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Blockchain and the evolution of institutional technologies: Implications for innovation policy

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  • Allen, Darcy W.E.
  • Berg, Chris
  • Markey-Towler, Brendan
  • Novak, Mikayla
  • Potts, Jason

Abstract

For the past century economists have proposed a suite of theories relating to industrial dynamics, technological change and innovation. There has been an implication in these models that the institutional environment is stable. However, a new class of institutional technologies—most notably blockchain technology—lower the cost of institutional entrepreneurship along these margins, propelling a process of institutional evolution. This presents a new type of innovation process, applicable to the formation and development of institutions for economic governance and coordination. This paper develops a replicator dynamic model of institutional innovation and proposes some implications of this innovation for innovation policy. Given the influence of public policies on transaction costs and associated institutional choices, it is indicated that policy settings conductive to the adoption and use of blockchain technology would elicit entrepreneurial experiments in institutional forms harnessing new coordinative possibilities in economic exchange. Conceptualisation of blockchain-related public policy an innovation policy in its own right has significant implications for the operation and understanding of open innovation systems in a globalised context.

Suggested Citation

  • Allen, Darcy W.E. & Berg, Chris & Markey-Towler, Brendan & Novak, Mikayla & Potts, Jason, 2020. "Blockchain and the evolution of institutional technologies: Implications for innovation policy," Research Policy, Elsevier, vol. 49(1).
    • Handle: RePEc:eee:respol:v:49:y:2020:i:1:s0048733319301842
    DOI: 10.1016/j.respol.2019.103865
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    6. Michael L. Polemis & Mike G. Tsionas, 2023. "The environmental consequences of blockchain technology: A Bayesian quantile cointegration analysis for Bitcoin," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1602-1621, April.
    7. Hameeda A. AlMalki & Christopher M. Durugbo, 2023. "Systematic review of institutional innovation literature: towards a multi-level management model," Management Review Quarterly, Springer, vol. 73(2), pages 731-785, June.
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    11. Kyungmoo Heo & Sangyoon Yi, 2023. "(De)centralization in the governance of blockchain systems: cryptocurrency cases," Journal of Organization Design, Springer;Organizational Design Community, vol. 12(3), pages 59-82, September.
    12. Giuliano Sansone & Flavio Santalucia & Davide Viglialoro & Paolo Landoni, 2023. "Blockchain for social good and stakeholder engagement: Evidence from a case study," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2182-2193, September.
    13. Rawhouser, Hans & Webb, Justin W. & Rodrigues, Jason & Waldron, Theodore L. & Kumaraswamy, Arun & Amankwah-Amoah, Joseph & Grady, Azucena, 2022. "“Scaling, blockchain technology, and entrepreneurial opportunities in developing countries”," Journal of Business Venturing Insights, Elsevier, vol. 18(C).
    14. Nylund, Petra A. & Ferràs-Hernández, Xavier & Pareras, Luis & Brem, Alexander, 2022. "The emergence of entrepreneurial ecosystems based on enabling technologies: Evidence from synthetic biology," Journal of Business Research, Elsevier, vol. 149(C), pages 728-735.
    15. Jackson, Emerson Abraham, 2020. "Economics of Technology Innovation for Sustainable Growth – With reference to Sub-Saharan Africa (SSA)," MPRA Paper 101787, University Library of Munich, Germany, revised 27 May 2020.
    16. Wang, Jiaxin & Zhao, Mu & Huang, Xiang & Sun, Di & Song, Zilong, 2023. "Guidance or misguidance: Fintech policy and corporate innovation," Finance Research Letters, Elsevier, vol. 58(PD).
    17. Hubert Pun & Jayashankar M. Swaminathan & Pengwen Hou, 2021. "Blockchain Adoption for Combating Deceptive Counterfeits," Production and Operations Management, Production and Operations Management Society, vol. 30(4), pages 864-882, April.
    18. Xihan Xiong & Zhipeng Wang & Tianxiang Cui & William Knottenbelt & Michael Huth, 2023. "Market Misconduct in Decentralized Finance (DeFi): Analysis, Regulatory Challenges and Policy Implications," Papers 2311.17715, arXiv.org, revised Nov 2024.
    19. Rosanna Span? & Maurizio Massaro & Adele Caldarelli & Carlo Bagnoli, 2023. "Blockchain implications for the accounting realm: A critique of extant studies," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2023(1), pages 21-42.
    20. Bellavitis, Cristiano & Fisch, Christian & Wiklund, Johan, 2021. "A comprehensive review of the global development of initial coin offerings (ICOs) and their regulation," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    21. Kou, Mingting & Yang, Yuanqi & Chen, Kaihua, 2024. "Financial technology research: Past and future trajectories," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 162-181.
    22. Arpaci, Ibrahim, 2023. "Predictors of financial sustainability for cryptocurrencies: An empirical study using a hybrid SEM-ANN approach," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    23. Chu-Chi Kuo & Joseph Z. Shyu, 2021. "A Cross-National Comparative Policy Analysis of the Blockchain Technology between the USA and China," Sustainability, MDPI, vol. 13(12), pages 1-18, June.
    24. Cotugno, Matteo & Manta, Francesco & Perdichizzi, Salvatore & Stefanelli, Valeria, 2024. "Ready for a digital Euro? Insights from a research agenda," Research in International Business and Finance, Elsevier, vol. 67(PA).
    25. Saurabh, Kumar & Rani, Neelam & Upadhyay, Parijat, 2024. "Towards novel blockchain decentralised autonomous organisation (DAO) led corporate governance framework," Technological Forecasting and Social Change, Elsevier, vol. 204(C).

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    More about this item

    Keywords

    Institutions; Governance; Platforms; Public policy; Technology; Transactions costs;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • P50 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - General

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