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Endogenous Innovation

The Economics of an Emergent System Property

Cristiano Antonelli

This ground-breaking new book builds upon the Schumpeterian creative response. The author shows that firms, in out-of-equilibrium conditions, try and react by means of introducing innovations. The success of their reaction is contingent upon their access conditions to knowledge, which are shaped by the system in which they operate. The emergence of new innovations can, in turn, knock firms further out-of-equilibrium and cause changes in the system properties that govern their access to external knowledge. This path dependent loop of interactions between the system properties and the individual actions of firms, accounts for endogenous innovation and the dynamics of the system.
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Chapter 10: A new framework of innovation and knowledge policy

The Economics of an Emergent System Property

Cristiano Antonelli

Extract

This chapter highlights the implications of the analysis carried on through the book for a new knowledge and innovation policy framework that includes support for the dissemination and secondary use of external knowledge alongside traditional policies focusing the support to appropriability and the provision of incentives for the generation of new knowledge. The role of telecommunications infrastructure, regulation and policy as a tool for a new knowledge policy is stressed.

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