The Production Recipes Approach to Modeling Technological Innovation: An Application to Learning By Doing
AbstractWe do two things in this paper. First, we put forward some elements of a microeconomic theory of technological evolution. This involves adding nascent (essentially undiscovered) technologies to the existing technologies of neoclassical production theory, and, more importantly, expanding the notion of the production plan to include the recipe---the complete description of the underlying engineering process. Second, we use the recipes approach in constructing a simple microeconomic model of shop-floor learning by doing. We simulate the dynamics of the model and report the effects of changes in the basic parameters on the resulting engineering experience curves. For correctly chosen values of these parameters, the predictions of the model match the observed data on experience curves. Journal of Economic Literature Classification Numbers: D20, D21, D24, D83, L23, O30. Submitted to Journal of Economic Dynamics and Control.
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Bibliographic InfoPaper provided by Santa Fe Institute in its series Working Papers with number 98-11-100.
Date of creation: Nov 1998
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Engineering experience curves; learning curves; nascent technologies; learning by doing; technological change; production recipes;
Other versions of this item:
- Auerswald, Philip & Kauffman, Stuart & Lobo, Jose & Shell, Karl, 2000. "The production recipes approach to modeling technological innovation: An application to learning by doing," Journal of Economic Dynamics and Control, Elsevier, vol. 24(3), pages 389-450, March.
- D20 - Microeconomics - - Production and Organizations - - - General
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
This paper has been announced in the following NEP Reports:
- NEP-ALL-1999-01-25 (All new papers)
- NEP-EVO-1999-01-25 (Evolutionary Economics)
- NEP-MIC-1999-01-25 (Microeconomics)
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