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Evolutionary Economics, Routines, and Dynamic Capabilities

This paper explores the role of evolutionary economics as a key influence on strategic management and especially on the dynamic capabilities framework.

David J Teece WP Thumbnail

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  • Evolutionary Economics, Routines, and Dynamic Capabilities

This working paper is part of the UCL Institute for Innovation and Public Purpose’s (UCL IIPP) publication series.

Explore more working papers and policy reports here.

 

Download working paper

UCL Institute for Innovation and Public Purpose (IIPP) Working Paper Series: IIPP WP 2022/17

Forthcoming in The Handbook of Evolutionary Economics (Routledge), edited by Richard Nelson, Kurt Dopfer, Jason Potts and Andreas Pyka.

Authors:

  • David J Teece | Professor at the Graduate School at the University of California, Berkeley and Faculty Director of the school’s Tusher Initiative for the Management of Intellectual Capital.

Reference:

Teece, D, J. (2022). Evolutionary Economics, Routines, and Dynamic Capabilities. UCL Institute for Innovation and Public Purpose, Working Paper Series (IIPP WP 2022-17). https://www.ucl.ac.uk/bartlett/public-purpose/wp2022-17.

Abstract:

Evolutionary economics has been a key influence on strategic management and especially on the dynamic capabilities framework, where it is a foundational pillar. However, the emphasis by evolutionists is on fleshing out a theory of routines while downplaying the bold entrepreneurial moves that drive the business enterprise — and the economic system — forward. The dynamic capabilities framework, by embracing the role of entrepreneurial managers, including the development of a change-oriented organisational culture, the achievement of asset alignment and the placing of bold (but smart) bets, provides the basis for a more realistic model of firms as they compete in fast-changing and uncertain business environments.

This working paper is part of the UCL Institute for Innovation and Public Purpose’s (UCL IIPP) publication series.

Explore more working papers and policy reports here.

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