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The Dynamics Of Localized Technological Changes. The Interaction Between Factor Costs Inducement, Demand Pull And Schumpeterian Rivalry

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  • Crlstlano Antonelli

Abstract

Localized technological change is the endogenous outcome of the interplay between substitution costs. Switching costs and learning processes. New technologies are introduced when market pressures induce firms to change the levels of their inputs and their techniques. The dynamics ol localized technological change is the result us the interaction between three processes: it) the Schumpcterian competition process as analyzed by the replicator dynamics and failure inducement mechanisms. b) factor substitution stemming from changes in factors markets. and c) post-Keynesian demand pull pressures resulting from productivity growth. In such conditions out-of-equilibrium exchanges and localized technological changes drive a recursive process that is path-dependent in two senses, first it is highly sensitive to the initial conditions of the system. and second it is shaped by the interactions of agents.

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  • Crlstlano Antonelli, 1998. "The Dynamics Of Localized Technological Changes. The Interaction Between Factor Costs Inducement, Demand Pull And Schumpeterian Rivalry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(2-3), pages 97-120.
    • Handle: RePEc:taf:ecinnt:v:6:y:1998:i:2-3:p:97-120
    DOI: 10.1080/10438599800000016
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    References listed on IDEAS

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    1. Mueller,Dennis C., 2009. "Profits in the Long Run," Cambridge Books, Cambridge University Press, number 9780521101592.
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    Cited by:

    1. Marco Vivarelli, 2014. "The Middle Income Trap: A Way Out Based on Technological and Structural Change," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1403, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    2. Martin Meyer, 2007. "What do we know about innovation in nanotechnology? Some propositions about an emerging field between hype and path-dependency," Scientometrics, Springer;Akadémiai Kiadó, vol. 70(3), pages 779-810, March.
    3. Mariacristina Piva & Marco Vivarelli, 2007. "Is demand-pulled innovation equally important in different groups of firms?," Cambridge Journal of Economics, Oxford University Press, vol. 31(5), pages 691-710, September.
    4. Simon Wiederhold, 2012. "The Role of Public Procurement in Innovation: Theory and Empirical Evidence," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 43.
    5. Dawid, Herbert & Pellegrino, Gabriele & Vivarelli, Marco, 2017. "Is the demand-pull driver equally crucial for product vs process innovation?," MERIT Working Papers 2017-035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Andreas Reinstaller & Peter Reschenhofer, 2015. "Path Dependence in National Systems of Production and "Self Discovery" of Environmental Technologies in the EU 28 Countries. WWWforEurope Working Paper No. 106," WIFO Studies, WIFO, number 58349, February.
    7. Andreas Reinstaller & Elisabeth Christen & Harald Oberhofer & Peter Reschenhofer, 2016. "Eine Analyse der Wettbewerbsfähigkeit Österreichs im bilateralen Handel mit den USA (TTIP)," WIFO Studies, WIFO, number 58723, February.
    8. Andreas Reinstaller, 2014. "Technologiegeber Österreich. Österreichs Wettbewerbsfähigkeit in Schlüsseltechnologien und Enwicklungspotentiale als Technologiegeber," WIFO Studies, WIFO, number 47444, February.
    9. Gianluca Orsatti & François Perruchas & Davide Consoli & Francesco Quatraro, 2020. "Public Procurement, Local Labor Markets and Green Technological Change. Evidence from US Commuting Zones," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(4), pages 711-739, April.
    10. Fabian Unterlass & Andreas Reinstaller & Klaus S. Friesenbichler & Alexandros Charos & Kathrin Hranyai & Peter Reschenhofer & Anna Strauss & Sebastian Unterlass & Johanna Vogel & Agnes Kügler & Stefan, 2015. "The Relationship Between Export and Technological Specialisation Profiles Across EU Countries and Regions and the Identification of Development Potentials," WIFO Studies, WIFO, number 58911, February.
    11. Marco Vivarelli, 2015. "Structural Change and Innovation in Developing Economies: A Way Out of the Middle Income Trap ?," LEM Papers Series 2015/09, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    12. repec:hal:wpaper:hal-00860045 is not listed on IDEAS
    13. Ghisetti, Claudia & Quatraro, Francesco, 2013. "Beyond inducement in climate change: Does environmental performance spur environmental technologies? A regional analysis of cross-sectoral differences," Ecological Economics, Elsevier, vol. 96(C), pages 99-113.
    14. Dawid, Herbert & Pellegrino, Gabriele & Vivarelli, Marco, 2017. "Demand and innovation: theory and evidence," GLO Discussion Paper Series 92, Global Labor Organization (GLO).
    15. Lehrer, Mark, 2004. "National lead markets and the design competition for 3G network applications," Journal of Business Research, Elsevier, vol. 57(12), pages 1397-1401, December.
    16. Vivarelli, Marco, 2014. "Structural Change and Innovation as Exit Strategies from the Middle Income Trap," IZA Discussion Papers 8148, Institute of Labor Economics (IZA).
    17. Jürgen Janger & Agnes Kügler & Andreas Reinstaller & Peter Reschenhofer & Fabian Unterlass, 2017. "Austria 2025 – A New Strategic Innovation Policy Framework. Addressing Structural Change and Upgrading," WIFO Studies, WIFO, number 59290, February.
    18. Herbert Dawid & Gabriele Pellegrino & Marco Vivarelli, 2021. "The role of demand in fostering product vs process innovation: a model and an empirical test," Journal of Evolutionary Economics, Springer, vol. 31(5), pages 1553-1572, November.
    19. Juan Máñez & María Rochina-Barrachina & Amparo Sanchis-Llopis & Juan Sanchis-Llopis, 2015. "The determinants of R&D persistence in SMEs," Small Business Economics, Springer, vol. 44(3), pages 505-528, March.
    20. Claudia Ghisetti & Francesco Quatraro, 2013. "Beyond inducement in climate change: Does environmental performance spur environmental technologies?," Post-Print hal-00860045, HAL.

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    More about this item

    Keywords

    Technological localized change; innovation; incentivcs and processes; market structure J.E.L. Classification: D21; D43; O31; O33;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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