Spar writes, "...as markets expand, order trumps chaos more often than not." The book is wide in scope and covers a lot of history, but still provides quite detailed accounts of how each of the technologies and markets developed. Spar also focuses on the role of individual innovators, pirates, and pioneers, and their particular stories, successes, and failures--from Prince Henry of Portugal, to Samuel Morse, Guglielmo Marconi, Rupert Murdoch, Bill Gates, Shawn Fanning, and a number of others. "Ruling the Waves" is a great read for anyone interested in the development of new markets in new technologies, the roles of business and government in shaping new markets, the political history of technology, or in the particular histories presented--from piracy on the high seas to digital television, encryption technology, and MP3. I highly recommend it!

Ruling the Waves: Cycles of Discovery, Chaos, and Wealth from the Compass to the Interne by Debora L. Spar's is a interesting and exceptionally well-written description of the practices in which new technologies create innovative markets, which in turn urge demand for new policy, standards, and possession rights to govern them. Sketching on the work of financial historian Douglass North, Spar argues that with no rules business cannot flourish. Ruling the Waves shows the accounts the growth of a number of technologies that were innovative in their time from progresses in navigation and shipbuilding that made nautical journeys feasible in the fifteenth century, to telegraphy in the nineteenth century, to radio in the twentieth century, digital television and satellite, encryption technologies and the Internet, Microsoft Internet Explorer and Net browsers, and MP3 online music technology.

In telling these stories, the author puts newer technologies, like MP3 and the interne t, in historical perspective. Sailing voyages opened the unexplored surface of the high seas to market pirates and pioneers alike, but finally the great trading governments and companies were able to nearly abolish the curse of piracy by defining and banning the practices and impose these laws. Ruling the Waves disputes rules to classify foul and fair play, principles, and possession rights.
Spar depicts four stages in the expansion of new markets and technologies: commercialization, rules, innovation, creative and anarchy. Her example demonstrates how these stages have showed diverse innovations and in different industries, as well as the relationship between government and business in the creation of new companies. Spar talks about the problems of congestion, coordination, or monopoly that have occurred in some of these new corporations and explains how these problems were dealt with. In some cases, new regulations had to be fashioned for new markets, such as the government's licensing and portion of radio frequencies, while in other, old policies were practical to new innovations, such as the claim of United States antitrust law in United States v Microsoft.
The narratives themselves are fascinating, and Spar is a exceptionally good quality narrator. Her style is dynamic, clever, and handy throughout the book. Ruling the Waves is enjoyable, while making a intuitive, stylish, and persuasive argument about what happens when technology soar in advance of existing law and how policies often get shaped in new corporations because industry wants them. The book is extensive in range and covers a lot of accounts, but still offers quite in depth accounts of how the technologies and markets developed. Spar also centers on the character, innovators, pioneers, and pirates, and their particular tales, victories, and the unsuccessful from Samuel Morse, to Prince Henry of Portugal, Bill Gates, Rupert Murdoch, and a number of others. Ruling the Waves is a fantastic book for a person interested in the growth new technologies, the roles of government and industry in influential new markets, the political history of technology.

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.

This outstanding book takes the reader on a tour of technological and commercial discovery from the fifteenth century down to the present day. Professor Spar, a political scientist at the Harvard Business School, introduces the reader to a fantastic variety of characters from Prince Henry the Navigator to Chuck D., the founder of the rap group Public Enemy. She shows the various ways these two--and a fabulous variety of personalities in between--have created and managed what her subtitle describes as "Cycles of Discovery, Chaos, and Wealth." Indeed, one way to read this book is as a succession of stories about remarkable people prospecting along the technological frontier. As such, the book is a delight to a general readership and an invaluable trove of anecdotes to any instructor preparing material for students.

This book, however, offers far more than a set of disconnected (if always very engaging) tales of technological adventures.What makes Ruling the Waves so special is that the whole is much greater than the sum of its parts. Professor Spar has discerned patterns--cycles--in how technological change has taken place in a variety of ages, industries, and circumstances. These patterns are subtle and nuanced. This is no cookie-cutter, formulaic book. But patterns there are, as she explains in the Four Phases in the book's first chapter.

These patterns or phases are not a rigid roadmap which will propel an entrepreneur along the road to riches. They are powerful tendencies which push innovation in certain directions. History does not repeat itself, but these tendencies are always essential and time and again shape the future.

By the end of the book, the reader is left with some powerful lessons. The world needs rules; and chaos will give way to rules because powerful and aggresive entrepreneurs need rules to protect their wealth and power.

The most important rule-maker is the nation. No matter how supra-national such developments as wireless radio transmission or the Internet undoubtedly are, the nation seems as far away from withering on the vine as it ever has in modern history.

New age transportation (made possible, for example, by the technology of navigation centuries ago) or communication (the Internet today) demands rules made by nations to develop. That is because these technologies won't develop unless the people who invest in them receive a return on that investment and a reward for the risks they take.

In other words, technological progress demands contracts and the security and rights of property. That is where the legal and police power of the state play their role.

So this is a powerful book. Not just for readers who like history but for the businesspeople of today and tomorrow.