In "How Innovation Works," Matt Ridley masterfully navigates the intricate terrain of innovation, unraveling its mysteries and revealing its profound impact on our modern world. With an engaging narrative that is both enlightening and thought-provoking, Ridley challenges conventional wisdom, presenting innovation not as a structured, top-down process but as a serendipitous, incremental phenomenon arising from the human penchant for exchange. This book intricately explores the essence of innovation—distinguishing it from invention—and posits it as the cornerstone of societal advancement and the driving force behind significant improvements in our living standards, despite the unsettling changes it brings. Through a tapestry of vivid stories spanning millions of years and delving into the near future, Ridley illustrates the unpredictable, collaborative, and inexorable nature of innovation. From the genesis of life itself to the creation of contemporary marvels such as artificial intelligence and blockchain, "How Innovation Works" serves as a compelling testament to human ingenuity. Ridley not only recounts the successes and failures of numerous innovations but also sheds light on the conditions that foster this creative endeavor. This insightful exploration offers a fresh perspective on innovation, emphasizing its critical role in shaping the 21st century and cautioning against the potential stifling effects of political interference. A must-read, Ridley's work is an invaluable guide for policymakers, businessmen, and anyone curious about the forces that drive our world forward.