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Explaining institutional technology

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  • Potts, Jason
  • Dopfer, Kurt
  • Tulloh, Bill

Abstract

This paper offers a review and several refinements and extensions of Explaining Technology, by Koppl et al. (2023), which develops a combinatorial theory of the evolution of technology. First, we suggest that the mechanism of tinkering can be formulated in the theory of user innovation. Second, we propose that a useful refinement is to focus on institutional technologies. This offers a better explanation of emergent levels of evolutionary selection, or major transitions, and also adapts their framework to better explain the nature of a digital economy. Third, we propose a more ambitious line of generalisation from explaining technology to explaining knowledge. We suggest this is possible from the rubric of the new ‘physics of information’ in constructor theory, assembly theory and Bayesian mechanics.

Suggested Citation

  • Potts, Jason & Dopfer, Kurt & Tulloh, Bill, 2025. "Explaining institutional technology," European Economic Review, Elsevier, vol. 173(C).
    • Handle: RePEc:eee:eecrev:v:173:y:2025:i:c:s0014292125000182
    DOI: 10.1016/j.euroecorev.2025.104968
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    References listed on IDEAS

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    1. Langlois, Richard N., 2002. "Modularity in technology and organization," Journal of Economic Behavior & Organization, Elsevier, vol. 49(1), pages 19-37, September.
    2. Bill Tulloh & Mark S. Miller, 2006. "Institutions as abstraction boundaries," Chapters, in: Jack High (ed.), Humane Economics, chapter 5, pages 89-118, Edward Elgar Publishing.
    3. Chris Berg & Sinclair Davidson & Jason Potts, 2019. "Understanding the Blockchain Economy," Books, Edward Elgar Publishing, number 18636.
    4. Roger Koppl & Stuart Kauffman & Giuseppe Longo & Teppo ­­­felin, 2015. "Economics for a creative world," Post-Print hal-01415131, HAL.
    5. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
    6. Koppl, Roger & Kauffman, Stuart & Felin, Teppo & Longo, Giuseppe, 2015. "Economics for a creative world: a response to comments," Journal of Institutional Economics, Cambridge University Press, vol. 11(1), pages 61-68, March.
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    8. Carliss Baldwin & Eric von Hippel, 2011. "Modeling a Paradigm Shift: From Producer Innovation to User and Open Collaborative Innovation," Organization Science, INFORMS, vol. 22(6), pages 1399-1417, December.
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    Cited by:

    1. Goodman, Nathan P. & Lehto, Otto & Novak, Mikayla, 2025. "Institutional diversity and innovative recombination," European Economic Review, Elsevier, vol. 174(C).

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    Keywords

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    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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