In this process, one factor might mitigate the increase in prices: If the entrepreneur has been successful in applying a new technology and hence produces more efficiently and hence at lower costs than firms already in the market, he might earn some extra profits due to lower costs even at constant prices. In this case, the innovative entrepreneur will earn the profits he can use ex post to finance the investment. In both cases, in the end, aggregate saving again equals aggregate investment, even if the process is slightly different. 14 In the cases in which the innovative entrepreneur earns.
