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Upward and Downward Complementarity: The Meso Core of Evolutionary Growth Theory

In: Foundations of Economic Change

Author

Listed:
  • Kurt Dopfer

    (University of St. Gallen)

  • Jason Potts

    (RMIT University)

  • Andreas Pyka

    (Hohenheim University)

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, 2017. "Upward and Downward Complementarity: The Meso Core of Evolutionary Growth Theory," Economic Complexity and Evolution, in: Andreas Pyka & Uwe Cantner (ed.), Foundations of Economic Change, pages 69-80, Springer.
    • Handle: RePEc:spr:eccchp:978-3-319-62009-1_4
    DOI: 10.1007/978-3-319-62009-1_4
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    Cited by:

    1. is not listed on IDEAS
    2. 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).
    3. Foster, John, 2021. "In search of a suitable heuristic for evolutionary economics: from generalized Darwinism to economic self-organisation," MPRA Paper 106146, University Library of Munich, Germany.
    4. Rengs, Bernhard & Scholz-Waeckerle, Manuel, 2017. "Consumption & Class in Evolutionary Macroeconomics," MPRA Paper 80021, University Library of Munich, Germany.
    5. Bernhard Rengs & Manuel Scholz-Wäckerle, 2019. "Consumption & class in evolutionary macroeconomics," Journal of Evolutionary Economics, Springer, vol. 29(1), pages 229-263, March.
    6. Félix-Fernando Muñoz, 2024. "The coevolution of technology, markets, and culture: the challenging case of AI," Review of Evolutionary Political Economy, Springer, vol. 5(3), pages 511-533, October.

    More about this item

    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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