3476118
Description
Mind Map by stella.kalis, updated more than 1 year ago
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Created by stella.kalis
about 9 years ago
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DKE Part 4: Evolutionary Model of Innovation
- Two Degrees:
- Incremental
- Radical / Discontinuous: new industries created
e.g. Tesla car, Electricity, Internet, Smartphones.
- Incremental
- Conventional Vs Informational
- Conventional
- Linear
- precise
- emphasis on:
- tangibles
- manufacturing
- knowledge creation
- tangibles
- Inventions -> Innovation -> Diffusion
- Linear
- Informational
- non-linear
- non precise
- info from many sources incl. R&D
- emphasis on:
- Intangibles
- knowledge flow & creation
- Intangibles
- services innovation
- knowledge as input and output
- Technology as information
- non-linear
- Conventional
- Joseph Schumpeter
- critical of mainstream equilibrium theory
- capitalism as evolutionary process
- method of econ change
- can never be stationary; dynamic & growth oriented
- method of econ change
- Prime Mover = The NEW goods, methods of
production, markets, etc. i.e. New Technology &
Innovation
- growth of knowledge processes
- Innovation occuring in Clusters, not in isolation.
- creative destruction where obsolete replaced by the innovative
- creative destruction where obsolete replaced by the innovative
- Growth: Technological Innovation NOT Price Competition
- Schumpeterian Entrepreneur: driver of innovation,
foundation of growth, development, change within
capitalism (the central figure).
- First person to Implement & Commercialise an
innovation (not neccesarily the inventor)
- First person to Implement & Commercialise an
innovation (not neccesarily the inventor)
- critical of mainstream equilibrium theory
- Require both Openness & Stability for economic growth
- optimal Resource allocation (Static Efficiency) will reduce dynamics over long term.
- i.e. pursuit of static efficienc may lead to inflexibility.
- i.e. pursuit of static efficienc may lead to inflexibility.
- optimal Resource allocation (Static Efficiency) will reduce dynamics over long term.
- Complexity Theory
- econ = complex evolving system consisting of:
- Economic Agents / elements
- Connections between them
- Economic Agents / elements
- Systems View: Connections > Agents
- ITC made connections even more prolific & important.
- ITC made connections even more prolific & important.
- Complex Systems e.g.: brains, ecologies,
weather, stock market, economies,
electrical network
- Instability arisees from Structural changes
and Sensitive dependence on intial
conditions.
- econ = complex evolving system consisting of:
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