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Novelty and the bounds of unknowledge in economics

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  • Ulrich Witt

Abstract

Economic development and growth are driven by the emergence of new technologies, new products and services, new institutions, new policies, and so on. Important though it is, the emergence of novelty is not well understood. Epistemological and methodological problems make it a difficult research topic. They imply a 'bound of unknowledge' (Shackle) for economic theorizing wherever novelty occurs in economic life. To make progress, this paper takes stock of the problems. The methodological consequences for causal explanations and the modelling of economics dynamics are discussed, and some possibilities for positively theorizing about novelty are outlined.

Suggested Citation

  • Ulrich Witt, 2009. "Novelty and the bounds of unknowledge in economics," Journal of Economic Methodology, Taylor & Francis Journals, vol. 16(4), pages 361-375.
    • Handle: RePEc:taf:jecmet:v:16:y:2009:i:4:p:361-375
    DOI: 10.1080/13501780903339269
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    2. Muñoz, Félix & Encinar, María Isabel, 2011. "Agents intentionality, capabilities and the performance of Systems of Innovation," Working Papers in Economic Theory 2011/03, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    3. Angelo, Fusari, 2016. "Understanding the Course of Social Reality," MPRA Paper 74007, University Library of Munich, Germany, revised 2016.
    4. Xavier De Scheemaekere & Kim Oosterlinck & Ariane Szafarz, 2014. "Issues in Identifying Economic Crises: Insights from History," Working Papers CEB 14-014, ULB -- Universite Libre de Bruxelles.
    5. Ulrich Witt, 2013. "The Future of Evolutionary Economics: Why Modalities Matter," Papers on Economics and Evolution 2013-09, Philipps University Marburg, Department of Geography.
    6. Muñoz, Félix-Fernando & Encinar, María-Isabel & Cañibano, Carolina, 2011. "On the role of intentionality in evolutionary economic change," Structural Change and Economic Dynamics, Elsevier, vol. 22(3), pages 193-203, September.
    7. Berg, Nathan, 2014. "Success from satisficing and imitation: Entrepreneurs' location choice and implications of heuristics for local economic development," Journal of Business Research, Elsevier, vol. 67(8), pages 1700-1709.
    8. Foster, John & Metcalfe, J. Stan, 2012. "Economic emergence: An evolutionary economic perspective," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 420-432.
    9. Ute Schmiel & Hendrik Sander, 2022. "What are markets? Selected market theories under genuine uncertainty in comparison," Journal of Evolutionary Economics, Springer, vol. 32(1), pages 9-33, January.
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    12. Scott Sonenshein, 2016. "Routines and Creativity: From Dualism to Duality," Organization Science, INFORMS, vol. 27(3), pages 739-758, June.
    13. Zhang, JingJing & Yan, Yan & Guan, JianCheng, 2019. "Recombinant distance, network governance and recombinant innovation," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 260-272.
    14. J. Barkley Rosser, 2014. "Natural Selection versus Emergent Self-Organization in Evolutionary Political Economy," Advances in Austrian Economics, in: Entangled Political Economy, volume 18, pages 67-91, Emerald Group Publishing Limited.
    15. JinHyo Joseph Yun & DongKyu Won & KyungBae Park, 2018. "Entrepreneurial cyclical dynamics of open innovation," Journal of Evolutionary Economics, Springer, vol. 28(5), pages 1151-1174, December.
    16. Kurt Dopfer, 2011. "Economics in a Cultural Key: Complexity and Evolution Revisited," Chapters, in: John B. Davis & D. Wade Hands (ed.), The Elgar Companion to Recent Economic Methodology, chapter 14, Edward Elgar Publishing.
    17. Conlé, Marcus & Taube, Markus, 2010. "Anatomy of cluster development in China: The case of health biotech clusters," Working Papers on East Asian Studies 84/2010, University of Duisburg-Essen, Institute of East Asian Studies IN-EAST.
    18. Scherer Anna-Lena & Schmiel Ute, 2021. "Ethical and Legal Responsibility of Multinational Corporate Groups for a Fair Share of Taxes," Nordic Tax Journal, Sciendo, vol. 2021(1), pages 32-46, October.

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    More about this item

    Keywords

    novelty; epistemic bounds; abduction; causation; dynamical systems; economic change; evolution;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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