Gordon Moore, co-founder of Intel, formulated a law in 1965 stating that the speed and power of computers doubles every 18 months at constant cost (it is actually the story of transistor density on the silicon wafer). To offer a simple example: if I buy a computer today for 1000 Euros, it will be 2 times the power and 2 times the speed of the computer that I could have bought for 1000 Euros 18 months ago. However, I also know that it has half the power and half the speed of the computer that I can buy in another year and a half from now for 1000 Euros.
Gordon Moore, co-founder of Intel, formulated a law in 1965 stating that the speed and power of computers doubles every 18 months at constant cost (it is actually the story of transistor density on the silicon wafer). To offer a simple example: if I buy a computer today for 1000 Euros, it will be 2 times the power and 2 times the speed of the computer that I could have bought for 1000 Euros 18 months ago. However, I also know that it has half the power and half the speed of the computer that I can buy in another year and a half from now for 1000 Euros.
The question that emerges is how did G. Moore manage to dictate a law in the 60s that is applicable in IT even today? The answer is quite surprising, as Moore did not use a large database as might be expected, but used two simple points instead. He realized that the power and speed of computers in his day had doubled from one year to another and from one year to 18 months later. "Moore's Law" was derived from these two points.
As a result, we conclude that productivity gains from innovations enable cost reduction (reinforced by the search for economies of scale) and accelerate their development. Therefore, the question that arises is: what consequences could this law have on the pace of innovation? By lower costs of information, our pace of innovation may have accelerated in recent years and were able to fully diffuse through a favorable economic environment.
Tags: Gordon Moore, Moore's Law, speed of innovation
[...] Moore able to dictate a law in structuring the computer in the 60s? The answer is quite surprising because in fact, Moore did not use a large database as one might believe, but just two points: he realized that from one year to 18 months the speed and computing power in his day had doubled and therefore, from these two points he extrapolated until today. This phenomenon is called the "law of Moore". One explanation for the success of this law involves the psychological dimension. [...]
[...] Therefore, the promulgation of Moore's Law took place prior to the verification of the law. (Remember: in situations of uncertainty, rational behavior is to imitate ones neighbor, when it can be assumed that he holds more information than you do) Therefore, the productivity gains from innovations enable cost reduction (reinforced by the search for economies of scale) and accelerate their development. Therefore, the question which arises is, what consequences may this law have had on the pace of innovation? Because of lower information costs, the pace of innovation has been accelerating in recent years and has been fully spread by a favorable economic environment * _ "Untangling e-conomics" from The Economist print edition, September 21 st 2000_ Lower information costs as a result of the accelerating pace of innovation . [...]
[...] However, when households cannot pay their loans, prices fall. That is when the interbank market is affected, causing a general crisis in the world. II- Economic aspect: Faced with market deregulation and increased competition, companies are looking to stand out for more profit, where there are more investments in research and development and therefore innovation is growing. It can therefore be noted that the consequences of Moore's Law on the pace of innovation cannot be explained only by the appearance of a new technology but also due to the economic context in which they are developed. [...]
[...] Also, the deregulation of markets ("laissez-faire") has accelerated the pace of innovation. This deregulation may require larger investment costs. For this, it must appeal to these markets to finance large investments, where the penetration of ICT takes place in financial markets. It seeks to disseminate information as quickly as possible and universally. With the rapid diffusion of capital, began a long period of speculation, making the CAC40 fly. The money "played" was increasingly important, causing great instability in financial markets. [...]
[...] ) favor the introduction of new markets. The introduction of new markets in turn, increases the penetration of ICT markets (hence the difference with the "old economy" in which electricity or telegraph experiencing difficulties because of too high costs of market penetration) Traditional activities both on an external company (e.g. the intranet) as well as an internal one (organizational changes), provide greater flexibility of employment. They become more poly-functional, in that new organizational principles must allow for lower production costs. [...]
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