The publication of An Evolutionary Theory of Economic Change by Richard R. Nelson and Sidney G. Winter in 1982 marked a turning point in the field of evolutionary economics. Inspired by Alchian's work about the decision-making process of firms under uncertainty and the behavioural theory of the firm by Richard Cyert and James March,Cyert, R. M., March, J. G. (1963). A Behavioral Theory of the Firm. Engelwood Cliffs, NJ: Prentice-Hall. Nelson and Winter constructed a comprehensive evolutionary theory of business behavior using the concept of natural selection. In this framework, firms operate on the basis of organizational routines, which they evaluate and may change while functioning in a certain selection environment.Nelson, R. R., Winter, S. G. (1982). An Evolutionary Theory of Economic Change. Cambridge, MA: Harvard University Press. Archived from on March 23, 2023. Since then, evolutionary economics, as noted by Nicolai Foss, has been concerned with “the transformation of already existing structures and the emergence and possible spread of novelties.”Foss, N. J. (1994). Realism and Evolutionary Economics. Journal of Social and Evolutionary Systems, 17(1), pp. 21-40. Economies have been viewed as a complex system, a result of causal interactions (non-linear and chaotic) between different agents and entities with varied characteristics.Saviotti, P. P. (1996). Technological Evolution, Variety and the Economy. Aldershot: Edward Elgar. Instead of perfect information and rationality, Herbert Simon's concept of bounded rationalitySimon, H. A. (1957). Models of Man: Social and Rational. Mathematical Essays on Rational Human Behavior in a Social Setting. New York: Wiley. has become prevailing.
the publication of an evolutionary theory of economic change by richard r nelson and sidney g winter in 1982 marked a turning point in the field of evolutionary economics inspired by alchian's work about the decision-making process of firms under uncertainty and the behavioural theory of the firm by richard cyert and james marchcyert r m march j g (1963) a behavioral theory of the firm engelwood cliffs nj prentice-hall nelson and winter constructed a comprehensive evolutionary theory of business behavior using the concept of natural selection in this framework firms operate on the basis of organizational routines which they evaluate and may change while functioning in a certain selection environmentnelson r r winter s g (1982) an evolutionary theory of economic change cambridge ma harvard university press archived from on march 23 2023 since then evolutionary economics as noted by nicolai foss has been concerned with “the transformation of already existing structures and the emergence and possible spread of novelties”foss n j (1994) realism and evolutionary economics journal of social and evolutionary systems 17(1) pp 21-40 economies have been viewed as a complex system a result of causal interactions (non-linear and chaotic) between different agents and entities with varied characteristicssaviotti p p (1996) technological evolution variety and the economy aldershot edward elgar instead of perfect information and rationality herbert simon's concept of bounded rationalitysimon h a (1957) models of man social and rational mathematical essays on rational human behavior in a social setting new york wiley has become prevailing