Powerful Finance and Innovation Trends in a High-Risk Economy

In the 1970s, the large size of enterprises was one of the symbols of the mass production system's rigidity. The second symbol was state interventionism--blamed for the economic difficulties of the period: growing unemployment and upsurge of inflation. Globalisation is characterised by the predominance of deregulated finance ("big finance") over economic activities. Between free enterprise capitalism and monopoly capitalism stands finance-based capitalism. The financial sphere is mobilised to promote variety and reinforce selection. This book presents in its first part the financial determinants of innovation processes considered in a macro-economic perspective, which are limited by short-term constraints and studies in its second part the linkages existing between the necessity to innovate in order to survive and the constant attention given to financial results. Capitalism And The Enterprise Are Economic Systems That Are Mutually Dependant In Their Aim Of Developing And Disseminating New Technologies. The Beginning Of The Twenty-first Century Has Seen An Increase In Global, Economic Dependence On The Generation Of New Technologies. This Dependence Has Been Accompanied By Greater Financial Risk Due To The Rapid Obsolescence Of Products And Technologies. An International Team Of Experts Explore The Theories And Facts That Characterize This High-risk Economy. The Analysis Focuses On Both Macro And Microeconomic Aspects Of The Contradictory Relationship Between Finance And Innovation. The Book Utilizes A Historical And Procedural Approach And Stresses The Role Of Powerful Finance In Innovation Selection And Diffusion. An Analysis Of Entrepreneurial Strategies Demonstrates That The Evolution Of The Organization Of An Enterprise And Its Capacity To Innovate Depend On The Limits Defined By Finance, And On The Large Profit Opportunities Offered By New Technologies And New Markets. Foreword; L.c. Bresser-pereira -- Introduction: How Does Finance Condition Innovation Trajectories; B. Laperche And D. Uzunidis -- Part I: The Finance And Knowledge-based Economy -- Innovation And Predation; J.k. Galbraith -- Innovation, Finance And Economic Movements; D. Uzunidis -- Macroeconomic Policy, Investment And Innovation; M. Sawyer -- Doctrinal Roots Of Short-termism; J.e. Sawyer -- Finance, State And Innovative Entrepreneurs In The Contemporary Economy; S. Boutillier -- The Political Economy Of R And D In A Global Financial Context; J. Courvisanos -- Finance And Intellectual Property Rights As The Two Pillars Of Capitalism Changes; G. Liodakis -- Part Ii: Innovation Trajectories And Profitability In Firm's Strategies -- The Firm And Its Governance Over The Industry Life-cycle; J. Krafft And J-l. Ravix -- Economic Change And The Organization Of Industry: Is The Entrepreneur The Missing Link?; E. Barreiro And J.t. Ravix -- Innovation And Profitability In The Computer Industry; C. Genthon -- Creation And Co-evolution Of Strategic Options By Firms: An Entrepreneurial And Managerial Approach Towards Flexibility And Resource Allocation; T.b. Helmchen -- Financial Means' Competencies And Innovation: Comparative Advantages Between Smes And Big Enterprises; F. Munier -- The Financing Of Innovative Activities By Banking Institutions: Policy Issues And Regulatory Options; E. Ughetto -- Innovation And The Profitability Imperative: Consequences On The Formation Of The Firm's Knowledge Capital; B. Laperche. Edited By Blandine Laperche And Dimitri Uzunidis. Includes Bibliographical References And Index. Cover......Page 1 Contents......Page 6 List of Tables......Page 8 List of Figures......Page 9 Foreword......Page 10 Acknowledgements......Page 17 Notes on the Contributors......Page 18 Introduction: How does Finance Condition Innovation Trajectories?......Page 20 Part I: The Finance- and Knowledge-Based Economy......Page 30 1 Innovation and Predation......Page 32 2 Innovation, Finance and Economic Movements......Page 38 3 Macroeconomic Policy, Investment and Innovation......Page 54 4 Doctrinal Roots of Short-Termism......Page 69 5 Finance, State and Entrepreneurship in the Contemporary Economy......Page 85 6 The Political Economy of R&D in a Global Financial Context......Page 107 7 Finance and Intellectual Property Rights as the Two Pillars of Capitalism Changes......Page 129 Part II: Innovation Trajectories and Profitability in Firms’ Strategies......Page 148 8 The Firm and its Governance over the Industry Life Cycle......Page 150 9 Economic Change and the Organization of Industry: Is the Entrepreneur the Missing Link?......Page 168 10 Innovation and Profitability in the Computer Industry......Page 186 11 Creation and Co-evolution of Strategic Options by Firms: an Entrepreneurial and Managerial Approach of Flexibility and Resource Allocation......Page 202 12 Financial Means’ Competencies and Innovation: Comparative Advantages between SMEs and Big Enterprises......Page 226 13 The Financing of Innovative Activities by Banking Institutions: Policy Issues and Regulatory Options......Page 243 14 Innovation and the Profitability Imperative: Consequences on the Formation of the Firm’s Knowledge Capital......Page 267 C......Page 289 E......Page 290 G......Page 291 I......Page 292 N......Page 293 P......Page 294 S......Page 295 Z......Page 296 This book presents in its first part the financial determinants of innovation processes considered in a macro-economic perspective, which are limited by short-term constraints, and studies in its second part the linkages existing between the necessity to innovate in order to survive and the constant attention given to financial results. Capitalism and the enterprise are economic systems that are mutually dependant in their aim of developing and disseminating new technologies. The beginning of the twenty-first century has seen an increase in global, economic dependence on the generation of new technologies. This dependence has been accompanied by greater financial risk due to the rapid obsolescence of products and technologies. An international team of experts explore the theories and facts that characterize this high-risk economy. The analysis focuses on both macro and microeconomic aspects of the contradictory relationship between finance and innovation. The book utilizes a historical and procedural approach and stresses the role of powerful finance in innovation selection and diffusion. An analysis of entrepreneurial strategies demonstrates that the evolution of the organization of an enterprise and its capacity to innovate depend on the limits defined by finance, and on the large profit opportunities offered by new technologies and new markets