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The Exponential Age will transform economics forever

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IN 2020, AMAZON turned 26 years old. Over the previous quarter of a century, the company had transformed shopping. With retail revenues in excess of $213bn (£150bn), it was larger than Germany’s Schwarz Group, America’s Costco, and every British retailer. Only Walmart, with more than half a trillion dollars of sales, was bigger. But Amazon was by far and away the world’s largest online retailer. Its online business was about eight times larger than Walmart’s. Amazon was more than just an online shop, however. Its huge businesses in areas such as cloud computing, logistics, media, and hardware added a further $172bn in sales.

At the heart of its success is a staggering $36 billion research and development budget in 2019, used to develop everything from robots to smart home assistants. This sum leaves other companies – and many governments – behind. It is not far off the UK government’s annual budget for research and development. Tesco, the largest retailer in Britain – with annual sales in excess of £50 billion – had a research lab whose budget was in “six figures” in 2016.

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Nadav Kander

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Click the link below for the article:

https://www.wired.co.uk/article/exponential-age-azeem-azhar?utm_source=pocket_discover

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