328 Politics Society 41(3) approaches ofpolitical economy,I focus on the level ofsocialinteraction.Understanding this process from the perspective of social interaction demands close attention to the expectations actors form with regard to the future.It is from expectations of the"future present"30 that decisions are made.Hence,attention shifts to the creation(and destruc- tion)of actors'expectations,expectations that are necessary for the four Cs of capital- ism to operate in a manner conducive to economic growth but occasionally also lead to profound crises.To understand actors'expectations also requires attention to insti- tutional,cultural,and social conditions and to the agency processes that I refer to as the“management of expectations..” In the following sections,I will discuss each of the four Cs of capitalism,showing the role of fictional expectations and their precariousness. Creativity (Innovation) Innovations are the cornerstone of the uniqueness of capitalist dynamics.31 Growth in capitalist economies is based on the application of the creative poten- tial of actors in the production of goods and services.32 Through innovation new factor combinations are introduced into the market,which-if successful-sat- isfy previously unattended needs,create new needs,or enhance efficiency in the production process.They provide profit opportunities through the competitive advantages they lead to.The dynamics of capitalist economies cannot be explained through the slow enlargement of productive capacities but only based on the introduction of genuine novelty.33 The""high road'to development passes through innovation."34 Looked at from the perspective of social interaction,innovations are based on a utopian vision at the outset,which shows a pretended future reality.I refer to such technological visions as imaginaries of the future.The imaginaries allow actors to move beyond inherited thought patterns and categories by bringing them into an as-if world in which given reality is surpassed and a different one consid- ered.35 In this sense,imaginaries are fictional.They take the form of predictions, forecasts,and projections.36 "Technological predictions and forecasts are in essence little narratives about the future.They are not full-scale narratives of uto- pia,but they are usually presented as stories about a better world to come.The most successful of these little narratives are those that present an innovation as not just desirable,but inevitable."37 As in the case of the other elements,the manage- ment of these expectations plays an important part in innovation processes and the market success of new products.It takes the form of a"management of imaginar- ies"(see table 1). Joseph Schumpeter highlighted the central role of imaginaries in innovation.38 Schumpeter's analysis sets out from the observation that new combinations initially exist only in the consciousness of the actor.While most actors are caught up in rou- tines,some actors"with more acute intelligence and a more active imagination envis- age countless new combinations."39 Hence,innovations begin with imaginaries that lead the entrepreneur to "adapt his economic activities accordingly."40 The Downloaded from pas.sagepub.com at Shanghai Jiaotong University on February 4.2015328 Politics & Society 41(3) approaches of political economy, I focus on the level of social interaction. Understanding this process from the perspective of social interaction demands close attention to the expectations actors form with regard to the future. It is from expectations of the “future present”30 that decisions are made. Hence, attention shifts to the creation (and destruc￾tion) of actors’ expectations, expectations that are necessary for the four Cs of capital￾ism to operate in a manner conducive to economic growth but occasionally also lead to profound crises. To understand actors’ expectations also requires attention to insti￾tutional, cultural, and social conditions and to the agency processes that I refer to as the “management of expectations.” In the following sections, I will discuss each of the four Cs of capitalism, showing the role of fictional expectations and their precariousness. Creativity (Innovation) Innovations are the cornerstone of the uniqueness of capitalist dynamics.31 Growth in capitalist economies is based on the application of the creative poten￾tial of actors in the production of goods and services.32 Through innovation new factor combinations are introduced into the market, which—if successful—sat￾isfy previously unattended needs, create new needs, or enhance efficiency in the production process. They provide profit opportunities through the competitive advantages they lead to. The dynamics of capitalist economies cannot be explained through the slow enlargement of productive capacities but only based on the introduction of genuine novelty.33 The “‘high road’ to development passes through innovation.”34 Looked at from the perspective of social interaction, innovations are based on a utopian vision at the outset, which shows a pretended future reality. I refer to such technological visions as imaginaries of the future. The imaginaries allow actors to move beyond inherited thought patterns and categories by bringing them into an as-if world in which given reality is surpassed and a different one consid￾ered.35 In this sense, imaginaries are fictional. They take the form of predictions, forecasts, and projections.36 “Technological predictions and forecasts are in essence little narratives about the future. They are not full-scale narratives of uto￾pia, but they are usually presented as stories about a better world to come. The most successful of these little narratives are those that present an innovation as not just desirable, but inevitable.”37 As in the case of the other elements, the manage￾ment of these expectations plays an important part in innovation processes and the market success of new products. It takes the form of a “management of imaginar￾ies” (see table 1). Joseph Schumpeter highlighted the central role of imaginaries in innovation.38 Schumpeter’s analysis sets out from the observation that new combinations initially exist only in the consciousness of the actor. While most actors are caught up in rou￾tines, some actors “with more acute intelligence and a more active imagination envis￾age countless new combinations.”39 Hence, innovations begin with imaginaries that lead the entrepreneur to “adapt his economic activities accordingly.”40 The Downloaded from pas.sagepub.com at Shanghai Jiaotong University on February 4, 2015