Technological Revolutions and Financial Capital presents a novel interpretation of the good and bad times in the economy, taking a long-term perspective and linking technology and finance in an original and convincing way.
Carlota Perez draws upon Schumpeter's theories of the clustering of innovations to explain why each technological revolution gives rise to a paradigm shift and a `New Economy' and how these `opportunity explosions', focused on specific industries, also lead to the recurrence of financial bubbles and crises. These findings are illustrated with examples from the past two centuries: the industrial revolution, the age of steam and railways, the age of steel and electricity, the emergence of mass production and automobiles, and the current information revolution/knowledge society.
By analyzing the changing relationship between finance capital and production capital during the emergence, diffusion and assimilation of new technologies throughout the global economic system, this seminal book sheds new light on some of the most pressing economic problems of today.
A bold interpretation of how the changing relationship between technological advances and financial capital shapes the patterns of economic cycles, this path-breaking book will provide essential insights for business leaders, policymakers, academics and others concerned with managing change in the world economy.
Carlota Perez, Faculty of Social Science, Ragnar Nurkse School of Innovation and Governance, Tallinn University of Technology, Estonia
Contents: Preface by Chris Freeman Introduction: An Interpretation Part I: Technological Revolutions as Successive Great Surges of Development 1. The Turbulent Ending of the Twentieth Century 2. Technological Revolutions and Techno-Economic Paradigms 3. The Social Shaping of Technological Revolutions 4. The Propagation of Paradigms: Times of Installation, Times of Deployment 5. The Four Basic Phases of Each Surge of Development 6. Uneven Development and Time-Lags in Diffusion Part II: Technological Revolutions and the Changing Behavior of Financial Capital 7. Financial Capital and Production Capital 8. Maturity: Financial Capital Planting the Seeds of Turbulence at the End of the Previous Surge 9. Irruption: The Love Affair of Financial Capital with the Technological Revolution 10. Frenzy: Self-Sufficient Financial Capital Governing the Casino 11. The Turning Point: Rethinking, Regulation and Changeover 12. Synergy: Supporting the Expansion of the Paradigm Across the Productive Structure 13. The Changing Nature of Financial and Institutional Innovations Part III: The Recurring Sequence, its Causes and Implications 14. The Sequence and its Driving Forces 15. The Implications for Theory and Policy Epilogue: The World at the Turning Point Bibliography Index