I'm not advocating that they move from what we perceive to be our medieval times straight to what would represent our industrial era, but it seems Tamriel has been stuck in the medieval times forever, with no signs of that ever changing.
The lack of technological advancement in most areas seems to be non existent. I mean, it's not as if those great thinkers and scholars don't have anything to work from, there's Dwemer technology and maybe other pieces of technology from past civilizations that I may have missed. Same goes for weapons with the exception of crossbows, they all seem to be stuck at their most basic inceptions. Obviously I'm not including staffs/staves because there are no real life comparisons to be made and they are what they are.
Magic aside, same holds true with other aspects of technology such as transportation, lighting etc.