Innovation And The Social Equity Trap
Ultimately, it’s the speed of diffusion that drives the democratization of technology.
GPT Summary: The equitable distribution of technology is a process that unfolds over time, rather than something that can be achieved at the outset. The pace of progress can be slowed if efforts are made to force equitable distribution at the outset. However, as technology becomes more widely available, costs decrease, and the benefits of innovation can be shared more broadly, eventually leading to more equitable outcomes. Ultimately, it is the speed of diffusion that drives the democratization of technology and ensures that everyone has access to the benefits of innovation.
Forty years ago, Motorola launched the DynaTAC 8000X, the first commercially available cell phone. It weighed 2.5 pounds, measured 10 inches long, and had a battery life of 30 minutes. Although it was a revolutionary technology, the phone was out of touch for most people at the time. Not only was it expensive, costing almost $4,000 in today’s dollars, but cell towers were just about non-existent, which meant that the phone could only be used in a few select areas. The introduction was nevertheless spectacular!
Despite the limitations of the DynaTAC 8000X, it marked the beginning of a transformative era of communication technology. The development of cell phones paved the way for a more connected and accessible world. However, the journey towards equitable distribution, a common touchpoint of business, was a slow process. Let’s take a closer look.
Equity in innovation isn’t about the initial equitable distribution of a product at launch, but rather it is established over time. The path to broad accessibility of a product isn’t a function of the development, but the speed of diffusion. And that’s the key distinction. The process of digitization to dematerialization to demonetization to democratization is key. But it takes time for technology to become more affordable and accessible. And the early innovation process can be hindered by efforts to force equitable distribution at the outset.
Innovation often begins with a small group of people or organizations with the resources to experiment and take risks. These pioneers face high costs and risks, but if they succeed, they can bring about transformative change. Without the freedom to experiment and take risks and capture rewards, innovation may be stifled, and the pace of progress slowed.
Fortunately, the diffusion of technology can eventually bring about more equitable outcomes. As technology becomes more widely available, costs decrease, and the benefits of innovation can be shared more broadly. For example, while the DynaTAC 8000X was initially only available to the wealthy and connected, the development of cell phone networks and the introduction of less expensive models has made cell phones accessible to people across the world.
The story of the DynaTAC 8000X highlights the importance of recognizing that equitable distribution of technology is a process that unfolds over time. Efforts to force equitable distribution at the outset can hinder innovation and slow progress. Rather than requiring social equity from the outset, it is more effective to focus on accelerating the pace of diffusion, allowing technology to become more accessible over time. Ultimately, it is the speed of diffusion that drives the democratization of technology and ensures that everyone has access to the benefits of innovation.
