technical change and industrial dynamics as evolutionary processes: results and challenges ahead

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Technical Change and Industrial Dynamics as Evolutionary Processes: Results and Challenges ahead Giovanni Dosi The new Agenda for Innovation Studies and its Policy Implications Madrid 13-14 March 2014

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Technical Change and Industrial Dynamics as Evolutionary Processes: Results and Challenges ahead

Giovanni Dosi

The new Agenda for Innovation Studies and its Policy ImplicationsMadrid 13-14 March 2014Some basic concepts and interpretationsMore in

G. Dosi and R.R. Nelson , Technical Change and Industrial Dynamics as Evolutionary Processes

in B.H. Hall and N. Rosenberg: Handbook of the Economics of Innovation- Vol-I, Burlington: Academic Press, pp. 51-128, 2010G. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesKnowledge and organizational practices behind input/output relationsG. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesComplementary domains of analysisTechnology as

knowledge

procedures

routines

artifactsG. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesDiversity of knowledge-bases across production and Innovation Activities

Diversity of sources of knowledge .

Diversity of procedures by which knowledge is technologically exploitedG. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesEvidenceThe structure of technological knowledge: Technological paradigms

Selected physical/chemical principles and knowledge bases

Notions of artifacts (e.g. dominant design)

Specific heuristics (how do we search?, where do we go from here?, )

Communities of practiceG. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesAn interpretative frameworkTechnological trajectories

Mapping progress in - product characteristics- efficiencies in input use

Relatively coherent paths(e.g. the famous Moores Law)

Discontinuities in knowledge bases and radical innovations generally associated with paradigm changesG. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesAn interpretative frameworkDimensions of technological paradigms

Opportunities of innovation

Degrees of tacitness / codification of knowledge

Cumulativeness in learning processes

Degrees and forms of appropriability of innovationG. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesAn interpretative frameworkDimensions of technological paradigms

Organizational routines and organizational knowledge

Competencies and capabilities (or what does it mean to say that firm X is good at doing Y...?)

The combinatorics amongst elements of organizational competencies, routines and complementary assets

Organizational capabilities and the historical and vertical boundaries of the firmG. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesFrom the characteristics of knowledge to organizational practices Industry specific regimes (e.g. Schumpeter Mark I and Mark II)

Sectoral taxonomiesG. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesAll the way to sectoral characteristicsTechnological capabilities

Organizational forms

Efficiencies

Product characteristics

G. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesUbiquitous heterogeneity across firmsDriven by

idiosyncratic learning

entry

competitive selection

G. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesIndustrial evolutionWhich relative role of these forces?

Which dimensions and which shape of the competitive landscape?

G. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesThe drivers

[indeed not much progress over the last decade or more A lot to be done ahead ]

G. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesDiffusion processesin diffusion

but also elsewhere

[ ahead, at which level and when?]

G. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesPath-dependencyNational and sectoral systems of innovation

(An emerging) evolutionary geography of innovation

G. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesThe institutional and spatial embeddedness of technological changeMore on the challenges aheadG. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesTechnological and organziational innovation and, relatedly, Technological vs. organizational discontinuitiesG. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesFormalizing a knowledge-procedure-centered theory of productionG. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesDisentangling the opaque relationship between organizational practices and outcome Replicability within the organization Shielding organization - specific practices

G. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesKnowledge, organizational practices and performancesFrom the statistical regularities to the models and back

The statistics / microeconometrics of evolutionary processes

Some crucial challengesthe status of replicator dynamicshistory friendly modelsABM formalizationsG. Dosi, Technical Change and Industrial Dynamics as Evolutionary ProcessesThe properties of industrial evolutionsThe underlying general ambition:offering an alternative microfoundationto macrodynamicsG. Dosi, Technical Change and Industrial Dynamics as Evolutionary Processes