Major inventions that happened in recent time that resulted in the wealth creation for the inventors

Introduction:

Any scientist/inventor who invents anything, it requires a lot of commitment, pain and efforts during the process of such inventions. Once successfully invented, making is commercially viable is another tall order task that requires a lot of financial support for the inventors.

Several recent inventions have led to substantial wealth creation, often by addressing large-scale problems, capturing user demand, or creating new markets. However, to reach to such a stage it required lot of investment initially and here is where many inventions fail and don’t see the light of the day as majority of the inventors do not possess the required investments in the initial stages.

Each of these inventions required substantial funding, a mix of private investment, and sometimes government support to cover R&D, testing, marketing, and scaling. Costs typically range from tens of millions for early-stage inventions to billions for full commercialization. The return, however, can be exponential if the invention creates a new market or disrupts an existing one.

Several recent inventions have led to substantial wealth creation, often by addressing large-scale problems, capturing user demand, or creating new markets. Here's an overview of some significant recent inventions, their paths to market, and approximate costs:

1. CRISPR-Cas9 Gene Editing

- Invention: CRISPR-Cas9 technology enables precise gene editing, allowing scientists to cut and modify DNA. It's transformative in agriculture, medicine, and biotechnology.

- Cost of Development: The cost for CRISPR’s early-stage research was partially funded through government grants, with initial costs in the millions, as various labs and universities contributed to developing the technology.

- Commercialization Cost: It is estimated that billions have since been invested in the commercialization and patent litigation surrounding CRISPR, as companies license the technology for therapeutic applications. For example, CRISPR Therapeutics and Editas Medicine have raised hundreds of millions to bring therapies to market.

- Wealth Creation: Valuations of CRISPR-based biotech companies surged past billions of dollars, generating substantial wealth for founding scientists and investors.

2. Tesla’s Electric Vehicles (EV) and Battery Technology

- Invention: Tesla’s advancements in EV technology and lithium-ion battery efficiency disrupted the automotive industry, setting new standards for electric mobility.

- Cost of Development: Tesla invested around $6.4 billion in its Gigafactory to bring battery production in-house, with additional billions in R&D for car models and autonomous driving technology.

- Commercialization Cost: Including manufacturing, marketing, and global distribution, the total commercialization cost is well above $20 billion over the years.

- Wealth Creation: Tesla's market cap soared past $1 trillion, creating enormous wealth for its CEO, Elon Musk, and early investors. It also influenced other automakers to invest in EVs, expanding the market further.

3. mRNA Vaccine Technology (e.g., Pfizer-BioNTech, Moderna COVID-19 Vaccines)

- Invention: mRNA vaccine technology allows rapid development of vaccines, as demonstrated by the COVID-19 vaccines from Pfizer-BioNTech and Moderna.

- Cost of Development: The mRNA platform had been in development for over a decade, with R&D costs for companies like Moderna reaching hundreds of millions, partly funded by DARPA and NIH grants.

- Commercialization Cost: When COVID-19 hit, Moderna and Pfizer-BioNTech received billions in government funding to accelerate production, distribution, and clinical trials.

- Wealth Creation: Moderna and BioNTech saw their valuations skyrocket, making founders and early investors billionaires. Moderna’s valuation grew to over $100 billion, largely due to the success of the COVID-19 vaccine.

4. SpaceX’s Reusable Rockets

- Invention: SpaceX developed reusable rocket technology, drastically lowering the cost of launching payloads to space, which benefits telecommunications, space tourism, and more.

- Cost of Development: Development costs are estimated to be around $1 billion to $1.5 billion, with a mix of private investments and NASA funding.

- Commercialization Cost: SpaceX's ongoing investment in launch facilities, testing, and operational scaling is several billion dollars, though they have generated revenue by securing government and commercial launch contracts.

- Wealth Creation: SpaceX’s valuation surpassed $100 billion, making it one of the most valuable private companies and creating substantial wealth for Elon Musk and investors.

5. Smartphones and Mobile Technology (Apple’s iPhone)

- Invention: While not invented recently, the smartphone era led by Apple revolutionized computing and communication, creating entire ecosystems around apps and mobile services.

- Cost of Development: The initial iPhone R&D cost Apple around $150 million. However, sustained innovation over the years has cost Apple billions annually in R&D and production improvements.

- Commercialization Cost: Apple spends significantly on global marketing, logistics, and distribution; over the years, this commercialization has been well over $50 billion.

- Wealth Creation: The iPhone contributed to Apple becoming the first publicly traded company to reach a $3 trillion market valuation, creating vast wealth for shareholders and executives.

6. Blockchain Technology and Cryptocurrencies (e.g., Bitcoin, Ethereum, MATIC)

- Invention: Blockchain technology, enabling decentralized financial systems, led to the creation of cryptocurrencies like Bitcoin and Ethereum.

- Cost of Development: The cost of early blockchain development was relatively low, given the community-driven approach. However, large blockchain companies and exchanges like Coinbase and Binance have spent billions in development, marketing, and security.

- Commercialization Cost: Cryptocurrencies required extensive infrastructure, including mining, exchanges, wallets, and regulatory compliance, with billions invested over the years.

- Wealth Creation: Early adopters and developers of cryptocurrencies, as well as founders of exchanges and platforms, have gained substantial wealth. Bitcoin alone has created billions of dollars in value for holders and industry participants.

7. Artificial Intelligence, AI Solutions:

- Overview: AI technologies are being integrated into various sectors, enhancing efficiency and decision-making.

- Development Costs: Developing a robust AI system can cost between $50 million to $100 million, depending on complexity.

- Commercialization Costs: Bringing an AI product to market may require an additional investment of around $20 million to $50 million.

Summary of Development and Commercialization Costs

These figures illustrate the significant financial commitment required by inventors and companies to develop and bring innovative products to market. Successful commercialization not only recoups these costs but also generates substantial wealth for the inventors involved.

This article illustrates how much initial cost in involved which then leads to creation of wealth. For any inventions to see the light of the day, the inventors should be supported with significant cost inputs by the investors without which their inventions stay collecting dust.

This applies to all the cases across the globe, there may be exceptional outliers though.

Thank you for taking time to read this article. I would be glad to read your comments.

Citations:

https://www.inventioncity.com/costs-for-invention-development-patents-and-licensing

https://nopr.niscpr.res.in/bitstream/123456789/14763/1/JIPR%2017(5)%20400-405.pdf

https://www.wipo.int/edocs/mdocs/innovation/en/wipo_ifia_kul_96/wipo_ifia_kul_96_1.doc

https://www.wipo.int/edocs/mdocs/innovation/en/wipo_avi_ph_97/wipo_avi_ph_97_1.doc

https://www.csuohio.edu/technology-transfer/commercialization-process

https://www.ncbi.nlm.nih.gov/books/NBK233535/

https://www.utoledo.edu/research/TechTransfer/TTandCommProcess.html