517 research outputs found

    Statistical Regularities in the Evolution of Industries. A Guide through some Evidence and Challenges for the Theory

    Get PDF
    Fundamental drivers of the evolution of contemporary economies are the activities of search, discovery and economic exploitation of new products, new production processes, new organizational arrangements within and amongst business firms. What are their marks in terms of statistical properties that such processes display? Three basic questions in particular are addressed in this work. First, are there distinct characteristics of the microentities (in primis, business firms) and their distributions which systematically persist over time? Second, how do such characteristics within the population of competing firms affect their relative evolutionary success over time? And in particular what are the ultimate outcomes in terms of growth and profitability performances? Third, amongst the foregoing statistical properties and relations between them, which ones are invariant across industries, and, conversely, which ones depend on the technological and market characteristics of particular sectors? In order to address these questions we proceed in a sort of “inductive” manner. I start by examining some basic features of the distributions of firms sizes, growth rates and profitability. Next, I consider some evidence on the underlying inter-firm heterogeneity - particularly with regard to technological innovativeness and productivity - and their relationships with corporate performances. Finally, the work recalls the basic elements of an evolutionary interpretation of the evidence. Together with important points of corroboration of such a view - including those regarding a profound heterogeneity of firms at all levels of observation -, one also facing standing challenges - in primis, concerning the purported role of markets as effective selection devices -.Industrial evolution, Size distributions, Growth rates, Heterogeneity, Fat tails, Market selection

    A Very Reasonable Objective Still Beyond Our Reach: Economics as an Empirically Disciplined Social Science

    Get PDF
    The paper discusses some fundamental features of the 'Simonian' research program in microeconomics and compare them with two streams of thought which find their roots into Simon's pathbreaking work since the '50s and '60s, namely Transaction Cost Economics and Evolutionary Economics. One argues that the latter is in a particularly promising position to advance toward the kind of empirically disciplined microeconomics advocated by Herbert Simon. It does so also through painstaking attempts to operationalize the notion of 'bounded rationality' - in the broadest sense -, to make bridges with the microevidence from other social sciences - e.g. cognitive and social psychology, etc.-, and to "open up the organizational blackbox". And all that is undertaken outside the straightjacket of any religious committment to equilibrium analysis.Herbert Simon; Evolutionary Economics; Transaction Cost Economics; Bounded Rationality; Organization.

    Technological innovation, institutions and human purposefulness in socioeconomic evolution: A preface to Christopher Freeman "Systems of Innovation. Selected Essays in Evolutionary Economics"

    Get PDF
    Christopher Freeman; National Systems of Innovation; Techno-economic paradigms; Variety of capitalisms; Political economics; Evolutionary Economics

    Income Levels and Income Growth. Some New Cross-Country Evidence and Some Interpretative Puzzles

    Get PDF
    This work brings together two distinct ensembles of evidence concerning, at macro level, international distributions of incomes and their dynamics, and, at micro level, the size distributions of firms and the properties of their growth rates. Together, we also consider an intermediate level of observation, namely the properties of sectoral growth. First, our empirical analysis provides a fresh look at the international distri-butions of incomes and growth rates by investigating more closely the relationship between the two entities and the statistical properties of the growth process. Second, we try to identify those statistical properties which are invariant with respect to the scale of observation (country, sector or firm) as distinct from those that are instead scale specific. This exercise puts forward a few major interpretative challenges regarding the correlating processes underlying the statistical evidence.International Distribution of Incomes, International Growth Rates, Scaling Laws, Growth Volatility, Exponential Tails

    The patterns of output growth of firms and countries: new evidence on scale invariances and scale specificities

    Get PDF
    This work brings together two distinct pieces of evidence concerning, at the macro level, international distributions of incomes and their dynamics, and, at the micro level, the size distributions of firms and the properties of their growth rates. First, our empirical analysis provides a new look at the international distribu- tions of incomes and growth rates by investigating more closely the relationship between the two entities and the statistical properties of the growth process. Second, we identify the statistical properties that are invariant with respect to the scale of observation (country or firm) as distinct from those that are scale specific. This exercise proposes a few major interpretative challenges regarding the correlating processes underlying the statistical evidence.International distribution of income, international growth rates, firm growth, scaling laws, growth volatility, exponential tails

    Technology as Problem-Solving Procedures and Technology as Input-Output Relations: Some Perspectives on the Theory of Production

    Get PDF
    In this work, inspired by Winter [2006], in fact of vintage 1968, we discuss the relation between three dierent levels of analysis of technologies, namely as (i) bodies of problem-solving knowledge, (ii) organizational procedures, and (iii) input-output relations. We begin by arguing that the "primitive" levels of investigation, "where the action is", are those which concern knowledge and organizational procedures, while in most respects the I/O representation is just an ex post, derived, one. Next, we outline what we consider to be important advances in the understanding of productive knowledge and of the nature and behaviors of business organizations which to a good extent embody such a knowledge. Finally, we explore some implications of such "procedural" view of technologies in terms of input-output relations (of which standard production functions are a particular instantiation). We do that with the help of some pieces of evidence, drawing both upon incumbent literature and our own elaboration on micro longitudinal data on the Italian industry.Theory of Production, Organizational Routines, Problem-solving Knowledge, Production Function, Micro-heterogeneity

    Competing Technologies, Technological Monopolies and the Role of Convergence to a Stable Market Structure

    Get PDF
    Empirically the diffusion of competing technologies most often displays either "lock-in" to a quasi-monopoly or apparent turbulence but rarely stable market-sharing. In contrast with widespread views, we show that, first, unbounded increasing returns are neither necessary nor sufficient to lead to technological monopolies. Rather, asymptotic patterns depend on the relative impact of increasing returns and the degree of adopters heterogeneity. Second, the unlikely empirical occurence of stable market-sharing is slower then to monopoly; thus, in the former case, the enviroment often changes before the market-share trajectory becomes stable.Competing Technologies, Product Selection, Unbounded Returns, Network Externalities, Heterogeneity, Technological Monopolies
    • 

    corecore