This is a great article which raises many important issues, but I'd like to offer a couple of criticisms.
I'm not convinced 'fragmentation' is the best way to summarise these trends. Small businesses are in fact still losing ground and importance to larger businesses (see for example http://www.businessweek.com/smallbiz/running_small_business/...). What definitely is happening compared to the mid 20th C is that the economy is more complex and thus there are more diverse industries represented in government, and also the lifespan of large companies is reduced, particularly as technology advances faster now than ever before. Jobs are also becoming ever more centralised in cities due to their increased need for direct communication which hasn't been countered by technology yet (despite a minor trend for remote work). These are the major trends for me.
I'd also add that while networks of smaller companies may have some innovation advantage over large companies (depending on the industry and innovation), many are focussed on industries where they can reduce labour rights, safety standards, avoid tax and lower wages e.g. in construction industry subcontracting, clothing manufacturing, hardware manufacturing, etc.)
Whats also glossed over here is the advances to society made through mechanisms which aren't people trying to get rich, or seek a 'market price' for their 'wealth creation'. Lets not forget that most of the true computer pioneers were people in the corner of some university or military institution somewhere. Similarly in medicine and most sciences, research which is not profit-driven has been core to much of the 'wealth' of the 20th century across the world.
I'm not convinced 'fragmentation' is the best way to summarise these trends. Small businesses are in fact still losing ground and importance to larger businesses (see for example http://www.businessweek.com/smallbiz/running_small_business/...). What definitely is happening compared to the mid 20th C is that the economy is more complex and thus there are more diverse industries represented in government, and also the lifespan of large companies is reduced, particularly as technology advances faster now than ever before. Jobs are also becoming ever more centralised in cities due to their increased need for direct communication which hasn't been countered by technology yet (despite a minor trend for remote work). These are the major trends for me.
I'd also add that while networks of smaller companies may have some innovation advantage over large companies (depending on the industry and innovation), many are focussed on industries where they can reduce labour rights, safety standards, avoid tax and lower wages e.g. in construction industry subcontracting, clothing manufacturing, hardware manufacturing, etc.)
Whats also glossed over here is the advances to society made through mechanisms which aren't people trying to get rich, or seek a 'market price' for their 'wealth creation'. Lets not forget that most of the true computer pioneers were people in the corner of some university or military institution somewhere. Similarly in medicine and most sciences, research which is not profit-driven has been core to much of the 'wealth' of the 20th century across the world.