One of our investors, Tom Evslin, posted a terrific piece yesterday on the importance of the latest FCC decision re TV white spaces. I encourage you to read it. He includes a couple of very compelling graphs that manage to convey everything necessary to convince you that openness is beneficial to innovation. I’ve copied one of the graphs here at the left. Click on it to see a larger version. In essence the flat-line at the bottom depicts the number of new devices being introduced that use licensed/controlled frequencies. The other line, the one shooting straight up, depicts the number of new devices being invented that use Wifi, Bluetooth and other non-licensed (aka open) frequencies.

The graph tells the whole story. If you want explosive innovation, you won’t get it via restrictions, limitations or taxation. You get it by lowering the transaction costs to zero. You invite anyone and everyone to the party. You don’t shy away from creative chaos. The most successful companies of the next ten years will strategically understand this.