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Complementarity constraints and induced innovation: Some evidence from the first IT regime

Author

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  • Andreas Reinstaller

    (MERIT - Maastricht University)

  • Werner Hölzl

    (Vienna University of Economics & B.A.)

Abstract

Technological search is often depicted to be random. This paper takes a different view and analyses how innovative recombinant search is triggered, how it is done and what initial conditions influence the final design of technological artefacts. We argue that complementarities (non-separabilities) play an important role as focusing devices guiding the search for new combinations. Our analysis takes the perspective of technology adopters and not that of inventors or innovators of new products. We illustrate the process of decomposition and re-composition under the presence of binding complementarity constraints with a historical case study on the establishment of the First IT Regime at the turn of the 19th century.

Suggested Citation

  • Andreas Reinstaller & Werner Hölzl, 2003. "Complementarity constraints and induced innovation: Some evidence from the first IT regime," Working Papers geewp26, Vienna University of Economics and Business Research Group: Growth and Employment in Europe: Sustainability and Competitiveness.
    • Handle: RePEc:wiw:wiwgee:geewp26
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    Cited by:

    1. Gunther Tichy, 2016. "Geht der Arbeitsgesellschaft die Arbeit aus?," WIFO Monatsberichte (monthly reports), WIFO, vol. 89(12), pages 853-871, December.
    2. Werner Hölzl, 2005. "The evolutionary theory of the firm: Routines, complexity and change," Working Papers geewp46, Vienna University of Economics and Business Research Group: Growth and Employment in Europe: Sustainability and Competitiveness.
    3. Andreas Reinstaller, 2014. "Technologiegeber Österreich. Österreichs Wettbewerbsfähigkeit in Schlüsseltechnologien und Enwicklungspotentiale als Technologiegeber," WIFO Studies, WIFO, number 47444.
    4. Paul Windrum & Andreas Reinstaller & Christopher Bull, 2009. "The outsourcing productivity paradox: total outsourcing, organisational innovation, and long run productivity growth," Journal of Evolutionary Economics, Springer, vol. 19(2), pages 197-229, April.

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    More about this item

    Keywords

    Technological regimes; systemic innovation; adoption of technologies; complexity; information technology 1870-1930;
    All these keywords.

    JEL classification:

    • N60 - Economic History - - Manufacturing and Construction - - - General, International, or Comparative
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L69 - Industrial Organization - - Industry Studies: Manufacturing - - - Other

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