Optimal diversity: Increasing returns versus recombinant innovation

Journal of Economic Behavior and Organization

Volumn 68, Issue 3-4, 2008, Pages 565-580

  van den Bergh, Jeroen C J M ^a,b,c  

^a INSTITUCIÓ CATALANA DE RECERCA I ESTUDIS AVANÇATS ICREA   (Spain)

^b INSTITUT DE CIÈNCIA I TECNOLOGIA AMBIENTALS   (Spain)

^c VU UNIVERSITY AMSTERDAM   (Netherlands)

Author keywords

Balance; Disparity; Distribution; Economies of scale; Efficiency; Evolution; Exploration versus exploitation; Investment theory; Learning; R D

Indexed keywords

EID: 56249092058     PISSN: 01672681     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jebo.2008.09.003     Document Type: Article

References (98)

1. Andersen E.S. Evolutionary Economics: Post-Schumpeterian Contributions (1994), Pinter, London
2. Arrow K.J., and Fisher A.C. Environmental preservation, uncertainty, and irreversibility. Quarterly Journal of Economics 88 (1974) 312-319
3. Arthur W.B. Competing technologies, increasing returns, and lock-in by historical events. Economic Journal 99 (1989) 116-131
4. Aslaksen, I., Synnestvedt, T., 2004. Are the Dixit-Pindyck and the Arrow-Fisher-Henry-Hanemann option values equivalent? Discussion Papers No. 390, Statistics Norway, Oslo.
5. Baumgärtner S. Optimal investment in multi-species protection: Interacting species and ecosystem health. EcoHealth 1 (2004) 101-110
6. Besen S.M., and Farrell J. Choosing how to compete: strategies and tactics in standardization. Journal of Economic Perspectives 8 2 (1994) 117-131
7. Birchenhall C. Modular technical change and genetic algorithms. Computational Economics 8 (1995) 233-253
8. Birge J.R., and Rosa C.H. Incorporating investment uncertainty into greenhouse policy models. The Energy Journal 17 (1996) 79-90
9. Black F., and Scholes M. The pricing of options and corporate liabilities. Journal of Political Economy 81 (1973) 637-654
10. Cantner U., and Pyka A. Classifying technology policy from an evolutionary perspective. Research Policy 30 (2001) 759-775
11. Carroll G.R., and Hannan M.T. The Demography of Corporations and Industries (2000), Princeton University Press, Princeton, NJ
12. Coggins J.S., and Ramezani C.A. An arbitrage-free approach to quasi-option value. Journal of Environmental Economics and Management 35 (1998) 103-125
13. Common M., and Perrings C. Towards an ecological economics of sustainability. Ecological Economics 6 (1992) 7-34
14. David, P.A., 1986. Narrow windows, blind giants and angry orphans: the dynamics of systems rivalries and dilemmas of technology policy. CEPR Paper 10, Stanford Institute for Economic Policy Research, Stanford University, March 1986.
15. David P.A. Some new standards for the economics of standardization in the information age. In: Dasgupta P., and Stoneman P. (Eds). Economic Policy and Technological Performance (1987), Cambridge University Press, Cambridge 206-239
16. David P.A., and Greenstein S. The economics of compatibility standards: an introduction to recent research. Economics of Innovation and New Technology 1 (1990) 3-41
17. Dixit A.K., and Pindyck R.S. Investment under Uncertainty (1994), Princeton University Press, Princeton, N.J.
18. In: Dopfer K. (Ed). Economics, Evolution and the State: Governance of Complexity (2005), Edward Elgar, Cheltenham, U.K.
19. In: Dosi G., Freeman C., Nelson R., Silverberg G., and Soete L. (Eds). Technical Change and Economic Theory (1988), Pinter Publishers, London
20. Eiben A.E., and Smith J.E. Introduction to Evolutionary Computing (2003), Springer, Berlin
21. Epstein L.G. Decision making and the temporal resolution of uncertainty. International Economic Review 21 (1980) 269-283
22. Esteban J.M., and Ray D. On the measurement of polarization. Econometrica 62 (1994) 819-851
23. Fisher A.C. Investment under uncertainty and option value in environmental economics. Resource and Energy Economics 22 (2000) 197-204
24. Fisher A.C., Krutilla J.V., and Cicchetti C.J. The economics of environmental preservation. American Economic Review 62 (1972) 605-619
25. Fisher R.A. The Genetical Theory of Natural Selection (1930), Clarendon, Oxford
26. Foray D. The dynamic implications of increasing returns: technological change and path dependent inefficiency. International Journal of Industrial Organization 15 (1997) 733-752
27. Freeman C. Technology Policy and Economic Performance (1987), Pinter, London
28. Frenken K. A complexity approach to innovation networks. Research Policy 29 (2000) 257-272
29. Frenken K. A complex systems methodology to transition management. Lecture at Workshop on "Computational and Mathematical Approaches to Societal Transitions". 26 February-2 March 2007. Lorentz Center, Leiden University (2007)
30. Frenken K., and Nuvolari A. The early development of the steam engine: an evolutionary interpretation using complexity theory. Industrial and Corporate Change 13 (2004) 419-450
31. Frenken K., Saviotti P.P., and Trommetter M. Variety and niche creation in aircraft, helicopters, motorcycles and microcomputers. Research Policy 28 (1999) 469-488
32. Garcia R., Calantone R., and Levine R. The role of knowledge in resource allocation to exploration versus exploitation in technologically oriented organizations. Decision Sciences 24 (2003) 323-349
33. Geels F.W. Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case-study. Research Policy 31 (2002) 1257-1274
34. Geels F.W. Analysing the breakthrough of rock 'n' roll (1930-1970): multi-regime interaction and reconfiguration in the multi-level perspective. Technological Forecasting and Social Change 74 (2007) 1411-1431
35. Gollier C., Jullien B., and Treich N. Scientific progress and irreversibility: an economic interpretation of the precautionary principle. Journal of Public Economics 75 (2000) 229-253
36. In: Gunderson L.H., and Holling C.S. (Eds). Panarchy: Understanding Transformations in Human and Natural Systems (2002), Island Press, Washington, D.C.
37. Hannan M.T., and Freeman J. The population ecology of organizations. American Journal of Sociology 83 (1977) 929-984
38. Hannan M.T., and Freeman J. Organizational Ecology (1989), Harvard University Press, Cambridge, MA
39. Henderson R., and Clark K. Architectural innovation. Administrative Science Quarterly 35 (1990) 9-30
40. Henry C. Investment decisions under uncertainty: the irreversibility effect. American Economic Review 64 (1974) 1006-1012
41. Holling C.S. Resilience and stability of ecological systems. Annual Review of Ecological Systems 4 (1973) 1-24
42. Holling C.S. The resilience of terrestrial ecosystems: local surprise and global change. In: Clark W.C., and Munn R.E. (Eds). Sustainable Development of the Biosphere (1986), Cambridge University Press, Cambridge
43. Hong L., and Page S.E. Groups of diverse problem solvers can outperform groups of high-ability problem solvers. Proceedings of the National Academy of Sciences of the USA 101 (2004) 16385-16389
44. Iwai K. Schumpeterian dynamics. Part I. An evolutionary model of innovation and imitation. Journal of Economic Behaviour and Organization 5 (1984) 159-190
45. Kauffman S.A. The Origins of Order: Self-Organization and Selection in Evolution (1993), Oxford University Press, Oxford
46. 2 control in the face of uncertainty and learning. In: van Ierland E.C. (Ed). International Environmental Economics (1994), Elsevier Science Publishers, Amsterdam 75-96
47. Krutilla J.V. Conservation reconsidered. American Economic Review 57 (1967) 777-784
48. Krysiak F., and Krysiak D. Sustainability with uncertain future preferences. Environmental and Resource Economics 33 (2006) 511-531
49. Levin S., Barrett S., Aniyar S., Baumol W., Bliss C., Bolin B., Dasgupta P., Ehrlich P., Folke C., Gren I., Holling C.S., Jansson A., Jansson B.-O., Mäler K.-G., Martin D., Perrings C., and Sheshinski E. Resilience in natural and socioeconomic systems. Environment and Development Economics 3 (1998) 222-235
50. Levinthal D., and March J.G. A model of adaptive organizational search. Journal of Economic Behaviour and Organization 2 (1981) 307-333
51. Lewin A.Y., Long C.P., and Carrol T.N. The coevolution of new organizational forms. Organization Science 10 (1999) 535-551
52. Luehrman T. Strategy as a portfolio of real options. Harvard Business Review 76 (1998) 89-99
53. Lundvall B.-A. National innovation systems: from List to Freeman. In: Hanusch H., and Pyka A. (Eds). Elgar Companion to Neo-Schumpeterian Economics (2007), Edward Elgar, Cheltenham 872-881
54. Maignan, C., Ottaviano, G., Pineli, D., Rullani, F., 2003. Bio-ecological diversity vs. socio-economic diversity: a comparison of existing measures. FEEM Working Paper no. 13.2003. Fondazione Eni Enrico Mattei, Milano.
55. March J.G. Exploration and exploitation in organizational learning. Organization Science 2 (1991) 71-87
56. Markowitz H.M. Portfolio selection. Journal of Finance 7 (1952) 77-91
57. Maynard Smith J., and Szathmáry E. The Major Transitions in Evolution (1995), Oxford University Press, Oxford
58. Metcalfe J.S. Competition, Fisher's principle and increasing returns to selection. Journal of Evolutionary Economics 4 (1994) 327-346
59. Metcalfe J.S. The economic foundations of technology policies: Equilibrium and evolutionary perspectives. In: Stoneman P. (Ed). Handbook of the Economics of Innovation and Technological Change (1995), Blackwell, Oxford 409-511
60. Metcalfe J.S. Evolutionary Economics and Creative Destruction (1998), Routledge, London
61. Mokyr J. The Lever of the Riches: Technological Creativity and Economic Progress (1990), Oxford University Press, Oxford
62. Munro A. Economics and biological evolution. Environmental and Resource Economics 9 (1997) 429-449
63. Murray F. Innovation as co-evolution of scientific and technological networks: exploring tissue engineering. Research Policy 31 (2002) 1389-1403
64. Nelson R. National Innovation Systems (1993), Oxford University Press, New York
65. Nelson R., and Winter S. An Evolutionary Theory of Economic Change (1982), Harvard University Press, Cambridge, MA
66. Olson O., and Frey B.S. Entrepreneurship as recombinant growth. Small Business Economics 19 (2002) 69-80
67. In: Pelikan P., and Wegner G. (Eds). The Evolutionary Analysis of Economic Policy (2003), Edward Elgar, Cheltenham, U.K.
68. Pimm S.L. The complexity and stability of ecosystems. Nature 307 (1984) 321-326
69. Pindyck R.S. Irreversibility, uncertainty, and investment. Journal of Economic Literature 29 3 (1991) 1110-1148
70. Pindyck R.S. Irreversibilities and the timing of environmental policy. Resource and Energy Economics 22 (2000) 233-259
71. Porter R. The new approach to wilderness preservation through benefit-cost analysis. Journal of Environmental Economics and Management 9 (1982) 59-80
72. Potts J. The New Evolutionary Microeconomics: Complexity, Competence, and Adaptive Behavior (2000), Edward Elgar, Cheltenham, U.K.
73. Rammel C., and van den Bergh J.C.J.M. Evolutionary policies for sustainable development: adaptive flexibility and risk minimising. Ecological Economics 47 (2003) 121-133
74. In: Sartorius C., and Zundel S. (Eds). Time Strategies, Innovation and Environmental Policy (2005), Edward Elgar, Cheltenham, U.K.
75. Saviotti P.P., and Mani G.S. Competition, variety and technological evolution: a replicator dynamics model. Journal of Evolutionary Economics 5 (1995) 369-392
76. Schlosser G., and Wagner G.P. Modularity in Development and Evolution (2004), University of Chicago Press, Chicago
77. Schot J., and Geels F.W. Niches in evolutionary theories of technical change: a critical survey of the literature. Journal of Evolutionary Economics 17 (2007) 605-622
78. Schumpeter J.A. The Theory of Economic Development (1934), Harvard University Press, Cambridge
79. Shackle G.L.S. Expectation in Economics (1949), Cambridge University Press, Cambridge
80. Sharpe W.F. Capital asset prices: a theory of market equilibrium under conditions of risk. Journal of Finance 19 (1964) 425-442
81. Stirling, A., 1998. On the economics and analysis of diversity. SPRU Working Paper Number 28, University of Sussex.
82. Stirling A. Diverse Designs: Fostering Technological Diversity in Innovation for Sustainability (2004), Science and Technology Policy Research (SPRU), University of Sussex, Brighton
83. Stirling A. A general framework for analysing diversity in science, technology and society. Journal of the Royal Society Interface 4 (2007) 707-719
84. Swanson T.M. The economics of extinction revisited and revised: a generalised framework for the analysis of the problems of endangered species and biodiversity losses. Oxford Economic Papers 46 Suppl. (1994) 800-821
85. Tisdell C., and Seidl I. Niches and economic competition: implications for economic efficiency, growth and diversity. Structural Change and Economic Dynamics 15 (2004) 119-135
86. Tsur, Y., Zemel, A., 2006. Endogenous recombinant growth. Discussion Paper No. 2.06. The Department of Agricultural Economics and Management. The Hebrew University of Jerusalem.
87. Ulph A., and Ulph D. Global warming, irreversibility and learning. Economic Journal 107 (1997) 636-650
88. van den Bergh J.C.J.M. Evolutionary thinking in environmental economics. Journal of Evolutionary Economics 17 (2007) 521-549
89. van den Bergh J.C.J.M., Faber A., Idenburg A.M., and Oosterhuis F.H. Survival of the greenest: evolutionary economics and policies for energy innovation. Environmental Sciences 3 (2006) 57-71
90. van der Heide C.M., van den Bergh J.C.J.M., and van Ierland E.C. Extending Weitzman's economic ranking of biodiversity protection: combining ecological and genetic considerations. Ecological Economics 55 (2005) 218-223
91. Walters C. Adaptive Management of Renewable Resources (1986), MacMillan, New York
92. Watson R.A. Compositional Evolution: The Impact of Sex, Symbiosis, and Modularity on the Gradualist Framework of Evolution (2006), MIT Press, Cambridge, MA
93. Weisbrod B.A. Collective consumption services of individual consumption goods. Quarterly Journal of Economics 78 (1964) 471-477
94. Weitzman M.L. On diversity. Quarterly Journal of Economics 107 (1992) 363-405
95. Weitzman M.L. The Noah's ark problem. Econometrica 66 (1998) 1279-1298
96. Weitzman M.L. Recombinant growth. Quarterly Journal of Economics 113 (1998) 331-360
97. Witt U. Economic policy making in evolutionary perspective. Journal of Evolutionary Economics 13 (2003) 77-94
98. Young R.A. Uncertainty and the Environment: Implications for Decision Making and Environmental Policy (2001), Edward Elgar, Cheltenham, U.K.