CONCEPT
Financial Capital vs Production Capital
Perez's structural distinction between the speculative capital that dominates installation and the patient capital that dominates deployment — two logics with different time horizons, different objectives, and different social consequences.
Financial capital and production capital are Perez's terms for the two distinct logics that dominate the two phases of each technological surge. Financial capital is speculative, impatient, and extractive — it seeks high returns on short time horizons and funds infrastructure at speeds that rational production-oriented investment would reject. Production capital is patient, productive, and institutional — it invests in durable capabilities, organizational knowledge, and the long-term development of industries. The shift from financial to production capital dominance is what distinguishes deployment from installation, and the transition requires institutional mechanisms that redirect gains from extraction to distribution. Without such mechanisms, the financial logic persists, gains remain concentrated, and the deployment phase is stunted or forestalled entirely.
In The You On AI Field Guide
During installation, financial capital performs a function production capital cannot: it funds the new paradigm's infrastructure at speeds rapid enough to install a coherent foundation before the institutional capacity to use it has developed. The over-investment