IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i6p2758-d1616415.html
   My bibliography  Save this article

Analysis of the Interaction Between Endogenous Technological Innovation, Institutional Regulation, and Economic Long Wave: A Perspective from Nonlinear Dynamics

Author

Listed:
  • Bo Chen

    (School of Economics, Shanghai University of Finance and Economics, Shanghai 200433, China)

  • Jie Gao

    (School of Economics, Shanghai University of Finance and Economics, Shanghai 200433, China)

  • Zhicheng Zhao

    (School of Economics, Shanghai University of Finance and Economics, Shanghai 200433, China)

Abstract

The capitalist economy has experienced several economic long waves after the industrial revolution. The previous explanations for their causes have primarily focused on a single factor such as technology or institution, which has limitations and flaws. In this paper, the cause of economic long waves is explained by employing the nonlinear interaction and nonequilibrium evolution mechanisms in complex economics. Moreover, the relationships between endogenous technological innovation, institutional regulation, and economic long waves are examined. The research results show that technological innovation is driven by the economic long wave movement. In particular, the phases of depression, recovery, and prosperity within these waves may serve as catalysts for further innovation. The free market can exhibit endogenous instability. The dual regulation of productive and distributive institutions can ensure stable and efficient economic development and achieve broad social benefits. However, in a context of individual decentralized decision making, the institutional structures often deviate from the optimal outcome. This deviation, to a certain extent, leads to structural economic crises. The integration and interaction between technological innovation and institutional regulation jointly drive the long wave movement and the accumulation cycle of the economy. This paper proposes a feasible method for studying economic long waves, offering insights that could promote sustainable and robust economic development.

Suggested Citation

  • Bo Chen & Jie Gao & Zhicheng Zhao, 2025. "Analysis of the Interaction Between Endogenous Technological Innovation, Institutional Regulation, and Economic Long Wave: A Perspective from Nonlinear Dynamics," Sustainability, MDPI, vol. 17(6), pages 1-24, March.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:6:p:2758-:d:1616415
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/6/2758/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/6/2758/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Takuro Uehara & Mateo Cordier & Bertrand Hamaide, 2018. "Fully Dynamic Input-Output/System Dynamics Modeling for Ecological-Economic System Analysis," Sustainability, MDPI, vol. 10(6), pages 1-22, May.
    2. Rosenberg, Nathan & Frischtak, Claudio R, 1983. "Long Waves and Economic Growth: A Critical Appraisal," American Economic Review, American Economic Association, vol. 73(2), pages 146-151, May.
    3. Ping Chen, 2014. "Metabolic growth theory: market-share competition, learning uncertainty, and technology wavelets," Journal of Evolutionary Economics, Springer, vol. 24(2), pages 239-262, April.
    4. Jahanshahi, Hadi & Sajjadi, Samaneh Sadat & Bekiros, Stelios & Aly, Ayman A., 2021. "On the development of variable-order fractional hyperchaotic economic system with a nonlinear model predictive controller," Chaos, Solitons & Fractals, Elsevier, vol. 144(C).
    5. Ping Chen, 2014. "Erratum to: Metabolic growth theory: market-share competition, learning uncertainty, and technology wavelets," Journal of Evolutionary Economics, Springer, vol. 24(2), pages 263-264, April.
    6. Robert M. de Jong & Neslihan Sakarya, 2016. "The Econometrics of the Hodrick-Prescott Filter," The Review of Economics and Statistics, MIT Press, vol. 98(2), pages 310-317, May.
    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. Jie Gao & Bo Chen, 2025. "Examining Characteristics and Causes of Juglar Cycles in China, 1981–2024," Sustainability, MDPI, vol. 17(19), pages 1-27, September.

    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. Olivier Mesly & David W. Shanafelt & Nicolas Huck & François‐Éric Racicot, 2020. "From wheel of fortune to wheel of misfortune: Financial crises, cycles, and consumer predation," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(4), pages 1195-1212, December.
    2. Ouannas, Adel & Batiha, Iqbal M. & Bekiros, Stelios & Liu, Jinping & Jahanshahi, Hadi & Aly, Ayman A. & Alghtani, Abdulaziz H., 2021. "Synchronization of the glycolysis reaction-diffusion model via linear control law," LSE Research Online Documents on Economics 112776, London School of Economics and Political Science, LSE Library.
    3. Mark Knell & Simone Vannuccini, 2022. "Tools and concepts for understanding disruptive technological change after Schumpeter," Jena Economics Research Papers 2022-005, Friedrich-Schiller-University Jena.
    4. Qu, Hai-Dong & Liu, Xuan & Lu, Xin & ur Rahman, Mati & She, Zi-Hang, 2022. "Neural network method for solving nonlinear fractional advection-diffusion equation with spatiotemporal variable-order," Chaos, Solitons & Fractals, Elsevier, vol. 156(C).
    5. Liying Cui & Min Peng & Hengshuo Zhang & Liwei Cui, 2025. "Analysis of the Dynamic System Driving High-Quality Transformation of Resource-Based Regions Through Smart Eco-Innovation: Evidence from Daqing City, China," Sustainability, MDPI, vol. 17(7), pages 1-22, April.
    6. Alain Hecq & Elisa Voisin, 2023. "Predicting Crashes in Oil Prices During The Covid-19 Pandemic with Mixed Causal-Noncausal Models," Advances in Econometrics, in: Essays in Honor of Joon Y. Park: Econometric Methodology in Empirical Applications, volume 45, pages 209-233, Emerald Group Publishing Limited.
    7. Viv B. Hall & Peter Thomson, 2021. "Does Hamilton’s OLS Regression Provide a “better alternative” to the Hodrick-Prescott Filter? A New Zealand Business Cycle Perspective," Journal of Business Cycle Research, Springer;Centre for International Research on Economic Tendency Surveys (CIRET), vol. 17(2), pages 151-183, November.
    8. Melina Dritsaki & Chaido Dritsaki, 2022. "Comparison of HP Filter and the Hamilton’s Regression," Mathematics, MDPI, vol. 10(8), pages 1-18, April.
    9. Ziwei Mei & Zhentao Shi & Peter C. B. Phillips, 2022. "The boosted HP filter is more general than you might think," Cowles Foundation Discussion Papers 2348, Cowles Foundation for Research in Economics, Yale University.
    10. Marañon, Matias & Kumral, Mustafa, 2019. "Kondratiev long cycles in metal commodity prices," Resources Policy, Elsevier, vol. 61(C), pages 21-28.
    11. Francesco Giancaterini & Alain Hecq & Claudio Morana, 2022. "Is Climate Change Time-Reversible?," Econometrics, MDPI, vol. 10(4), pages 1-18, December.
    12. Patricia Aranda-Cuéllar & José María López-Morales & María Jesús Such-Devesa, 2021. "Winter tourism dependence: A cyclical and cointegration analysis. Case study for the Alps," Tourism Economics, , vol. 27(7), pages 1540-1560, November.
    13. Bekiros, Stelios & Jahanshahi, Hadi & Bezzina, Frank & Aly, Ayman A., 2021. "A novel fuzzy mixed H2/H∞ optimal controller for hyperchaotic financial systems," Chaos, Solitons & Fractals, Elsevier, vol. 146(C).
    14. Haitham A. Al-Zoubi, 2024. "An affine model for short rates when monetary policy is path dependent," Review of Derivatives Research, Springer, vol. 27(2), pages 151-201, July.
    15. Wusheng Zhao & Peiji Shi & Ya Wan & Yan Yao, 2023. "Coupling and Coordination Relationship between Urbanization Quality and Ecosystem Services in the Upper Yellow River: A Case Study of the Lanzhou–Xining Urban Agglomeration, China," Land, MDPI, vol. 12(5), pages 1-20, May.
    16. Qijia Yao & Hadi Jahanshahi & Stelios Bekiros & Sanda Florentina Mihalache & Naif D. Alotaibi, 2022. "Gain-Scheduled Sliding-Mode-Type Iterative Learning Control Design for Mechanical Systems," Mathematics, MDPI, vol. 10(16), pages 1-15, August.
    17. R. Boschma, 1996. "The window of locational opportunity-concept," Working Papers 260, Dipartimento Scienze Economiche, Universita' di Bologna.
    18. Seth G. Benzell & Laurence J. Kotlikoff & Guillermo LaGarda & Jeffrey D. Sachs, 2015. "Robots Are Us: Some Economics of Human Replacement," NBER Working Papers 20941, National Bureau of Economic Research, Inc.
    19. Martin Henning & Erik Stam & Rik Wenting, 2013. "Path Dependence Research in Regional Economic Development: Cacophony or Knowledge Accumulation?," Regional Studies, Taylor & Francis Journals, vol. 47(8), pages 1348-1362, September.
    20. Sterman, John, 1984. "An integrated theory of the economic long wave," Working papers 1563-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:gam:jsusta:v:17:y:2025:i:6:p:2758-:d:1616415. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.