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A logic of multi-level change of routines

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Author Info
Nooteboom, Bart (Tilburg University, Center for Economic Research)

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Abstract

This paper tries to account for endogenous change of multi-level routines in terms of nested cycles of discovery, in a hierarchy of scripts. Higher-level scripts constitute the selection environment for lower level ones. On any level, a cycle of discovery proceeds from established dominant designs. When subjected to new conditions, a script first tries to adapt by proximate change, in differentiation, with novel selection of subscripts in existing nodes in existing script architecture. Next, in reciprocation it adopts new nodes from other, surrounding scripts. Next, it adapts script architecture, in novel configurations of old and new nodes. In this way, lower level change of subscripts can force higher-level change of superscripts. In this way, institutions may co-evolve with innovation.

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Publisher Info
Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 42.

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Date of creation: 2005
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Handle: RePEc:dgr:kubcen:200542

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Web page: http://center.uvt.nl

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Find related papers by JEL classification:
B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Institutional; Evolutionary
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information

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  1. Nooteboom, Bart, 1982. "A new theory of retailing costs," European Economic Review, Elsevier, vol. 17(2), pages 163-186. [Downloadable!] (restricted)
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