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 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 Chilean-Spanish-American scholar known for his contributions to economic complexity and for his applied work on data visualization and artificial intelligence. Hidalgo is a tenured professor at the Toulouse School of Economics’ (TSE) Department of Social and Behavioral Sciences and the head of the Center for Collective Learning a multidisciplinary research laboratory with offices at Institute for Advanced Study (IAST) at TSE and the Corvinus Institute of Advanced Studies (CIAS) at Corvinus University of Budapest. He is also an Honorary Professor at the Alliance Manchester Business School of the University of Manchester.
Between 2010 and 2019 Hidalgo led MIT’s Collective Learning group and prior to that he was a research fellow at Harvard’s Kennedy School of Government. Hidalgo is also a founder of Datawheel, an award winning company specialized in public data distribution and economic development strategy. He holds a PhD in Physics from the University of Notre Dame and a Bachelor in Physics from Universidad Católica de Chile.
Hidalgo’s contributions have been recognized with numerous awards, including the 2018 Lagrange Prize and three Webby Awards. Hidalgo's has authored dozens of peer-reviewed papers and of three books: Why Information Grows (Basic Books, 2015), The Atlas of Economic Complexity (MIT Press, 2014), and How Humans Judge Machines (MIT Press, 2021). His latest book, The Infinite Alphabet (Allan Lane/Penguin-Random House, 2025) explores the principles governing the growth, value, and diffusion of knowledge.
When someone's last book has changed your mind for ever, you may be excused for looking forward to his next one. Sometimes this doesn't disappoint. Hidalgo's Why information grows gave me information as physical order, entropy and how human learning, experiential and social, can be an antidote to entropy. As well as defining some things as 'crystallized imagination', which is beautiful. It solved many questions for me, as a librarian as well as a historian. This book is a sequel as well as a making of - where Why Information grows is supercondensed (I spent 2 weeks trying to understand it all), this book walks you through, with stories to explain difficult concepts. It is much more masterful in its command of its content, though that was part of the appeal of Why Information Grows too, that you could see him reach for understanding in the book... but this is much easier on the mind - with knowledge transfer across time, space and relations, and what that means for economy, learning and humanity. The infinite alfabet is a nice way of looking at building blocks for progress...
Clear eyed mind to explain the phenomenon of knowledge. Great introduction and suggestive notions for individuals, groups, or societies on how to better use our talents.
Although taking a very new approach, this book by a physicist working in economics made me nostalgic for the business books of the 1980s. More on why in a moment, but Cesar Hidalgo sets out to explain how it is knowledge - how it is developed, how it is managed and forgotten - that makes the difference between success and failure.
When I worked for a corporate in the 1980s I was very taken with Tom Peters' business books such of In Search of Excellence (with Robert Waterman), which described what made it possible for some companies to thrive and become huge while others failed. (It's interesting to look back to see a balance amongst the companies Peters thought were excellent, with successes such as Walmart and Intel, and failures such as Wang and Kodak.) In a similar way, Hidalgo uses case studies of successes and failures for both businesses and countries in making effective use of knowledge to drive economic success.
When I read a Tom Peters book I was inspired and fired up, feeling that here, somehow, was the secret of the (business) universe. Similarly I felt Hidalgo was revealing to me a new reality in the way that knowledge impacts economies. The prose is somewhat more academic and restrained, but we get the same mix of personal achievements of the author and real life stories, whether it be the rebel 21-year-old from the Midlands who transported the Industrial Revolution to the US or how a Chinese entrepreneur learned from the knowledge-based synergistic relationships between US universities and businesses.
Unfortunately, as was also the case with those old business books, after the initial euphoria it becomes difficult to see how you can learn any practical lessons to change the way a business (or a government) operates. We are given examples, but they often feel too unique to be useful. Even Hidalgo mentions that every case has to deal with specific circumstances - there are no simple, transferable solutions here. We can all nod and agree that Netflix got it right where Blockbuster didn't, for instance - but I'm not sure how much it prepares us for the next situation where knowledge pushes us in a new direction.
You may have noticed a certain lack of reference to the 'infinite alphabet' of the title. That's because I have very little idea of what it has to do with the content of the book - it seems to be something vague about the many ways that different factors can come together... or something else. It's beyond me.
To some extent, then, I'm saying that I got very little from this book. But I enjoyed doing it, and Hidalgo does produce a similar buzz to the Tom Peters effect. It was a better book than Hidalgo's earlier Why Information Grows (which I also reviewed as interesting but, in classic MIT Media Lab style, not relevant to the real world). There's definitely something absorbing here observationally, I just can't see it being useful practically.
The anecdotes and historical overviews of industries and the people involved were interesting, but I failed to see what larger, significant point was being made, other than obvious ones. Such as, if you want to propagate knowledge, don't build a knowledge hub in an isolated region. Or, Walt Disney was successful to a large degree because he had much more opportunities to network (unlike Pepo). Maybe these heuristics are only obvious in hindsight.
I thought he did a poor job of explaining where knowledge actually comes from. Maybe this wasn't a central aspect of the book, but I thought he mentioned it pretty early on and then never followed up. I'm particularly interested in in-distribution and out-of-distribution tasks as they relate to LLMs, and I was hoping he would touch on this distinction, especially when he talked about Moore's Law. But all I took away was that the typing skill learning curve saturates, while the exponential growth of transistor doubling doesn't, and I didn't really follow his explanation why. Something to do with 'experience curves'. Sorry, I didn't get it. Maybe this was my fault.
Anyway, it came across as one of those books that drops a lot of names and examples, but doesn't really tie together into a cohesive set of ideas. Knowledge is an 'infinite alphabet'. In other words, it's combinatorial. Is that really a groundbreaking insight?
If anyone else has read this and I'm completely missing something, please fill me in.
Hidalgo writes like the Indiana Jones of the knowledge economy—curious, bold, and full of surprises. A smart blend of case studies and personal stories that makes you want to keep exploring his world.
Great book and a great read! Highly reccommended if you are interesets in the economics and governance of knowldge, economic complexity and development, fun and informative read!