IDEAS home Printed from https://ideas.repec.org/a/cai/recosp/reco_542_0407.html
   My bibliography  Save this article

Industrial Growth and the Theory of Retardation. Precursors of an Adaptive Evolutionary Theory of EconomicChange

Author

Listed:
  • John Stanley Metcalfe

Abstract

In the 1930s the idea of industrial growth was explored extensively by many economists in particular by Simon Kuznets and Arthur Burns. In their detailed empirical studies they identified diversity of industry growth rates and retardation of industry growth rates as a central feature of capitalist economic development. Yet the theory of growth rate diversity and retardation has only recently begun to be explored in detail by evolutionary economists. This paper is written in recognition of the contribution of Richard Nelson and Sidney Winter to this enterprise. It develops a model of industrial growth with endogenous technical progress in which the conditions for retardation are identified and explored. The paper has wider connections with the Austrian emphasis on economic activity as a discovery process in which innovation creates new market niches that are subsequently explored and further developed.

Suggested Citation

  • John Stanley Metcalfe, 2003. "Industrial Growth and the Theory of Retardation. Precursors of an Adaptive Evolutionary Theory of EconomicChange," Revue économique, Presses de Sciences-Po, vol. 54(2), pages 407-431.
    • Handle: RePEc:cai:recosp:reco_542_0407
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=RECO_542_0407
    Download Restriction: free
    File URL: http://www.cairn.info/revue-economique-2003-2-page-407.htm
    Download Restriction: free
    ---><---

    References listed on IDEAS

    as
    1. Metcalfe, J S, 2001. "Institutions and Progress," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(3), pages 561-586, September.
    2. J. S. Metcalfe & M. Gibbons, 1987. "On the Economics of Structural Change and the Evolution of Technology," International Economic Association Series, in: Luigi Pasinetti & Peter Lloyd (ed.), Structural Change, Economic Interdependence and World Development, chapter 7, pages 91-102, Palgrave Macmillan.
    3. Jati Sengupta, 2001. "A model of Schumpeterian innovations," Applied Economics Letters, Taylor & Francis Journals, vol. 8(6), pages 397-401.
    4. Pasinetti,Luigi, 1993. "Structural Economic Dynamics," Cambridge Books, Cambridge University Press, number 9780521432825, November.
    5. George J. Stigler, 1947. "Trends in Employment," NBER Chapters, in: Trends in Output and Employment, pages 32-41, National Bureau of Economic Research, Inc.
    6. Arthur F. Burns, 1934. "Production Trends in the United States Since 1870," NBER Books, National Bureau of Economic Research, Inc, number burn34-1, January.
    7. Cowan, Robin & Cowan, William & Swann, Peter, 1997. "A model of demand with interactions among consumers," International Journal of Industrial Organization, Elsevier, vol. 15(6), pages 711-732, October.
    8. Abramovitz,Moses, 1989. "Thinking about Growth," Cambridge Books, Cambridge University Press, number 9780521333962, November.
    9. Jason Potts, 2001. "Knowledge and markets," Journal of Evolutionary Economics, Springer, vol. 11(4), pages 413-431.
    10. George J. Stigler, 1947. "Trends in Output," NBER Chapters, in: Trends in Output and Employment, pages 6-31, National Bureau of Economic Research, Inc.
    11. John Foster & J. Stanley Metcalfe (ed.), 2001. "Frontiers of Evolutionary Economics," Books, Edward Elgar Publishing, number 2234.
    12. J. Stan Metcalfe & John Foster & Ronnie Ramlogan, 2006. "Adaptive economic growth," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(1), pages 7-32, January.
    13. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
    14. Mariana Mazzucato, 2002. "The PC Industry: New Economy or Early Life-Cycle?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(2), pages 318-345, April.
    15. George J. Stigler, 1947. "Trends in Output and Employment," NBER Books, National Bureau of Economic Research, Inc, number stig47-1, January.
    16. Pier P. Saviotti, 1996. "Technological Evolution, Variety and the Economy," Books, Edward Elgar Publishing, number 727.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Syrquin, Moshe, 2010. "Kuznets and Pasinetti on the study of structural transformation: Never the Twain shall meet?," Structural Change and Economic Dynamics, Elsevier, vol. 21(4), pages 248-257, November.
    2. John Foster, 2021. "The US consumption function: a new perspective," Journal of Evolutionary Economics, Springer, vol. 31(3), pages 773-798, July.
    3. Consoli, Davide, 2005. "The dynamics of technological change in UK retail banking services: An evolutionary perspective," Research Policy, Elsevier, vol. 34(4), pages 461-480, May.
    4. Peter Tyler & Emil Evenhuis & Ron Martin & Peter Sunley & Ben Gardiner, 2017. "Growing apart? Structural transformation and the uneven development of British cities," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 10(3), pages 425-454.
    5. Francisco Fatas-Villafranca & Gloria Jarne & Julio Sanchez-Choliz, 2014. "Stock and Mobility of Researchers and Industrial Leadership," Metroeconomica, Wiley Blackwell, vol. 65(1), pages 95-122, February.
    6. Consoli, Davide, 2005. "Technological cooperation and product substitution in UK retail banking: the case of customer services," Information Economics and Policy, Elsevier, vol. 17(2), pages 199-215, March.
    7. Dughera, Stefano & Giraudo, Marco, 2020. "Privacy Rights in Online Interactions and Litigation Dynamics: a Social Custom View," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202003, University of Turin.
    8. J.S. Metcalfe, 2005. "Ed Mansfield and the Diffusion of Innovation: An Evolutionary Connection," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 171-181, January.
    9. John Foster, 2015. "Energy, Knowledge and Economic Growth," Economic Complexity and Evolution, in: Andreas Pyka & John Foster (ed.), The Evolution of Economic and Innovation Systems, edition 127, pages 9-39, Springer.
    10. Ruttan, Vernon W., 2008. "General Purpose Technology, Revolutionary Technology, and Technological Maturity," Staff Papers 6206, University of Minnesota, Department of Applied Economics.
    11. Raffaella Barone & Donato Masciandaro & Friedrich Schneider, 2022. "Corruption and money laundering: You scratch my back, i’ll scratch yours," Metroeconomica, Wiley Blackwell, vol. 73(1), pages 318-342, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. J. Stan Metcalfe & John Foster, 2010. "Evolutionary Growth Theory," Chapters, in: Mark Setterfield (ed.), Handbook of Alternative Theories of Economic Growth, chapter 3, Edward Elgar Publishing.
    2. J.S. Metcalfe, 2005. "Ed Mansfield and the Diffusion of Innovation: An Evolutionary Connection," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 171-181, January.
    3. Bert Balk, 2003. "The Residual: On Monitoring and Benchmarking Firms, Industries, and Economies with Respect to Productivity," Journal of Productivity Analysis, Springer, vol. 20(1), pages 5-47, July.
    4. Andre Lorentz & Tommaso Ciarli & Maria Savona & Marco Valente, 2019. "Structural Transformations and Cumulative Causation: Towards an Evolutionary Micro-foundation of the Kaldorian Growth Model," Working Papers of BETA 2019-15, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    5. G Cameron, 1996. "Innovation and Economic Growth," CEP Discussion Papers dp0277, Centre for Economic Performance, LSE.
    6. Francesco Quatraro, 2009. "Innovation, structural change and productivity growth: evidence from Italian regions, 1980--2003," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(5), pages 1001-1022, September.
    7. Zvi Griliches, 1996. "The Discovery of the Residual: A Historical Note," Journal of Economic Literature, American Economic Association, vol. 34(3), pages 1324-1330, September.
    8. Andreas Pyka & Uwe Cantner & Alfred Greiner & Thomas Kuhn (ed.), 2009. "Recent Advances in Neo-Schumpeterian Economics," Books, Edward Elgar Publishing, number 12982.
    9. Andreas Chai, 2017. "Tackling Keynes’ question: a look back on 15 years of Learning To Consume," Journal of Evolutionary Economics, Springer, vol. 27(2), pages 251-271, April.
    10. Ahmed, Elsadig Musa, 2012. "Are the FDI inflow spillover effects on Malaysia's economic growth input driven?," Economic Modelling, Elsevier, vol. 29(4), pages 1498-1504.
    11. Claudia Goldin & Lawrence F. Katz, 2024. "The Incubator of Human Capital: The NBER and the Rise of the Human Capital Paradigm," NBER Chapters, in: The Economic History of American Inequality: New Evidence and Perspectives, National Bureau of Economic Research, Inc.
    12. Nicholas Crafts & Pieter Woltjer, 2021. "Growth Accounting In Economic History: Findings, Lessons And New Directions," Journal of Economic Surveys, Wiley Blackwell, vol. 35(3), pages 670-696, July.
    13. Malcolm Abbott, 2018. "Productivity: a history of its measurement," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 2018(1), pages 57-80.
    14. Syrquin, Moshe, 2010. "Kuznets and Pasinetti on the study of structural transformation: Never the Twain shall meet?," Structural Change and Economic Dynamics, Elsevier, vol. 21(4), pages 248-257, November.
    15. Wu, Harry X., 2019. "Towards an Institutional Interpretation of TFP Changes in China," CEI Working Paper Series 2019-4, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    16. John Foster, 2021. "The US consumption function: a new perspective," Journal of Evolutionary Economics, Springer, vol. 31(3), pages 773-798, July.
    17. Mario Cimoli & Gabriel Porcile, 2009. "Sources of learning paths and technological capabilities: an introductory roadmap of development processes," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(7), pages 675-694.
    18. Jing Cao, 2007. "Measuring Green Productivity Growth for China's Manufacturing Sectors: 1991–2000," Asian Economic Journal, East Asian Economic Association, vol. 21(4), pages 425-451, December.
    19. Dosi, Giovanni & Nelson, Richard R., 2010. "Technical Change and Industrial Dynamics as Evolutionary Processes," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 51-127, Elsevier.
    20. Silva, Ester G. & Teixeira, Aurora A.C., 2008. "Surveying structural change: Seminal contributions and a bibliometric account," Structural Change and Economic Dynamics, Elsevier, vol. 19(4), pages 273-300, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:recosp:reco_542_0407. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-Baptiste de Vathaire (email available below). General contact details of provider: https://www.cairn.info/revue-economique.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.