TY - JOUR
T1 - Economics for a creative world
AU - Koppl, Roger
AU - Kauffman, Stuart
AU - Felin, Teppo
AU - Longo, Giuseppe
N1 - Publisher Copyright:
© 2014 Millennium Economics Ltd.
PY - 2015/3/6
Y1 - 2015/3/6
N2 - Drawing on current biology, we argue that the phase space of economic evolution is not stable. Thus, there are no entailing laws of economic dynamics. In this sense, economic dynamics are creative and the economy is not a causal system. Because economic dynamics are creative, the implicit frame of analysis for the econosphere changes in unprestatable and non-algorithmic ways. New-venture, social, and political entrepreneurs solve the frame problem of the econosphere. Economic evolution is unpredictable, not entailed, and the number of things traded ('cambiodiversity') increases over time. Our metatheoretic framework points out how institutions, entrepreneurs, and disparate actors enable what we call 'novelty intermediation'. We provide examples of novelty intermediation from Rennaissance Italy to Silicon Valley. Our framework does not automatically provide clear policy prescriptions in part because our main result is negative. It may nevertheless provide a useful prolegomenon to a future economics fit for a creative world.
AB - Drawing on current biology, we argue that the phase space of economic evolution is not stable. Thus, there are no entailing laws of economic dynamics. In this sense, economic dynamics are creative and the economy is not a causal system. Because economic dynamics are creative, the implicit frame of analysis for the econosphere changes in unprestatable and non-algorithmic ways. New-venture, social, and political entrepreneurs solve the frame problem of the econosphere. Economic evolution is unpredictable, not entailed, and the number of things traded ('cambiodiversity') increases over time. Our metatheoretic framework points out how institutions, entrepreneurs, and disparate actors enable what we call 'novelty intermediation'. We provide examples of novelty intermediation from Rennaissance Italy to Silicon Valley. Our framework does not automatically provide clear policy prescriptions in part because our main result is negative. It may nevertheless provide a useful prolegomenon to a future economics fit for a creative world.
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U2 - 10.1017/S1744137414000150
DO - 10.1017/S1744137414000150
M3 - Article
AN - SCOPUS:84922335594
SN - 1744-1374
VL - 11
SP - 1
EP - 31
JO - Journal of Institutional Economics
JF - Journal of Institutional Economics
IS - 1
ER -