brain/
concepttechnology-adoption-s-curves

Technology Convergence

Notes

Technology Convergence

One-line summary: Seba/RethinkX's claim that disruptions happen when several independently-improving cost curves intersect at the same moment, opening a "vast new possibility space" that no single technology's trajectory would predict.

The insight

Entrepreneurs build products whose cost curves improve over time; when multiple such technologies converge, they enable products that linear forecasters miss entirely. The canonical example is the smartphone — the convergence of 2.5G connectivity, touchscreens, sensors, processing power, and energy-dense lithium-ion batteries "at just the right time." Convergence is why disruption is non-linear at the system level even when each component is improving smoothly: the interaction, not any single curve, creates the rupture. For investing this maps onto correlated, mutually-reinforcing theses (multiple S-curves climbing together) rather than one isolated bet.

Evidence

Design implications

  • Convergence is the qualitative case for treating reinforcing theses as a cluster (correlated risk) rather than independent bets — relevant to how a portfolio budgets exposure.

Contradictions / tensions

  • Convergence arguments are the part of the Seba framework most prone to timing error — see tony-seba's track record: the transportation thesis was conditional on full autonomy arriving in the early 2020s, which it didn't.

Open questions

Related

Referenced by