Kondratieff cycle

A series of long waves of economic activity, identified by Kondratieff (Review of Economic Statistics 17). Each cycle lasts 50-60 years and goes through development and boom to recession. The first cycle was based on steam power, the second on railways, the third on electricity and the motor car, and the fourth on electronics and synthetic materials. C. Freeman and C. Perez (1998) have suggested a fifth cycle, based on economic theory and technical change.

Kondratieff argued that one of the forces which initiate long waves is the large number of important discoveries and inventions that occur during a depression and are usually applied on a large scale at the beginning of the next upswing. Each cycle leaves its mark on the industrial landscape.