Metaprogress functions

Abstract

This paper presents a theory of evolutionary learning as an alternative to the traditional theories of productivity. It is commonly recognized that there exists a significant process of learning in the utilization of existing techniques of production. This is exemplified by the well-known concept of manufacturing progress function that unit costs systematically decline with increase in cumulated output. The thesis is advanced here that yet other learning processes underlie the development of new techniques in the first place giving rise to what may be called metaprogress functions. The proposed concept of metaprogress functions is formalized and explained by means of several illustrative case studies of technological innovations. It is concluded that the conventional and the metaprogress functions together account for both the temporal and spatial aspects of productivity evolution. The policy implications of the study are discussed at length.