Complexity, economics, and innovation policy: How two kinds of science lead to two kind of economics and two kinds of policy

Potts, J 2017, 'Complexity, economics, and innovation policy: How two kinds of science lead to two kind of economics and two kinds of policy', Complexity, Governance and Networks, pp. 22-34.


Document type: Journal Article
Collection: Journal Articles

Title Complexity, economics, and innovation policy: How two kinds of science lead to two kind of economics and two kinds of policy
Author(s) Potts, J
Year 2017
Journal name Complexity, Governance and Networks
Start page 22
End page 34
Total pages 13
Publisher Baltzer Science Publisher
Abstract One interpretation of complexity science is that it distinguishes two types of science-an equilibrium science of forces, as begun by Newton, and a complexity science of rules, as exemplified by Wolfram (2002). If you accept that argument, then there are also two types of economics-an equilibrium economics in which forces move resources around the economy, and a complexity economics in which generic rules structure knowledge in an economy (Dopfer and Potts, 2008). However, this also implies two types of economic policy-a policy framework based on reallocating resources and a policy framework based on redesigning rules (Colander and Kupers, 2014). Modern economic policy generally engages in both, but we argue that this reflects the idea that modern economic policy has not caught up with complexity science. We illustrate how this difference plays out in the particular domain of innovation policy.
Subject Heterodox Economics
Public Economics- Publically Provided Goods
Public Economics- Public Choice
DOI - identifier 10.20377/cgn-40
Copyright notice © 2017 The Author
ISSN 2214-3009
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