Evolution of Technology
I am interested in understanding the nature of technology, its evolution and how it plays a critical role in the economy. I am intrigued how certain technologies evolve, emerge and replace the incumbent ones. In the historical past these transitions happen in hundreds of years, now in the modern age it takes a decade or so and sometimes even less.
As these technologies evolve and emerge, they cause the economy to restructure and take the new form. It turns out the economy is the manifestation of underlying technologies. As Brian Arthur, in his book, The Nature of Technology aptly put
The economy is an expression of its technologies
This is a profound statement, the economy is formed by its technologies, but what drives the need for technology? Well, it turns out that it is the economy that drives the need for technology. This is how technology evolves exponentially i.e. by directly contributing to the expansion of the economy, and the needs the economy creates that result in the emergence of novel technologies. The cycle goes on, as Brian Arthur said
Technology creates the structure of the economy, and the economy mediates the creation of novel technology( and therefore its own creation)
But what is Technology? In its most basic sense Technology is the methods and systems that satisfy a purpose or human need. And it come as no surprise that human needs are the drivers of the economy.
Technology is not a single component per se, it’s a combination of several components and sub components, which in turn themselves are technologies. For example car is a technology that satisfies the need for transportation. It comprises engine, transmission, fuel systems, wheels etc. together these components make up a car. However each of these components is a technology itself, for example engine is a technology that satisfies the need for converting one form of energy i.e. fuel to a mechanical energy. Looking closely, engine itself comprises motor, ignition, compression and emission systems. These components themselves are technologies that satisfy specific purposes.
Thinking this way, one could see technology is formed recursively ground up from its components. Some components work together as main function while others as supporting functions. At the most basic level, some of these components harness natural phenomena. Going back to the car engine example, a motor system harnesses electrical induction, a physical phenomena. Ignition system harnesses combustion, a chemical phenomena. Therefore, we can now say
Technology harnesses natural phenomena and fullfil specific purpose/s or human needs.
Next, in each of the series of articles, I will discuss an example of the evolution of technology that satisfies specific human need/s. The old technology, and how it is replaced by the new technology.
Stay tuned…
