the problem of nuclear waste, and other breakthrough companies that will soon emerge from stealth with high-power energy conversion for electric vehicles and industrial motors. Just like the PC business in the 1980s, picking brands will be tough, but betting on the digital guts inside may make fortunes.
5. The Rise of Surprise
The most exciting things always come from unexpected upside surprises. Watch for not-widely followed areas of science and technology. Metamaterials, graphene, battery breakthroughs, solid-state lighting, augmented reality, computational photography, better energy storage and regenerative medicine are all hot areas that Lux and other VCs are on the hunt for.
6. The Fall of Super-Angels
When barriers to competition are low, expect lots of it. Hundreds of companies are getting funded by so called super angels or micro-VCs, but valuations are in the nosebleed sections. As momentum in sectors like social-networking slows (or gets saturated), some angels’ staying power could wilt as follow-on financing face tougher terms from larger VCs.
7. The Fall of Personal Privacy (& The Rise of Good Behavior?)
Regardless of what privacy advocates say: between diplomacy hackers like WikiLeaks, industrial hackers like the Stuxnet virus, geo-tagging, real-time data, status updates, tweets, check-ins, and phone cams in the hands of everyone-the facts is this: personal privacy has irreparably changed. Tech guru Kevin Kelly made a provocative statement: nobody really knows what any technology will be good for: the real question is what happens when everyone has one? Now compare modern technology as an unblinking eye with Southern gun culture. Some believe Southern gentility arose from a gun culture, where politeness was a survival tactic. If people assume they’re being watched all the time, what affect might it have on ethics and behavior?
8. The Rise of Robotics
From UAVs (unmanned aerial vehicles), and military drones to autonomous systems in hospitals, factories, and shipping centers: expect robots to do the mundane, the menacing, and the miraculous.
9. The Rise of Risk
The world is more connected, less predictable and more volatile than ever before. Models widely taught in universities that assumed linear cause-and-effect, or even bell-shaped distributions in markets, are proving to contribute to more risky systems and bad decision-making. As John Maynard Keynes said, it’s better to be roughly right than precisely wrong. Low probability, high consequence events, so-called Black Swans, are on the rise with greater frequency and less predictability. Whether it’s financial crises, weather systems, or geopolitical instability-the best way to deal with risk is to know more things can happen than will and you should expect the unexpected.
[Editor’s Note: This is part of a series of posts from Xconomists and other technology and life sciences leaders from around the U.S. who are weighing in with the top surprises they’ve seen in their respective fields in the past year, or the major things to watch for in 2011.]
