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Two-dimensional Constrained Chaos and Time in Innovation: An analysis of industrial revolution cycles

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  • YANO Makoto
  • FURUKAWA Yuichi

Abstract

Many issues in cycles and fluctuations cannot be explained without multiple state variables. Time needed for innovation is one such issue. This study uncovers, and provides a new characterization for, ergodic chaos with two state variables and builds a model of innovation highlighting time in innovation and intellectual property protection. We demonstrate that the explosive industrial takeoffs and Kondratieff's long waves over the past two centuries and a half may be explained as a single equilibrium phenomenon. Time in innovation tends to stabilize chaotic innovation dynamics. Intellectual property protection is a necessary condition for chaotic takeoffs from the no-innovation phase.

Suggested Citation

  • YANO Makoto & FURUKAWA Yuichi, 2019. "Two-dimensional Constrained Chaos and Time in Innovation: An analysis of industrial revolution cycles," Discussion papers 19008, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:19008
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    Cited by:

    1. Furukawa, Yuichi & Lai, Tat-kei & Sato, Kenji, 2019. "Love of Novelty: A Source of Innovation-Based Growth... or Underdevelopment Traps?," MPRA Paper 92915, University Library of Munich, Germany.
    2. Makoto Yano & Chris Dai & Kenichi Masuda & Yoshio Kishimoto, 2020. "Creation of Blockchain and a New Ecosystem," Economics, Law, and Institutions in Asia Pacific, in: Makoto Yano & Chris Dai & Kenichi Masuda & Yoshio Kishimoto (ed.), Blockchain and Crypto Currency, chapter 0, pages 1-19, Springer.

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