糖心TV

Stefan Grosskinsky

Heather Robson

Analysis, prediction and control of technological progress

Technological evolution is one of the main drivers of social and economic change, with transformative effects on most aspects of human life. How do technologies evolve? How can we predict and influence technological progress? To answer these questions, we looked at the historical records of the performance of multiple technologies. We first evaluate simple predictions based on a generalised version of Moore’s law. All technologies have a unit cost decreasing exponentially, but at a technology-specific rate. We then look at a more explanatory theory which posits that experience – typically in the form of learning-by-doing – is the driver of technological progress. These experience curves work relatively well in terms of forecasting, but in reality technological progress is a very complex process. To clarify the role of different causal mechanisms, we also study military production during World War II, where it can be argued that demand and other factors were exogenous. Finally, we analyse how to best allocate investment between competing technologies. A decision maker faces a trade-off between specialisation and diversification which is influenced by technology characteristics, risk aversion, demand and the planning horizon.

Gareth Alexander

Stefan Grosskinsky

Diana Khoromskaia

Booked on behalf of Ollie Dunbar