One of the Greats in the History of American Technology [Part 1]

Gilder's Daily Prophecy

November 02, 2020

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One of the Greats in the History of American Technology [Part 1]

George GilderDear Daily Prophecy Reader,

Some three decades ago, a tall lanky gray-haired man named Harry Knowles and his wife and collaborator Janet moved into a historic house in a former Shaker settlement across the valley from me. In the historic house, they replaced the cosmopolitan Solomon Brothers partner Player Crosby, who had suffered a heart attack and crashed his private plane in the field below my house. Only 61 years old and still in his prime as a global investor, Player would be missed by us all and some in town looked askance at the new couple moving in.

Nouveau riches,” they said, judging from a residual drawl from his youth in Birmingham, Alabama. Conveying a “just folks” charm, Knowles exhibited an occasionally lewd sense of humor that affronted some of his neighbors.

I knew he was rich — he and Janet paid some $3 million for their new place and invested that plus much more — but maybe in part because of that Southern drawl, I too underestimated him.

I never knew until a few weeks ago when he died in New Jersey that he was one of the great figures in the history of American technology.

Let’s dive in…

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A Trip Down Memory Lane

Knowles’ displacement of a Solomon Brothers financier, in fact, represented the rise of technology in the US economy that I had devoted much of my life to recounting. My stories nearly always meant flying across the country to interview west coast sages and sources in Silicon Valley or Seattle.

In several books, I maintain that our economy is not chiefly driven by financial incentives and manipulations or by the dynamics of technological determinism but by information theory, based on creative surprise and invention.

As Claude Shannon showed, information is defined by unexpected bits, measured as entropy or surprisal. Bringing information theory into economics as a measure of entrepreneurial creativity — which always comes as a surprise to us — can help us understand and overcome our current travails in Life After Capitalism.

Knowles announced his arrival by surprising us with a historic map of the valley, together with a high-resolution photo of my house taken from his front porch. It showed my own Red House with its octagonal wing designed by my wife Nini, an architectural historian. The new arrival apparently had an eye for design and a knack for photography.

His name was actually C. Harry Knowles. Be sure to include the “C” if you look him up, because if you search for Harry Knowles without the initial, Google will pop up a stream of sites connected to an unrelated but somehow fashionable sex-offender film critic from the “Ain’t it Cool” blog.

For some reason, our Harry never made it into Wikipedia. I should have taken a cue from his biography, though, titled American Genius.

In time, I learned that Knowles was the founder of Metrologics, the New Jersey company known for perfecting, launching, and popularizing the hand-held laser scanners that revolutionized American retailing and at the time were famously but unfairly deemed to be baffling to George H. W. Bush.

I did not then know that Knowles had a long history of creative leadership in semiconductors.

Beginning at Bell Labs in the 1950s shortly after the invention of the transistor there, and moving on to run research at Motorola in its microchip heyday. He was holder of some 400 patents for transistors and lasers, as well as for his iconic bar code scanners.

We will dig more into this tomorrow…

Regards,

George Gilder

George Gilder
Editor, Gilder's Daily Prophecy

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