ABSTRACT
The stylized account of the long wave developed in the first chapter suggested that the manufacturing industries at the aggregate-level should exhibit a logistic pattern over the long term. This logistic pattern of the production in the manufacturing sector, in turn, stems from the similar behavior of leading industries at lower aggregation levels. Basic innovations create new leading industries, and important improvement innovations rejuvenate old leading industries. Together, they outline the emerging technological paradigm of a new era. For reasons that are discussed in detail in Chapters 1 and 2, basic innovations and very important improvement innovations come in clusters. If it is indeed the case that radical innovations come in clusters, then it should also be true that leading industries that they give rise to must also emerge in clusters.
