Industrial Dynamics and Endogenous Growth

Economic growth can be described at the macro level, but it can never be explained at that level. Economic growth is a matter of experimental creation of a variety of technologies that are confronted with potential buyers (customers) in dynamic markets and hierarchies. Thus, economic growth results from the interaction of a variety of actors who create and use technology, and demanding customers. Economic growth is inherently a micro phenomenon. The focus of this paper is on the conditions that are conducive to creation of a variety of new technologies and on those that are necessary and sufficient for the efficient selection and capturing of winners. We refer to the former as a technological system and the latter as a competence bloc, combined with an experimentally organized economy (EOE). The confrontation between actors and between actors and ideas in the markets for innovation gives rise to what we call industrial dynamics. By specifying the mechanisms that generate new technology (rather than assuming an exogenous supply of technology), we endogenize economic growth.

[1]  Sidney G. Winter,et al.  Schumpeterian Competition in Alternative Technological Regimes , 1983 .

[2]  Glenn L. Johnson,et al.  Productivity and Technical Change. , 1961 .

[3]  B. Carlsson.  Industrial Subsidies in Sweden: Macro-Economic Effects and an International Comparison , 1983 .

[4]  Bo Carlsson,et al.  Industrial dynamics : technological, organizational, and structural changes in industries and firms , 1989 .

[5]  Gunnar Eliasson,et al.  Competition and Market Processes in a Simulation Model of the Swedish Economy , 1977 .

[6]  Gunnar Eliasson,et al.  Business economic planning: Theory, practice, and comparison , 1976 .

[7]  G. Eliasson.  The Dynamics of Supply and Economic Growth , 1989 .

[8]  J. Niosi,et al.  The Economic and Social Dynamics of Biotechnology , 2000 .

[9]  Gunnar Eliasson,et al.  Industrial policy, competence blocs and the role of science in economic development , 2000 .

[10]  L. Walras.  Elements of Pure Economics, or The Theory of Social Wealth , 1955 .

[11]  B. Carlsson.  The Content of Productivity Growth in Swedish Manufacturing : Research Policy , 1987 .

[12]  J. Hicks,et al.  Value and Capital , 2017 .

[13]  Gunnar Eliasson,et al.  Modeling the experimentally organized economy: Complex dynamics in an empirical micro-macro model of endogenous economic growth , 1991 .

[14]  Erol Taymaz,et al.  The Knowledge Based Information Economy , 1990 .

[15]  P. Romer.  Endogenous Technological Change , 1989, Journal of Political Economy.

[16]  R. Coase.  The Nature of the Firm , 1937 .

[17]  B. Carlsson.  Technological Systems in the Bio Industries , 2002 .

[18]  S. B. Linder,et al.  An essay on trade and transformation , 1964 .

[19]  F. Knight.  The economic nature of the firm: From Risk, Uncertainty, and Profit , 2009 .

[20]  Gunnar Eliasson,et al.  General Purpose Technologies, Industrial Competence and Economic Growth , 1997 .

[21]  Paul L. Robertson,et al.  Receptive Capacity of Established Industries as a Limiting Factor in the Economy's Rate of Innovation¹ , 2003 .

[22]  Bo Carlsson.  Technological systems in the bio industries : an international study , 2002 .

[23]  M. Nadiri,et al.  Innovations and Technological Spillovers , 1993 .

[24]  E. Dahmen,et al.  Entrepreneurial activity and the development of Swedish industry, 1919-1939 , 1970 .

[25]  Bo Carlsson,et al.  Technological Systems and Industrial Dynamics , 1997 .

[26]  G. Eliasson.  Micro Heterogeneity of Firms and the Stability of Industrial Growth , 1984 .

[27]  S. Winter.  Economic "Natural Selection" and the Theory of the Firm , 1964 .

[28]  Georgi Trofimov,et al.  Learning Through Short-Run Macroeconomic Forecasts in a Micro-to- Macro Model , 1993 .

[29]  Piero Sraffa,et al.  The Laws of Returns under Competitive Conditions , 1926 .

[30]  Allyn A. Young,et al.  INCREASING RETURNS AND ECONOMIC PROGRESS , 1928 .

[31]  B. Carlsson,et al.  Development blocks and international transformation : the Dahménian approach to economic development , 1991 .

[32]  William J. Baumol,et al.  Entrepreneurship in Economic Theory , 1968 .

[33]  G. Eliasson.  Ignorant Actors in the Resource Rich World of the Knowledge Based Economy - On Rational Management in an Experimentally Organized Economy (EOE) , 2004 .

[34]  G. Eliasson.  Business Competence, Organizational Learning and Economic Growth: Establishing the Smith-Schumpeter-Wicksell (SSW) Connection , 1991 .

[35]  Å. Eliasson.  A Competence Bloc Analysis of the Economic Potential of Biotechnology in Agriculture and Food Production , 2002 .

[36]  B. Södersten,et al.  An Essay on Trade and Transformation , 1961 .

[37]  R. Lucas.  On the Mechanics of Economic Development , 1988 .

[38]  Daniel A. Levinthal,et al.  ABSORPTIVE CAPACITY: A NEW PERSPECTIVE ON LEARNING AND INNOVATION , 1990 .

[39]  Gunnar Eliasson,et al.  Global Economic Intergration and Regional Attractors of Competence , 2003 .

[40]  G. Eliasson,et al.  The biotechnological competence bloc , 1996 .

[41]  B. Carlsson,et al.  On the nature, function and composition of technological systems , 1991 .

[42]  Gunnar Eliasson.  The Firm and Financial Markets in the Swedish Micro-To-Macro Model: Theory, Model, and Verification , 1985 .

[43]  Gunnar Eliasson,et al.  Firm Objectives, Controls and Organization: The Use of Information and the Transfer of Knowledge within the Firm , 1995 .

[44]  Rikard Stankiewicz,et al.  The Cognitive Dynamics of Biotechnology and the Evolution of Its Technological Systems , 2002 .

[45]  Bo Carlsson,et al.  Technological systems and economic performance : the case of factory automation , 1995 .

[46]  K. Arrow.  Economic Welfare and the Allocation of Resources for Invention , 1962 .

[47]  Gunnar Eliasson,et al.  The Firm as a Competent Team , 1990 .

[48]  P. Romer.  Increasing Returns and Long-Run Growth , 1986, Journal of Political Economy.

[49]  Bo Carlsson,et al.  special issue: Technology transfer in United States universities , 2002 .

[50]  G. Eliasson.  Deregulation, innovative entry and structural diversity as a source of stable and rapid economic growth , 1991 .

[51]  G. Eliasson,et al.  Hur styrs storföretag , 1984 .

[52]  Bo Carlsson,et al.  Industristödspolitiken och dess inverkan på samhällsekonomin , 1981 .

[53]  T. Healy,et al.  The Well-Being of Nations: The Role of Human and Social Capital. Education and Skills. , 2001 .

[54]  K. Menger,et al.  Grundsätze der Volkswirtschaftslehre , 1924 .

[55]  G. Eliasson.  On the Optimal Rate of Structural Adjustment , 1982 .

[56]  Richard H. Day,et al.  The dynamics of market economies , 1986 .

[57]  Alexis Jacquemin,et al.  Competitiveness and the Value of Intangible Assets , 2000 .

[58]  G. Eliasson,et al.  Technological competition and trade in the experimentally organized economy , 1987 .

[59]  K. Arrow,et al.  The markets for innovation, ownership and control , 1993 .