Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages is an academic book by Carlota Perez that seeks to describe the. Technological Revolutions and Financial Capital has ratings and 27 reviews. Carlota Perez draws upon Schumpeter’s theories of the clustering of. Technological Revolutions and Financial Capital presents a novel interpretation of the Carlota Perez draws upon Schumpeter’s theories of the clustering of.

Author: Vule Kajile
Country: Trinidad & Tobago
Language: English (Spanish)
Genre: Science
Published (Last): 15 December 2011
Pages: 26
PDF File Size: 10.19 Mb
ePub File Size: 16.96 Mb
ISBN: 513-4-17750-875-7
Downloads: 14158
Price: Free* [*Free Regsitration Required]
Uploader: Tosida

For a taster, follow the link to the author’s publications on her website – http: Return to Book Page. The thesis is based on five technological resolutions since the onset of industrial age, each roughly running half a century.

Oct 07, Nynke Doesburg rated it it was amazing. Irruption, Frenzy, the turning point, Synergy, and Maturity.

– Carlota Perez

Ultimately this would create a network and commodity out of ideas. Whether any particular country in the periphery adopts the new paradigm depends on its ability to take tcehnological of the opportunity.

This technological breakthrough offers new cost-competitive possibilities in a sluggish landscape [and are classically disruptive in the Christiansen sense]. Consequently, I’d recommend reading Kindleberger, Perez, and Janeway preez that order — to get basic historical literacy, form a coherent analytic framework, and understand the practitioner’s perspective, respectively.

The first half on the phases are the most useful. These agents do this with borrowed money from financial capital and share the generated wealth. Perez has very carefully and deliberately mapped out the similarities between the five technological revolutions. Overall, very worth technoogical – just set aside hours on afternoon and approach it like you would a study project in college.

But the safeguards that exist are only present as to the extent that they enable the continuation of the system that they are designed to oversee. Finally, given the time lag of diffusion of the technology, the core countries in the revolution may be experiencing trouble at the same time that catching-up cteountries are reaching their maximum height. Growth and profits are threatened.

Even for the same good, the decreasing prices and increasing volume make measurement difficult — how do you compare one computer in vs one computer in ? A must read for anyone interested in the intersection of markets and technology. These findings are illustrated with examples from the past two centuries: She wrote the book right after the dot-com crash of the late 90’s and so we can already see that there was at least one mistake in her predictions because the “turning point” into the deployment period ended up stretching out much longer than she predicted at the time.


And thus technology shapes society. 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.

Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages

Social structure and infrastructure have adapted to the new technologies. Between sectors, the most closely connected industries form revolution high synergy and intensive feedback effects. Oct 01, John Kentigern rated it it was amazing. In Chapter 12, Perez discusses the passage to maturity through which economies go.

Money buying telecom today is not the same value as money buying furniture in the s. Growing inequality and political unrest. Political pressures begin calling for action to propel the required institutional changes to accommodate the new revolution.

This being said with the idea in mind that the recyclability of the printed materials would be able to be put back into pereez machines and reused many times, the non-harmful use of these substances ecologically sound printing materialsand ease of interface. Written in after the dotcom crash, Technological Revolutions was remarkably prescient in predicting how the tech economy would evolve in the following two decades. Want to Read saving….

The model argues for increasing differentiation within the economy. Views Read Edit View history.

Technological Revolutions and Financial Capital – C. Perez – Google Books

The buildup of idle capital of successful companies means more money can be invested in ffinancial advances, mergers and acquisitions, and investments in foreign markets. Carlota Perez draws upon Schumpeter’s theories of the clustering of innovations Each revolution consists of several technology systems that develop at different rhythms and in a sequence depending on feedback loops.

Thus niches could thrive without needing mass economies of scale. The four phases model is deliberately meant to be impressionistic.

The stylized model that she presents is both general enough to describe commonalities between all such cycles, and specific enough in that it recognizes the variance in how economic phenomena actually transpire. The idle financial capital is moving to new sectors and new regions where it may lay the foundation of the next great surge.


The role of financial capitals – loans, stock markets etc – is analysed technologicwl depth in the book, depicting in a very coherent amd how at times financial agents are treated as the main force behind the growth, yet at other time – as “evil genius”. Canals and waterways, water powerturnpike roads. Thus, while Perez does acknowledge that after a “Frenzy” of new investments, a bust becomes almost inevitable, and that in order to reap the benefits of the new General Purpose Technologies, regulatory reforms will be necessary in order to re-tame the financial system and institute mechanisms to ensure that the benefits from the productivity gains of the new technology are widely spread.

The author goes to explain the cycles of innovation inside capitalism and how the technological revolutions are helped by Financial Capital and how the cycle always have some kind of shakeup.

Once it grows to an unsustainable, overwhelming size, it bursts and the economy collapses. But this book ad an excellent f This is one of the most important books on economics and history I’ve ever read.

Technological Revolutions and Financial Capital: Great analysis on how the mix of technological innovations and the race for profits among financial agents can both result in long periods of economic stability as well as financial collapses. Financial capital represents the agents who possess wealth in the form of money or relatively liquid assets.

The book ends with Perez asking whether the consequences of the current economic system — with its irruption and frenzy, which end up in a bubble and collapse — can be mitigated.

Great pattern recognition but the author is not well-articulated Social unrest reoccurs when the growth that was promised does not materialize. Through the life cycle of the revolution, the core country begins as a net exporter of the technology, then becomes a net importer as the paradigm reaches the periphery.