Abstract:

Despite their highly-developed production regimes, modern capitalist economies are rarely static. Their prosperity stems from a capacity to promote 'cycles of creative destruction' (Schumpeter 1949) in which firms abandon older modes of production in order to exploit emerging technologies and new market opportunities. The French economy is no exception: in recent years, it has been called upon to reinvent itself in response to many developments. Foremost among these is the expansion of world markets, as declining barriers to trade, new forms of communication and political liberalization open attractive new markets and production sites around the globe. Rapid technological advance in microprocessors and bioengineering have generated a new industrial revolution, creating entirely sectors and transforming production across the economy. To exploit these developments, new managerial techniques have been adopted by companies all over the world, including just-in-time inventory systems, team production, closer client-supplier relations and new forms of quality. If the French economy cannot keep up with these changes, it cannot expect to flourish.