Recombinant Innovation and Endogenous Transitions
AbstractWe propose a model of technological transitions based on two different types of innovations. Branching innovations refer to technological improvements along a particular path, while recombinant innovations represent fusions of multiple paths. Recombinant innovations create “short-cuts” which reduce switching costs allowing agents to escape a technological lock-in. As a result, recombinant innovations speed up technological progress allowing transitions that are impossible with only branching innovations. Our model replicates some stylized facts of technological change, such as technological lockin, experimental failure, punctuated change and irreversibility. Furthermore, an extensive simulation experiment suggests that there is an optimal rate of innovation, which is strongly correlated with the number of recombination innovations. This underlines the pivotal role of technological variety as a seed for recombinant innovation leading to technological transitions.
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Bibliographic InfoPaper provided by Eindhoven Center for Innovation Studies (ECIS) in its series Eindhoven Center for Innovation Studies (ECIS) working paper series with number 12-01.
Date of creation: Jan 2012
Date of revision: Jan 2012
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Web page: http://ecis.ieis.tue.nl/
variety; network externalities; lock-in; switching costs; recombinant innovations; transition; punctuated change;
Other versions of this item:
- C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-27 (All new papers)
- NEP-INO-2013-04-27 (Innovation)
- NEP-KNM-2013-04-27 (Knowledge Management & Knowledge Economy)
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