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The Rise of Empires pp 17–47Cite as

Palgrave Macmillan

Theory of Innovation and Causal Dynamics

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Abstract

The theories of technological change generally fall into two categories. These include the Demand-pull and the Technology Push theories associated with technological change. Which of these two theories hold as implications not only for the determinants of how demand varies over time, but also for the determinants of innovation? Moreover, changes in the level of innovative activity are a result of changes in demand, and are not the reason for the volatility of demand. This knowledge is useful in pinpointing the actual causes of the changes in innovative activity.

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Notes

  1. 1.

    Dosi, G. (1982), Technological Paradigms and Technological Trajectories: A Suggested Interpretation of the Determinants and Directions of Technological Change, Research Policy 11, pp. 147–162.

  2. 2.

    Geroski, P., and Walters, C. (1995), Innovative Activity and the Business Cycle, The Economic Journal, Vol. 105, No. 431, pp. 916–928.

  3. 3.

    Ibid.

  4. 4.

    Ibid.

  5. 5.

    Ibid.

  6. 6.

    Ibid.

  7. 7.

    Ibid.

  8. 8.

    Ibid.

  9. 9.

    Ibid.

  10. 10.

    Ibid.

  11. 11.

    Saad, M. (2000), Development through Technology Transfer: Creating new Organisational and Cultural Understanding, Intellect Books, Portland, Oregon.

  12. 12.

    Ayres, R.U. (1985), A Schumpeterian model of technological substitution. Technological Forecasting and Social Change 27: 375–383.

  13. 13.

    Schmookler, J. (1966), Invention and economic growth, Harvard University Press, Cambridge, MA.

  14. 14.

    Cainelli, G., Evangelista, R., and Savona, M. (2006), Innovation and Economic Performance in Services: A Firm Level Analysis, Cambridge Journal of Economics, 30, pp. 435–458.

  15. 15.

    Knight, K.D. (1963), A Study of Technological Innovation. The Evolution of Digital Computers, DPhil Thesis, Carnegie, Institute of Technology, Pittsburgh.

  16. 16.

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  17. 17.

    Ruef, M. (2002), Strong ties, weak ties and islands: Structural and cultural predictors of organisational innovation, Industrial and Corporate Change, Vol. 11, No. 3, pp. 427–449.

  18. 18.

    Dosi, G. (1982), Technological Paradigms and Technological Trajectories: A Suggested Interpretation of the Determinants and Directions of Technological Change, Research Policy 11, pp. 147–162.

  19. 19.

    Ibid.

  20. 20.

    Ibid.

  21. 21.

    Hunt, S., and Morgan, R. (1996), The Resource-Advantage Theory of Competition: Dynamics, Path Dependencies, and Evolutionary Dimensions, Journal of Marketing, Vol. 60, No. 4, pp. 107–114.

  22. 22.

    Ericsson, J., and Irandoust, M. (2001), On the Causality Between Foreign Direct Investment and Output: A Comparative Study, The International Trade Journal, Volume XV, No. 1.

  23. 23.

    Dosi, G. (1982), Technological Paradigms and Technological Trajectories: A Suggested Interpretation of the Determinants and Directions of Technological Change, Research Policy 11, pp. 147–162.

  24. 24.

    Murmann, J., and Frenken, K. (2006), Toward a Systematic Framework for Research on Dominant Designs, Technological Innovations, and Industrial Change, Research Policy, 35, pp. 925–952.

  25. 25.

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  26. 26.

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  27. 27.

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  28. 28.

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  29. 29.

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  30. 30.

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  31. 31.

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  32. 32.

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  33. 33.

    Ibid.

  34. 34.

    Dooley, K., and Ven, A. (1999), Explaining Complex Organisational Dynamics, Organisational Science, Vol. 10, No. 3.

  35. 35.

    Ibid.

  36. 36.

    Markus, M., and Robey, D. (1988), Informational Technology and Organisational Change: Causal Structure in Theory and Research, Management Science, Vol. 34, No. 5, pp. 583–598.

  37. 37.

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  38. 38.

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  39. 39.

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  40. 40.

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  41. 41.

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  42. 42.

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  43. 43.

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  44. 44.

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  45. 45.

    Bergek, A., Jacobson, S., Carlsson, B., Lindmark, S., and Rickne, A. (2008), Analysing the functional dynamics of technological innovation systems: A Scheme of Analysis, Research Policy, 37, pp. 407–429.

  46. 46.

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  47. 47.

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  48. 48.

    Ibid.

  49. 49.

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  50. 50.

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  51. 51.

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  52. 52.

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  53. 53.

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  54. 54.

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  55. 55.

    Anderson, J. (1991), Is human cognition adaptive, Behavioural and Brain Sciences, 14, pp. 471–517.

  56. 56.

    Christensen, C. (2006), The Ongoing Process of Building a Theory of Disruption, J. Prod. Innov. Manag, 23, pp. 39–55.

  57. 57.

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  58. 58.

    Ibid.

  59. 59.

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  60. 60.

    Feldman, M.P. (1994a). The Geography of Innovation. Kluwer Academic, Boston.

  61. 61.

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  62. 62.

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  63. 63.

    Inoue-Nakamura, N., and Matsuzawa, T. (1997), Development of Stone Tool Use by Wild Chimpanzees, Journal of Comparative Psychology, Vol. III (2), pp. 159–173.

  64. 64.

    Coleman, J.S., Katz, E., and Menzel, H. (1966), Medical Innovation, Bobbs-Merrill, Indianapolis.

  65. 65.

    Burt, R. (1987), ‘Social Contagion and Innovation: Cohesion versus Structural Equivalence’, American Journal of Sociology, 92, 1287–1335.

  66. 66.

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  67. 67.

    Hedstrom, P., Sandell, R., and Stern, C. (2000), ‘Mesolevel networks and the diffusion of social movements: the case of the Swedish Social Democratic Party’, American Journal of Sociology, 106, pp. 145–172.

  68. 68.

    Malmberg, A., and Maskell, P. (2002), The Elusive Concept of Localisation Economies: Towards a Knowledge-Based Theory of Spatial Clustering, Environment and Planning, Vol. 34, pp. 429–449.

  69. 69.

    Wolfe, R. (1994), Organisational Innovation: Review, Critique and Suggested Research Directions, Journal of Management Studies, 31:3.

  70. 70.

    Nooteboom, B. (1994), Innovation and Diffusion in Small Firms: Theory & Evidence, Small Business Economics, 6, pp. 327–347.

  71. 71.

    Van Kleeck, M. H., & Kosslyn, S. M. (1991), Visual information processing: A perspective, IN: Attention and performance XIV, Meyer, D., & Kornblum, S. (Eds.), Bradford Books/MIT Press, Cambridge, MA.

  72. 72.

    Kingstone, A., Smilek, D., and Eastwood, J. (2008), Cognitive Ethology: A New Approach for Studying Human Cognition, British Journal of Psychology, 99, pp. 317–340.

  73. 73.

    Ibid.

  74. 74.

    Ibid.

  75. 75.

    Ibid.

  76. 76.

    Ibid.

  77. 77.

    Ibid.

  78. 78.

    Hedstrom, P., and Wennberg, K. (2017), Causal mechanism in Organisation and Innovation Studies, Innovation, 19:1, pp. 91–102.

  79. 79.

    Kingstone, A., Smilek, D., and Eastwood, J. (2008), Cognitive Ethology: A New Approach for Studying Human Cognition, British Journal of Psychology, 99, pp. 317–340.

  80. 80.

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  81. 81.

    Hedstrom, P., and Wennberg, K. (2017), Causal mechanism in Organisation and Innovation Studies, Innovation, 19:1, pp. 91–102.

  82. 82.

    Hedstrom, P., and Wennberg, K. (2017), Causal mechanism in Organisation and Innovation Studies, Innovation, 19:1, pp. 91–102.

  83. 83.

    Ibid.

  84. 84.

    Coleman, J. S, (1986), Social theory, social research, and a theory of action, American Journal of Sociology, 91, 1309–1335.

  85. 85.

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  86. 86.

    Mumford, M., Hunter, S., and Byrne, C. (2009), What is the Fundamental? The Role of Cognition in Creativity and Innovation, Industrial and Organisational Psychology 2, pp. 353–356.

  87. 87.

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  88. 88.

    Mumford, M., Hunter, S., and Byrne, C. (2009), What is the Fundamental? The Role of Cognition in Creativity and Innovation, Industrial and Organisational Psychology 2, pp. 353–356.

  89. 89.

    Ibid.

  90. 90.

    Hills, R. (1970), Sir Richard Arkwright and his patent granted in 1769, The Royal Society Journal of the History of Science, Vol. 24, Issue 2.

  91. 91.

    Ibid.

  92. 92.

    Hill, D. (1969), Richard Arkwright and the Water Frame, Proceedings of the Institution of Mechanical Engineers, Vol. 184, Issue 1.

  93. 93.

    Hills, R. (1970), Sir Richard Arkwright and his patent granted in 1769, The Royal Society Journal of the History of Science, Vol. 24, Issue 2.

  94. 94.

    Ibid.

  95. 95.

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  96. 96.

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  97. 97.

    Collier, J. (2006), Great Inventions – The Steam Engine, Marshall Cavendish Benchmark, New York.

  98. 98.

    Ibid.

  99. 99.

    Ibid.

  100. 100.

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  101. 101.

    Ibid.

  102. 102.

    Findlay, C., and Lumsden, C. (1988), The Creative Mind: Toward an Evolutionary Theory of Discovery and Innovation, J. Social Biol. Struct, 11, pp. 3–55.

  103. 103.

    Ibid.

  104. 104.

    Harkema, s. (2003), A complex adaptive perspective on learning within innovation projects, The Learning Organization, Vol. 10 Issue: 6, pp. 340–346, https://doi.org/10.1108/09696470310497177.

  105. 105.

    Findlay, C., and Lumsden, C. (1988), The Creative Mind: Toward an Evolutionary Theory of Discovery and Innovation, J. Social Biol. Struct, 11, pp. 3–55.

  106. 106.

    Ibid.

  107. 107.

    Ibid.

  108. 108.

    Ibid.

  109. 109.

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  110. 110.

    Ibid.

  111. 111.

    Koob, A. (2009), The Root of Thought: Unlocking Glia – The Brain Cell That Will Help Us Sharpen Our Wits, Heal Injury and Treat Brain Disease, Pearson Education, New Jersey, USA.

  112. 112.

    Ibid.

  113. 113.

    Koob, A. (2009), The Root of Thought: Unlocking Glia – The Brain Cell That Will Help Us Sharpen Our Wits, Heal Injury and Treat Brain Disease, Pearson Education, New Jersey, USA.

  114. 114.

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  115. 115.

    Etzkowitz, H., and Leydesdorff, L. (2000), The Dynamics of Innovation; From National Systems and ‘Mode 2’ to a Triple Helix of University-industry-government relations, Research Policy, 29, pp. 109–123.

  116. 116.

    Gaido, D. (2016), Rudolf Hilferding on English Mercantilism, History of Political Economy, 48:3.

  117. 117.

    Ibid.

  118. 118.

    Ibid.

  119. 119.

    Ibid.

  120. 120.

    Ibid.

  121. 121.

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  122. 122.

    Ibid.

  123. 123.

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  124. 124.

    Elmslie, B. (2015), Early English Mercantilists and the Support of Liberal Institutions, History of Political Economy, 47:3.

  125. 125.

    Ibid.

  126. 126.

    Ibid.

  127. 127.

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  128. 128.

    Mun, T. (1621) 1986, A Discourse of Trade, from England unto the East-Indies, New York: Augustus M. Kelley.

  129. 129.

    Appleby, J. (1976), Ideology and Theory: The Tension Between Political and Economic Liberalism in Seventeenth Century England, The American Historical Review, Vol. 81, No. 3, pp. 499–515.

  130. 130.

    Elmslie, B. (2015), Early English Mercantilists and the Support of Liberal Institutions, History of Political Economy, 47:3.

  131. 131.

    Ibid.

  132. 132.

    Herlitz, L. (1964) The concept of mercantilism, Scandinavian Economic History Review, 12:2, 101–120, DOI: https://doi.org/10.1080/03585522.1964.10407639.

  133. 133.

    Ibid.

  134. 134.

    Blaug, M. (1964), Economic Theory and Economic History in Great Britain, 1650–1776, Past & Present, No. 28, pp. 111–116.

  135. 135.

    Mirza, R. (2007), The Rise and Fall of the American Empire: A Re-Interpretation of History, Economics and Philosophy: 1492–2006, Trafford Publishing, Victoria, Canada.

  136. 136.

    Ibid.

  137. 137.

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  138. 138.

    Coleman, D. (1980), Mercantilism Revisited, The Historical Journal, Vol. 23, No. 4, pp. 773–791.

  139. 139.

    Ibid.

  140. 140.

    Grampp, W. (1952), The Liberal Elements in English Mercantilism, The Quarterly Journal of Economics, Vol. 66, No. 4, pp. 465–501.

  141. 141.

    Johnson, E.A.J. (1928), Some Evidence of Mercantilism in the Massachusetts-Bay, The New England Quarterly, Vol. 1, No. 3, pp. 371–395.

  142. 142.

    Heaton, H. (1937), Heckscher on Mercantilism, Journal of Political Economy, Vol. 45, No. 3, pp. 370–393.

  143. 143.

    Johnson, E.A.J. (1928), Some Evidence of Mercantilism in the Massachusetts-Bay, The New England Quarterly, Vol. 1, No. 3, pp. 371–395.

  144. 144.

    Mokyr, K., and Nye, J. (2007), Distributional Coalitions, the Industrial Revolution, the Origins of Economic Growth in Britain, Southern Economic Journal, Vol. 74, No. 1, pp. 50–70.

  145. 145.

    Ibid.

  146. 146.

    Smith, A. (1776), The Wealth of Nations, reproduced 2014, CreateSpace Independent Publishing Platform.

  147. 147.

    Ibid.

  148. 148.

    Ibid.

  149. 149.

    Grampp, W. (1952), The Liberal Elements in English Mercantilism, The Quarterly Journal of Economics, Vol. 66, No. 4, pp. 465–501.

  150. 150.

    Herlitz, L. (1964), The concept of mercantilism, Scandinavian Economic History Review, 12:2, 101–120, DOI: https://doi.org/10.1080/03585522.1964.10407639.

  151. 151.

    Ibid.

  152. 152.

    Ibid.

  153. 153.

    Hinton, R.W.K. (1955), The Mercantile System in the Time of Thomas Mun, The Economic History Review, New Series, Vol. 7, No. 3, pp. 277–290.

  154. 154.

    Ibid.

  155. 155.

    Grampp, W. (1952), The Liberal Elements in English Mercantilism, The Quarterly Journal of Economics, Vol. 66, No. 4, pp. 465–501.

  156. 156.

    Ibid.

  157. 157.

    Ibid.

  158. 158.

    Ibid.

  159. 159.

    Hinton, R.W.K. (1955), The Mercantile System in the Time of Thomas Mun, The Economic History Review, New Series, Vol. 7, No. 3, pp. 277–290.

  160. 160.

    Viner, J. (1930), English Theories of Foreign Trade Before Adam Smith, Journal of Political Economy, Vol. 38, No. 3, pp. 249–301.

  161. 161.

    Gould, J.D. (1955), The Trade Crisis of the Early 1920’s and English Economic Thought, The Journal of Economic History, Vol. 15, No. 2, pp. 121–133.

  162. 162.

    Hinton, R.W.K. (1955), The Mercantile System in the Time of Thomas Mun, The Economic History Review, New Series, Vol. 7, No. 3, pp. 277–290.

  163. 163.

    Pincus, S. (2012), Rethinking Mercantilism: Political Economy, the British Empire, and the Atlantic World in the Seventeenth and Eighteenth Centuries, The William and Mary Quarterly, Vol. 69, No. 1, pp. 3–34.

  164. 164.

    Ibid.

  165. 165.

    Ibid.

  166. 166.

    Williams, W. (1958), The Age of Mercantilism: An Interpretation of the American Political Economy, 1763 to 1828, The William and Mary Quarterly, Vol. 15, No. 4, pp. 419–437.

  167. 167.

    Ibid.

  168. 168.

    Ibid.

  169. 169.

    Ibid.

  170. 170.

    Ibid.

  171. 171.

    Ibid.

  172. 172.

    Ibid.

  173. 173.

    Pecquet, G.M. (2003), British Mercantilism and Crop Controls in the Tobacco Colonies: A Study of Rent-Seeking Costs, 22 Cato J. 467.

  174. 174.

    Somers, M., and Block, F. (2005), From Poverty to Perversity: Ideas, Markets and Institutions over 200 Years of Welfare Debate, American Sociological review, Vol. 70, pp. 260–287.

  175. 175.

    Williams, W. (1958), The Age of Mercantilism: An Interpretation of the American Political Economy, 1763 to 1828, The William and Mary Quarterly, Vol. 15, No. 4, pp. 419–437.

  176. 176.

    Ibid.

  177. 177.

    Levine, P. (2013), The British Empire – Sunrise to Sunset, 2nd Edition, Routledge, London.

  178. 178.

    Ekelund, R., and Tollison, R. (1980), Mercantilist Origins of the Corporation, The Bell Journal of Economics, Vol. 11, No. 2, pp. 715–720.

  179. 179.

    Ibid.

  180. 180.

    Ibid.

  181. 181.

    Scott. W.R. (1951), The Constitution and Finance of English, Scottish, and Irish Joint-Stock Companies to 1720, Vols. 1, 2. New York: Peter Smith.

  182. 182.

    Ekelund, R., and Tollison, R. (1980), Mercantilist Origins of the Corporation, The Bell Journal of Economics, Vol. 11. No. 2, pp. 715–720.

  183. 183.

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    Sangaralingam Ramesh

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Ramesh, S. (2018). Theory of Innovation and Causal Dynamics. In: The Rise of Empires. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-01608-1_2

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