Technology is driving exponential progress in the tech sector and far beyond.

New technologies lie at the heart of accelerating the five megatrends. Breakthrough innovation is necessary to address large-scale challenges—such as aging economies and climate change—while new solutions are also targeting daily conveniences, like payments or streaming. This backdrop has created a fertile ground for disruptive innovation and megatrend investing.

The future is getting here. Faster.

Breakthrough innovations have become more powerful in recent years thanks to globalization and the ubiquity of technology. Together, they have lowered entry barriers for new competitors and accelerated the adoption of new technologies around the world, thereby unleashing a wave of disruptive opportunities across industries and economies. As such, technological growth has become exponential.

We stand on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another.1

Klaus Schwab, Founder of the World Economic Forum.

The rapid advancement of technology, especially artificial intelligence and machine learning, is at the center of all megatrends.

60% of all occupations could see
30% or more of their constituent activities will be improved by automation2

Where do we expect innovation?

Consider the advent of electric vehicles, e-commerce, solar panels, robotics, cloud computing, streaming, smart grids and many other modern-day innovations. In each case, engineers and entrepreneurs are aiming to capitalize on the need for either a new solution or a better alternative in existing markets.

We believe disruptive innovation is most likely to emerge in two scenarios:

  1. New solutions: A new and unique solution is developed to resolve a significant constraint or challenge.
  2. Better alternatives: New competitors are attracted to industries with large profit pools and high returns, developing better alternatives in existing markets.


Areas of the economy that can provide the right conditions for breakthrough technologies – spending on research and innovation, supportive regulation, shifts in consumer demand and societal challenges that need to be resolved – can help identify innovative companies with long term growth potential.