Are Speculative Bubbles Ever a Good Thing?

Over at Bubbleconomics, I wrote recently about the effect of speculative bubbles on innovation — see “Speculative Bubbles: Good for Innovation?

For a long time, I’ve thought that the so-called “Internet Bubble” from the 1990s was actually a good thing in many ways in that it sparked technology and business-model innovation and trained a generation in a new way of thinking about business and communication. Networking pioneer Bob Metcalfe agrees with me, as he says in a 2011 presentation:

We saw from the many Internet Era bubbles that investment, speculation, inflation, competition, and collapse are tools of innovators against the status quo. Bubbles accelerate technological innovation.

AB — 6 June 2011

The Coming Energy Internet

Over at ThomasNet Green & Clean, I’ve posted “Is an ‘Energy Internet’ Emerging?” I’ve included some insights from networking pioneer Bob Metcalfe, also Thomas L. Friedman and Jeremy Rifkin, as well as my own thinking about the increasingly networked energy grid.

In an email conversation, Metcalfe acknowledged to me that “energy can be viewed as a thermodynamics problem or a government policy problem,” but he thinks that ultimately  “it’s best instead to view energy as a networking problem.”

In a presentation, he gives a bit of history:

“While building Internet 1.0, the Arpanet,” during the 1970s, Metcalfe says in his presentation, “I remember this clearly, we did not say that our goal was YouTube.” And yet, “video is most of what the Internet now carries.”

So, he asks,

What will be energy’s YouTubes?

AB — 5 June 2011