Enlightenment of Hayek’s Institutional Change Idea on Institutional Innovation

Abstract

[Abstract] Hayek’s institutional change idea is derived from its spontaneous order view, his cultural evolution theory reveals the generative mechanism of institution and his legal theory explains the institutional formation logic from individual behavior to social order. Hayek’s institutional change theory intrinsically includes the tension between evolution and rationalism, individualized method and holistic method, individual liberty and social order. We should distinguish and comprehensively consider the change of formal institution and informal institution and comprehensively analyze and grasp the relationship between individual liberty, institution and social order combined with the different top-down and bottom-up thinking mode and by comprehensively using the individualism and holism method to better guide the institutional innovation.