QUT ePrints

Complexity, evolution, and the structure of demand

Foster, John & Potts, Jason (2006) Complexity, evolution, and the structure of demand. In McKelvey, Maureen & Holmén, Magnus (Eds.) Flexibility and Stability in the Innovating Economy. Oxford, pp. 99-118.

[img] Published Version (PDF 1MB)
Administrators only | Request a copy from author

View at publisher

Abstract

This chapter argues that evolutionary economics should be founded upon complex systems theory rather than neo-Darwinian analogies concerning natural selection, which focus on supply side considerations and competition amongst firms and technologies. It suggests that conceptions such as production and consumption functions should be replaced by network representations, in which the preferences or, more correctly, the aspirations of consumers are fundamental and, as such, the primary drivers of economic growth. Technological innovation is viewed as a process that is intermediate between these aspirational networks, and the organizational networks in which goods and services are produced. Consumer knowledge becomes at least as important as producer knowledge in determining how economic value is generated. It becomes clear that the stability afforded by connective systems of rules is essential for economic flexibility to exist, but that too many rules result in inert and structurally unstable states. In contrast, too few rules result in a more stable state, but at a low level of ordered complexity. Economic evolution from this perspective is explored using random and scale free network representations of complex systems.

Impact and interest:

Citation countsare sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

ID Code: 47980
Item Type: Book Chapter
DOI: 10.1093/0199290474.003.0005
ISBN: 9780199290475
Divisions: Current > QUT Faculties and Divisions > Creative Industries Faculty
Past > Institutes > Institute for Creative Industries and Innovation
Deposited On: 09 Jan 2012 13:06
Last Modified: 29 Feb 2012 23:30

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page