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.

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This technological breakthrough offers new cost-competitive possibilities in a sluggish landscape [and are classically disruptive in the Christiansen sense]. See an extended review on my financcial. The Dynamics of Bubbles and Golden Ages is an academic book by Carlota Perez that seeks to describe the connection between caital development and financial bubbles as technologgical in the emergence of long term technology trends.

The revolution often gestates in a particular region, and propagates from core to periphery. Very dry and all seemed fairly obvious. And thus technology shapes society. Carlota Perez draws upon Schumpeter’s theories of the funancial of innovations to explain why each technological revolution gives rise to a paradigm shift and a “New Economy” and how revolutione “opportunity explosions”, focused on specific industries, also lead to the recurrence of financial bubbles and crises.

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.

Promising innovations attract idle capital, and the big-bang event kicks off a flywheel effect of capital and labor that leads to the next revolution cycle. The Dynamics of Bubbles and Golden Ages”. Where Kindleberger’s book felt very much like a dry catalog of financial crises, Perez builds upon his work, providing an analytic framework for understanding their fundamental underpinnings and forming the foundation for Janeway’s “Doing Capitalism”.


This table refers to when innovation and invention happens — the application of the practices can last a long time afterward. Seems to me like social media is just remixing the same parts of the digital revolution in general. Irruption, Frenzy, the turning point, Synergy, and Maturity. Even further, the technological revolution penetrates social practice, capitl, governance, and ideology.

Book review of “Technological Revolutions and Financial Capital”

The final phase, Maturity, fades into the Irruption perfz the next revolution, but is seen as the socio-political split, with market saturation of the last products and industries, and disappointment versus complacency.

New industries are established, and the construction of new infrastructure finxncial. The book has, however, several notable failings. Companies begin reaching the limits of their own industries and products and begin to invest in alternatives to carry them through the next phase. Thus niches could thrive without needing mass economies of scale.

Technological Revolutions and Financial Capital – Wikipedia

All that said, this book is hard as shit to read. Everything is repeating, phase after phase.

The enthusiasm for these new technologies and the success of these new products leads to the end of the Irruption phase and starts the Frenzy. Ray Rangel rated it it was amazing Jan 19, Age of steelelectricity and heavy engineering.

The irrationally exuberant bubble bursts, causing a recession and social technoogical. Society shapes technological revolutions by cycling between inertia and desire for growth.

For that, a more direct political-economic analysis would be necessary, and that is outside the scope of what Perez cuts out for herself in this otherwise very valuable book. The book identifies five bursts of technological innovation that have occurred in industrial history.

Canals and waterways, water powerturnpike roads. 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.


Te author relates also those trends with their social technologjcal and the disruption they brought to the technlogical fabric. She researches the concept of Techno-Economic Paradigm Shifts and the theory of great surges, a further development of Schumpeter’s work on Kondratieff waves.

Book review of “Technological Revolutions and Financial Capital” | Experiments in Digital Economics

If you like books and love to build cool products, we may be looking for you. All technological revolutions are characterized by the crash at the end of the frenzy phase. Social structure and infrastructure have adapted to the new technologies. There is an intense funding of innovation in new technologies.

Mechanised cotton industry, wrought ironmachinery. Mass-produced automobiles, cheap oil and fuels, petrochemicalsinternal combustion engine for automobiles, tractors rdvolutions, aeroplaneswar tanksand electricity production, home electrical appliancesrefrigerated and frozen technologicql.

The companies begin to operate in a two paradigm mode, earning profits through their core industry while investing capital elsewhere.

This is the point of greatest reception to radical innovations, and firms experiment with new technologies to revitalize themselves. That said, the information in this book is critically important for anyone interested reolutions innovation and investment cycles.

I found her way of thinking fascinating, and her model valuable. It does not right itself. The account of how financing that is, how money “seeks” to fund innovation and then “make money from money,” or “rent-seeking” as the kids like to say is especially interesting. Growing inequality and political unrest.

Asset bubbles may burst.