Disruptive innovation in the economic organization of China and the West
Hilton L. Root
Abstract We explore how macro and micro networks influence the diffusion of technological innovation cultural/social behavior. Across historical regimes in China Europe, dynastic lordship's afforded different advantages innovation. A network particular to Roman Church, extended deep into local parishes with ethical norms prescribing fairness strangers, these cultural foundations helped guilds, trade associations, merchant courts, universities operate cooperatively far beyond kinship. In contrast, Chinese emperors relied on ancient Confucian moral codes system-spanning Confucian-educated officialdom; but fiscal limitations compelled officials defer lineage orders, resulting an enduring pattern guanxi a polity whose institutional problem-solving capacity falter level. Yet civil service system has enabled outperform similar lineage-dependent regimes. Probing topologies, we find that can facilitate diffusion, behavioral change.
Journal of Institutional Economics