Evolutionary Economics Research Articles

Cognitive modeling in project management

Subject. This article deals with the issues of project management, risk forecasting and evolutionary economics. Objectives. The article aims to identify systems approaches to management, strengthening digital interactions between various departments of the company and the management department. Methods. For the study, I used a systems analysis. Results. The article presents models of interactions between actors and factors based on dynamic cognitive maps, taking into account inverse functional relationships using Bayesian networks, in particular, a dynamic graph model of propagating perturbations in the project environment, and it proposes an approach to its identification based on the least squares method. Conclusions. The proposed cognitive models and tools will help improve the quality of decision-making in the context of "noise".

ECONOMIC AND LEGAL ASPECTS OF PROVIDING INNOVATIVE DEVELOPMENT OF THE ECONOMY IN THE CONDITIONS OF INCREASED INFLUENCE OF FACTORS OF A MILITARY NATURE: THE EXPERIENCE OF UKRAINE AND THE COUNTRIES OF CENTRAL AND EASTERN EUROPE

The purpose of the article is to analyze the state of innovative development of the economy of Ukraine and the countries of Central and Eastern Europe and to identify the problems of its provision in the conditions of martial law. The results of the study prove that factors of a military nature have an ambiguous effect on stimulating the innovative development of the country's economy. It has been established that economic evolution through innovation is a prerequisite for strengthening its competitiveness in countering modern challenges and threats. The results of the empirical study made it possible to find out that during the large-scale aggression of Russia on the territory of Ukraine in 2022, a decrease in the level of innovative economic development was also observed in the countries of Central and Eastern Europe. It was established that in 2023, the countries of the analyzed group managed to increase the indicators of innovative activity of business entities and the parameters of the innovative development of the economy. Important problems in ensuring economic progress through innovative activity have been identified: (1) shortcomings of the legislation regulating the innovation sphere; (2) lack of formation of a unified innovation infrastructure; (3) significant tax burden; (4) lack of an effective system of taxation and provision of tax benefits and preferences; (5) lack of effective investment mechanisms in the field of innovation; (6) low level of technological capacity of production facilities; (7) imperfection of the education system; (8) low level of financing of research activities; (9) focus on the export of raw materials and dependence on high-tech imports. In order to ensure sustainable innovative development of the country's economy, it is necessary to create appropriate conditions for the development of innovative potential, activate the creation of cross-border innovation clusters, and strengthen the country's investment attractiveness.

Демография и развитие: исторический опыт и актуальные проблемы Кабардино-Балкарской Республики

The demographic characteristics of society act at any given moment as factors determining the possibilities and limitations of socio-economic development, but over long historical stages, they themselves change under the influence of socio-economic changes. This relationship should be considered when setting goals and objectives for both economic and demographic policies at the national and regional levels. This paper provides a review of the leading trends and results of the economic and socio-demographic evolution of Kabardino-Balkaria during the Soviet era and the main features of the current demographic situation in the context of the region’s transition to an innovative path of socio-economic development. The socio-economic modernization of the Soviet period was accompanied by demographic modernization. The population of Kabardino-Balkaria grew rapidly and acquired a new sociocultural appearance, becoming more diverse in ethnic com-position, urban in settlement structure and way of life. By the end of the Soviet era, the demo-graphic transition was completed, the level of education of the population of the republic was comparable to all-Russian parameters, its socio-professional structure acquired a diversified and generally modern character. However, the transition from the Soviet to the post-Soviet social and state system was accompanied not just by a deep economic recession, but by the phenomena of structural deindustrialization and demodernization. A reflection of these socio-economic condi-tions is the ambivalence of the demographic situation – a significant slowdown in natural growth, the aging of the population, a shift in the age distribution of marriage and birth rate towards older ages, a change in the vector of migration processes from inflow to outflow, a decrease in the share of the urban population, a reduction in industrial employment, a decline in the Russian population, reaching a plateau in dynamics and a deterioration in comparative indicators of the level of educa-tion. Meanwhile, qualitatively new tasks have appeared on the agenda, placing increased demands on the quality of human potential of modern development.

Explorando la Transición hacia la Sostenibilidad, la Creación de Trayectorias y los Espacios de Oportunidad para la Política de Desarrollo Sostenible

This conceptual literature review explores the nuanced terrain of sustainability transitions, path creation, and opportunity space within the theoretical framework of evolutionary economic geography. Grounded in the foundational principles of this field, which examines the spatial and temporal dynamics of economic evolution, the paper applies a systematic approach to meticulously select and analyze twelve scholarly articles dated from 2010 or after. The methodology involved the creation of a comprehensive database organizing and systematizing the relevant data, so offering a robust foundation for the exploration of theoretical approaches and constructs related to sustainability transitions, path creation, and opportunity space. Drawing from the field of evolutionary economic geography, the paper emphasizes key contributions from this theoretical perspective. A common thread identified across these concepts is the pivotal role of change agency. The paper concludes by underlining the contributions of sustainability transitions, path creation, and opportunity space to sustainable development policy, providing insights into their potential impact on shaping a more sustainable and resilient future.

Economic evolution of Durres University: A historical perspective from 1803 to 2030

The purpose of this study was to examine the history of the development of Alexander Moisiu University of Durres to form recommendations for its future development. It also remained important to form advices in the context of the future development of universities to ensure the improvement of the entire field of education. The main methods that were used in the framework of the study were analysis, forecasting, and comparison. The paper considered the features of the development of the city of Durres, its role for the country, and the main areas of activity. Subsequently, the history of the main local Alexander Moisiu University, which was founded in 2006, was evaluated. It was concluded that, despite significant successes, there are still difficulties and problems in its development. In this regard, actions were proposed (from the standpoint of the university’s management staff) to improve the quality of the university’s development in the future. Special attention was paid to components of innovation, digitalisation, and sustainable development. The conclusions showed that close cooperation between the municipality and the university will lead to mutually beneficial consequences, which is why representatives of both sides should be interested in this. The conclusions generated within the framework of the study can be used both to develop the future strategy of Alexander Moisiu University and to form a state strategy in the field of education in general

HARMONIZING DIGITAL CURRENCIES WITH INDUSTRY 5.0: A TRANSFORMATIVE NEXUS FOR ECONOMIC EVOLUTION

Present work assesses the impact of digital currencies on financial systems and their potential role in shaping the core principles of Industry 5.0. It embarks on an exploration of the synergies, challenges and transformative potentials arising at the intersection of digital currencies and industry 5.0. The aim is to decipher the intricate relationships and dependencies that shape this evolving nexus for economic evolution. A comprehensive framework has been proposed to integrate the digital currencies as part of the Industry 5.0 eco-system. The framework focuses on the crucial elements ranging from strategic vision, regulatory adherence, promoting cooperation as well as prioritizing the ethical considerations. Challenges for successful implementation of the framework have been identified considering the technical as well as organizational aspects. The framework will lead to a roadmap, synthesizing insights for practical guidance to the policymakers, businesses and other stakeholders to harness the transformative potential of this convergence.

ЭКОНОМИЧЕСКОЕ ПОВЕДЕНИЕ ЛЮДЕЙ В РАМКАХ НЕОРТОДОКСАЛЬНОЙ ЭКОНОМИЧЕСКОЙ МЫСЛИ

This article examines the economic behavior of people from the point of view of unorthodox economic thought. Traditional economic theories often assume that people act rationally and seek to maximize their benefits. However, the real behavior of people is much more complex and multifaceted, which leads to the need to revise classical approaches. It also analyzes the basic principles and methods of unorthodox economic thought, such as behavioral economics, institutional economics, evolutionary economics, and others. The influence of psychological, social and cultural factors on economic decision-making is considered, as well as the role of irrationality and limited rationality in economic behavior. The author emphasizes the need to integrate these approaches into economic theory for a more complete and accurate modeling of economic processes.

The Influence of RMB Settlement Globalization on the Political and Economic Evolution of Singapore Amidst US-China Rivalry

At the dawn of the 21st century, the ascending comprehensive national strength of China has significantly bolstered the role of the RMB in global economic transactions, thereby expediting its international settlement globalization. This development, unfolding within the framework of an increasingly interconnected global economy, profoundly impacts Singapore. Positioned as a crucial trading partner and geographical neighbor to China, while simultaneously serving as a vital security ally of the United States in Asia, Singapore's political and economic landscapes are witnessing transformative shifts. This paper endeavors to meticulously examine and elucidate the specific impacts of RMB settlement globalization on Singapore's political and economic dimensions. Moreover, it aims to explore the potential challenges and opportunities that these impacts may engender for Singapore in the near future, particularly against the backdrop of the US-China competition. The analysis of how the global proliferation of RMB settlement is reshaping Singapore, alongside the nature and direction of this influence amid the strategic rivalry between the US and China, is of paramount importance. It provides deep insights into the evolution of the global political-economic order and assists in formulating strategies for middle-tier nations like Singapore within the changing regional dynamics. By offering a detailed understanding of these developments, this study acts as an essential guide for navigating crises, capitalizing on developmental opportunities, and actively participating in regional affairs.

The Influence of RMB Settlement Globalization on the Political and Economic Evolution of Singapore Amidst US-China Rivalry

At the dawn of the 21st century, the ascending comprehensive national strength of China has significantly bolstered the role of the RMB in global economic transactions, thereby expediting its international settlement globalization. This development, unfolding within the framework of an increasingly interconnected global economy, profoundly impacts Singapore. Positioned as a crucial trading partner and geographical neighbor to China, while simultaneously serving as a vital security ally of the United States in Asia, Singapore's political and economic landscapes are witnessing transformative shifts. This paper endeavors to meticulously examine and elucidate the specific impacts of RMB settlement globalization on Singapore's political and economic dimensions. Moreover, it aims to explore the potential challenges and opportunities that these impacts may engender for Singapore in the near future, particularly against the backdrop of the US-China competition. The analysis of how the global proliferation of RMB settlement is reshaping Singapore, alongside the nature and direction of this influence amid the strategic rivalry between the US and China, is of paramount importance. It provides deep insights into the evolution of the global political-economic order and assists in formulating strategies for middle-tier nations like Singapore within the changing regional dynamics. By offering a detailed understanding of these developments, this study acts as an essential guide for navigating crises, capitalizing on developmental opportunities, and actively participating in regional affairs.

The Economic Evolution of the Romanian Defense Market in the Context of the World Crisis (Post-pandemic) and the Imbalance of International Security (Military Conflict in Ukraine)

Abstract The analysis of crisis management shows that any crisis will generate risks and opportunities for certain industrial sectors. The current security crisis overlaps today with other crises (climatic, economic, energy, and medical crises generated by COVID-19). The medical crisis generated by the COVID-19 pandemic has recorded considerable profits for the pharmaceutical industry and companies in the medical equipment manufacturing industry. (John A. Parnel). The defense market and armaments production industry has been steadily growing at national and international levels due to the imbalance in international security caused by Russia's military conflict. An economical inside perspective is provided due to an internal study case based on the evolution of this industry's key sector. As per the analyzed data, the market demand is currently higher than the production capacity, both at European and national levels. The industry cannot meet the requirements of the defense market. Nonetheless, the turnover of the profile companies experienced significant increases with positive effects on the recorded profit rates. After conducting a thorough evaluation of the domestic defense industry, the solution might be to privatize state-owned companies in the security industry, which may involve merging companies with similar activity profiles. Also, financial incentives, such as tax measures like those granted to personnel working in the IT industry, can help overcome the human resources issue that the Romanian defense industry is currently facing.

Who Should Be Running Ahead? The Roles of Two Types of Entrepreneurship in China’s Regional Economies

AbstractOne of the most important transitions of China from a centrally planned economy to a market-based economy was the emergence of entrepreneurship in two different forms of private enterprise, viz., getihu and siyingqiye. Getihu firms are legally restricted to a household ownership structure and a firm size upper limit. Siyingqiye firms do not face these restrictions but are more costly to set up. Using a unique database for 31 Chinese regions over the period 1997–2009, we investigate the economic antecedents of regional rates of getihu and siyingqiye, and to what extent these antecedents are in line with the “entrepreneurial” or the “managed” economy as per Audretsch and Thurik (Audretsch and Thurik, Journal of Evolutionary Economics 10:17–34, 2000, Audretsch and Thurik, Industrial and Corporate Change 10:267–315, 2001). We find that particularly the antecedents of regional siyingqiye rates are in line with the “entrepreneurial” economy in the sense that regional economies that are more conducive to knowledge production and knowledge spillovers have higher rates of siyingqiye firms. Overall, our analysis suggests that both types of entrepreneurship play important but distinct roles in stimulating China’s economic development.

“Evolutionary economics”: possibilities for forming the policy of growth and technological changes

The study is devoted to the consideration of internal methodological limitations of the flow of “evolutionary economics”. The author’s goal is to identify the inherent limitations of the analysis of “evolutionary economics” and limitations in terms of influence on the formation of economic policy. The methodology is based on the theory of evolutionary economics and orthodox approaches in the field of economic analysis, the theory of economic policy and growth. The author comes to the conclusion that “evolutionary economics”, despite the broad mathematical apparatus used, has limited capability for planning and interpreting the implementation of economic policy — in particular, the use of tools for stimulating economic growth at which mainstream economics is still good, although not without certain constraints. Thus, in order for evolutionary economics as a scientific movement to acquire significant weight among economic theories on the basis of which it is possible to build economic policy, it is necessary to methodologically solve the problem of harmonizing short-term and long-term guidelines and parameters of development, as well as the problem of fast and slow variables, describing the functioning of the economic system. The solution seems to be the so-called neo-Schumpeterian theory of evolution, with the help of which it is possible to model and explain development at various time intervals by analyzing the competition of old and new combinations, affecting not only innovations, technologies, but also institutions, as well as interacting agents — innovators, imitators and conservatives. It is shown how structural dynamics reflects the evolution of the economic system.

Scientific foundations of the infrastructure system research of rural areas

The article systematizes the scientific principles of research into the infrastructure system of rural areas. The purpose of the article is to generalize the theoretical foundations of the infrastructure systems study of rural areas based on the provisions of systemic, evolutionary, structural-functional, spatial approaches, principles study of sustainable development, strategic management and substantiation of the methodological foundations for studying the specifics of the rural areas infrastructure. The most common approaches to the definition of the concept of «infrastructure» are identified: service, in which infrastructure is considered as the basis of public service, production activity, etc.; reproductive - infrastructure is the basis for reproduction of goods, services, life activities, etc.; complex - infrastructure as a complex of objects; systemic - infrastructure as a system, a set of objects interconnected with each other and the external environment; spatial - infrastructure as the forming basis of the region, local territory. It has been established that in modern research, infrastructure is considered as a system-wide concept, an approach to its understanding is being formed as a separate integral system, as well as a subsystem of the second order, in particular, spatial, socio-economic. Itis argued that the spatial approach to the understanding of infrastructure has become the most widespread in the research of the infrastructure of rural areas. It is substantiated that spatial studies of infrastructure involve considering it not only as a service system, but also as a means of development, a communication connecting platform for territories, the full functioning of which determines the systemic effects of branch and regional components of spatial formations, socio-economic systems. The theoretical aspects of the regional infrastructure concept which are based on an interdisciplinary approach, based on a combination of key provisions of the regional and spatial economics theory, systems theory, evolutionary economics, and infrastructure theory, have been supplemented. The definition of the «infrastructural system of arural area» concept is proposed as a dynamic complementary structure that forms and transforms the spatial basis of socio-economic activity at the area rural level, ensures the development of interconnected, interacting systems, elements, objects of various territories hierarchical levels based on mutual complementarity. Key words: infrastructure, infrastructure system, rural areas, spatial economy, evolutionary economy, system approach, infrastructure theories.

The Gig Economy: Disruption, Innovation, and Economic Evolution

The Gig Economy: Disruption, Innovation, and Economic Evolution

R&D investment and innovation performance under vertical partner concentration

ABSTRACT Vertical exchange partners, both customers and suppliers, are key sources of knowledge about new components, technologies, and markets, exerting a critical influence on firms’ innovation performance. While firms’ reliance on a few suppliers and/or a few customers has become a regularly occurring phenomenon, there is only an insufficient understanding of the effect of vertical partner concentration on the returns to firms’ R&D investments. Building on transaction cost and evolutionary economics theories, we conjecture that vertical partner concentration negatively moderates the relationship between R&D investments and innovation performance. Our analysis is built on a dataset of 768 R&D-active French manufacturing firms derived from two independent and temporally separated surveys, enabling the use of lagged values of the key independent variables. The results reveal that customer concentration, whether accompanied or not by supplier concentration, weakens the positive relationship between R&D investment and innovation performance, but this is not observed in dynamic industry settings.

NEW APPROACH TO PROXIMITY ANALYSIS BETWEEN TWO HORIZONTAL MULTI-TABLES: DSCIA2 METHOD

In this paper, we propose a new method called Dual Simultaneous Co-Inertia Analysis Type 2 (DSCIA2), which is both a new approach to DSCIA in the context of two horizontal multi-tables and Dual of SCIA2 method. The aim is to study the variability of the proximity between pairs of tables with the same variables, by constructing the common axes of representation of the variables and the individuals simultaneously, i.e. constructing in one go an orthogonal matrix containing the solutions. An example of this method consisting being studied of the compared economic evolution of the countries of the Economic Monetary Community of Central Africa (EMCCA) and the West African Economic Monetary Union(WAEMU) is given.

SOLUTION OF NONLINEAR PARTIAL DIFFERENTIAL EQUATIONS BY A DEFORMATION BASED SAWI’S TRANSFORM

In this paper, we propose a new method called Dual Simultaneous Co-Inertia Analysis Type 2 (DSCIA2), which is both a new approach to DSCIA in the context of two horizontal multi-tables and Dual of SCIA2 method. The aim is to study the variability of the proximity between pairs of tables with the same variables, by constructing the common axes of representation of the variables and the individuals simultaneously, i.e. constructing in one go an orthogonal matrix containing the solutions. An example of this method consisting being studied of the compared economic evolution of the countries of the Economic Monetary Community of Central Africa (EMCCA) and the West African Economic Monetary Union(WAEMU) is given.

Introduction to the journal of development economics special issue on methods and measurement

Continued emphasis in development economics on measurement and survey design provides opportunities to expand the research frontier. Yet methods work, particularly survey experiments and mode effect studies, remains scantly published in economics. This special issue contributes to the evolution of development economics by presenting evidence on three broad sets of methodological problems that researchers face: managing measurement error, expanding the scope of measurement, and understanding measurement error mechanisms.

What is evolving in an economy?

Modern evolutionary economics consists of several areas of research that differ significantly both in objects and research methods. One of these areas includes in its tasks the search for evidence that changes occurring in the economy are similar to those that were studied in Darwin’s theory of the living nature’s evolution. The article poses and solves two main tasks: firstly, to demonstrate the incorrectness of the interpretation of “Generalized Darwinism” as a model of evolution, the features of which coincide with the original Darwinian understanding, and, secondly, to show that in economics it is really possible to identify objects in which changes occur in a way close to what was discovered by Charles Darwin. It is shown that “Generalized Darwinism” is in fact a model of those types of evolution that are not Darwinian. At the same time, it has been demonstrated that in economics it is indeed possible to distinguish subsystems called “systems for creating product families,” whose properties are similar to fruit plants, and changes are carried out through natural Darwinian selection. The final part presents directions in which the use of the proposed approach can make a certain contribution to further development of evolutionary economics.

Reintroducing Time, Money and Constraints: Viability to Bridge the Economic and Monetary Theories

Why use a viabilistic approach to model economy? Because it is urgent to re-assess the modeling of the business cycle that integrates dynamic money creation and that has at its core the notion of constraints. The purpose of this paper is thus to propose an evolutionary economic model using a mathematical framework derived from set-valued analysis, differential inclusions and viability theory. As this approach is dynamical, the model will not use two concepts on which neo-classical economics are built i.e., (1) the existence of static repeated equilibria, (2) the optimization by an economic agent of a utility function. Furthermore, we will not use any self-organization process or “invisible hand”, as in our viabilist framework the economic viability will be maintained by explicit choices of the economic agents and of the lender of last resort over the budgetary and monetary rules to apply. Indeed, even simple constraints on the second-derivative of the means of payments already induce four-phased business cycles. Coupling these constraints over the creation of means of payment with economic evolutions of prices and commodities through a budgetary constraint allows for a single formalism, tackling jointly the question of the viability of economic and monetary evolutions.