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The new age of capitalism:Innovation-mediated production

Authors
Journal
Futures
0016-3287
Publisher
Elsevier
Publication Date
Volume
25
Issue
6
Identifiers
DOI: 10.1016/0016-3287(93)90105-3
Disciplines
  • Economics
  • Political Science

Abstract

Abstract Capitalism is undergoing an epochal transformation from a mass-production system where the principal source of value was physical labour to a new era of innovation-mediated production where the principal component of value creation, productivity and economic growth is knowledge and intellectual capabilities. Capitalism in this new age of innovation-mediated production will require deep and fundamental changes in the organization of enterprise, regions, nations and international economic and political institutions. Survival in this new era will require the development of new organizational forms and systems, such as teams and new incentive systems, which decentralize decision making, mobilize intellectual capabilities, and harness the knowledge and intelligence of all members of the organization. This article outlines the fundamental trends emerging in this new age of capitalism and provides a detailed case-study of how one organization, a US-Japan joint venture steel mill in the USA, is organizing to meet the challenges of this new era. The conclusion outlines key lessons for the development of enterprise, regional and national strategies for both the technologically advanced countries and the developing world.

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