Analysing technical change with heterodox price theories.

The article focuses on synthesizing elements from Schumpeterian, Sraffian, and post-Keynesian price theories to analyze the impact of labour-saving technical change on prices within capitalist economies. It integrates Schumpeter’s view of innovation-driven, uneven economic evolution and creative destruction, Sraffa’s long-period reproduction prices reflecting technical and structural changes, and post-Keynesian cost-plus pricing rules emphasizing firm behavior under uncertainty. The combined framework explains how labour-saving innovations lead to differential firm growth, shifts in market shares, and dynamic price adjustments both within industries and across the economy, resulting in structural changes in the price system and cyclical movements in the aggregate price level. The analysis highlights the complexity of price dynamics in evolving capitalist economies and the value of heterodox approaches that incorporate institutional, historical, and evolutionary factors absent in mainstream equilibrium models.