The author of bestsellers Black Swan and Antifragile talked about why Silicon Valley is more successful than the banking sector and why business collapses are an indication of a healthy economy.
“Fighting stress both from inside and outside, the Silicon Valley businesses learn from their mistakes in their early days,” said Nassim Nicholas Taleb, an American publicist, economist and trader, at Synergy Global Forum.
As an example, he mentioned a technological crisis that hit North Carolina in 2000. As surprising as it may sound, the crisis had a positive impact on the industry. “The market imploded, and many people have lost their jobs. At the same time, the crisis has revitalized Silicon Valley and the high-tech sector in general,” Taleb added.
Another interesting thing about Silicon Valley is that it has the highest bankruptcy rate in North America. “Some may think that it’s a very bad thing. But it’s not true. You must make mistakes as early into the process as possible. This is how you learn.”
Furthermore, bankruptcy rate is a strong sign of economic health across different countries. “A system with a low bankruptcy rate won’t last long as it’s artificially isolated. It means that people aren’t trying hard enough to change and innovate things,” the speaker added.
Wrapping up his speech, Taleb added that collapsing companies are good for the economy as it’s getting more and more antifragile.
Nassim Nicholas Taleb will speak in Tbilisi on the 30 March with his lecture “Anti-fragility”, organized by BBI.
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