Disruption Has Its Financial Roll-Outs Too

Technology-specific advancements are now the major breakthroughs in an increasingly digital society. As such, keeping an eye on stocks that are related to technology companies makes sense. Kaustubh Bhosale elucidates how the global economy is undergoing the most significant technological transformation in history by virtue of multiple innovation platforms evolving simultaneously

- Kaustubh Bhosale

Disruption means a fundamental change to an existing industry or market mostly due to technological innovation. Disruption occurs by bringing in a technologically-enabled new product or service with better efficiency and cost that potentially changes the way the world works. For example, in the late 19th century there were three major innovation platforms developed at the same time and improved the way the world worked. As a consequence of the launch of telephone, electricity and automobile, the world’s productivity improved while costs reduced, thus allowing demand across sectors to increase worldwide.

Today, the global economy is undergoing the most significant technological transformation in history thanks to multiple innovation platforms evolving simultaneously such as artificial intelligence, genomic revolution, blockchain, robotics, clean energy, space innovation and electric vehicles, among others. We are living in a world where the pace of innovation is gathering unbelievable momentum. Technology-specific advancements are now the major breakthroughs in an increasingly digital society. In fact, technology-based research and development has reached a high of 18 per cent of the total US capital spending in 2021, according to the Bureau of Economic Analysis.