Bri Boysen and Shayna Blumenthal Core Concepts Financial Capital Criteria and behavior for those agents who possess wealth in the form of money or other paper assets Production Capital Embodies the motives and behaviors of those agents who generate new wealth by producing goods or performing services ANALYSIS OF SMART PHONES AND THE CURRENT FRENZY: The journey from 1G to 4G Timeline 1G 1973 to 1990 2G 1990 to 2002 3G 2002 to 2011 4G Present day Irruption First Phase 1973 The first handheld cell phone was developed in the US by Motorola 1996 Nokia 9000 first smartphone 2002 First Blackberry released 2007 iPhone released Risky Business By definition, technological revolution implies risk New products, unknown markets, no guarantees Would society favor the cell phone? By the end of Irruption, the technological revolution is hugely successful, but there is not enough of it; the old industries that are not disappearing show disappointing profits and modernization can be a difficult and often protracted process with relatively high risks. The clearly favorable externalities and institutions that will propel the diffusion of the new paradigm are not yet there. Frenzy Second Phase Crisis, mania Bifurcation Increasing tension Current phase with invention of Smart Phone iPhone and Android compete Microsoft enters competition Nokias Partnership with Microsoft Feb. 11, 2011 Initial agreement April 21, 2011 Officially signed Will this partnership be successful in competition? Synergy Third Phase Not there yet. When will we get there? We will see increased employment and the extension of markets, according to Perez Maturity Fourth Phase A long ways away Defined with success and prosperity Eventually fades away with big bang of next surge