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To survive competition, sustain profits and enlarge production, firms are forced to introduce into the market new products, processes and services. This often imply that old companies and industries are made redundant by innovation dynamics. The adverse consequences are that firms that have not managed to keep pace with the rate of change are expelled from the market, that jobs are lost and even the relative position of cities, regions and nations are affected. What are the pros and the cons? And, above all, is it possible to preserve the advantages of technological change without paying the associated economic and social costs?
(2500 words including references)
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