César A. Hidalgo, "The Infinite Alphabet: And the Laws of Knowledge" (Allen Lane, 2026)

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Mar 16, 2026

César A. Hidalgo, physicist and scholar of economic complexity and collective learning. He describes an 'infinite alphabet' of fragmented knowledge and its three laws: how knowledge grows over time, diffuses across space, and gains value when bundled. Stories range from failed knowledge cities to China's grassroots innovation and why procedural know-how travels differently than facts.

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ANECDOTE

Florida Lawyer Built A Business From One Tiny Process

César Hidalgo tells the story of "Charlie," a Florida lawyer who built a business extending court cases for $50.
The example shows how extremely specific procedural knowledge (extending court cases in Florida) can create a valuable niche firm.

INSIGHT

Diminishing Returns At Small Scales But Exponentials At Industry Scale

Learning curves show fast early gains and diminishing returns at the individual/team level, yet industries can exhibit sustained exponential growth.
Hidalgo links Thurston/Wright learning curves with Moore-style exponentials and the need for compounding across actors.

ADVICE

Prefer Density And Related Activities Over Grand Buildings

Avoid top-down, remote master-planned 'cities of knowledge' and instead bet on existing dense knowledge concentrations and related activities.
Hidalgo cites Yachay and Neom as failures because they ignored density, relatedness, and generational absorption timescales.

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We all understand that knowledge shapes the fate of business and the growth of nations, but few of us are aware of the principles that govern its motion. The Infinite Alphabet: And the Laws of Knowledge (Allen Lane, 2026) unravels the laws describing the growth and diffusion of knowledge by taking you from a failed attempt to build a city of knowledge in Ecuador to the growth of China's innovation economy. Through dozens of stories, you will learn why aircraft manufacturers in Italy began manufacturing scooters after the Second World War and how migrants like Samuel Slater shaped the industrial fabric of the United States. Knowledge is the secret to the wealth of nations. But to understand it, we must accept that it is not a single thing, but an ever-growing tapestry of unique ideas, experiences and received wisdom. An Infinite Alphabet that we are only beginning to fathom. César A. Hidalgo, a world-renowned scholar for his work on economic complexity, will walk you through the "three laws" and the many principles that govern how knowledge grows, moves, and decays. By the end of this journey, you will understand why knowledge grows exponentially in the electronics industry and what mechanisms govern its diffusion across geographic borders, social networks, and professional boundaries. Together these principles will teach you how knowledge shapes the world.

César A. Hidalgo is a physicist, professor, and author known for pioneering work in economic complexity, data visualization, and applied artificial intelligence. For nine years he led MIT's Collective Learning Group before moving to France to found the Center for Collective Learning (CCL), an international research laboratory with offices at the Toulouse School of Economics and Corvinus University of Budapest.

Caleb Zakarin is CEO and Publisher of the New Books Network.

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