The origins of the economics of Innovation

Mario COCCIA

Abstract


Abstract. This study suggests that the origins of the economics of technical change go back to many years before Schumpeter’s contributions. The Scottish philosopher John Rae with his book Statement of Some New Principles on the Subject of Political Economy, issued in 1834, put forward the basis of the Economics of innovation individuating the nature, causes of technological innovations (e.g., steam engine) and effects of technological progress on economic growth of nations. Rae also discusses the evolution and role of vital technologies for the wealth and employment in Europe and North America. Overall, then, Rae’s work is basic for the origin of the Economics of innovation, for defining the domain of this discipline and for explaining the effects of vital technologies in society. However, the conclusions of this study are tentative. There is need for much more detailed research into this research topic. 

Keywords. Invention, History of technology, Economic growth, New technology, Technological change, Economics of innovation, Economics of technical change.

JEL. B11, B12, B31, B40, O30.

Keywords


Invention; History of technology; Economic growth; New technology; Technological change; Economics of innovation; Economics of technical change.

Full Text:


References


Ahmad, S. (1996). Smith’s division of labour and Rae’s invention: a study of the second dichotomy, with an evaluation of the first. History of Political Economy, 28(3), 441-458. doi. 10.1215/00182702-28-3-441

Archibugi, D. (1988). In search of a useful measure of technological innovation (to make economists happy without discontenting technologists). Technological Forecasting and Social Change, 34(3), 253-277. doi. 10.1016/0040-1625(88)90071-6

Arthur, W.B. (1989). Competing technologies, increasing returns and lock-in by historical events, Economic Journal, 99(3), 116-146. doi. 10.2307/2234208

Babbage, C. (1832). On the Economy of Machinery and Manufactures, C. Knight: London.

Bacon, F. (1629) The great instauration and New Atlantis, in J. Weinberger (Ed.) Science and Rule in Bacon’s Utopia: An Introduction to the Reading of the New Atlantis American Political Science Review, Vol. LXX, (pp.865-885).

Bladen, V.W., & Robson, J.M. (1965). Collected Works of John Stuart Mill -Principles of Political Economy with Some of Their Applications to Social Philosophy, Books I-II, University of Toronto Press, Routledge & Kegan Paul, Toronto.

Böhm-Bawerk, E. (1900). Geschichte und Kritik der Kapitalizines Theorien, 2nd ed. trad it. Teoriapositiva del capital, UTET: Torino.

Brewer, A. (1991). Economic growth and technical change: John Rae’s critique of Adam Smith, History of Political Economy, 23(1), 1-11. doi. 10.1215/00182702-23-1-1

Brewer, A. (1998). Invention, in O.F. Hamouda, C. Lee, & D. Mair (Eds), The Economics of John Rae, Routledge.

Calabrese, G., Coccia, M., & Rolfo, S. (2005). Strategy and market management of new product development: evidence from Italian SMEs, International Journal of Product Development, 2(1-2), 170-189. doi. 10.1504/IJPD.2005.006675

Campbell, J.L., & Pedersen, O.K. (2007). The varieties of capitalism and hybrid success: Denmark in the global economy. Comparative Political Studies, 40, 307-332. doi. 10.1177/0010414006286542

Cariola, M., & Coccia, M. (2004). Technology transfer virtual network: analysis within the National System of Innovation, International Journal of Networking and Virtual Organisation, 2(2), 162-172.

Carmeli, A., Gelbard, R., & Gefen, D. (2010). The importance of innovation leadership in cultivating strategic fit and enhancing firm performance, The Leadership Quarterly, 21(3), 339-349. doi. 10.1016/j.leaqua.2010.03.001

Cavallo, E., Ferrari, E., Bollani, L., & Coccia, M. (2014). Attitudes and behaviour of adopters of technological innovations in agricultural tractors: A case study in Italian agricultural system, Agricultural Systems, 130, 44-54. doi. 10.1016/j.agsy.2014.05.012

Cavallo, E., Ferrari, E., Bollani, L., & Coccia, M. (2014a). Strategic management implications for the adoption of technological innovations in agricultural tractor: the role of scale factors and environmental attitude, Technology Analysis & Strategic Management, 26(7), 765-779. doi. 10.1080/09537325.2014.890706

Cavallo, E., Ferrari, E., & Coccia, M. (2015). Likely technological trajectories in agricultural tractors by analysing innovative attitudes of farmers, International Journal of Technology, Policy and Management, 15(2), 158-177. doi. 10.1504/IJTPM.2015.069203Coccia, M. (2001). Satisfaction, work involvement and R&D performance. International Journal of Human Resources Development and Management, 1(2-3-4), 268-282. doi. 10.1504/IJHRDM.2001.001010

Coccia, M. (2003). Metrics of R&D performance and management of public research institute. Proceedings of IEEE- IEMC 03, Piscataway, pp.231-236.

Coccia, M. (2004). Spatial metrics of the technological transfer: analysis and strategic management. Technology Analysis & Strategic Management, 16(1), 31-52. doi. 10.1080/0953732032000175490

Coccia, M. (2005). Countrymetrics: valutazione della performance economica e tecnologica dei paesi e posizionamento dell’Italia, Rivista Internazionale di Scienze Sociali, CXIII(3), 377-412.

Coccia, M. (2005a). Metrics to measure the technology transfer absorption: analysis of the relationship between institutes and adopters in northern Italy. International Journal of Technology Transfer and Commercialization, 4(4), 462-486. doi. 10.1504/IJTTC.2005.006699

Coccia, M. (2005b). Technometrics: Origins, historical evolution and new direction, Technological Forecasting & Social Change, 72(8), 944-979. doi. 10.1016/j.techfore.2005.05.011

Coccia, M. (2005c). Economics of scientific research: origins, nature and structure, Proceedings of Economic Society of Australia.

Coccia, M. (2006). Classifications of innovations: survey and future directions. Working Paper Ceris del Consiglio Nazionale delle Ricerche, 8(2), 1-19. [Retrieved from].

Coccia, M. (2006a). Analysis and classification of public research institutes. World Review of Science, Technology and Sustainable Development, 3(1), 1-16.

Coccia, M. (2007). A new taxonomy of country performance and risk based on economic and technological indicators, Journal of Applied Economics, 10(1), 29-42.

Coccia, M. (2008). Science, funding and economic growth: analysis and science policy implications. World Review of Science, Technology and Sustainable Development, 5(1), 1-27. doi. 10.1504/WRSTSD.2008.01781

Coccia, M. (2008a). Spatial mobility of knowledge transfer and absorptive capacity: analysis and measurement of the impact within the geoeconomic space. The Journal of Technology Transfer, 33(1), 105-122. doi. 10.1007/s10961-007-9032-4

Coccia, M. (2008b). New organizational behaviour of public research institutions: Lessons learned from Italian case study. International Journal of Business Innovation and Research, 2(4), 402–419. doi. 10.1504/IJBIR.2008.018589

Coccia, M. (2009). A new approach for measuring and analyzing patterns of regional economic growth: empirical analysis in Italy. Italian Journal of Regional Science- Scienze Regionali, 8(2), 71-95. doi. 10.3280/SCRE2009-002004

Coccia, M. (2009a). Measuring the impact of sustainable technological innovation, International Journal of Technology Intelligence and Planning, 5(3), 276-288. doi. 10.1504/IJTIP.2009.026749

Coccia, M. (2010). Public and private R&D investments as complementary inputs for productivity growth. International Journal of Technology, Policy and Management, 10(1/2), 73-91. doi. 10.1504/IJTPM.2010.032855

Coccia, M. (2010a). Foresight of technological determinants and primary energy resources of future economic long waves, International Journal of Foresight and Innovation Policy, 6(4), 225–232. doi. 10.1504/IJFIP.2010.037468

Coccia, M. (2010b). Energy metrics for driving competitiveness of countries: Energy weakness magnitude, GDP per barrel and barrels per capita. Energy Policy, 38(3), 1330-1339. doi. 10.1016/j.enpol.2009.11.011

Coccia, M. (2010c). Spatial patterns of technology transfer and measurement of its friction in the geo-economic space. International Journal of Technology Transfer and Commercialisation, 9(3), 255-267. doi. 10.1504/IJTTC.2010.030214

Coccia, M. (2010d). The asymmetric path of economic long waves, Technological Forecasting & Social Change, 77(5), 730-738. doi. 10.1016/j.techfore.2010.02.003

Coccia, M. (2010e). Democratization is the driving force for technological and economic change, Technological Forecasting & Social Change, 77(2), 248-264. doi. 10.1016/j.techfore.2009.06.007

Coccia, M. (2011). The interaction between public and private R&D expenditure and national productivity. Prometheus-Critical Studies in Innovation, 29(2), 121-130. doi. 10.1080/08109028.2011.601079

Coccia, M. (2012). Political economy of R&D to support the modern competitiveness of nations and determinants of economic optimization and inertia, Technovation, 32(6), 370–379. doi. 10.1016/j.technovation.2012.03.005

Coccia, M. (2012a). Evolutionary trajectories of the nanotechnology research across worldwide economic players. Technology Analysis & Strategic Management, 24(10), 1029-1050. doi. 10.1080/09537325.2012.705117

Coccia, M. (2012b). Evolutionary growth of knowledge in path-breaking targeted therapies for lung cancer: radical innovations and structure of the new technological paradigm. International Journal of Behavioural and Healthcare Research, 3(3-4), 273-290. doi. 10.1504/IJBHR.2012.051406

Coccia, M. (2012c). Converging genetics, genomics and nanotechnologies for groundbreaking pathways in biomedicine and nanomedicine. International Journal of Healthcare Technology and Management, 13(4), 184-197. doi. 10.1504/IJHTM.2012.050616

Coccia, M. (2012d). Driving forces of technological change in medicine: Radical innovations induced by side effects and their impact on society and healthcare. Technology in Society, 34(4), 271-283. doi. 10.1016/j.techsoc.2012.06.002

Coccia, M. (2013). What are the likely interactions among innovation, government debt, and employment? Innovation: The European Journal of Social Science Research, 26(4), 456–471. doi. 10.1080/13511610.2013.863704

Coccia, M. (2013a). The effect of country wealth on incidence of breast cancer. Breast Cancer Research and Treatment, 141(2), 225-229. doi. 10.1007/s10549-013-2683-y

Coccia, M. (2014). Path-breaking target therapies for lung cancer and a far-sighted health policy to support clinical and cost effectiveness. Health Policy and Technology, 1(3), 74-82. doi. 10.1016/j.hlpt.2013.09.007

Coccia, M. (2014a). Emerging technological trajectories of tissue engineering and the critical directions in cartilage regenerative medicine. Int. J. Healthcare Technology and Management, 14(3), 194-208. doi. 10.1504/IJHTM.2014.064247

Coccia, M. (2014b). Converging scientific fields and new technological paradigms as main drivers of the division of scientific labour in drug discovery process: the effects on strategic management of the R&D corporate change. Technology Analysis & Strategic Management, 26(7), 733-749, doi. 10.1080/09537325.2014.882501

Coccia, M. (2014c). Driving forces of technological change: The relation between population growth and technological innovation-Analysis of the optimal interaction across countries, Technological Forecasting & Social Change, 82(2), 52-65. doi. 10.1016/j.techfore.2013.06.001

Coccia, M. (2014). Socio-cultural origins of the patterns of technological innovation: What is the likely interaction among religious culture, religious plurality and innovation? Towards a theory of socio-cultural drivers of the patterns of technological innovation, Technology in Society, 36(1), 13-25. doi. 10.23760/2421-7158.2017.004

Coccia, M. (2014e). Religious culture, democratisation and patterns of technological innovation. International Journal of Sustainable Society, 6(4), 397-418. doi. 10.1504/IJSSOC.2014.066771

Coccia, M. (2014f). Structure and organisational behaviour of public research institutions under unstable growth of human resources, Int. J. Services Technology and Management, 20(4/5/6), 251–266. doi. 10.1504/IJSTM.2014.068857

Coccia, M. (2014g). Steel market and global trends of leading geo-economic players. International Journal of Trade and Global Markets, 7(1), 36-52, doi. 10.1504/IJTGM.2014.058714

Coccia, M. (2015). The Nexus between technological performances of countries and incidence of cancers in society. Technology in Society, 42, 61-70. doi. 10.1016/j.techsoc.2015.02.003

Coccia, M. (2015a). Patterns of innovative outputs across climate zones: the geography of innovation, Prometheus. Critical Studies in Innovation, 33(2), 165-186. doi. 10.1080/08109028.2015.1095979

Coccia, M. (2015b). General sources of general purpose technologies in complex societies: Theory of global leadership-driven innovation, warfare and human development, Technology in Society, 42, 199-226. doi. 10.1016/j.techsoc.2015.05.008

Coccia, M. (2015c). Spatial relation between geo-climate zones and technological outputs to explain the evolution of technology. Int. J. Transitions and Innovation Systems, 4(1-2), 5-21. doi. 10.1504/IJTIS.2015.074642

Coccia, M. (2015d). Technological paradigms and trajectories as determinants of the R&D corporate change in drug discovery industry. International Journal Knowledge and Learning, 10(1), 29-43. doi. 10.1504/IJKL.2015.071052

Coccia, M. (2016). Asymmetric paths of public debts and of general government deficits across countries within and outside the European monetary unification and economic policy of debt dissolution. The Journal of Economic Asymmetries, 15, 17-31. doi. 10.1016/j.jeca.2016.10.003

Coccia, M. (2016a). Radical innovations as drivers of breakthroughs: characteristics and properties of the management of technology leading to superior organizational performance in the discovery process of R&D labs. Technology Analysis & Strategic Management, 28(4), 381-395. doi. 10.1080/09537325.2015.1095287

Coccia, M. (2016). Problem-driven innovations in drug discovery: co-evolution of radical innovation with the evolution of problems, Health Policy and Technology, 5(2), 143-155. doi. 10.1016/j.hlpt.2016.02.003

Coccia, M. (2016c). The relation between price setting in markets and asymmetries of systems of measurement of goods. The Journal of Economic Asymmetries, 14(B), 168-178. doi. 10.1016/j.jeca.2016.06.001

Coccia, M. (2017). The source and nature of general purpose technologies for supporting next K-waves: Global leadership and the case study of the U.S. Navy's Mobile User Objective System, Technological Forecasting and Social Change, 116, 331-339. doi. 10.1016/j.techfore.2016.05.019

Coccia, M. (2017a). Optimization in R&D intensity and tax on corporate profits for supporting labor productivity of nations. The Journal of Technology Transfer, doi. 10.1007/s10961-017-9572-1

Coccia, M. (2017b). Varieties of capitalism’s theory of innovation and a conceptual integration with leadership-oriented executives: the relation between typologies of executive, technological and socioeconomic performances. Int. J. Public Sector Performance Management, 3(2), 148–168. doi. 10.1504/IJPSPM.2017.084672

Coccia, M. (2017c). Sources of disruptive technologies for industrial change. L’industria –rivista di Economia e Politicaindustriale, 38(1), 97-120.

Coccia, M. (2017d). Sources of technological innovation: Radical and incremental innovation problem-driven to support competitive advantage of firms. Technology Analysis & Strategic Management, 29(9), 1048-1061. doi. 10.1080/09537325.2016.1268682

Coccia, M. (2017e). A Theory of general causes of violent crime: Homicides, income inequality and deficiencies of the heat hypothesis and of the model of CLASH, Aggression and Violent Behavior, 37, 190-200. doi. 10.1016/j.avb.2017.10.005

Coccia, M. (2017f). New directions in measurement of economic growth, development and under development, Journal of Economics and Political Economy, 4(4), 382-395.

Coccia, M. (2017g). Disruptive firms and industrial change, Journal of Economic and Social Thought, 4(4), 437-450.

Coccia, M. (2017h). The Fishbone diagram to identify, systematize and analyze the sources of general purpose Technologies, Journal of Social and Administrative Sciences, 4(4), 291-303.

Coccia, M. (2018). A theory of the general causes of long waves: War, general purpose technologies, and economic change. Technological Forecasting & Social Change, 128, 287-295 10.1016/j.techfore.2017.11.013

Coccia, M. (2018a). The relation between terrorism and high population growth, Journal of Economics and Political Economy, 5(1), 84-104.

Coccia, M. (2018b). Evolution of the economics of science in the twenty century, Journal of Economics Library, 5(1), 65-84.

Coccia, M. (2018c). Violent crime driven by income Inequality between countries, Turkish Economic Review, 5(1), 33-55.

Coccia, M. (2018e). Theorem of not independence of any technological innovation, Journal of Economics Bibliography, 5(1), 29-35.

Coccia, M. (2018e). Types of government and innovative performance of countries, Journal of Social and Administrative Sciences, 5(1), 15-33.

Coccia, M., & Finardi, U. (2012). Emerging nanotechnological research for future pathway of biomedicine. International Journal of Biomedical Nanoscience and Nanotechnology, 2 (3-4), 299-317. doi. 10.1504/IJBNN.2012.051223

Coccia, M., & Finardi, U. (2013). New technological trajectories of non-thermal plasma technology in medicine. International Journal of Biomedical Engineering and Technology, 11(4), 337-356. doi. 10.1504/IJBET.2013.055665

Coccia, M., Finardi, U., & Margon, D. (2012). Current trends in nanotechnology research across worldwide geo-economic players, The Journal of Technology Transfer, 37(5), 777-787. doi. 10.1007/s10961-011-9219-6

Coccia, M., & Wang, L. (2015). Path-breaking directions of nanotechnology-based chemotherapy and molecular cancer therapy, Technological Forecasting and Social Change, 94, 155–169. doi. 10.1016/j.techfore.2014.09.007

Coccia, M., & Wang, L. (2016). Evolution and convergence of the patterns of international scientific collaboration. Proceedings of the National Academy of Sciences of the United States of America, 113(8), 2057-2061. doi. 10.1073/pnas.1510820113

Cozzi, T. (1979) Teoriadellosviluppoeconomico, Il Mulino, Bologna.

Dodgson, M., & Rothwell, R. (1994). The Handbook of Industrial Innovation, Edward Elgard Publishing Limited, Hants UK.

Dorfman, J. (1966). The Economic Mind in American Civilization 1606-1865, Vol. II, 779-789, Augustus M. Kelley Publishers, New York.

Dosi, G. (1988). Sources, procedures and microeconomic effects of innovation, Journal of Economic Literature, 26(3), 1120-1171.

Eatwell, J., Milgrate, M., & Newman, P. (1987). The New Palgrave a Dictionary of Economics, Vol. 4, Q to Z , Mac Millan Press Limited.

Ferrara, F. (1856) Bibliotecadell’economista, Prima Serie. TrattatiComplessivi. Vol. XI. Torrens, Bailey, Whatley, Ricardo, Rae. Utet, Torino.

Freeman, C., Clark J., & Soete, L. (1982). Unemployment and Technical Innovation: A Study of Long Waves and Economic Development, Frances Printer, London.

Grandstrand, O. (1994). Economics of Technology, North-Holland.

Hamouda, O.F., Lee, C., & Mair, D. (1998). The Economics of John Rae, Routledge.

James, R.W. (1951). The life and work of J. Rae, Canadian Journal of Economics and Political Science, 17(2), 141-165.

James, R.W. (1965). John Rae. Political Economist: An Account of His Life and Compilation of His Main Writings, vol. II., University of Toronto Press, Toronto.

Jossa, B. (1965). Analisieconomica del progressotecnico, Giuffré, Milano.

Malerba, F. (1992). Learning by firms and incremental technical change, Economic Journal, 102(413), 845-859. doi. 10.2307/2234581

Marshall, A. (1890) Principles of Economics, Mac Millan.

Marx, K. (1890) Complete Works, Vol. 3, Capital, translated from the 3rd edition of DA Kapitaledited by Friederich Engels, Moscow: Foreign languages Publishing House.

Marx, K. (1975). Section I-The development of machinery, from Chapter XV, “Machinery and modern industry” in Capital. Volume I, in Karl Marx and Frederick Engels, Collected Works, Vol.35, (pp. 374-89), Lawrence and Wishart, London.

Mill, J.S. (1848). The principles of political Economy: with some of their applications to social philosophy, (trad it.) Princìpi di economiapolitica con alcunedelle sue applicazioniallafilosofiasociale (1851), Utet, Torino.

Mixter, C.W. (1897). A forerunner of Böhm-Bawerk, Quarterly Journal of Economics, 11(2), 161-190. doi. 10.2307/1882126

Mixter, C.W. (1902). Böhm-Bawerk on Rae, Quarterly Journal of Economics, 16(3), 385-412. doi. 10.2307/1881983

Nelson, R.R., & Winter S. (1982). An Evolutionary Theory of Economic Change, The Belknapp Press of Harvard University Press, Cambridge, Ma.

Rae, J. (1834) Statement of Some New Principles on the Subject of Political Economy, Exposing the Fallacies of the System of Free Trade, And of some other Doctrines maintained in the "Wealth of Nations", Boston: Hilliard, Gray. Reprinted (1964), New York: Kelley; and (1965), in R. W. James (ed.), John Rae, Political Economist, vol. 2, Aylesbury, Toronto: University of Toronto Press. (trad.it. 1856) F. Ferrara (ed.) Dimostrazione di taluniprincipisull’ECONOMIA POLITICA dimostrantiglierrori del sistema di commercio libero, e di altredottrinecontenutenella RICCHEZZA DELLE NAZIONI, Bibliotecadell’economista, Prima serie. Trattaticomplessivi. Vol. XI. Torrens, Bailey, Whatley, Ricardo, Rae. Utet, Torino.

Rae, J. (1996). Bicentenary Conference, Aberdeen, Scotland, March 27-29.

Ricardo, D. (1817) Principles of Political Economy and Taxation, Traduz. it. “Sui principidell’economiapolitica e dellatassazione” (1976), Isedi, Milano.

Roll, E. (1954). A History of Economic Thought, Faber and Faber: London.

Rosenberg, (1971). The Economics of Technological Change, Harmondsworth (Ed.), Penguin Books: England.

Ruttan, V. (1971). Usher and Schumpeter on intention, innovation and technological change, in Rosenberg (a cura di), The economics of technological change, Penguin Books, London.

Sahal, D. (1981) Patterns of technological innovation, Addison-Wesley publishing company.

Schumpeter, J.A. (1911). Theorie de Wirtschaftlichenentewicklung (The Theory of Economic Development: An inquiry into profits, capital, credit, interest and the business cycle), Leipzig, Duncker and Humblot.

Schumpeter, J.A. (1939). Business Cycles: A Theoretical, Historical and Statistical Analysis of the Capitalist Process, McGraw-Hill, New York.

Schumpeter, J.A. (1942). Capitalism, Socialism and Democracy, (Ed.1976) Allen and Unwin: London.

Schumpeter, J.A. (1954). History of Economic Analysis, Oxford University Press: New York.

Smith, A. (1776). Of the division of labour, in An Inquiry Into the Nature and the Causes of the Wealth of the Nations, Book I, Chapter I, pp.5-14, London – trad. it. La ricchezzadellenazioni, (1975), Utet, Torino.

Solow, R.M. (1956) A contribution to the theory of economic growth, Quarterly Journal of economics, 70(1), 75-94. doi. 10.2307/1884513

Veblen, T. (1899). The Theory of the Leisure Class: An Economic Study of Institutions, (trad. it.), La teoriadellaclasseagiata (1971), Einaudi, Torino.

Veblen, T. (1904). Theory of Business Enterprise, (trad. it.), La teoriadell’impresa (1970), Angeli, Milano.

Wakatabe, M. (1998). The creation of wealth: John Rae’s knowledge-based growth theory, Journal of the History of Economic Thought, 20(3), 329-347. doi. 10.1017/S1053837200002169

Website the history of economic thought (2004). [Retrieved from].




DOI: http://dx.doi.org/10.1453/jest.v5i1.1574

Refbacks

  • There are currently no refbacks.




Journal of Economic and Social Thought - J. Econ. Soc. Thoug. - JEST - www.kspjournals.org

ISSN: 2149-0422. Editor : editor-jest@kspjournals.org   Secretarial: secretarial@kspjournals.org   Istanbul - Turkey.

Copyright © KSP Journals