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Endogenizing technical change: Uncertainty, profits, entrepreneurship. A long-term view of sectoral dynamics

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  • Fusari, Angelo
  • Reati, Angelo

Abstract

Taking as reference the long-wave theory, in this paper we try to give a fully endogenous explanation of the factors triggering the technological revolutions – one of the main causes of a new long upswing. We extend the traditional macro and meso economic analysis by presenting a behavioural model in which innovation, entrepreneurship and radical uncertainty play a crucial role in determining the dynamics of the system. Our theoretical analysis is enriched and formalized in a multi-sectoral model, whose consistency is verified through numerical simulations.

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  • Fusari, Angelo & Reati, Angelo, 2013. "Endogenizing technical change: Uncertainty, profits, entrepreneurship. A long-term view of sectoral dynamics," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 76-100.
    • Handle: RePEc:eee:streco:v:24:y:2013:i:c:p:76-100
    DOI: 10.1016/j.strueco.2012.06.004
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    Cited by:

    1. Angelo Reati, 2014. "Structural Dynamics and Economic Growth," Review of Political Economy, Taylor & Francis Journals, vol. 26(1), pages 149-154, January.
    2. Angelo, Fusari, 2016. "Understanding the Course of Social Reality," MPRA Paper 74007, University Library of Munich, Germany, revised 2016.
    3. Fusari, Angelo, 2016. "A New Economics for Modern Dynamic Economies," MPRA Paper 74008, University Library of Munich, Germany, revised 2016.
    4. Fusari, Angelo i, 2015. "Across the crises of modern capitalism," MPRA Paper 74176, University Library of Munich, Germany, revised 2015.
    5. Gao, Xing & Meng, Jing & Ling, Yantao & Liao, Maolin & Cao, Mengqiu, 2022. "Localisation economies, intellectual property rights protection and entrepreneurship in China: A Bayesian analysis of multi-level spatial correlation," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 156-165.
    6. Zhou, Lin & Fan, Jianshuang & Hu, Mingzhi & Yu, Xiaofen, 2024. "Clean air policy and green total factor productivity: Evidence from Chinese prefecture-level cities," Energy Economics, Elsevier, vol. 133(C).
    7. Afolabi Tunde Ahmed & Tsimisaraka Raymondo Sandra Marcelline & Sabi Couscous Mouhamadou Nazirou, 2021. "Empirical Study of the Impact of Governance on Economic Structural Change: Evidence from Sub-Saharan African Countries," International Journal of Science and Business, IJSAB International, vol. 5(8), pages 260-277.
    8. Johan Schot & Laur Kanger, 2016. "Deep Transitions: Emergence, Acceleration, Stabilization and Directionality," SPRU Working Paper Series 2016-15, SPRU - Science Policy Research Unit, University of Sussex Business School.
    9. Fusari, Angelo, 2014. "An Explanation of Economic Change and Development," MPRA Paper 60042, University Library of Munich, Germany, revised 2014.
    10. Fusari, Angelo, 2014. "The Contrast between Mainstream and Heterodox Economics: A Misleading Controversy—“Necessary” System versus “Natural” System," MPRA Paper 60097, University Library of Munich, Germany, revised Jul 2014.
    11. Gao, Xing & Meng, Jing & Ling, Yantao & Liao, Maolin & Cao, Mengqiu, 2022. "Localisation economies, intellectual property rights protection and entrepreneurship in China: a Bayesian analysis of multi-level spatial correlation," LSE Research Online Documents on Economics 114290, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    Radical and incremental innovations; Long waves; Sectoral dynamics; Entrepreneurship; Radical uncertainty;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications

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