Abstract - The Information Society 5(4)

Transsectorial Innovations and the Transformation of Firms

Andre Piatie

Innovations that are generated in or prepared for a specific sector but find application in others are called transsectorial innovations. After a long period of linear development, the economic system is marked by the interpenetration of all sectors by innovation which disseminates in all directions and spreads rapidly. The incidence of transsectional migrations is on the increase and its impact on industry has been felt strongly. A multiplicity of new products is being generated at a rate that is more rapid than during previous industrial revolutions. The organization of firms has been affected; technology no longer is used to ensure product strategy but becomes the core of the firm around which a great variety of products is developed. Transsectorial innovations cause changes in the location of production units. As advanced technology delivers products with a very high added value per unit of weight, transport costs may no longer be important, but proximity to an airport may be essential. The industrial revolution that is beginning will cause a complete upheaval not only in the productive system but probably in the whole range of human activities.

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