Seoul Journal of Economics - Vol. 23 , No. 2

[ Article ]
Seoul Journal of Economics - Vol. 23, No. 2, pp. 187-237
Abbreviation: SJE
ISSN: 1225-0279 (Print)
Print publication date 31 May 2010
Received 06 Oct 2009 Revised 08 Jan 2010

Capacities, Processes, and Feedbacks: The Complex Dynamics of Development
Gabriel Yoguel ; Verónica Robert
Corresponding Author, Professor, Instituto de Industria (Idel), Universidad Nacional de General Sarmiento (UNGS), Juan M. Gutiérrez St. 1150 (B1613GSX), Los Polvorines, Buenos Aires, Argentina, Tel: +54-11-4469-7567, Fax: +54-11-4469-7551 (gyoguel@ungs.edu.ar)
Assistant Professor, Instituto de Industria, Universidad Nacional de General Sarmiento, Juan M. Gutiérrez St. 1150, Los Polvorines, Buenos Aires, Argentina, Tel: +54-11-4469-7567 (vrobert@ungs.edu.ar)

JEL Classification: L23, O12, O39


The theory of complex systems applied to the evolutionary economics allows innovation to be considered not only the result of the intentional action of individual agent, but as an endogenous property of system dynamics. In this sense, innovation constitutes an emergent property of the system because it is not entirely determined on micro or macro levels, but is a result of continuous interaction between the two. At micro level the paper assumes that economic agents are endowed with intentionality in their adaptive or creative reactions that explains specific patterns of capacities and connectivity development. At macro level, processes of creative destruction, appropriation and structural change describe the evolution of the whole system. These dynamics tend to consolidate institutional frameworks that could be adverse or beneficial to innovation and that would reinforce divergent development paths. The feedbacks between micro and macro levels explain why the initial differences in development levels tend to increase between developed and developing countries.

Keywords: Complexity, Absorption capacity, Connectivity, Innovation


This paper has been presented in the 17th SJE-KERI-KIF-CEC International Symposium New Ways for Growth and Catch-up in a Changing Global Environment in October 16, 2009. We thank the comments of Keun Lee and the two discussants, Jaymin Lee and Elias Sanidas in this seminar. We also thank the comments of Cristiano Antonelli and Mario Cimoli to previous versions of this paper. The usual disclaimers apply.

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