Knowledge Economy and Increasing Return

Inreasing return is driven by the virtuous cycle. Virtuous cycle is started somewhere sometime by somebody. What I have yet to determine is the source of this first "push". Is it internal? or external? How are they different? Perhaps it's either one, or both. Once a virtuous cycle gets started, it's vital to keep the steam going. Or better yet, create an accelerating force to turn addition into multiplication, linear growth to exponential explosion! What's the most important factor to jump-start the cycle and to keep the cycle? Leadership matters, for sure. What about middle managers? First-line people? Technology is probably not as significant as many people would like it to be. Technology is at best an equalizer, enabling small players to on the equal footing in competing with their larger counterparts. Wait a minute. What about innovative use of technology? That can be signigicant, especially when the technology is used to change the way people work, communicate and live.