From Zero to One: Notes on Startups, Or How to Build the Future.
Peter Thiel explores many concepts in his book. One of them is vertical versus horizontal progress. Technological innovation versus globalization.
What's the difference?
Vertical Progress = Technological innovation
Horizontal Progress = Globalization
Building startups that push technological innovation forward creates a difference in the long-run. Magic Leap, for example.
Companies built around emulating successful ideas in different geographical locations might earn short-term profits. They may not create lasting impact.
Questions this raises
I assume there's an ideal point for a company to reach. Up and to the right. A company creates maximum value if it has technological advantage over its competitors and manages to scale effectively.
There are infinitely many paths from the present to that ideal position. But can this question be asked after the company is created? As Peter says, a company's founding moment is singular.
The decision to get there raises follow-up questions:
- Am I rightly positioned to solve this problem or start this company? If so, why?
- Is my cofounder/team rightly positioned to solve this problem together?
- Do we know enough about the industry and the dynamics to confidently predict future trends?
- When do we know we've reached this ideal point? How can we measure it?
- How can a company move from its present position to its ideal position?
- Is globalization a result of technological progress?
Not every company can reach that ideal position. There are qualities the company must have to even consider this.
Understanding how we acquire technological progress or globalize is paramount.