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Complementarity constraints and induced innovation: some evidence from the First IT Regime

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  • Reinstaller, Andreas
  • Hölzl, Werner

    (MERIT)

Abstract

Technological search is often depicted to be random. This paper takes a different view and analyses how innovative recombinant search is triggered, how it is done and what initial conditions influence the final design of technological artefacts. We argue that complementarities (non-separabilities) play an important role as focusing devices guiding the search for new combinations. Our analysis takes the perspective of technology adopters and not that of inventors or innovators of new products. We illustrate the process of decomposition and re-composition under the presence of binding complementarity constraints with a historical case study on the establishment of the First IT Regime at the turn of the 19th century.

Suggested Citation

  • Reinstaller, Andreas & Hölzl, Werner, 2003. "Complementarity constraints and induced innovation: some evidence from the First IT Regime," Research Memorandum 030, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:umamer:2003030
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    File URL: https://www.merit.unu.edu/publications/rmpdf/2003/rm2003-030.pdf
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    References listed on IDEAS

    as
    1. Koen Frenken & Luigi Marengo & Marco Valente, 1999. "Interdependencies, nearly-decomposability and adaption," CEEL Working Papers 9903, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
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    3. Fleming, Lee & Sorenson, Olav, 2001. "Technology as a complex adaptive system: evidence from patent data," Research Policy, Elsevier, vol. 30(7), pages 1019-1039, August.
    4. Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1999. "The Induced Innovation Hypothesis and Energy-Saving Technological Change," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 941-975.
    5. Litterer, Joseph A., 1963. "Systematic Management: Design for Organizational Recoupling in American Manufacturing Firms," Business History Review, Cambridge University Press, vol. 37(04), pages 369-391, December.
    6. Lee Altenberg, 1994. "Evolving Better Representations Through Selective Genome Growth," Working Papers 94-02-008, Santa Fe Institute.
    7. Saviotti, P. P. & Metcalfe, J. S., 1984. "A theoretical approach to the construction of technological output indicators," Research Policy, Elsevier, vol. 13(3), pages 141-151, June.
    8. von Hippel, Eric, 1990. "Task partitioning: An innovation process variable," Research Policy, Elsevier, vol. 19(5), pages 407-418, October.
    9. Cooper, Christine & Taylor, Phil, 2000. "From Taylorism to Ms Taylor: the transformation of the accounting craft," Accounting, Organizations and Society, Elsevier, vol. 25(6), pages 555-578, August.
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    11. Cowan, Robin & Foray, Dominique, 1997. "The Economics of Codification and the Diffusion of Knowledge," Industrial and Corporate Change, Oxford University Press, vol. 6(3), pages 595-622, September.
    12. Werner Hölzl & Andreas Reinstaller, 2000. "The Adoption and Enforcement of a Technological Regime: The Case of the first IT Regime," Working Papers geewp12, Vienna University of Economics and Business Research Group: Growth and Employment in Europe: Sustainability and Competitiveness.
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    Citations

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    Cited by:

    1. Gunther Tichy, 2016. "Is the Working Society Running Out of Jobs?," WIFO Monatsberichte (monthly reports), WIFO, vol. 89(12), pages 853-871, December.
    2. Werner Hölzl, 2005. "The evolutionary theory of the firm: Routines, complexity and change," Working Papers geewp46, Vienna University of Economics and Business Research Group: Growth and Employment in Europe: Sustainability and Competitiveness.
    3. repec:wfo:wstudy:47444 is not listed on IDEAS
    4. Paul Windrum & Andreas Reinstaller & Christopher Bull, 2009. "The outsourcing productivity paradox: total outsourcing, organisational innovation, and long run productivity growth," Journal of Evolutionary Economics, Springer, vol. 19(2), pages 197-229, April.

    More about this item

    Keywords

    research and development ;

    JEL classification:

    • N60 - Economic History - - Manufacturing and Construction - - - General, International, or Comparative
    • 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
    • L69 - Industrial Organization - - Industry Studies: Manufacturing - - - Other

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