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===The forest analogy===

===The forest analogy===

The idea of the Product Space can be conceptualized in the following manner: consider a product to be a tree, and the collection of all products to be a forest. A country consists of a set of firms—in this analogy, monkeys—which exploit products, or here, live in the trees. For the monkeys, the process of growth means moving from a poorer part of the forest, where the trees bear little fruit, to a better part of the forest. To do this, the monkeys must jump distances; that is, redeploy (physical, human, and institutional) capital to make new products. Traditional economic theory disregards the structure of the forest, assuming that there is always a tree within reach. However, if the forest is not homogeneous, there will be areas of dense tree growth in which the monkeys must exert little effort to reach new trees, and sparse regions in which jumping to a new tree is very difficult. In fact, if some areas are very deserted, monkeys may be unable to move through the forest at all. Therefore, the structure of the forest and a monkey's location within it dictates the monkey's capacity for growth; in terms of economy, the topology of this “product space” impacts a country's ability to begin producing new goods.

The idea of the Product Space can be conceptualized in the following manner: consider a product to be a tree, and the collection of all products to be a forest. A country consists of a set of firms—in this analogy, monkeys—which exploit products, or here, live in the trees. For the monkeys, the process of growth means moving from a poorer part of the forest, where the trees bear little fruit, to a better part of the forest. To do this, the monkeys must jump distances; that is, redeploy (physical, human, and institutional) capital to make new products. Traditional economic theory disregards the structure of the forest, assuming that there is always a tree within reach. However, if the forest is not homogeneous, there will be areas of dense tree growth in which the monkeys must exert little effort to reach new trees, and sparse regions in which jumping to a new tree is very difficult. In fact, if some areas are very deserted, monkeys may be unable to move through the forest at all. Therefore, the structure of the forest and a monkey's location within it dictates the monkey's capacity for growth; in terms of economy, the topology of this “product space” impacts a country's ability to begin producing new goods.

The idea of the Product Space can be conceptualized in the following manner: consider a product to be a tree, and the collection of all products to be a forest. A country consists of a set of firms—in this analogy, monkeys—which exploit products, or here, live in the trees. For the monkeys, the process of growth means moving from a poorer part of the forest, where the trees bear little fruit, to a better part of the forest. To do this, the monkeys must jump distances; that is, redeploy (physical, human, and institutional) capital to make new products. Traditional economic theory disregards the structure of the forest, assuming that there is always a tree within reach. However, if the forest is not homogeneous, there will be areas of dense tree growth in which the monkeys must exert little effort to reach new trees, and sparse regions in which jumping to a new tree is very difficult. In fact, if some areas are very deserted, monkeys may be unable to move through the forest at all. Therefore, the structure of the forest and a monkey's location within it dictates the monkey's capacity for growth; in terms of economy, the topology of this “product space” impacts a country's ability to begin producing new goods.

The idea of the Product Space can be conceptualized in the following manner: consider a product to be a tree, and the collection of all products to be a forest. A country consists of a set of firms—in this analogy, monkeys—which exploit products, or here, live in the trees. For the monkeys, the process of growth means moving from a poorer part of the forest, where the trees bear little fruit, to a better part of the forest. To do this, the monkeys must jump distances; that is, redeploy (physical, human, and institutional) capital to make new products. Traditional economic theory disregards the structure of the forest, assuming that there is always a tree within reach. However, if the forest is not homogeneous, there will be areas of dense tree growth in which the monkeys must exert little effort to reach new trees, and sparse regions in which jumping to a new tree is very difficult. In fact, if some areas are very deserted, monkeys may be unable to move through the forest at all. Therefore, the structure of the forest and a monkey's location within it dictates the monkey's capacity for growth; in terms of economy, the topology of this “product space” impacts a country's ability to begin producing new goods.

产品空间的概念可以通过以下方式概念化: 将一个产品视为一棵树，将所有产品的集合视为一片森林。一个国家由一系列企业组成ーー用这个比喻来说，就是猴子ーー它们开发产品，或者说在这里，生活在树上。对于猴子来说，生长的过程意味着从森林中较为贫瘠的地方搬到森林中较好的地方，因为那里的树很少结果。为了做到这一点，猴子们必须跳跃距离; 也就是说，重新调配(物理、人力和机构)资本来生产新产品。传统的经济理论忽视了森林的结构，认为总有一棵树伸手可及。然而，如果森林不是均匀的，就会有树木生长茂密的地区，猴子不必费多大力气就能够找到新的树木，而在稀疏的地区，跳到一棵新的树上是非常困难的。事实上，如果一些地区非常荒凉，猴子可能根本无法穿越森林。因此，森林的结构和猴子在森林中的位置决定了猴子的生长能力; 就经济而言，这种“产品空间”的拓扑结构影响一个国家开始生产新产品的能力。

产品空间的概念可以由以下方式解释: 将一个产品视为一棵树，将所有产品的集合视为一片森林。一个国家由一系列企业组成ーー用这个比喻来说，就是猴子ーー它们开发产品，生活在树上。对于猴子来说，生长的过程意味着从森林中较为贫瘠的，树木很少结果的地方搬到森林中较富饶的地方。为了达到这个目的，猴子们必须在森林中跳跃迁徙; 也就是说，重新调配(物理、人力和机构)资本来生产新产品。传统的经济理论忽视了森林的结构，认为总有一棵树伸手可及。然而，如果森林是不均匀的，就会有树木生长茂密的地区，猴子不必费多大力气就能够找到新的树木，而在树木稀少的地区，跳到一棵新的树上是非常困难的。事实上，如果一些地区非常贫瘠，猴子可能根本无法穿越森林。因此，森林的结构和猴子在森林中的位置决定了猴子的生长能力; 就经济而言，这种“产品空间”的拓扑结构影响一个国家生产新产品的能力。

==Building the Product Space==

==Building the Product Space==