Capacities, innovation and feedbacks in production networks in Argentina

Analia Erbes, Verónica Robert () and Gabriel Yoguel

Economics of Innovation and New Technology, 2010, vol. 19, issue 8, 719-741

Abstract: This paper is based on an application of the complex systems approach to economics with the objective of exploring the micro- and meso-mechanisms of development. Under this approach, innovation can be seen as an emergent property that depends on micro interaction and on specificities of macro structure. This study emphasizes that the micro interactions can be described by the feedback mechanisms between the absorption and connectivity capacities of firms, and the macro structure by processes of creative destruction, knowledge appropriation and structural change. The paper presents empirical evidence on the feedback loops between absorption and connectivity capacities in production networks in Argentina and their impact on innovation results. This paper concludes that the restrictions on absorption capacity and mainly on connectivity capacity in several production networks in Argentina condition the development of positive feedbacks between the two capacities, and hence the scope of the innovation path.

Keywords: complexity; feedbacks; absorption and connectivity capacities; production networks; structural change (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (7)

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DOI: 10.1080/10438590903040807

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