Evolutionary Economics and the Extension of Evolution to the Economy

Abstract

In this paper an attempt will therefore be made to explore more thoroughly what meaning should be attributed to the notion of “evolution” and what possible implications follow from this on the level of economic theorizing. Given the strong influence of Darwinian thought it is useful to briefly discuss first what role Darwinian concepts could or should play. This results in a critical review of attempts at directly applying Darwinian concepts to economics or constructing more or less abstract analogies in section II. Section III then turns to the notion of evolution. Given that it is used in various domains with quite different domain-specific connotations, the notion should ideally refer to a few, abstract, common principles which all domain-specific evolutionary processes share. A different, namely ontological, question is whether or not there are (inter-) dependencies between domain-specific evolutionary processes. To answer this question the hypothesis of an ontological continuity between evolution in nature and in the economy will be postulated. The subsequent sections IV and V are devoted to outlining some implications of this “continuity hypothesis” for an evolutionary approach to economics. Since human production activities, relevant at all times and in all cultures, are particularly well-suited for an exemplary discussion the evolution of human production will be made the subject of investigation in these sections. Section VI offers a brief outlook on consumption and the conclusions. II.