Investing in innovation provides opportunities for alpha returns but the challenge for investors is to identify investible opportunities in innovations that have the potential to change our world in a sustainable way. Undeniably, the Internet of Things, machine learning and artificial intelligence are showing enormous ability to transform our world and are just some examples of innovation within Big Data and Analytics. Gene sequencing and neurochemistry are providing innovations in healthcare which have the promise to radically improve our quality of life. However, innovation is not limited to the tech and healthcare sectors. Themes like Nanotechnology, Energy Systems, Robotics and 3-D printing have wide-spread application across other sectors as well as into our key Q4 investment theme of the Industrial Revolution 4.0.
The Industrial Revolution 4.0 is the trend of automation and data exchange in manufacturing technologies. It includes the Internet of Things, cloud computing and artificial intelligence. It introduces the “smart” factory concept through the use of the Internet of Things, cyber-physical systems to communicate and cooperate with each other and with humans in real time. In following Moore’s law, the growth of Big Data has been relentless with 90% of the world’s data created in the last two years. The reinvention of transportation could also bring about promising developments in lithium batteries, shared mobility and driverless technologies.
- Gugnir and Partners
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