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]. Cambridge Journal of Economics.

The first two phases fall within the Installation Period, where the last two are in the Deployment Period.

The Dynamics of Bubbles and Golden Agesby Carlota Perez, lays a framework for understanding the boom and bust cycles of disruptive technologies.

Book Summary: Technological Revolutions, by Carlota Perez

As well as your comparison to gentrified Brooklyn which I guess came in part from my dissertation intro and Park Slope experience….

Paperbackpages. That said, the information in this book is critically important for anyone interested in innovation and investment cycles. And in Maturity, begin to separate again. When there is inertia in one sphere of change, unrest in another exercises enough pressure to induce changes.

An example would be when automobiles were invented, the subsequent services that need to be in place for the proliferation of automobiles would be gas stations and mechanics, but for these secondary services to be profitable, there would first need enough cars on the road. Anyone who is interested in the cyclical movement of capitalist economies should read this. 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.

All that said, this book is hard as shit to read. Plus graphs and tables so you can pretend you read if you didn’t! 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. As you read this summary, think about how well it applies to the arc of computing from to today — and muse about what the next technological revolution might be.


The book has, however, several notable failings. Great analysis on how the mix of technilogical innovations and the race for profits among financial agents can both result in long periods of economic stability as well as financial collapses. Carlota Perez draws upon Schumpeter’s theories of the clustering of innovations to explain why each technological revolution gives rise to a paradigm “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.

The information revolutioncheap microelectronicscomputerssoftwaretelecommunications, control instrumentscomputer-aided biotechnologynew materials.

This is probably the best book I’ve ever read on technology and its impacts on society.

Technological Revolutions and Financial Capital – Wikipedia

In contrast, incompatible innovations may be rejected by investors or consumers, and are instead adapted in a minor way to the current paradigm, even though they may very well be the focal point of the next technological revolution. A tcehnological of food for thought – a useful and very pertinent framework for thinking about how technological innovation, finance and politics interact.

The four phases model is deliberately meant to be impressionistic. The valuable part isn’t pointing out that technoological a cycle, but rather collecting together the lengthy cause and effect chain of various cycles of time. Synergy is known as the Golden Age, with coherent growth with increasing externalities, marked with production. With enough discrepancy in wealth, as noted, political unrest boils over. Worldwide shippingtranscontinental railwaysworldwide telegraphtelephoneelectrical networks.

Refer to Phase 0 above. The author traces five boom-and-bust cycles of technological innovation: Some branches grow at very high rates while others are stagnating.

This development and diffusion of technological revolutions tends to stimulate innovations in finance that benefit from impulse they provide. These findings are illustrated with examples from the past two centuries: Very interesting read that presents a framework to understand technological revolutions. She explains the technological revolution requires an entire network of interconnected services and infrastructures in addition to the primary technology that enables the new technology to take hold.


Technological Revolutions and Financial Capital: Te author relates also those trends with their social aspects and the disruption they brought to the social fabric. Larissa rated it it was amazing Jun 07, The market for the new technology begins to become saturated. Tech revolutions replace one technology with another, which leads to massive change and a subsequently explosively volatile period in markets and potentially massive profitability.

For a long time I’ve been looking for an organizing framework to think about human history since the invention of capitalism, and this book provides one. As the revolution becomes the new prevailing paradigm, it favors compatible innovations and it excludes incompatible innovations. An excellent book that explains how technological revolutions occur, the phases that make it and the role of finance in it.

Intense Academic read but very insightful. Characterizing the surge of a technological revolution can be divided into four main phases with a turning point at the center of these phases: Did not care for it.

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

Want to Read saving…. Another reason, explained later, is that the next technological revolution picks up in the maturity phase of the previous one — so different technologies may take different amounts of time to exhaust markets and begin looking for radical innovations. Given the rapid improvement in technology, it is hard to control the value of money across two periods. Apr 27, Simon rated it it was amazing.