Towards a theory of innovation in services. Richard Barras Review by Petri Klinge. Introduction. Major new technology in capital goods sector and subsequent development according to product life cycle theory
PowerPoint Slideshow about 'Towards a theory of innovation in services' - maxime
An Image/Link below is provided (as is) to download presentation
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Major new technologyhas a centralrole in successivegrowthcycles
Disputeabout the mechanismbywhichinnovationcausesregularfluctuation in the securlartrend of economicgrowth
Barrasintroduces a mechanismderivedfrom the dynamics of technology transmission process, wherebytechnology is transferredfrom the capital goodssector to the consumergoods and servicessectorcreating a disecquilibrium in technicalprogressdue to the juxtaposition of twoout-of-phaseinnovation life cycles in the twosector.
Mechanismhelps to explain the cyclicalfluctations in capital productivity and profitabilitywhichoccursduring the long wave and whichhavethemselvesbeenemployed as explanatoryfactors in some long wavetheory
Growth in capital sectorshifts to processinnovationwhichbyimprovingquality of productrangessustaincontinuedmarketgrowthamongconsumerindustriesconsolidating the position of capital goodsindustriesthemselves
Consumer sector of usingtechnologyshiftstowardsimproving the quality of services and products
These products arenotready in the phase of depression and theireconomicalfeasibility just developsoverthistransitionalphase
Notenoughgrowth in new productoffering (despite the new technologyfrom the capital sector) brings the industries to depression as marketsaresaturated
Unemployment is high. Capital investment is broadlyneutralthushaltingdecline in profitability and capitaproductivity. Average labour productivitygets a boostfromunderusedcapacity