The dynamics of firms in a micro-to-macro model: The role of training, learning and innovation

Ballot, G
Taymaz, Erol
We analyze the co-evolution of the performances of firms and of the economy in an evolutionary micro-to-macro model of the Swedish economy. The model emphasizes the interactions between human capital (or competences) and technological change at the firm level and their effects;on aggregate growth, taking into account the micro-macro feedbacks. The model features learning-by-doing, incremental and radical innovations, user-producer learning at the firm level, and a change in the techno-economic paradigm. We find that there is an optimal sequence for the firm to allocate their resources: (1) build a general human capital stock before the change in the techno-economic paradigm, (2) spend on R&D, and (3) invest in specific human capital. Innovators fare better than imitators on average, not only because they innovate, but also because they build a competence base, which supports the learning from other firms.


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Ozveren, E (Springer Science and Business Media LLC, 2000-01-01)
This paper evaluates Schumpeter's grand vision as reflected in his Capitalism, Socialism ann Democracy, and elaborates it in conjunction with the so-called "globalization" trends characteristic of the wake of the twenty-first century. In addition to the evolutionary nature of his methodology, the institutionalist dimension of Schumpeter's definitions are brought to light. A case is made for a fundamental process of "uncreative destruction" as far as the institutional setup of the economy is concerned. The c...
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Citation Formats
G. Ballot and E. Taymaz, “The dynamics of firms in a micro-to-macro model: The role of training, learning and innovation,” JOURNAL OF EVOLUTIONARY ECONOMICS, pp. 435–457, 1997, Accessed: 00, 2020. [Online]. Available: