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Innovation doesn’t move in a straight line. It comes in waves, periods where new capabilities emerge, experimentation accelerates, and markets reconfigure around new expectations. These waves tend to feature:
- Paradigm shifts (new ways of doing things become possible)
- New user habits (people change behaviour when tech becomes easier and more normal)
- New business models (value migrates to the companies that connect the dots)
The late 19th century was a time of major life changing inventions like electric lights, the telephone, automobile and radio. Inventions predominantly by individuals in their sheds
We’ve entered what many describe as a new and exciting age of innovation with AI as the next technological frontier that could have fundamental reach and impact on how we live and work. However, we must look at this in the context of what has come before. Global spending on R&D has risen dramatically over the past decades, but the economic returns on that investment (measured as productivity growth and breakthrough innovation) have steadily declined. The early 21st century is characterised by mature technologies. Innovation is getting harder and more expensive, even as we devote more resources to it.
The difference versus earlier eras is that many foundational technologies are now mature. That maturity creates both opportunity and constraint:
- Mature technologies can be combined and scaled faster.
- Competition is intense, and small improvements don’t impress users (just look at the smartphone category as an example of this, where innovation has slowed, homogenisation has increased and excitement in the category has waned)
- R&D spending rises while productivity growth slows.
- Innovation is increasingly corporate not individual, meaning success depends on coordination and execution, not just invention.
This is why innovation feels omnipresent but also why many new products don’t land. The bar is high, and users are more selective than ever. The big question is will AI fundamentally change the game. At the time of writing investment and hype are at an all time high, but will this translate into a new AI economy, or will we see the bubble burst as hype fails to translate into real substance?

