Two centuries of innovations and stock market bubbles

Abstract

Radical and disruptive innovations are widely discussed in academia and managerial practice. Among those innovations, perhaps the most significant are epochal innovations, defined by economist Simon Kuznets to be “major breakthroughs in the advance of human knowledge, and dominant sources of sustained growth over long periods of time.” By definition, epochal innovation leads to significant economic growth and to a fundamental change of the techno-economic paradigm.