This seems to be a similar argument Lachmann makes in _The Structure of Production_. That argument is very similar, probably well thought of as an extension of Smith’s division of labor limited by the extent of the market applied to capital. Technology simply being something of a more general classification that applies to both labor and capital.
For me it’s about considering innovation through the lens of complementarity with the rest of the economy and particularly at the “edges”. If we consider the economy a tapestry the edges will be frayed, not well bound. That will be where innovation can take root and integrate into the broader picture by finding new relationships with the existing threads on the frayed edges. In some cases that results in brand new economic areas. Most of the time I suspect it results in advancements in how existing economic activity is conducted or needs are met leading to the Schumpeterian process of creative destruction.
I wonder if the Euclidean graph type approach really captures the full texture of the processes at work or not. Perhaps it hides as much in the shadows as it sheds light on.
This seems to be a similar argument Lachmann makes in _The Structure of Production_. That argument is very similar, probably well thought of as an extension of Smith’s division of labor limited by the extent of the market applied to capital. Technology simply being something of a more general classification that applies to both labor and capital.
For me it’s about considering innovation through the lens of complementarity with the rest of the economy and particularly at the “edges”. If we consider the economy a tapestry the edges will be frayed, not well bound. That will be where innovation can take root and integrate into the broader picture by finding new relationships with the existing threads on the frayed edges. In some cases that results in brand new economic areas. Most of the time I suspect it results in advancements in how existing economic activity is conducted or needs are met leading to the Schumpeterian process of creative destruction.
I wonder if the Euclidean graph type approach really captures the full texture of the processes at work or not. Perhaps it hides as much in the shadows as it sheds light on.