Theory
Carlota Perez is a neo-Schumpeterian and a student of Christopher Freeman, with whom she closely collaborated. Her articles, from the early 1980s, have contributed to the present understanding of the relationship between basic innovations, technical and institutional change, and economic development. Her book Technological Revolutions and Financial Capital has had a very positive response from academics as well as from the financial and the technology-based business communities. The book has contributed to a Schumpeterian understanding of the link between innovation and financial dynamics. In it Dr. Perez, speaking from 2002, lays out a history of five technological revolutions that follow a similar pattern of bang, bust and, hopefully, renewal.
So during this period, financial capital generates a powerful magnet to attract investment into the new areas, hence accelerating the hold of the paradigm on what becomes the 'new economy'. ... In a world of capital gains, real estate bubbles and foreign adventures with money, all notion of the real value of anything is lost. Uncontrollable asset inflation sets in while debt mounts at a reckless rhythm; much of it to enter the casino.
—Carlota Perez, Technological Revolutions and Financial Capital, p. 75
In 2000 Perez co-founded The Other Canon, a center and network for heterodox economics research, with - amongst others - main founder and executive chairman Erik Reinert.
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