February 20, 2017


fiber-optics-lightsEntropy Economics is a strategic insight firm focused on technology, innovation, and the global economy. We produce ahead-of-the-curve research on the technologies, industries, companies, and government policies that drive world markets.

Our firm is led by Bret Swanson, who was previously executive editor of the Gilder Technology Report and a senior fellow at The Progress & Freedom Foundation, and who now advises investors, governments, non-profits, and companies. Swanson presents his Internet research around the globe and often writes about technology, globalization, energy, China, and economic policy in The Wall Street Journal and Forbes.

blue-circuits-1Recent Entropy research topics include:

> the mobile App Economy

> projections of Internet traffic growth (see our work on the “exaflood“)

> a new cloud computing paradigm for streaming video games, cinema, and applications

> the rise of China and its impact on technology, monetary, and currency policy

> the key tax and monetary policies that affect U.S. growth and global asset markets

> the chief causes of the crashes of 2000 and 2008

> energy prices

> wired and wireless broadband Internet infrastructure

We produce brief research notes, longer research papers, a blog (Maximum Entropy), and our articles often appear in major print and web publications. In addition, we advise individual investors and major institutions and companies on strategic technology, economic, and policy matters.


What is “entropy”? Some think of the thermodynamic “chaos” or “wasteful heat” of jiggling atoms. But we embrace the more general concept of information theory, where entropy is news, surprise, unexpected bits, or invisible information. We adopt as the guiding force of economics and technology the key insight of our longtime friend George Gilder:

“A high-entropy message requires a low-entropy carrier.”

The written word is most easily read on a clean white page. A phone conversation is best heard when there is little intruding noise. We transmit high-entropy voices and videos around the globe and across the galaxy.  We do this by exploiting the maximally regular frequencies of the electromagnetic spectrum and the crystalline purity of silicon (microchips) and flawless silica (fiber optics).

In biology, the infinitely diverse anatomies, capabilities, and personalities of the animal kingdom rely on the supremely uniform structure of DNA.

Entrepreneurship and innovation, likewise, comprise all real economic growth. These information-rich spikes of creativity require a stable foundation of property rights, predictable laws, free trade, and an unchanging value of money.

Dynamic growth and innovation require utterly undynamic foundations. This is the principle of Entropy that guides our research and strategic insights. Find a summary here: “Ignorance, the Ultimate Asset”.