Concept · Innovation
Technology S-curves
A slowing performance trajectory can reflect technical limits, incentives or measurement. Distinguish them before changing the technology commitment.
Improvement can accelerate, then become harder to sustain.
The S-curve idea describes a possible relationship between improvement effort and technological performance: early work produces limited progress, learning accelerates improvement and later gains become harder within the current approach. Ogami's float-glass study discusses this tradition and challenges an automatic physical-limit interpretation. It supplies a historical counterexample rather than a universally fitted curve. [Ogami, introduction and conclusion](https://www.jstage.jst.go.jp/article/abas/14/6/14_351/_pdf)
A technology S-curve is a hypothesis about changing improvement rates within a defined approach; a visible plateau is not by itself evidence of an unavoidable physical limit.
The decision is whether to keep improving an approach, alter its architecture, license complementary capability or develop an alternative. Specify what customers need and which performance measure captures it. Progress in one component can slow while system integration, software, reliability or operating cost continues improving the customer's result.
Calendar time, cumulative research effort and market adoption are different horizontal axes. A performance chart over years does not establish diminishing returns to effort unless effort is measured. An adoption curve describes uptake, which also depends on price, access and supporting infrastructure. Neither shape alone supplies a forecast of substitution.
Questions behind a technological trajectory
The choice of axes and boundary determines which investment inference is possible.
Performance and effortTrack a defined technical outcome against comparable improvement resources. Without effort data, a slowdown over time cannot identify declining research productivity.
01
Track a defined technical outcome against comparable improvement resources. Without effort data, a slowdown over time cannot identify declining research productivity.
Component and systemDistinguish a component's constraint from changes in architecture, complementary inputs and the delivered customer outcome.
02
Distinguish a component's constraint from changes in architecture, complementary inputs and the delivered customer outcome.
Capability and adoptionA technology's feasible performance differs from demand and commercial uptake. Price, reliability and compatibility can keep an apparently inferior alternative useful.
03
A technology's feasible performance differs from demand and commercial uptake. Price, reliability and compatibility can keep an apparently inferior alternative useful.
A continuum, not a switch
A useful technology comparison specifies customer-relevant performance, improvement effort and the system boundary, then tests physical, organizational and economic reasons for changing returns.
“The next investment depends on what stopped progress, not merely on the shape of the last graph.”
Why it matters
Ogami reconstructs the development of the float process for sheet glass. Molten glass spreads over molten tin, producing smooth parallel surfaces. Thinner production involved more than simply pulling faster: increasing speed could narrow the glass, requiring additional control. That makes the technical trade-off specific. A thickness milestone alone says little about acceptable width, manufacturing yield or delivered cost. [Ogami, pp. 355–356](https://www.jstage.jst.go.jp/article/abas/14/6/14_351/_pdf)
Pilkington began licensing the process to other manufacturers in 1962. The historical account describes grant-back obligations: licensees disclosed improvements, while the sharing rules differed for patentable and nonpatentable work. Early licensing supported a development community. Ogami argues that approaching license expiry later altered incentives to disclose and develop improvements. The same technology could therefore show slowing observable progress for institutional as well as engineering reasons. [Ogami, pp. 357 and 360–362](https://www.jstage.jst.go.jp/article/abas/14/6/14_351/_pdf)
The study describes Asahi Glass's licensing relationship ending in 1981, successful production of glass thinner than 2 mm and mass production beginning in 1982. That sequence is inconsistent with treating the earlier thin-glass boundary as a permanent physical impossibility. It does not isolate how much progress came from changed incentives, accumulated engineering learning, investment or product demand. Ogami's causal interpretation comes from a historical reconstruction, not a controlled comparison. [Ogami, pp. 360–362](https://www.jstage.jst.go.jp/article/abas/14/6/14_351/_pdf)
The paper's patent counts should not become a precise empirical S-curve. Its footnote says the underlying graph has a rough scale without specific counts. Patent filings also measure disclosure and legal strategy as well as development, precisely the incentive problem under discussion. No fitted performance-versus-effort curve or interpolated annual series is reproduced here. [Ogami, p. 360, footnote 5](https://www.jstage.jst.go.jp/article/abas/14/6/14_351/_pdf)
The managerial consequence is a different research sequence. Before abandoning the current approach, identify the constraint, who can change it and what evidence would separate a physical barrier from a contract, coordination or investment barrier. Compare the cost and uncertainty of that change with an alternative technology, including transition and complementary assets. A plausible explanation for a plateau is a hypothesis to investigate, not permission to assume the next breakthrough.
Real-world examples
The same concept shows up in different ways across industries.
Intel's dated VLSI update describes a process enhancement entering risk production and longer-range work. These are company-reported milestones and intentions. They can identify what to verify about readiness, manufacturability and complementary designs. They do not supply a consistent cumulative-effort series or establish when a process approach reaches its maximum useful performance. [Intel's June 2026 process update](https://www.intel.com/content/www/us/en/newsroom/news/corporate/intel-foundry-details-process-milestones-future-innovation-at-vlsi-symposium.html)
Toyota's management announcement describes multiple powertrain paths and future battery-electric development. The stated portfolio identifies technology and regional choices; it does not measure the relative technical trajectories or prove which path will win. A comparison needs the customer's task, infrastructure, delivered cost and reliability alongside component performance. Announced targets remain separate from achieved results. [Toyota management-policy announcement](https://global.toyota/en/newsroom/corporate/39013233.html)
When it breaks
Historical trajectories can conceal changing definitions. A better laboratory result may be compared with an earlier mass-production result, or an output rate may improve while quality falls. Compare outcomes under matched constraints and report changes in architecture or measurement separately. Otherwise the apparent acceleration or plateau may belong to the measurement rather than the technology.
The float-glass history also limits the claim that a successor must replace the incumbent everywhere. Ogami describes Japanese refinements that kept older drawing approaches competitive for particular thin-glass uses, and special products outside the float process's coverage. A customer niche can preserve an alternative even while aggregate adoption shifts. This is a boundary case, not a recommendation to retain every old process. [Ogami, pp. 359–360](https://www.jstage.jst.go.jp/article/abas/14/6/14_351/_pdf)
A contract explanation is not a general rejection of patents or licensing. Licensing initially enabled development in this account, and the paper notes that multiple competing licensing communities could produce a different conclusion. Rights can support cooperation and investment while particular obligations alter later incentives. Diagnose the arrangement and market before transferring the historical interpretation. [Ogami, pp. 357 and 361–362](https://www.jstage.jst.go.jp/article/abas/14/6/14_351/_pdf)
A component plateau may be real and still be the wrong investment target. In an unnumbered hypothetical system, customer task completion improves through software while one hardware measure stays flat. Test the system outcome and the marginal resources required. Do not conceal missing measurements with a smooth illustrative curve that resembles empirical data.
Key takeaways
- 01
Define customer-relevant performance, improvement effort and system boundary before comparing technological paths.
- 02
Test physical limits against incentive, investment and measurement explanations; chronology alone does not identify the cause.
- 03
Compare transition costs, complementary assets and niche demand. A retrospective shape cannot specify a universal replacement date.
Sources
- The False S-curve Shaped by Licensing Agreements · Masamichi Ogami / Annals of Business Administrative Science. Printed pp. 352, 355–357 and 359–362; footnote 5 on p. 360; article-page CC BY 4.0 notice: https://www.jstage.jst.go.jp/article/abas/14/6/14_351/_article
- Intel Foundry Details Process Milestones and Future Innovation at VLSI Symposium · Intel Newsroom. June 16, 2026; Intel 18A-P risk-production update and longer-range roadmap
- New Management Policy & Direction Announcement · Toyota Global. Hiroki Nakajima: multi-pathway products, proposed specialized unit under empowered leader; Yoichi Miyazaki: regional foundation and future investment