Business Development

Download Economics and Technological Change by Rod Coombs, Paolo Saviotti, Vivien Walsh PDF

By Rod Coombs, Paolo Saviotti, Vivien Walsh

A space of overlook in a lot of present financial thought has been its loss of consciousness to the effect of technological innovation at the constitution and behaviour of enterprises and the industry. This booklet is a accomplished learn of the commercial implications of technological switch for 3 basic associations: the enterprise, the marketplace, and the civil quarter.

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Extra info for Economics and Technological Change

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Schumpeter pointed out that long-term growth in a capitalist economy is much more dependent on the creative destruction of innovations shaking and redefining a pre-existing equilibrium than on the smooth working of the equilibrium itself. In other words, the static efficiency of a system that at 'every given point in time fully utilises its possibilities' may in the long run be inferior to the dynamic efficiency of a system which allocates part of its resources to the generation of new knowledge .

This provides a basis for a later section which explores in more detail the scope for treatment of technical change within such realist theories. Hay (1983) argues that two major historical changes in the nature of firms have helped to precipitate new developments in the theory of the firm. Firstly . the growth in the number of very large industrial firms during most of this century has made it increasingly difficult to rely on a theory which presents the firm as atomistic and small in relation to its markets.

4 FIRM STRUCTURE There are a number of different approaches to the question of structure to be found in the literature. Three are particularly relevant for our purposes. These are the transaction costs approach associated with the later work of Williamson; the 'behavioural' approach stemming from the work of Simon and of Cyert and March, and the historical approach, particularly that associated with the work of Chandler and mentioned in Chapter 1, but also associated with the earlier work of Williamson.

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