Social innovations mediate technology and economy in the Kondratieff waves

Abstract

Technological advances enable new ways of economic organization and social benefit. Examining relevant history back to 1642, we find that social innovations are necessary mediators between technological advance and economic expansion – and that modes of communication and coordination have long been ignored in the study of economic waves. Accordingly, we perceive the Internet-of-Things as a powerful mechanism of social innovation in the sixth Kondratieff wave. This study provides an alternative explanation to re-conceptualize past Kondratieff waves which may guide forecasting and shorten the waiting time for the arrival of economic expansion.