Explaining the 2008 Financial Crisis as an Example of Paradigm Shift in I T

This paper attempts to determine the reasons for and consequences of the 2008 Financial Crisis in the light of the Schumpeter-Freeman-Perez Theory. It posits that this crisis is a sign of the resurfacing of the symptoms of the that recession occurred in the aftermath of the so- called Dot com Bubble burst, which had been postponed by liberalized credit policies. Considering the damage it has already done to confidence in the economic rationale of current policies, this paper argues that it is a strong sign of a stylized transition from the installation period to the diffusion period in the long wave of the technological information and communication revolution and a consequent shift in the techno-economic paradigm. The paper finally focuses on the technological evolutions in developing counties and concludes that inappropriate policies to deal with the economic crisis in the center and appropriate measures and policies undertaken by some of late- comer countries on the periphery could prolong abnormally the window of opportunity to catch up with the industrialised world. This analysis shows how the theory of successive technological revolutions and a techno-economic theoretical framework could help in technological policy making.