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Upward and downward complementarity: the meso core of evolutionary growth theory

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Listed:
  • Kurt Dopfer

    (University of St Gallen)

  • Jason Potts

    () (RMIT University)

  • Andreas Pyka

    (Hohenheim University)

Abstract

Abstract We propose that the concept of complementarity can take two distinct meanings in evolutionary economics: one referring to Adam Smith’s notion of increasing specialization and the division of labour, which we denote ‘downward complementarity’ (wholes into new parts); and a second type that refers to the discovery of emergent complementarity between extant or new components and products, which we call ‘upward complementarity’ (parts into new wholes). We outline this new conception and explore some of its analytic and theoretic implications.

Suggested Citation

  • Kurt Dopfer & Jason Potts & Andreas Pyka, 2016. "Upward and downward complementarity: the meso core of evolutionary growth theory," Journal of Evolutionary Economics, Springer, vol. 26(4), pages 753-763, October.
  • Handle: RePEc:spr:joevec:v:26:y:2016:i:4:d:10.1007_s00191-015-0434-4
    DOI: 10.1007/s00191-015-0434-4
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    References listed on IDEAS

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    Cited by:

    1. Múñoz, Féliz-Fernando & Encinar, María-Isabel & Cañibano, Carolina, 2016. "Agents, interaction, and economic laws: An analytical framework for understanding different economic theories," Working Papers in Economic Theory 2016/05, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).

    More about this item

    Keywords

    Complementarity; Economic evolution; Division of knowledge; Division of labor; Meso economics; Entrepreneur; Unified evolutionary growth theory;

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • E14 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Austrian; Evolutionary; Institutional

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