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Peter Thiel’s Two Paths to Progress: Globalization vs. Technology

Peter Thiel, the co-founder of PayPal and a renowned entrepreneur, often challenges how we think about progress in the modern world. According to him, there are two distinct modes of growth in the 21st century: globalization and technology. These two paths, though often confused, represent fundamentally different ways of moving society forward.


Peter Thiel, Co-founder, PayPal
Peter Thiel, Co-founder, PayPal

Photo: IMAGO / photothek


Globalization: Expanding What Already Works

Thiel describes globalization as “going from one to n.” In other words, it’s about copying things that are already successful and spreading them across the world. Think of it as horizontal growth. For example, when a company opens new branches in different countries, that’s globalization. It’s taking something that already works in one place and scaling it on a broader, global level.


Thiel sees globalization as growth along the x-axis—it’s expansive, but it doesn’t necessarily create anything new. It’s about replicating what’s already been discovered or invented.


Technology: Discovering the New

In contrast, technology represents vertical growth, or what Thiel calls “going from zero to one.” This is about innovation—creating something entirely new that didn’t exist before. Think of the invention of the internet, the iPhone, or the development of renewable energy sources. These breakthroughs change the world by moving upward along the y-axis, representing technological leaps that push society forward in a profound way.


While globalization focuses on expanding existing solutions, technology is about discovery and innovation.


The Two Shouldn’t Be Confused

One of the most critical points Thiel makes is that globalization and technology often get lumped together as if they’re the same thing. But they are not. Globalization can spread what’s already been invented, but it doesn’t create anything fundamentally new. It’s important to recognize the difference because true progress—especially in the form of game-changing innovation—comes from technology.


A Real-World Example: China’s Manufacturing vs. Silicon Valley Innovation


A practical example of these two concepts can be seen in China’s rapid industrial growth versus Silicon Valley’s culture of innovation. China has excelled at globalization, mastering the production of goods and expanding its manufacturing prowess across the globe. But this represents horizontal growth—China is exceptional at scaling what already works.


Meanwhile, Silicon Valley represents technological progress. Startups in Silicon Valley aim to invent new technologies, like artificial intelligence and biotech innovations. They focus on vertical growth, seeking to create things that never existed before.


The Future: What Should We Prioritize?

According to Thiel, if we want to truly progress as a society, we should put more emphasis on technology—the vertical y-axis of growth. While globalization has its merits, the real breakthroughs, the ones that transform how we live, come from technological innovations.


Thiel’s thinking pushes us to question where we should invest our time, resources, and creativity. Should we focus on expanding what we already know, or should we be daring enough to create something entirely new? For him, the answer is clear—true progress lies in going from zero to one.


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