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Complementarity constraints and induced innovation: Some evidence from the first IT regime

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Author Info
Andreas Reinstaller () (MERIT - Maastricht University)
Werner Hölzl () (Vienna University of Economics & B.A.)

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Abstract

Technological search is often depicted to be random. This paper takes a different view and analyses how innovative recombinant search is triggered, how it is done and what initial conditions influence the final design of technological artefacts. We argue that complementarities (non-separabilities) play an important role as focusing devices guiding the search for new combinations. Our analysis takes the perspective of technology adopters and not that of inventors or innovators of new products. We illustrate the process of decomposition and re-composition under the presence of binding complementarity constraints with a historical case study on the establishment of the First IT Regime at the turn of the 19th century.

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Paper provided by Vienna University of Economics and B.A. Research Group: Growth and Employment in Europe: Sustainability and Competitiveness in its series Working Papers with number geewp26.

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Date of creation: May 2003
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Handle: RePEc:wiw:wiwgee:geewp26

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Web page: http://www.wu-wien.ac.at/inst/vw1/gee/

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Related research
Keywords: Technological regimes; systemic innovation; adoption of technologies; complexity; information technology 1870-1930;

Other versions of this item:

Find related papers by JEL classification:
N60 - Economic History - - Manufacturing and Construction - - - General, International, or Comparative
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
L69 - Industrial Organization - - Industry Studies: Manufacturing - - - Other

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. von Hippel, Eric, 1990. "Task partitioning: An innovation process variable," Research Policy, Elsevier, vol. 19(5), pages 407-418, October. [Downloadable!] (restricted)
  2. Fuss, Melvyn & McFadden, Daniel & Mundlak, Yair, 1978. "A Survey of Functional Forms in the Economic Analysis of Production," Histoy of Economic Thought Chapters, in: Fuss, Melvyn & McFadden, Daniel (ed.), Production Economics: A Dual Approach to Theory and Applications, volume 1, chapter 4 McMaster University Archive for the History of Economic Thought. [Downloadable!]
  3. Cooper, Christine & Taylor, Phil, 2000. "From Taylorism to Ms Taylor: the transformation of the accounting craft," Accounting, Organizations and Society, Elsevier, vol. 25(6), pages 555-578, August. [Downloadable!] (restricted)
  4. Cowan, Robin & Foray, Dominique, 1997. "The Economics of Codification and the Diffusion of Knowledge," Industrial and Corporate Change, Oxford University Press, vol. 6(3), pages 595-622, September.
  5. Hopper, Trevor & Armstrong, Peter, 1991. "Cost accounting, controlling labour and the rise of conglomerates," Accounting, Organizations and Society, Elsevier, vol. 16(5-6), pages 405-438. [Downloadable!] (restricted)
  6. Lee Altenberg, 1994. "Evolving Better Representations Through Selective Genome Growth," Working Papers 94-02-008, Santa Fe Institute.
  7. Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1999. "The Induced Innovation Hypothesis And Energy-Saving Technological Change," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 941-975, August. [Downloadable!] (restricted)
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  8. Saviotti, P. P. & Metcalfe, J. S., 1984. "A theoretical approach to the construction of technological output indicators," Research Policy, Elsevier, vol. 13(3), pages 141-151, June. [Downloadable!] (restricted)
  9. Koen Frenken & Luigi Marengo & Marco Valente, 1999. "Interdependencies, nearly-decomposability and adaption," CEEL Working Papers 9903, Computable and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia. [Downloadable!]
  10. Werner Hölzl & Andreas Reinstaller, 2000. "The Adoption and Enforcement of a Technological Regime: The Case of the first IT Regime," Working Papers geewp12, Vienna University of Economics and B.A. Research Group: Growth and Employment in Europe: Sustainability and Competitiveness. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Werner Hölzl, 2005. "The evolutionary theory of the firm: Routines, complexity and change," Working Papers geewp46, Vienna University of Economics and B.A. Research Group: Growth and Employment in Europe: Sustainability and Competitiveness. [Downloadable!]
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