Thorstein Veblen's theory of institutional change: beyond technological determinism

Abstract

The article presents a reappraisal of Veblen's theory of institutional change challenging the thesis of technological determinism, supported by some commentators of Veblen. According to this latter interpretation, Veblen would consider institutional change as stemming from an exogenous transformation of the material and technical environment. But such a thesis disregards the significance of cultural determinism in Veblen's system. Taking this into account leads to argue that Veblen analyses institutional change as an emergent effect of the dynamics of interactions between instincts, institutions and the infrastructural conditions. Finally, Veblen's theory of institutional change proves consistent with his research programme, aiming at producing a cumulative and on-teleological theory of institutional evolution, a theory in which behavioural determinants of human beings would be the main explicative variables.