Meaning: This quote by Chris Anderson, a well-known businessman and author, highlights the key stages in the advancement and adoption of technology. Anderson's quote suggests that for a technology to gain widespread acceptance and impact, it must first reach a critical price point and then achieve a critical mass or penetration in the market.

The first part of the quote, "The first stage in a technology's advance is that it'll fall below a critical price," emphasizes the importance of affordability in driving the initial adoption of a new technology. Historically, many groundbreaking technologies start off with high costs that limit their accessibility to a niche market. However, as advancements in production, economies of scale, and competition drive down the cost, the technology becomes more accessible to a broader audience. This reduction in price can be a significant catalyst for increasing adoption and usage.

Anderson's assertion that a technology will "tend, if it's successful, to rise above a critical mass, a penetration" speaks to the second stage of technological advancement. Once the price of a technology reaches a point where it is more widely affordable, successful technologies have the potential to achieve a critical mass or penetration in the market. This critical mass represents a tipping point where the technology becomes pervasive and integrated into various aspects of society and industry. It reaches a level of adoption where it becomes the norm rather than the exception.

To illustrate this concept, consider the evolution of personal computers. In the early days of computing, computers were large, expensive, and primarily used in academic and business settings. However, as advancements in technology and manufacturing processes drove down the cost of hardware, personal computers became more affordable for individual consumers. This reduction in price played a crucial role in driving widespread adoption, leading to a critical mass of personal computer usage in homes and workplaces around the world.

Similarly, the proliferation of smartphones provides another compelling example. Initially, smartphones were prohibitively expensive and considered a luxury item. However, as competition among manufacturers intensified and technological advancements streamlined production processes, smartphones became more affordable. This affordability, coupled with the increasing functionality and versatility of smartphones, contributed to their widespread adoption and the attainment of a critical mass in the global market.

It is essential to note that not all technologies successfully navigate these stages. Some may fail to reach a critical price point or struggle to gain enough traction to achieve a critical mass of adoption. Additionally, the pace at which a technology progresses through these stages can vary significantly depending on various factors such as market demand, competition, regulatory environment, and technological advancements.

In conclusion, Chris Anderson's quote succinctly encapsulates the essential stages in the advancement of technology. By falling below a critical price and subsequently achieving a critical mass, a technology can significantly impact society and industry. Understanding these stages is crucial for businesses, innovators, and policymakers as they navigate the complex landscape of technological development and adoption.