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

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  • 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
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.
    3. Ruttan, Vernon W., 2008. "General Purpose Technology, Revolutionary Technology, and Technological Maturity," Staff Papers 6206, University of Minnesota, Department of Applied Economics.
    4. Foster, John, 2018. "The Consumption Function: A New Perspective," MPRA Paper 84383, University Library of Munich, Germany.
    5. 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.
    6. John Foster, 2021. "The US consumption function: a new perspective," Journal of Evolutionary Economics, Springer, vol. 31(3), pages 773-798, July.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
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    12. 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.

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