Why Information Grows: book review

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SUMMARY

Cesar Hidalgo's 2015 book, “Why Information Grows,” explores the relationship between information and economic dynamics, emphasizing the role of dissipative structures in the formation of complex systems. The book posits that in a Goldilocks region of energy flux, these structures can emerge, storing information in their spatial arrangements. Key concepts include the distinction between information and knowledge/knowhow, as well as the limits of individual and organizational capacities, termed person-byte and firm-byte. Hidalgo's work draws on influences from Schrödinger's "What is Life?" and discusses the implications of these ideas for understanding biological and economic systems.

PREREQUISITES
  • Understanding of dissipative structures and their role in thermodynamics.
  • Familiarity with the concepts of information theory and its application in biology.
  • Knowledge of the distinctions between information, knowledge, and knowhow.
  • Basic comprehension of economic dynamics and organizational behavior.
NEXT STEPS
  • Research "dissipative structures" in thermodynamics and their implications for complex systems.
  • Explore the relationship between information theory and biological processes, particularly in genetics.
  • Study the concepts of person-byte and firm-byte in the context of organizational knowledge management.
  • Investigate the influence of Schrödinger's "What is Life?" on modern biological theories.
USEFUL FOR

This discussion is beneficial for economists, biologists, information theorists, and organizational leaders interested in the intersection of information, complexity, and economic dynamics.

BillTre
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I recently read Cesar Hidalgo’s 2015 book: “Why Information Grows”, which I heard about recently on Sean Carroll’s podcast (I like it).
It’s mostly an economics book that derives its main ideas from how information underlies organization in the universe, as well as in economic dynamics.
I like how it considers life from an informational point of view and will mostly discuss biological implications. Interested in feedback on this.

Main Three Part Origin Concept:
In a Goldilocks region of energy flux (not too much, not too little), dissipative structures can form, that in effect bring structural information into existence at the cost of the energy flow. See See Prigogine: who wrote a book, literally named Order Out of Chaos.

An arrangement of matter such as this, contains (has embedded) information in the spatial ordering of its atoms. Dissipative structures, like whirlpools in a draining bathtub, are ephemeral and will go away if the energy flow is shut down. If dissipative structures are made of “solids” (work used symbolically), they are preserved from the rapid entropic degradation that would occur if the flow were turned off.
I interpret "solids", in kind of symbolic conceptual way, as a more stable form of information storage that makes the dissipative structures are more resistant to the degrading effects of entropy. This concept seems to come from Schrödinger's book What is Life? (an influence on Hidalgo) where he compares stable molecular properties with solids. The solid like molecules being more stable and less ephemeral.
Further modification of these more stable dissipative structures allow elaboration of increasingly complex structures.
Eventually these structures become complex enough to be able to compute (to generate different outputs depending on their input conditions). Computation then can generate increasing complexity leading to positive feedback loops producing increasing complexity.

This, at the molecular level, seems to be what is going on in living matter.

Other interesting concepts in the book are:

Information vs. knowledge/knowhow:
Information, as structural arrangements of atoms, can be read off as an encoded message, but it does not intriniscally without any ability to do anything with the message. This would be like a DNA molecule.

Knowledge/Knowhow: represent the ability to take appropriate actions in response to an input (like the information described above). This would be like a cell making using the information (unpacking the information) encoded in DNA to produce (generate) particular molecular/cellular structures.
Knowledge: explicit knowledge of how to do something, such as a written procedure of how to make some product.
Knowhow: tacit information (not easily articulated; learned by doing not by reading, like bicycle riding). In biology, this is equivalent to selection choosing among genetic variants, as successful, that are reproducibly effective in their particular environment. These variants that embody infromation of how to successfully accomplish a task, in a particular environment, that were selected from the evolving group.
The resulting knowhow would be embedded into the structural complexity of the selected entity (which may be generated by the a combination of information stored in DNA and the knowhow of the cell/organism to read off that information).

Person-byte and a Firm-byte concepts:
These are the upper limits of the amount of knowledge/knowhow a person or firm can embody (know about how to do a particular job or make a product). Requiring greater levels of knowhow can than is available in an indvidual person or firm, thereby selects for greater capacity by building networks.
These can be compared to:
  • individual organisms, vs. herds or colonies (ants, bees) or species
  • or individual prokaryotic cells vs. eukaryotic cells (an archaeal-derived host cell housing a population of bacteria derived endosymbionts)

His book discusses how these concepts work together to generate economic dynamics.
 
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BillTre said:
Dissipative structures, like whirlpools in a draining bathtub, are ephemeral and will go away if the energy flow is shut down. If dissipative structures are made of “solids” (work used symbolically), they are preserved from the rapid entropic degradation that would occur if the flow were turned off.

Is there a qualitative difference here, or only quantitative one? Seems to me like this is just a matter of time scale - dissipative structures made from "solids" will degrade too, it will just take longer. Somehow I am not convinced there is a need for a separate treatment of both cases, they are probably described by the same model.
 
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Borek said:
Is there a qualitative difference here, or only quantitative one? Seems to me like this is just a matter of time scale - dissipative structures made from "solids" will degrade too, it will just take longer. Somehow I am not convinced there is a need for a separate treatment of both cases, they are probably described by the same model.

I agree. this is one of the things in this book that bugged me.
I take the "Solids Term" as meaning longer term storage. Nothing will be perfect. Everything will eventually decay. The trick of living things is to reproduce faster than things degrade to noon-function, thereby propagating (approximate) copies through the generations.
I personally would use a different word.

However, having products that don't fall apart too fast seems important to me.
Such a transition (between falling apart too fast or not) would depend on other conditions lke those driving production.

Hidalgo talks of DNA and proteins as solids, but it can't be in the normal physical sense.
For one I don't think single molecules can have those properties.
For another proteins are kind of squishy and DNA is floppy. Not your typical solid properties.

Hidalgo likes Schrödinger's Meaning of Life book where he tries to figure out how genetics is working molecularly before DNA was understood.
In the book, Schrödinger hypothesizes a crystal like molecule, but one which is aperiodic (so it could hold information) as the genetic material.
To many, this is reminiscent of DNA, one molecule that is a linear repeat of any of four different units. A single DNA strand is actually held in a crystal-like (highly repeated) bound state with the opposite strand of the DNA duplex molecule, even though their sequence is aperiodic.
 
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Well, since Feynman had to invoke nature's knowledge in the Lectures, why not assume building knowledge to be the fundamental process.
 
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