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Luminary
Carlota Perez on technological revolutions and capitalism
Aug 7, 2023
Renowned scholar Carlota Perez discusses her framework for studying technological change and the adoption of digital technologies, exploring topics such as technology cycles, the role of capitalism, and the impact of government in accelerating digital adoption. Other topics include the intersection of technology and economics, the role of the state in innovation and entrepreneurship, the relationship between technological revolutions and economic growth, and the impact of technological revolutions on capitalism.
01:23:06
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Quick takeaways
- The role of governments in technological revolutions is to drive changes through finance while supporting and assisting victims to prevent skill destruction.
- The framework for studying technological change involves understanding successive revolutions, their complementing technologies, infrastructure, and core technologies, and the need for win-win games between business and society.
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The Role of Governments in Technological Revolutions
The role of governments in the early stages of technological revolutions is to allow finance to drive the changes and get out of the way. However, governments must also support and assist the victims of the revolution, preventing widespread skill destruction. Governments should intervene early enough to avoid a catastrophic boom and subsequent collapse. The ultimate goal of governments is to establish a win-win game between business and society, modernize themselves, and create a global institution to regulate the decoupled and global nature of finance. Setting up a global financial transaction tax would help fund the green transition in the developing world and generate dynamic demand for digital production and capital goods in the global market. Additionally, governments should promote a shift from the possession model to a rental model, where products are rented, maintained, and recycled, ensuring universal access to essential goods like refrigerators while minimizing waste.
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