Related
Documents
ETFs
We believe that innovation is key to growth. We define disruptive innovation as the introduction of a technology-enabled product or service that changes an industry landscape by offering simplicity and accessibility at a lower cost than the incumbent technologies.
Despite its potential, the magnitude of disruptive innovation and the investment opportunities it creates are often unrecognised or misunderstood by traditional investors. We believe disruptive innovation investing has the potential to outperform broad-based benchmarks over the course of a full market cycle, with low correlations of relative returns to traditional growth and value strategies.
Innovation investing in its best practice should focus on technologies and companies that are likely to have a positive impact on the environment, our society, and the world’s ability to create further innovations. In the realm of innovation, a remarkable phenomenon is unfolding that achieves exactly these goals: the convergence of distinct technological platforms.
This unique period in our history is characterised by the simultaneous advancement of five major innovation platforms: public blockchains, artificial intelligence (AI), multiomic sequencing, energy storage and robotics. Individually, each has the power to spur significant economic and societal changes. Together, they are creating a synergy that accelerates the pace of innovation and disruption like never before.
Central to this is dynamic is the concept of technological convergence. This is the process where advancements in one field propel developments in others, leading to a cascade of combined effects that amplify overall progress. This synergy is particularly compelling today as AI acts as a catalyst, enhancing and accelerating developments across a range of sectors from genomics to robotics.
To understand the scale of the current technological revolution, one must look back over a century to the era of electrification, the advent of the telephone and the rise of the internal combustion engine. While each of these innovations had a profound impact on society, the scale and speed of today’s technological evolution are unprecedented. We believe that historians will look back on this era as one of unprecedented technological foment. They will see critical inflections in AI and DNA sequencing and editing; they will recognise this as the decade when robotics proliferation became inevitable and when the battery became the fundamental unit of energy delivery; and they will identify in blockchain and cryptocurrencies the roots of the structure that would grow to upturn the entire business and financial landscape. This technologically enabled change, the likes of which haven’t been seen in over 100 years, offers long-term opportunities for companies and investors alike.
In the convergence of modern technologies, AI is the linchpin. It is reshaping industries by the rapidly increasing capabilities of neural networks, improving the efficiency of energy storage and enabling the development of autonomous systems. The acceleration of AI is not merely incremental; it represents a leap forward, significantly shortening the timeline for reaching milestones such as artificial general intelligence (AGI).
This era of convergence is not just about technological advancements; it’s about the transformation of entire industries and economies. For example, the integration of AI with autonomous mobility and energy storage systems is setting the stage for more efficient, economical transportation solutions. These advancements promise to revolutionise not just how we travel but also how goods are transported, impacting logistics, urban planning and environmental sustainability.
The ripple effects of these technologies extend to the macroeconomic landscape and market dynamics. With the continued convergence and advancement of these platforms, there is potential for unprecedented growth rates in real GDP. This growth is likely to reshape market capitalisation, with disruptive technologies becoming increasingly central to economic development and investment strategies.
As society navigates this era of rapid technological change, understanding the intersections and implications of these converging platforms becomes crucial. The opportunities presented by this convergence are vast, but so are the challenges. As these innovations drive transformation across industries, offering new solutions and redefining market landscapes, the potential for significant economic growth and value generation becomes increasingly apparent. Investors have a unique chance to contribute to and benefit from these shifts, capitalising on the transformative power of disruptive innovation to shape a more efficient, sustainable, and technologically advanced future.
ARK Investment Management LLC, 2024. This ARK analysis is based on a range of external sources, which may be provided upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.
ARK Investment Management LLC, 2024. This ARK analysis is based on a range of external sources, which may be provided upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.
ARK Investment Management LLC, 2024. This ARK analysis is based on a range of external sources, which may be provided upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.
ARK Investment Management LLC, 2024. This ARK analysis is based on a range of underlying sources, including Bekar et al. 2017, which may be provided upon request. The chart uses GPT 4 prompting to survey a comprehensive list of general purpose technologies using the identification framework detailed therein. Where available, academic literature is also used to assess attributable economic impact. A GPT-4 scoring rubric assesses technology-by-technology impacts. The impact measured directly is matched against the scoring to tune all scores to produce technology-by-technology estimates of economic impact (even when direct measures of economic impact are unattainable). Consistent with General Purpose Technology theory, these technologies are assumed to go through a period of investment in which economic impact is negative before productivity advances begin to realize into economic data. All technologies are assumed to have the same diffusion and realization cycle. If recent technologies are assumed to diffuse more quickly, the current wave would appear steeper. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.
ARK Investment Management LLC, 2024, based on data from Metaculus, including benchmark details, as of January 3, 2024. Benchmark broadly requires the successful passage of an adversarial two-hour Tuning test, broad success on a Q&A knowledge and logic benchmark, and the successful interpretation of and execution complex model car assembly instruction, all within a single system. Green lines are derived estimates for time to general purpose AI (strongly formulated) based upon forecasts for a weaker benchmark. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.
Waymo manufacturing costs are estimated based upon public statements. Sources: ARK Investment Management LLC, 2024. This ARK analysis is based on a range of external sources, which may be provided upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.
Waymo manufacturing costs are estimated based upon public statements. Sources: ARK Investment Management LLC, 2024. This ARK analysis is based on a range of external sources, which may be provided upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.
Note: Forecasted numbers are rounded. Sources: ARK Investment Management LLC, 2024. This ARK analysis is based on a range of external sources, including the World Federation of Exchanges and the MSCI ACWI IMI Innovation Index which may be provided upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.
You are leaving europe.ark-funds.com
By clicking below you acknowledge that you are navigating away from europe.ark-funds and will be connected to ark-funds.com. ARK Investment Management LLC manages both web domains. Please take note of ARK’s privacy policy, terms of use, and disclosures that may vary between sites.
United Kingdom
United States
Germany
Italy
Switzerland
Austria
Denmark
Finland
Ireland
Luxembourg
Netherlands
Norway
Spain
Sweden
