Sunday, February 15, 2009

What do Google and Dunder Mifflin have in common?

Paper Mills. No, Google isn't making a foray into the forest products and packaging industry. The company will obviously use the defunct paper mill to house a massive data center.

This is an unremarkable story unto itself, but to me, it represents a symbolic transition of old industry to new. There's also a tinge of irony here. A company that categorizes and delivers knowledge to people electronically replaces one that profited from the delivery of information through an anachronistic channel: the printed page. (If you don't think that paper is outdated, may I remind you that your are reading a blog on a computer and that Amazon just launched the Kindle 2 this week.)

More importantly, this story illustrates the merits of creative destruction. One could draw the conclusion from Stora Enso's press release that Google itself may be partly responsible for the mill's "persistent losses in recent years and poor long-term profitability prospects". Even so, Google offers society exponentially more value in return. As our economy falters and businesses fail, I hope that our leaders (and opinionators) carefully consider actions (and words) that may impede transformative process of creative destruction.

We may never know the next great American car company if we artificially extend the life of the incumbents. So when you see an empty paper mill or idle auto manufacturing plant, think not of jobs lost, but imagine the next great product or service from a company that will take over that space.

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