The Foundations of Complex Evolving Economies

"A book that, placing itself at the convergence between empirical evidence and analysis, lays all the foundations of a new economic paradigm, that of the economy as a complex evolutionary system. On this, the new generations of scholars will have to confront and start again to face the economy of the 21st century with adequate tools. * Mauro Gallegati, Universit`a Politecnica delle Marche * This 'Manual' of complexity economics should really be called an Encyclopedia. It is an Ali-Baba cavern, lush with multidisciplinary ideas, historical anecdotes and insightful models. Researchers convinced that it is time to ditch the traditional framework of rational agents and economic equilibrium should read and digest this book, before trying to embrace the unfathomable and fascinating complexity of economic systems. * Jean-Philippe Bouchaud, 'Ecole polytechnique, Paris and Capital Fund Management * Economics has taken an empirical turn in the 21st Century, with data increasingly available on firms and households, importers and exporters, rich and poor. But the textbooks of economics have scarcely changed since the last century. In ""The Foundations of Complex Evolving Economies"" we have an attempt to teach what is known, empirically, about the modern economic world. It is a much richer and more variegated world than is on display in the conventional texts, full of complexity and diversity, perpetually evolving. To understand dynamic economies of networks, operated by heterogeneous, boundedly rational people, this book is the place to start. * Robert L. Axtell, George Mason University * Evolutionary economics views the economy and society as a set of complex, intertwined, evolving systems. Over the last forty years, evolutionary economists have built up an impressive body of new theory and evidence, unified by the common theme ""Dynamics first!"" Giovanni Dosi's Foundations brings order to this brave new world. Working with experts in fields ranging from the history of technology, to innovation studies, corporate strategy, N-K models, growth, and industry evolution, Dosi lays out a comprehensive map of the entire territory, showing both its scope and diversity. This book will be as an invaluable guide to scholars from all disciplines who are seeking to understand how evolution affects economic systems. * Carliss Y. Baldwin, Harvard Business School * Destined to become a classic. This book is a huge leap forward for the community of Evolutionary Economics, and for Economics in general. A remarkable achievement, truly impressive in terms of the amount of material covered, and the vivid and reader-friendly exposition. This book is a gift from one of the most exciting and original thinkers of our time: Giovanni Dosi. Enjoy! * Alex Coad, Waseda Business School, Tokyo * Are economists missing the forest for the trees when it comes to growing the economy? Giovanni Dosi argues that while economics can tell us subtle features of innovation incentives, it misses the big picture of how innovations emerge, grow, and take over in a complex evolving economy. This book provides an indispensable map to that forest, highlighting a large body of research that helps answer these critical questions. * Jim Bessen, Boston University * This wide-ranging book offers a unique view of the economics behind technology, production, and industries. Its distinct perspective is engaging and sure to raise questions in readers' minds. * Chad Syverson, Chicago Booth School of Business * A resounding Declaration of Independence from the canons of conventional economics, The Foundations of Complex Evolving Economies Part One treats a breathtaking range of phenomena from a unified perspective emphasizing bounded rationality, learning and selection, endogenous technological change, path dependency, and the evolutionary dynamics of organizations and markets. A bold and impressive achievement that will leave the community of Evolutionary Economists hungry for Part Two. * Joshua M. Epstein, New York University * Professor Dosi offers a thought-provoking analysis of innovative processes… This Manual builds a comprehensive model of the capitalist system and its evolution. A must-read for any innovation scholar. * Sarah Kaplan, Rotman School of Management, University of Toronto * To many of us the development of contemporary economies is an enigma that is difficult to ascertain from what is often offered in mainstream economic models. But what are alternative conceptions? In this fascinating volume, Giovanni Dosi takes on the challenging but tremendously important task to produce a framework for understanding the economy as a complex evolving system characterized by heterogeneous agents and their bounded rationality. Written as an admirably comprehensive manual, it draws upon half a century of his seminal contributions to evolutionary theorizing on economic and technical change. I highly recommend it to everyone in search for a complete yet structured understanding of the dynamic economic realities involving individuals, organizations, sectors and the economy. * Frederik Tell, Uppsala University *"