| Abstract: | The MIT System Dynamics National Model represents the physical and human processes involved in the long-term growth of a national economy and can provide a theoretical explanation for the generation of long waves. The phases of the long-wave cycle strongly influence the climate for innovation: towards the end of a boom minor improvement innovations in established industries tend to predominate, but managerial and political innovations in a depression can ultimately lead to an upsurge of radically new technologies. A balance between human population and environment may now be the most fundamental requirement for political and social innovation, taking precedence over the proliferation of technical innovation for its own sake. |
