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Nonlinear Stochastic Effects of Substitution--An Evolutionary Approach

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Author Info
Bruckner, E, et al

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Abstract

Technological innovations have been investigated by means of substitution and diffusion as well as evolution models, each of them dealing with different aspects of the innovation problem. In this paper we follow the well-known research traditions on self-organization models of complex systems. For the first time in the literature, we show the existence of a specific niche effect which may occur in the first stage of establishment of a new technology. Using a stochastic Master equation approach, we obtain analytical expressions for the survival probabilities of new technology in smaller or larger ensembles. As a main result, we demonstrate how a hyperselection situation might be removed in a stochastic picture and thresholds against the prevailing of a new technology in a step-by-step process can be overcome. Coauthors are W. Ebeling, M. A. Jimenez Montano, and A. Scharnhorst.

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Publisher Info
Article provided by Springer in its journal Journal of Evolutionary Economics.

Volume (Year): 6 (1996)
Issue (Month): 1 (February)
Pages: 1-30
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Handle: RePEc:spr:joevec:v:6:y:1996:i:1:p:1-30

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  1. Jati Sengupta, 2003. "Stochastic Growth In Schumpeterian Dynamics," University of California at Santa Barbara, Economics Working Paper Series wp2-99, Department of Economics, UC Santa Barbara. [Downloadable!]
  2. Silverberg,Gerald, 1997. "Evolutionary modeling in economics : recent history and immediate prospects," Research Memoranda 008, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
  3. Vanessa OLTRA (GREThA UMR CNRS 5113), 2008. "Environmental innovation and industrial dynamics: the contributions of evolutionary economics," Cahiers du GREThA 2008-28, Groupe de Recherche en Economie Théorique et Appliquée. [Downloadable!]
  4. Albert Faber & Koen Frenken, 2008. "Models in evolutionary economics and environmental policy: Towards an evolutionary environmental economics," Innovation Studies Utrecht (ISU) working paper series 08-15, Utrecht University, Department of Innovation Studies, revised Apr 2008. [Downloadable!]
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