publication . Preprint . 2012

Recombinant Innovation and Endogenous Transitions

Koen Frenken; Luis R. Izquierdo; Paolo Zeppini;
Open Access
  • Published: 01 Jan 2012
We propose a model of technological transitions based on two different types of innovations. Branching innovations refer to technological improvements along a particular path, while recombinant innovations represent fusions of multiple paths. Recombinant innovations create “short-cuts” which reduce switching costs allowing agents to escape a technological lock-in. As a result, recombinant innovations speed up technological progress allowing transitions that are impossible with only branching innovations. Our model replicates some stylized facts of technological change, such as technological lockin, experimental failure, punctuated change and irreversibility. Fur...
free text keywords: variety, network externalities, lock-in, switching costs, recombinant innovations, transition, punctuated change, jel:C15, jel:O33

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