The Market Economy, and the Scientific Commons

It is widely believed that while society allows technology to be private property, scientific knowledge is public and open. However, over the past quarter-century there has been increasing patenting of quite basic scientific knowledge. This essay argues that this is potentially a very serious problem. The future development of technology, as well as the future progress of science, is greatly facilitated when basic scientific knowledge is public and open. The paper explores the various factors that have led to the growing privatization of scientific knowledge. And it explores a variety of policy changes that can stop, and even reverse, these trends.Science, Technology, Patents, Open Knowledge.

Economic Development from the Perspective of Evolutionary Economic Theory

The purpose of the article is to discuss the differences between the evolutionary economic theory and the neoclassical theory from the appreciative viewpoint that aims to capture the basics of what actually is going on, leaving aside formal mathematical modeling in the two theories. As the result, evolutionary theory sees the economy as always in the process of change that involves economic actors taking actions that break from previous behavior, and an environment in continuing flux because of the innovation. While neoclassical theory sees the economy as at rest, or undergoing well anticipated change it has nothing to say about these kinds of conditions. Therefore the author believes the processes of economic catch-up have to proceed under the implicit or explicit guidance of an evolutionary economic theory.

What Makes an Economy Productive and Progressive? What Are the Needed Institutions?

Institutions again have become the focus of the theorizing and empirical work of economists concerned with the determinants of economic growth, and of cross country differences in income levels. One central argument of this paper is that institutions and institutional change need to be understood as tightly intertwined with the technologies used in an economy, and with technological change. A second argument is that, in general, societies have very limited ability to design institutions that are effective, and that the processes of institutional reform work erratically.

Bounded Rationality, Cognitive Maps, and Trial and Error Learning

The term "bounded rationality" is meant to connote the reasoning capabilities of an actor who, on the one hand, has a goal to achieve and an at least partially formed theory as to how to achieve it, and on the other hand, that the theory is somewhat crude, likely will be revised in the course of the effort, and that success is far from assured. This article presents a theory of how trial and error learning interacts with theory modification in the course of problem solving under bounded rationality. The empirical focus is on efforts to advance a technology, especially medical practice, but the analysis is quite general. A central question explored is what makes progress in a field hard or easy.Bounded Rationality, Search, Progress

What Makes an Economy Productive and Progressive? What Are the Needed Institutions?

Institutions again have become the focus of the theorizing and empirical work of economists concerned with the determinants of economic growth, and of cross country differences in income levels. One central argument of this paper is that institutions and institutional change need to be understood as tightly intertwined with the technologies used in an economy, and with technological change. A second argument is that, in general, societies have very limited ability to design institutions that are effective, and that the processes of institutional reform work erratically.Institutional and Behavioral Economics,

On the Complexities and Limits of Market Organization

The last quarter-century has seen the rise of an almost religious belief in the efficacy of market organization of economic activity. While there are strong empirically supported reasons for a bias toward market organization, particularly considering the alternatives, there are many areas of economic, social, and political activity where simple market organization is highly problematic. When we use markets in these areas, market organization tends to be supplemented by regulation and other nonmarket structures. There are a number of areas where we fence out markets, and use other forms of organization and governance. There used to be in economics a strong understanding of the limits of market organization, and the complex structures that in many cases were needed if markets were to work well. The purpose of this essay is to rekindle this understanding.Markets, Regulation, Public Support.

Improving the Performance of the Education Sector: The Valuable, Challenging, and Limited Role of Random Assignment Evaluations

In an attempt to improve the quality of educational research, the U.S. Department of Education%u2019s Institute of Education Sciences has provided funding for 65 randomized controlled trials of educational interventions. We argue that this research methodology is more effective in providing guidance to extremely troubled schools about how to make some progress than guidance to schools trying to move from making some progress to becoming high performance organizations. We also argue that the conventional view of medical research -- discoveries made in specialized laboratories that are then tested using randomized control trials -- is an inaccurate description of the sources of advances in medical practice. Moreover, this conventional view of the sources of advances in medical practice leads to incorrect inferences about how to improve educational research. We illustrate this argument using evidence from the history of medical research on the treatment of cystic fibrosis.