Evolutionary Economics Research Articles

Data and contemporary economics: role, paradox and development

PurposeA more accurate comprehension of data elements and the exploration of new laws governing contemporary data in both theoretical and practical domains constitute a significant research topic.Design/methodology/approachBased on the perspective of evolutionary economics, this paper re-examines economic history and existing literature to study the following: changes in the “connotation of production factors” in economics caused by the evolution of production factors; the economic paradoxes formed by data in the context of social production processes and business models, which traditional theoretical frameworks fail to solve; the disruptive innovation of classical theory of value by multiple theories of value determination and the conflicts between the data market monopoly as well as the resulting distribution of value and the real economic society. The research indicates that contemporary advancements in data have catalyzed transformative innovation within the field of economics.FindingsThe research indicates that contemporary advancements in data have catalyzed disruptive innovation in the field of economics.Originality/valueThis paper, grounded in academic research, identifies four novel issues arising from contemporary data that cannot be adequately addressed within the confines of the classical economic theoretical framework.

Economic reforms and consumption trends: A deep dive into Saudi Arabia’s economic evolution

This study examines the aggregate consumption function of Saudi Arabia from 2000 to 2022, focusing on identifying key determinants of household consumption and evaluating the impacts of disposable income, household wealth, government expenditure, interest rates, and oil revenues. the research uses advanced econometric methods, including the autoregressive distributed lag (ARDL) model and Johansen cointegration test, to analyze the relationships among these variables. the findings reveal that disposable income, household wealth, and government expenditure significantly and positively influence consumption, whereas interest rates show a negative correlation. oil revenues also play a critical role, reflecting the country’s economic reliance on oil. the study highlights the necessity for economic diversification to reduce the impact of oil price volatility on household income and consumption stability. The results offer crucial insights for policymakers, emphasizing the need for strategies that enhance household income and wealth, maintain robust public sector spending, and effectively manage interest rates. these findings also support the importance of consistent and predictable income sources for sustaining consumption. additionally, this study suggests directions for future research, including developing sophisticated forecasting models to predict consumption trends and exploring other influencing factors such as demographic shifts and technological progress.

Pharma innovation: how evolutionary economics is shaping the future of pharma R&D

This paper describes the theory of evolutionary economics in the context of pharmaceutical R&D. In this context, the R&D productivity crisis acts as a key selection mechanism, and R&D, technology and industry trends provide mechanisms of variation. Drawing on today’s prevailing business model among leading pharmaceutical companies, the biotech-leveraged pharma company (BIPCO), I propose two new value creation logics: the technology-investigating pharma company (TIPCO) and the asset-integrating pharma company (AIPCO). Although some companies already share aspects of these business models, it is not yet clear, in terms of evolutionary economics, what the ultimate outcome of the evolutionary process in pharma R&D will be.

Crypto airdrops: An evolutionary approach

AbstractAirdrops are a mechanism by which blockchain-based projects distribute digital tokens to users at zero cost. Billions of dollars of tokens have been airdropped for reasons such as marketing and decentralisation. The distribution criteria that projects have designed (e.g. previous user activity on the platform) have become more complex as different types of users adapt to receive a larger airdrop. This paper argues that coevolutionary theory can help us to understand the unique phenomenon of airdrop design, where participants (projects and users) strategically adapt over time and across different blockchain ecosystems. Nine airdrop case studies show an expanding set of innovative airdrop strategies (e.g. airdrops requiring additional activities to claim). The evolutionary analysis also implies changes in airdrop design (e.g. multi-round airdrops to facilitate learning) and further strategic innovation. Ultimately, this paper offers a new platform to apply the tools of evolutionary economics, exploring a unique process of innovation and evolution.

Addresses the Problem of Aging Population by Immigration in the United States

Abstract: The aging problem is becoming increasingly serious in various countries. The United States was also not spared and foreshadowed an equally negative future trend, which would lead to many problems in various aspects. Therefore, the United States has taken some policies to adapt to aging, but has not actually solved the problem. Some people believe that immigration can improve the problems brought about by the aging population. This article explores the mentioned approach through literature research and simulation. The way of immigration can improve population structure to alleviate population aging, which can be classified into two types - the age structure and the employment structure. In terms of age structure, the article will discuss how immigrants can alleviate the social risks caused by aging by the increasing number of immigrants at the working age. For the employment structure, the article will illustrate the answer to solve the slow economic evolution leaded by aging in regards to filling job vacancies for young and middle-aged immigrants.

Special issue: microfoundation of evolutionary economics and its application: part 2

Special issue: microfoundation of evolutionary economics and its application: part 2

Impacts of international trade on the SMT view of the economy

AbstractShiozawa, Morioka and Taniguchi (2019)’s Microfoundations for Evolutionary Economics (Springer Japan) provided an alternative view (SMT view) of the economy to the orthodox equilibrium view of the economy. According to the SMT view, demand and supply are matched by quantity adjustment under fixed prices, and prices function as a transmitter of cost information downstream as well as a guide for choice and development of techniques. This paper examines the impacts of international trade on the SMT view based on the new theory of international values (NTIV). In a closed economy, prices are uniquely determined even if there are many choices of techniques by the minimal price theorem. With international trade, due to the multiplicity of wages, prices are not uniquely determined. Whether this fact allows demand to participate in the determination of prices is examined, and it is clarified that because of the disparity of real production possibility set from the hypothetical one, which is effective in determining prices, demand loses the power of equilibration. This fact opens up the possibility and even necessity of production taking place below the maximal boundary, which is accompanied by unemployment. Individual firms’ behavior in the choice and development of techniques and the process of price conversion that are consistent with the SMT view and the NTIV is formulated. A residual unsolved question of wage adjustment following technological changes is identified.

Industrial policy, green challenges, and international business

AbstractNation-states are designing their industrial policies increasingly to not only enhance national competitiveness, but also to simultaneously address “Green Challenges”, concerns about the natural environment that require concerted action among different actors in society, including domestic and foreign multinational enterprises (MNEs). This blending of global and national policy objectives is leading to a new wave of industrial policies in advanced economies that are informed by scholarly discourses in evolutionary economics, innovation systems, and 'wicked problems'. We discuss the implications of these sustainability-oriented industrial policies for MNEs. They operate in increasingly diverse local ecosystems shaped by local actors and local policies as we illustrate for two such ecosystems in Nordic countries: circular economy and energy transition. Many MNEs face a tension between capabilities they could use to help nations achieve their sustainability goals and incentives to protect existing rents and business models. They may thus engage pro-actively or reactively in both market and nonmarket realms in each country in which they operate. We discuss the interactions between MNEs, governments, and other actors in host countries pursuing both sustainability and competitiveness objectives, and outline how ensuing tensions create new challenges and opportunities for international business scholarship.

HMAE: a high-fidelity multi-agent simulator for economic phenomenon emergence

Economic models based on multi-agents are increasingly attracting attention and can provide a new perspective for exploring the causes behind social phenomena at the individual level. Existing research usually adopts society-level learning methods, and more research on micro-level heterogeneity among individuals is needed. For this, we propose a high-fidelity multi-agent economy (HMAE) model based on evolutionary game theory, including three types of agents: workers, firms, and the government. In particular, we characterize worker heterogeneity regarding laziness factors, work endowments, and commuting distances. These agents continuously and iteratively update their strategies by randomly exploring and imitating their neighbors to maximize their utility value. We simulated the evolution process of agent behavioral decisions through experiments and found that individual heterogeneity can significantly affect the decisions of workers and firms. These phenomena are consistent with some economic evolution trends in real life, and our research can provide an analytical tool for analyzing the causes of emerging economic phenomena.

Empowering China's energy renaissance: Electrochemical storage strategies driving economic growth and policy evolution

This study presents an innovative framework to examine the interplay between foreign direct investment and economic development from 1996 to 2021. Using the Panel NARDL approach, our study provides an empirical framework for exploring these complex relationships. We enhance the reliability of our results by integrating additional methodologies, such as augmented mean group and common correlated effects mean group. A decline in carbon emissions is commonly hypothesized to be correlated with economic expansion, foreign direct investment inflows, advancements in renewable energy, and implementation of environmental technologies. On the contrary, detrimental disturbances have the potential to result in protracted ecological deterioration, especially in situations where there are setbacks in economic expansion and foreign direct investment. It is worth noting that although short-run and long-run coefficients exhibit comparable directional trends, there are discrepancies in their magnitudes and levels of statistical significance. This sophisticated comprehension empowers countries such as China, among others, to allocate resources strategically towards sustainable energy initiatives, promoting a systematic approach that prioritizes the adoption of renewable energy, advancements in technology, attraction of foreign investment, and transformation of structures.

Can Development in the Digital Economy Lead to A Win-Win for ‘Efficiency Promotion’ and ‘Emission Reduction’?

Abstract The contemporary landscape sees the digital economy (DE) as a pivotal driver of economic evolution. Hence, scrutinising its potential to harmonise ‘efficiency promotion’ and ‘emission reduction’ and combat the challenges of climate change in this digital epoch is imperative. This study empirically investigates the influence of DE growth by evaluating its impact on carbon emission scale and energy efficiency. The study employs econometric modelling to delve into the internal mechanisms and diverse characteristics of DE evolution that influence ‘efficiency promotion’ and ‘emission reduction’. Findings underscore a significant capacity within the DE to ameliorate energy efficiency and curtail overall carbon emissions, revealing its dual prowess in fostering ‘efficiency promotion’ and ‘emission reduction’. Robustness tests affirm these outcomes, fortifying the conclusion. Additionally, the effects of DE development on ‘efficiency promotion’ and ‘emission reduction’ are validated in these tests. The study reveals that the ‘efficiency promotion’ and ‘emission reduction’ facets of DE progression exhibit distinctive regional disparities, notably manifesting more pronounced impacts in the eastern regions.

Evaluation of Top Journals and Authors in Behavioral Economics: A Bibliometric Approach

Behavioral economics has become an essential subfield within economics, integrating psychological insights to better understand decision-making processes. This study conducts a comprehensive bibliometric analysis to evaluate the evolution of behavioral economics, identify key research themes, and map the contributions of influential authors. Using data sourced from the Google Scholar database, the study analyzes publication trends, co-authorship networks, and the temporal development of research areas. The findings reveal that core concepts such as behavioral finance, public policy, and experimental economics continue to dominate the field, while emerging areas like consumer behavior and insurance indicate new research directions. The co-authorship analysis highlights the importance of collaboration among scholars in shaping the field's development. These insights provide valuable implications for researchers, educators, policymakers, and funding bodies in guiding future research, curriculum development, and resource allocation. This study contributes to a deeper understanding of the intellectual structure and trajectory of behavioral economics.

Exploring the composition features of commercial gentrification - a case study of Taipei City

The phenomenon of commercial gentrification, marked by transformations in commercial spaces and retail patterns, is increasingly evident globally, significantly altering consumption spaces to cater to new residents and impacting main shopping areas. This study examines commercial gentrification in Taipei City, focusing on identifying affected areas and analyzing their environmental characteristics. Using secondary dissemination areas as spatial units, the research constructs quantifiable indicators to map the occurrence of commercial gentrification. Principal component analysis (PCA) is employed to explore the environmental factors correlated with this process. Taipei City's historical and economic evolution, characterized by significant infrastructure developments and commercial transformations, provides the context for this study. The threshold strategy revealed patterns of commercial gentrification within the Da'an, Zhongzheng, and Songshan districts, with Da'an displaying the most significant changes. The weighted results suggest that areas experiencing commercial gentrification showcase a high degree of diversity, a lower presence of vulnerable populations, and superior public transportation and amenities. This study aims to provide insights into the spatial dynamics and environmental impacts of commercial gentrification, offering a comprehensive understanding of its progression in Taipei City.

Population threshold for the evolution towards an advanced economy in Chinese cities

Although the problems created by exceeding Earth’s carrying capacity are real, a too-small population also creates problems. The convergence of a nation’s population into small areas (i.e., cities) via processes such as urbanization can accelerate the evolution of a more advanced economy by promoting new divisions of labor and the evolution of new industries. The degree to which population density contributes to this evolution remains unclear. To provide insights into whether an optimal “threshold” population exists, we quantified the relationships between population density and economic development using threshold regression model based on the panel data for 295 Chinese cities from 2007 to 2019. We found that when the population density of the whole city (urban and rural areas combined) exceeded 866 km−2, the impact of industrial upgrading on the economy decreased; however, when the population density exceeded 15,131 km−2 in the urban part of the cities, the impact of industrial upgrading increased. Moreover, it appears that different regions in China may have different population density thresholds. Our results provide important insights into urban economic evolution, while also supporting the development of more effective population policies.

Innovation in economic evolution: Reintroducing Schumpeterian thought to current advances in economic sociology

Innovation in economic evolution: Reintroducing Schumpeterian thought to current advances in economic sociology

Can science and technology resources co-evolve with high-tech industries? Empirical evidence from China

Based on the theories of synergetic and evolutionary economics, we build a theoretical model of the co-evolutionary mechanisms of the composite systems of science and technology resources and high-tech industries in China. According to the established index system of the composite systems, we calculated the steady-state solution of the co-evolve and drew the potential function curve of science and technology resources and high-tech industries in China during 2010–2022 using the Haken model. Our empirical results show that high-tech industries are the order parameter of co-evolve. During the sample period, there is a synergistic growth effect of two-way promotion between science and technology resources and high-tech industries in China. However, within the system, the positive feedback mechanism of science and technology resources to high-tech industries in China is not perfect, and the allocation of science and technology resources needs to be further optimized, with a low degree of system order and large room for improvement. In addition, the endowment of science and technology resources and the development degree of high-tech industries in China are different in the eight comprehensive economic zones, and their co-evolvement is different. Therefore, by combining the advantages and allocating the elements of regional science and technology resources, we can better leverage the comparative advantages of high-tech industries in China and improve the degree of co-evolve in the system.

დინამიური კონკურენციის განვითარების პერსპექტივები საქართველოში, ევროკავშირის კანდიდატი ქვეყნის სტატუსის ჭრილში

The paper discusses the theoretical foundations of dynamic competition in terms of the opportunities for innovative development at the expense of intellectual property protection and quality management, the benefits of society under the conditions of dynamic competition within the framework of the Nash equilibrium, the financial problems of establishing societies, the study of the dynamics of employment in Georgia during the transition period, the definition of corporatism and brandism, and development perspectives. The legal framework will also be studied, including the Association Agreement, the candidate statute and the negotiation phase requirements for employers, and the general content of the socially oriented economy of the European Union. The authors conclude that dynamic competition is being established in Georgia on a large scale, which contradicts the principles of free entrepreneurship, economic "freedom", laissez-faire of Schumpeter, Weber, Hayek and others, and opposes the concept of responsible consumer, and which can be perceived as a form of additional regulation in the conditions of overproduction of the market economy. In the West, in the Pareto equilibrium, on average, about 80% of GDP comes to only 20% of the population, while 80% of the population creates only about 20% of GDP on average, and the dilemma of the self-employed becomes more and more relevant in terms of socio-economic development of countries, which the development of nanotechnologies, artificial intelligence (neural networks) and robotics is also increasing. Also, based on accounting and financial reporting approaches, the principles of recognition of innovation research and development costs in the modern economy will be discussed, indicating the compatibility of their content with dynamic competition and the possibility of the state's potential role in stimulating this area. In the end, according to the authors' conclusion, only those nations that promote innovative development and which need to be stimulated in conditions of real annual economic growth of up to 4% have a future arising from evolutionary economics perspectives.

Navigating Nepal’s development trajectory: The road to graduation from the LDC status and beyond

Nepal’s imminent graduation from the Least Developed Country (LDC) status marks a significant milestone in its development trajectory, highlighting substantial progress in economic, social, and human development indicators. This transition necessitates a strategic approach to capitalize on newfound opportunities while mitigating associated challenges. Drawing on insights from socio-economic indicators and economic evolution data, this paper assesses Nepal’s readiness for graduation and outlines key priorities for its post-LDC journey. Emphasizing sustainable development aligned with the Sustainable Development Goals (SDGs), the paper advocates for in-country resource mobilization, system strengthening with a localization focus, human capital development, market access facilitation, resilience building, and promotion of foreign direct investment. By leveraging international support, prioritizing strategic initiatives, and fostering conducive environments for growth and investment, Nepal can navigate the transition effectively and pave the way for inclusive, resilient, and sustainable development.

Brief Encounter. The Distant Co-evolution of Régulation Theory and Evolutionary Economics

ABSTRACT Between the late 1980s and the mid-1990s, the perception of many contributors to régulation theory and evolutionary economics was that, because of a certain proximity in the issues and presuppositions of each approach, it might be fruitful for both to engage in a scientific dialogue that could lead to what Chris Freeman imagined might be an original synthesis. More than three decades later, it has to be said that the synthesis has not taken place and that the dialogue has lost much of its intensity. This article analyses the reasons that have led the two approaches to move further apart rather than closer together, by examining how régulation theory has integrated the problems of technology and dealt with agents’ diversity at the micro level, and how evolutionary theory has tackled the issue of macro-level institutions. It emerges that structural reasons relating to each of the approaches prevent genuine convergence, but that this does not represent a problem for which a solution should necessarily be sought.

How does the digital economy affect carbon emissions from tourism? Empirical evidence from China

The rise in carbon emissions linked to the tourism industry has challenged its long-standing reputation as an eco-friendly sector. In parallel, the digital economy's evolution has introduced a series of transformations within tourism. This necessitates a thorough examination of the intricate interplay between the digital economy and carbon emissions in the tourism sector. With the help of Chinese provincial panel data, this study uncovers a compelling relationship marked by an inverted “U" curve through two-way fixed model, moderated effects model and threshold regression analysis. Intriguingly, an increase in road density shifts the inflection point of this curve to the lower left. As road density reaches a critical threshold of 0.361, it not only amplifies the elasticity of the inverted “U" curve but also accelerates the timeline to reach peak tourism-related carbon emissions. This study underscores a significant practical implication: while digital technology exacerbates carbon emissions from tourism at this stage, the dampening effect of digital technology is to be expected as the development of industrial manufacturing brings better transportation. However, the timing of the tipping point may be earlier or later for different regions, depending on whether the local level of industry is sufficiently developed.