Competitive Pressure as a 'Push' Factor for Technology-Driven Investment Booms
When a major innovation, such as the spinning jenny or spreadsheet software, is introduced, it creates a 'push' effect for an investment boom. Firms that adopt the new technology first can lower their production costs or improve output quality, enabling them to capture more market share. This places immense pressure on competitors, who risk being forced out of business if they cannot make a profit with the old technology. Consequently, rival firms are compelled to invest in the new machinery and equipment to survive, triggering a widespread investment wave.
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Competitive Pressure as a 'Push' Factor for Technology-Driven Investment Booms
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