Innovation in historical perspective

Abstract

It is necessary to study the historical record concerning the economic nature of technological change, the constraints it confronts, and the complementarities with other sectors of the economy in order to fully understand the nature of innovation. Consideration must be given to the market environment, the available production facilities, the existing body of knowledge, and the social and organizational contexts of the innovation, in addition to the series of required changes within other sectors, not just to the limited aspects of a narrowly-defined specific innovation. Since theoretical models cannot deal with the full complexity of the process of invention, innovation, and the utilization of new devices, some historical study is required to develop a full understanding of these processes. Without consideration of past events, it is difficult to understand either the present or the future. Consideration of these factors will not only increase our historical knowledge but also serve to enrich our theorizing about these questions.