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Micro and macro dynamics: Industry life cycles, inter-sector coordination and aggregate growth

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Abstract

Technological change directly affects economic growth by exploiting and exploring technological opportunities, thus determining productivity growth and income. However, technological change also affects the composition of the economic system, which itself constitutes an important prerequisite for economic growth. The first aim of this paper is to show that the growing variety of the economic system, determined by the emergence of new products and services and leading to new industrial sectors, can allow the long term continuation of economic development, even when the employment creating capacity of individual sectors falls. The second aim is to illustrate the impact of micro variables on the meso-level, that is, on the sectoral composition of an economy, as well as on its macro-economic performance.

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Author notes

  1. Andreas Pyka

    Present address: Department of Technology, Policy and Management, Technical University Delft, Delft, The Netherlands

Authors and Affiliations

  1. INRA-GAEL, Université Pierre Mendès-France, Grenoble, France

    Pier Paolo Saviotti

  2. CNRS GREDEG, University of Nice Sophia Antipolis, Nice, France

    Pier Paolo Saviotti

  3. Economics Department, University of Bremen, Hochschulring 4, 28359, Bremen, Germany

    Andreas Pyka

Authors
  1. Pier Paolo Saviotti
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  2. Andreas Pyka
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Correspondence to Pier Paolo Saviotti.

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Saviotti, P.P., Pyka, A. Micro and macro dynamics: Industry life cycles, inter-sector coordination and aggregate growth. J Evol Econ 18, 167–182 (2008). https://doi.org/10.1007/s00191-007-0077-1

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  • DOI: https://doi.org/10.1007/s00191-007-0077-1

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