Self-organised Criticality and Technological Convergence
The purpose of this paper is to investigate the evolutionary process of imitation and innovation as a process of searching in a given neighbourhood of firms. Networks are the main source of information for firms willing to actively search and upgrade and which define the reachable neighbourhood whose width is strictly related to cognitive distance. We have identified two major forms of information setting off innovative behaviour: the first comes in the shape of random events which are exogenous, at least in terms of the firms’ own search activity, while the second is determined by searching for technological opportunities in other economic sectors. It is this activity that generates the spreading of a new technological paradigm and that makes for technological convergence. All firms are a heterogeneous set of agents bounded by their competence, technological specificity and, more generally, rationality. The spreading of information through cognitive neighbourhoods allows firms to gradually acquire full knowledge leading to innovation waves. Imitation follows innovation as firms attempt to glean information on best practise techniques to join their sector technological leaders. Whilst innovators are temporarily allowed to reap quasi rents the imitative band wagon effect drives the profit rate down to its normal level. Productivity growth lowers the prices of sectors involved in the process of technological advance causing obsolescence and, thus, creative destruction in a Schumpeterian sense.
|Date of creation:||2003|
|Date of revision:|
|Contact details of provider:|| Postal: Piazza Scaravilli, 2, and Strada Maggiore, 45, 40125 Bologna|
Phone: +39 051 209 8019 and 2600
Fax: +39 051 209 8040 and 2664
Web page: http://www.dse.unibo.it
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Aghion, P. & Howitt, P., 1989.
"A Model Of Growth Through Creative Destruction,"
527, Massachusetts Institute of Technology (MIT), Department of Economics.
- Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
- Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," UWO Department of Economics Working Papers 8904, University of Western Ontario, Department of Economics.
- Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
- Philip Auerswald & Stuart Kauffman & Jose Lobo & Karl Shell, 1998.
"The Production Recipes Approach to Modeling Technological Innovation: An Application to Learning By Doing,"
98-11-100, Santa Fe Institute.
- Auerswald, Philip & Kauffman, Stuart & Lobo, Jose & Shell, Karl, 2000. "The production recipes approach to modeling technological innovation: An application to learning by doing," Journal of Economic Dynamics and Control, Elsevier, vol. 24(3), pages 389-450, March.
- Jason Potts, 2001. "Knowledge and markets," Journal of Evolutionary Economics, Springer, vol. 11(4), pages 413-431.
- Fai, Felicia & von Tunzelmann, Nicholas, 2001. "Industry-specific competencies and converging technological systems: evidence from patents," Structural Change and Economic Dynamics, Elsevier, vol. 12(2), pages 141-170, July.
- Franke, R., 2001. "Wave trains, innovation noise, and long waves," Journal of Economic Behavior & Organization, Elsevier, vol. 45(1), pages 49-68, May.
- Iwai, Katsuhito, 1984. "Schumpeterian dynamics, Part II : Technological progress, firm growth and `economic selection'," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 321-351.
- Iwai, Katsuhito, 2000. "A contribution to the evolutionary theory of innovation, imitation and growth," Journal of Economic Behavior & Organization, Elsevier, vol. 43(2), pages 167-198, October.
When requesting a correction, please mention this item's handle: RePEc:bol:bodewp:469. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dipartimento Scienze Economiche, Universita' di Bologna)
If references are entirely missing, you can add them using this form.