Comment by wanderingstan
2 days ago
“The Innovator's Dilemma” by Clayton M. Christensen described how big companies fail when against new startups because they can’t let go of their fat margins for a new technology that (at first) appears to be inferior, even a toy. (His examples are Japanese motorbikes and hard disks)
Seems the United States is now trapped in the same dilemma. It can’t let go of those fat oil profits to embrace the new —but rapidly improving— renewable tech, even if it’s clear that that’s where the market for energy is heading. I.E., the big company (or nation) must sabotage some of their current profit centers in order to remain long term competitive.
(Reposting a comment I made on nytimes article: https://www.nytimes.com/interactive/2025/06/30/climate/china... )
Check out Paul Kennedy's "The Rise and Fall of the Great Powers" for an interesting take on this dynamic for nation-states and political economies. His core thesis is that dominant powers rise as new players leverage new technologies (especially energy technologies), build complex interdependent economies centered around those technologies, but then wither and fall as they spend increasingly more on military power to monopolize and defend the chokepoints of those technologies. When a new more efficient technology comes along, they are doomed to irrelevance as they fail to capitalize on those technologies, and new players swoop in for dominance.
He gives examples of the Dutch and wind power (sailing); Great Britain and coal; and America and petroleum. He also predicted China's ascendency as the next player willing to leverage new technologies.
https://en.wikipedia.org/wiki/The_Rise_and_Fall_of_the_Great...
Thanks for the tip! It seems obvious now, but its been interesting for me to realize how much of human history can be understood as a quest for energy, full stop. Even going back to the invention of farming, which at its core was way to reliably source more calories per person. Fun to think of your examples of sailing, coal, and petroleum empires as further chapters in this ongoing quest.
absolutely.
energy is a time accelerator. You can do more, produce more, using energy.
all of our "wealth" is due to our application of energy. Maintaining and increasing wealth both require energy.
Some people look at the relationship between wealth and energy. And there's more than one way to look at it. I found this interesting for a really big picture perspective.
https://esd.copernicus.org/articles/13/1021/2022/
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Hum... The profits from oil aren't as fat as they used to be. In fact, if you subtract the giant amount of subsides, there may be almost to nothing there.
That's to say that no, countries and governments do not behave like companies.
I think you might be in agreement with me in the main, just quibbling on the timing?
The US's addiction to "fat oil profits" goes back over a hundred years, and that's what the NYTimes author argues is driving the current administration's push to keep those profits going. Whether there actually are such profits is a different question.
This is exactly the behavior of the big companies in "The Innovators Dilemma": continuing to try and squeeze profits out of the dying old paradigm. (IBM clinging to hardware and mainframes, US motorcycle manufacturers not embracing small sport bikes, etc.) That's to say that, yes, countries and governments can indeed behave like companies.
No, that's not the behavior of big companies in "The Innovators Dilemma".
Those companies optimize for corporation profit. If the US was optimizing for societal wealth or government revenue they would be pushing the country into renewables.
On reality many big corporations get corrupt management that destroy corporate profit and optimize for the managers personal wealth. Those ones act like the US is acting. But that's not the behavior that book is about.