5 Industry I Flashcards
Process of industrial revolution
18th-19th century
Change of socioeconomic & cultural condition do to change in agriculture, mining, trasport, manufacturing, technology
Started in the UK (1840)–> spreading though Europe
Growth of population and income
why UK: they had higher wages, coal, connection abroad
Hard location factors played an important role (coal, iron ore..)
Technological creativity brought to innovation, support of sciences
Political and social institution: laisse faire, no war, high wage –> force to mechanization
supply & demand: private investors, population and economic growth
International trade colonies
Products: artificial Fertilizer, Chemical industry, light bulb, car
three sector hypothesis: primary sector
changing natural resource into primary product,
agriculture, agribusiness, fishing, forestry,
three sector hypothesis: secondary sector
created finished, usable product:
production and construction, automotive industry, chemical industry, textile industry, energy industry
three sector hypothesis: tertiary sector
production of services,
government, healthcare, education, banking, insurance, tourism
three sector hypothesis: hypotheses of demand
increase of income –> as income rises the proportion of income spent on food falls –> change of structure of production –> extension of tertiary sector
three sector hypothesis: hypotheses of supply
Differences in increase in productivity –> high increase in productivity in secondary sector –> free personnel –> low increase in productivity in tertiary sectors stay labor-intensive –> extension of treaty sector
Three sector hypothesis: Consequences of the extension of tertiary sector
- reduces the problem of unemployment
- harmonization of differences in income
- in the future: no state with important secondary sector
Tree sector hypothesis: critique
- high increase in productivity in tertiary sector (computer)
- still many state with important secondary sector (Germany)
- unemployment could not be reduced by structural change
- disparities in income will exist and increase
Three sector hypothesis: quarter sector
Knowledge-based part of the economy, information generation and sharing (IT, consulting, education, R&D, financial planning)
Distinct enough to build a separate sector
Which type of innovation leads to economic growth?
basis innovation
What are important inventions toward economic growth?
wave 1:steam engigne 2. Railways 3 electric power 4 automobile 5 electrotechnics and biotechnology
Explain the spatial dimension of the product-life cycle.
Characteristic
Continuous stream of a new product if essential to a firms profitability
for Lung run growth firm have to expand geographically the market area and continue innovate new product
Idea that demand will decline over time
Cycle can be extent with update.
Important factor for decision: which type of labour, R&D
Different types of geographical location are relevant to different stages of the product cycle
Explain the spatial dimension of the product-life cycle. Phases
5 Fases: Initial development (very few buyers, few competitors, skilled labour force)
Growth (growing number of buyers, and competitors)
Maturity (Peak demand, semi-skilled or unskilled labour force)
Decline (declining demand)
Obsolesce (step fall-off in demand)
Explain the spatial effects of process innovation.
?????
long wave theory
Kondratiev identified cycle in economic activity “waves”
more or less 50 years
Each wave may be divided into four phases (prosperity, recession, depression, recovery)
- Introduction of new technology causes disruption
- but once established creates an upturn (new products, jobs employing)
- Wave is associated with significant technological changes in production, spatial dimension, organization
- swarm or cluster spreads through the economy
