Technology and crisis; Marx,Schumpeter and beyond

Observing that the notion of economic crisis per se has, from its origins, been closely tied to the idea of technological progress, this article examines the roots and development of this liaison in Marx, Schumpeter and the recent contribution of Freeman, et al. (1982). A concept (the Third Sector) is proposed for the relation between the structural evolution of economic organization and technological progress; this concept is developed through a critique of Marx and Schumpeter in the light of contemporary economic circumstances, and as complementary to the more technology‐generic “new technology systems” approach of Freeman, et al. In conclusion it is found, on a cursory examination, that the organizational changes implied by the Third Sector are corroborated by the evolution of technology‐based multinational corporations, while echoing Marx and Schumpeter in their possible consequences for economic crisis in the 1980's.