The Babbage principle after evolutionary economics
In this paper we analyse the cognitive roots of the division of labour and relate it to the reduction of tacitness in the organisation and technology of a firm. We study the interaction between efforts of knowledge codification and problems of control in production from an evolutionary and complex systems perspective. By applying our framework to the emergence of white-collar work in the late 19th century and the modern knowledge economy we assert that property rights and limits to codification of knowledge are important forces shaping the process of organisational and technological change.
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