{"id":2240,"date":"2025-12-15T15:06:23","date_gmt":"2025-12-15T15:06:23","guid":{"rendered":"https:\/\/leyton.majjane.agency\/ca\/post\/llms-technological-innovation-or-technical-progress\/"},"modified":"2025-12-15T15:06:23","modified_gmt":"2025-12-15T15:06:23","slug":"llms-technological-innovation-or-technical-progress","status":"publish","type":"article","link":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/llms-technological-innovation-or-technical-progress\/","title":{"rendered":"LLMs: Technological Innovation or Technical Progress?"},"content":{"rendered":"<p>LLMs like GPT-4o, Mistral, GROK, or LLaMA in 2025&#8230; Are they truly technological innovations, or just the result of steady technical progress?<\/p>\n<p>To answer that, we first need to clarify the difference between these two concepts \ud83d\udc47<\/p>\n<p>I used to confuse them myself.<\/p>\n<p>And I still see many companies diving headfirst into &#8216;innovation&#8217;&#8230;<\/p>\n<p>When a good old technical improvement might have done the job just as well \ud83d\udc40<\/p>\n<p>So let\u2019s clear things up \ud83d\udc47<\/p>\n<h2 class=\"wp-block-heading\">Technological Innovation<\/h2>\n<p>According to the Frascati Manual, a technological innovation is the implementation of a new or significantly improved product (good or service) or process, based on the results of experimental development and <strong><a href=\"https:\/\/leyton.com\/ca\/en\/insights\/articles\/how-to-differentiate-types-of-rd\/\">R&amp;D<\/a><\/strong>.<\/p>\n<p>In short, it\u2019s about creating a disruptive solution, introducing new use cases, or even redefining a market by setting a new standard for value and expectations.<\/p>\n<p>It\u2019s not about tweaking the old, it\u2019s about changing the game.<\/p>\n<p>\ud83d\udca1 Recent examples:<\/p>\n<ul>\n<li>Facial recognition payments<\/li>\n<li><strong><a href=\"https:\/\/leyton.com\/ca\/en\/insights\/articles\/eligibility-and-impact-of-generative-ai-in-sred\/\">Generative AIs <\/a><\/strong>like ChatGPT or Midjourney, which have transformed how we access creativity<\/li>\n<\/ul>\n<p>Technological innovation is exciting.<\/p>\n<p>But it\u2019s also a gamble: users might not adopt it, costs can skyrocket, and sometimes\u2026 no one understands what you\u2019re actually building \ud83d\ude05<\/p>\n<h2 class=\"wp-block-heading\">Technical Progress<\/h2>\n<p>This is about reliably and continuously improving what already exists, without changing its core function.<\/p>\n<p>\u26a1\ufe0f Current examples:<\/p>\n<ul>\n<li>Optimizing GPUs (like Nvidia H100) for AI training<\/li>\n<li>Developing more durable sodium-ion batteries<\/li>\n<li>Reengineering Google\u2019s search engine to be more energy-efficient<\/li>\n<\/ul>\n<p>\ud83c\udfaf Technical progress boosts <strong>margins, robustness, and scalability<\/strong>.<\/p>\n<p>It might not make the headlines, but it\u2019s just as essential.<\/p>\n<h2 class=\"wp-block-heading\">So\u2026 Should you innovate or focus on technical progress?<\/h2>\n<ul>\n<li>Saturated market? \u2192 Innovate to stand out.<\/li>\n<li> Mature product? \u2192 Make technical improvements to stay competitive.<\/li>\n<li>Industry in flux? \u2192 Combine both.<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">My take on LLMs?<\/h2>\n<p>Based on recent scientific insights (IEEE Spectrum, Nature Machine Intelligence, and the book Prediction Machines by Agrawal et al.), the explosion of models like GPT-4o and Claude 3 is <strong>driven by two forces:<\/strong><\/p>\n<h3 class=\"wp-block-heading\"><mark class=\"has-inline-color has-primary-color\">Technological innovations<\/mark><\/h3>\n<ul>\n<li>The Transformer architecture (Vaswani et al., 2017) revolutionized language modeling<\/li>\n<li>Self-supervised learning opened up a whole new paradigm<\/li>\n<\/ul>\n<h3 class=\"wp-block-heading\"><mark class=\"has-inline-color has-primary-color\">Ongoing technical progress<\/mark><\/h3>\n<ul>\n<li>Distributed compute optimization (TPUs, GPUs)<\/li>\n<li>Data scaling laws and efficiency (Kaplan et al., 2020)<\/li>\n<li>Fine-tuning, RLHF, quantization\u2026<\/li>\n<\/ul>\n<h2 class=\"wp-block-heading\">&nbsp;Conclusion<\/h2>\n<p>LLMs are undeniably born from <strong>technological breakthroughs<\/strong>, but their current performance is the <strong>result of years of engineering progress<\/strong>.<\/p>\n<p>As is often the case in tech:<\/p>\n<ul>\n<li>Innovation sparks the movement.<\/li>\n<li>Technical progress delivers the performance.<\/li>\n<\/ul>\n<p><strong>One last thing&#8230;<\/strong><\/p>\n<p>Whether you&#8217;re innovating or improving existing tech, if you document your trials, hypotheses, and technical barriers, you may be eligible to recover up to 64% of your development costs through <strong><a href=\"https:\/\/leyton.com\/ca\/en\/tax-credits\/sred-scientific-research-experimental-development\/\">SR&amp;ED tax credits<\/a><\/strong> (and even more in Qu\u00e9bec thanks to provincial incentives).<\/p>\n<p>Not sure if your project qualifies? Talk to a Leyton expert<\/p>\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<div class=\"wp-block-buttons\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/leyton.com\/ca\/en\/contact-us\/\">Talk to an expert<\/a><\/div>\n<\/div>\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<h3>Sources<\/h3>\n<ul>\n<li><a href=\"https:\/\/archive.org\/details\/ieee-spectrum-2025-10\">IEEE Spectrum. (1964\u2013 ). IEEE. Magazine covering engineering, applied science, and emerging technologies.<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>LLMs like GPT-4o, Mistral, GROK, or LLaMA in 2025&#8230; Are they truly technological innovations, or just the result of steady technical progress? To answer that, we first need to clarify the difference between these two concepts \ud83d\udc47 I used to confuse them myself. And I still see many companies diving headfirst into &#8216;innovation&#8217;&#8230; When a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2934,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[126,110],"tags":[2858,2964,115,113],"expertise":[774],"class_list":["post-2240","article","type-article","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","category-sred","tag-generative-ai","tag-llm","tag-sred-en","tag-sred-2","expertise-sred-tax-credits"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.1 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>LLMs: Technological Innovation or Technical Progress? - Leyton Canada<\/title>\n<meta name=\"description\" content=\"Explore whether LLMs are true innovations or incremental progress, and how AI projects may qualify for SR&amp;ED tax credits in Canada.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/leyton.com\/ca\/en\/insights\/articles\/llms-technological-innovation-or-technical-progress\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"LLMs: Technological Innovation or Technical Progress?\" \/>\n<meta property=\"og:description\" content=\"Explore whether LLMs are true innovations or incremental progress, and how AI projects may qualify for SR&amp;ED tax credits in Canada.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/leyton.com\/ca\/en\/insights\/articles\/llms-technological-innovation-or-technical-progress\/\" \/>\n<meta property=\"og:site_name\" content=\"Leyton Canada\" \/>\n<meta property=\"og:image\" content=\"https:\/\/leyton.com\/wp-content\/blogs.dir\/3\/files\/2025\/12\/Canada-Website-inside-pictures-60.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"655\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/leyton.com\\\/ca\\\/en\\\/insights\\\/articles\\\/llms-technological-innovation-or-technical-progress\\\/\",\"url\":\"https:\\\/\\\/leyton.com\\\/ca\\\/en\\\/insights\\\/articles\\\/llms-technological-innovation-or-technical-progress\\\/\",\"name\":\"LLMs: Technological Innovation or Technical Progress? 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