curves, innovation curves of all sorts

Gartner Hype cycle

jazzed up version of traditional Everett Rogers’ diffusion of innovations

this was the trigger

and this is Carlota Perez curve which puts together technology and finance in a play of coupling and decoupling in the installation and deployment phases

carlota perez cycle

I guess it owes something to Kondratiev, that originally was a theory of cycles in commodity prices over long periods (like 60-80 years)

and I wonder the relationships with Urchin Secular cycles more of 2 to 3 centuries due to demographic factors

Screenshot 2020-07-16 at 14.48.10


invention and implementation

are different, it’s like having an idea and selling it

Greeks had a steam engine, more a steam turbine, aelopyle. The stem engine arrived in 18th century England

Actually it wasn’t only the steam to do the work, the steam created the void and the air did the work in the Newcomen engine. And it was at some point economical only because coal mines flooded and so there was a lot of coal with non shipping costs.

The sumerian had the wheel, but only for toys. Maybe the economnics ewasn’t right. The middle east forgot the wheel in the middle age because four camels could be run by a man instead of a single chariot. The economics.

so, things look at us waiting to be discovered, we had gotten to the moon and still had not put wheels to luggages, implementation can be harder than invention

distilled of a chapter in Antifragile by Taleb and Anton Howes newsletter “Age of Invention: The Weight of Air” of July 3, 2020

Cheap inputs and tech epochs

from Carlota Perez “Technological Revolutions and Financial Capital”Screenshot 2020-06-17 at 11.23.56

4th epoch is cheap oil, 5th is cheap bits. 6th?

If it has to be Green then it has to be renewables energies, cheap renewables?

cheap and abundant, the two things are tied in learning curves. Ramez Naam is working the Pareto curves himself.

Solar Future in Insanely Cheap

But a planet on renewables would require a lot of solar and wind, for example this report on reaching 90% renewables in the US calls for doubling new installation every year in the 20s and trebling in the thirtiesScreenshot 2020-06-17 at 11.55.17

Report 2035 di Goldman Sachs and U. Berkeley.

Forecasting with fat tailed distro

Random variables in the power law class with tail exponent α ≤ 1 are, simply, not forecastable. They do not obey the LLN. But we can still understand their properties.”

“If one claims fitness or nonfitness of a forecasting ability based on a single observation = 1, she or he would be deemed to be making an unscientific claim. For fat tailed variables that “= 1″ error can be made with n = 106. In the case of pandemics, n = ∞ is still anecdotal. (..) It takes 1014 observations for a “Pareto 80/20” (the most commonly referred to probability distribution, that is withα ≈ 1.13) for the average thus obtained to emulate the significance of a Gaussian with only 30 observations.”

Taleb justifying the precautionary principle on statistcis ground, in a challenge with Ioannidis who called for reopening the economy based on poor data


Covid Innovation: a lot, not so great

Covid therapies are entering the pipeline at a rate 15 to 80 times faster than any previous epidemic with over 4 new therapies entering the commercial pipeline every single day

The relative share of “short term” solutions – non-vaccines and repurposed drugs – is unusually high. 23 percent of Covid therapies are vaccines, versus at least half for the previous three recent less severe epidemics. Over 60 percent of Covid therapies are repurposed drugs, versus no more than a quarter of those for Ebola, Zika, or H1N1.

the rate at which new vaccines enter the pipeline is essentially the same in February and April!

The increased entry driven by huge payoffs to any successful Covid therapies causes entrants to inefficiently race toward lower-value therapies. If enough small firms begin to race in this way, even the large firms that otherwise would have worked on vaccines will give up. And note that this pattern appears empirically: more severe epidemic leads to more entry by small firms, more work on short-term projects

Farmer’s fable (ergodicity economics)

sharing is actually maximizing profit a cartoon that show how sharing to reduce fluctuation leave both parties better off (on a random walk)

Screenshot 2020-02-13 at 15.44.36


Homo Ergodicus

“Multiplicative process offers a concrete physical advantage in favor of cooperative behavior”

Also, Warren Buffet’s 3 rules in light of ergodicity  (St. Peterburg’s Paradox explained)