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| Long Waves: The History of Innovation Cycles Posted: 30 Jun 2021 04:44 PM PDT
Long Waves: How Innovation Cycles Influence GrowthCreative destruction plays a key role in entrepreneurship and economic development. Coined by economist Joseph Schumpeter in 1942, the theory of "creative destruction" suggests that business cycles operate under long waves of innovation. Specifically, as markets are disrupted, key clusters of industries have outsized effects on the economy. Take the railway industry, for example. At the turn of the 19th century, railways completely reshaped urban demographics and trade. Similarly, the internet disrupted entire industries—from media to retail. The above infographic shows how innovation cycles have impacted economies since 1785, and what's next for the future. Innovation Cycles: The Six WavesFrom the first wave of textiles and water power in the industrial revolution, to the internet in the 1990s, here are the six waves of innovation and their key breakthroughs.
Source: Edelsen Institute, Detlef Reis During the first wave of the Industrial Revolution, water power was instrumental in manufacturing paper, textiles, and iron goods. Unlike the mills of the past, full-sized dams fed turbines through complex belt systems. Advances in textiles brought the first factory, and cities expanded around them. With the second wave, between about 1845 and 1900, came significant rail, steam, and steel advancements. The rail industry alone affected countless industries, from iron and oil to steel and copper. In turn, great railway monopolies were formed. The emergence of electricity powering light and telephone communication through the third wave dominated the first half of the 1900s. Henry Ford introduced the Model T, and the assembly line transformed the auto industry. Automobiles became closely linked with the expansion of the American metropolis. Later, in the fourth wave, aviation revolutionized travel. After the internet emerged by the early 1990s, barriers to information were upended. New media changed political discourse, news cycles, and communication in the fifth wave. The internet ushered in a new frontier of globalization, a borderless landscape of digital information flows. Market PowerTo the economist Schumpeter, technological innovations boosted economic growth and improved living standards. However, these disruptors can also have a tendency to lead to monopolies. Especially during a cycle's upswing, the strongest players realize wide margins, establish moats, and fend off rivals. Typically, these cycles begin when the innovations become of general use. Of course, this can be seen today—never has the world been so closely connected. Information is more centralized than it has ever been, with Big Tech dominating global search traffic, social networks, and advertising. Like the Big Tech behemoths of today, the rail industry had the power to control prices and push out competitors during the 19th century. At the peak, listed shares of rail companies on the New York Stock Exchange made up 60% of total stock market capitalization. Waves of ChangeAs cycle longevity continues to shorten, the fifth wave may have a few years left under its belt. The sixth wave, marked by artificial intelligence and digitization across information of things (IoT), robotics, and drones, will likely paint an entirely new picture. Namely, the automation of systems, predictive analytics, and data processing could make an impact. In turn, physical goods and services will likely be digitized. The time to complete tasks could shift from hours to even seconds. At the same time, clean tech could come to the forefront. At the heart of each technological innovation is solving complex problems, and climate concerns are becoming increasingly pressing. Lower costs in solar PV and wind are also predicating efficiency advantages. The post Long Waves: The History of Innovation Cycles appeared first on Visual Capitalist.  | ||||||||||||||||||
| Silver Through the Ages: The Uses of Silver Over Time Posted: 30 Jun 2021 10:16 AM PDT The following content is sponsored by Blackrock Silver. Silver is one of the most versatile metals on Earth, with a unique combination of uses both as a precious and industrial metal. Today, silver’s uses span many modern technologies, including solar panels, electric vehicles, and 5G devices. However, the uses of silver in currency, medicine, art, and jewelry have helped advance civilization, trade, and technology for thousands of years. The Uses of Silver Over TimeThe below infographic from Blackrock Silver takes us on a journey of silver's uses through time, from the past to the future.
3,000 BC – The Middle AgesThe earliest accounts of silver can be traced to 3,000 BC in modern-day Turkey, where its mining spurred trade in the ancient Aegean and Mediterranean seas. Traders and merchants would use hacksilver—rough-cut pieces of silver—as a medium of exchange for goods and services. Around 1,200 BC, the Ancient Greeks began refining and minting silver coins from the rich deposits found in the mines of Laurion just outside Athens. By 100 BC, modern-day Spain became the center of silver mining for the Roman Empire while silver bullion traveled along the Asian spice trade routes. By the late 1400s, Spain brought its affinity for silver to the New World where it uncovered the largest deposits of silver in history in the dusty hills of Bolivia. Besides the uses of silver in commerce, people also recognized silver's ability to fight bacteria. For instance, wine and food containers were often made out of silver to prevent spoilage. In addition, during breakouts of the Bubonic plague in medieval and renaissance Europe, people ate and drank with silver utensils to protect themselves from disease. The 1800s – 2000sNew medicinal uses of silver came to light in the 19th and 20th centuries. Surgeons stitched post-operative wounds with silver sutures to reduce inflammation. In the early 1900s, doctors prescribed silver nitrate eyedrops to prevent conjunctivitis in newborn babies. Furthermore, in the 1960s, NASA developed a water purifier that dispensed silver ions to kill bacteria and purify water on its spacecraft. The Industrial Revolution drove the onset of silver’s industrial applications. Thanks to its high light sensitivity and reflectivity, it became a key ingredient in photographic films, windows, and mirrors. Even today, skyscraper windows are often coated with silver to reflect sunlight and keep interior spaces cool. The 2000s – PresentThe uses of silver have come a long way since hacksilver and utensils, evolving with time and technology. Silver is the most electrically conductive metal, making it a natural choice for electronic devices. Almost every electronic device with a switch or button contains silver, from smartphones to electric vehicles. Solar panels also utilize silver as a conductive layer in photovoltaic cells to transport and store electricity efficiently. In addition, it has several medicinal applications that range from treating burn wounds and ulcers to eliminating bacteria in air conditioning systems and clothes. Silver for the FutureSilver has always been useful to industries and technologies due to its unique properties, from its antibacterial nature to high electrical conductivity. Today, silver is critical for the next generation of renewable energy technologies. For every age, silver proves its value. The post Silver Through the Ages: The Uses of Silver Over Time appeared first on Visual Capitalist.  |
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