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Time Horizons and Technology Investments (1992) / Chapter Skim
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6 Summary Argument: Understanding Time Horizons and Technology Investments
Pages 71-73

The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.


From page 71...
... With regard to economic ability, there is a valid concern that the nation will underinvest in industries or technologies that take a long time to develop or have long production lead times. Particularly troublesome is the degree to which the relatively higher cost of equity capital results in invisible losses to the nation investments in long-horizon projects that are not seriously considered.
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From page 72...
... A company's financial structure and financial practices affect its economic ability to invest for the long term, and corporations that are highly sensitive to capital costs need to work to minimize either the existence of equity cost differentials or the impact of such differentials on corporate competitive abilities. Also, the international competitive success of many U.S.
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From page 73...
... An important question, not addressed in this analysis, is whether different types of industries for example, batch production industries; industries in which there is extremely cyclic demand; capital goods industries; commodity industries; service industries; or contracting industries are subject to different influences affecting the time horizons of decisions. Further, this report deals primarily with larger, public companies.
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Key Terms

  • economic ability
  • performing poorly
  • lead times
  • intimately related
  • considerable slack

  • equity cost
  • commodity industries
  • seriously considered
  • applying technology
  • maintaining adequate

  • cyclic demand
  • service industries
  • capital results
  • corporate governance
  • cost disadvantages

  • financial structure
  • operational performance
  • company performance
  • increased company
  • practices affect

  • competitive abilities
  • companies operating
  • corporate management
  • financial practices
  • corporate competitive

  • valid concern
  • invisible losses
  • despite government
  • diagnosis applies
  • technology management


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