Hayek on Product Innovation and Market Shaping: Opening the Black Box

Yıl 2020, Cilt: 25 Sayı: 100, 169 - 189, 25.12.2020

Burak Erkut

https://doi.org/10.36484/liberal.757980

Cited By: 2

Öz

Innovation is very often described as the introduction a novelty, and it remained in the agenda of economics since Schumpeter’s ground-braking observations. Current literature categorizes innovations by means of product and process innovations; nevertheless, the economics literature in general and evolutionary economic literature in particular is mainly focusing on process innovations. In this literature review, the author aims to answer the question of why product innovation and the corresponding pioneer market shaping phase remain to be a black box in economics, and how can the concerns underlying this observation be addressed by using Hayekian insights.

Anahtar Kelimeler

Product innovation, market shaping, Hayek, evolutionary economics

Hayek’te Ürün İnovasyonu ve Pazar Şekillenmesi: Kara Kutuyu Açmak

Öz

İnovasyon ya da yenileşim genelde ticari değeri olan yeni birşeyin ortaya çıkması olarak özetlenir, ve Schumpeter’in önemli gözlemlerinden beridir ekonomi biliminin gündeminde yer tutmaktadır. Çağdaş literatürde inovasyonlar ürün inovasyonu ve süreç inovasyonu olarak ikiye ayrılsa da, ekonomi bilimi ekseriyetle süreç inovasyonuna odaklanmaktadır. Bu literatür taramasında ürün inovasyonu ve beraberinde gelen piyasa şekillenmesinin neden ekonomi literatüründe kara kutu olduğu araştırılmaktadır. Bununla birlikte, ürün inovasyonu ve pazar şekillenmesinin analizi önündeki engellerin Hayek’in kuramlarıyla nasıl aşılabileceği de bu araştırmada gösterilmektedir.

Anahtar Kelimeler

Ürün inovasyonu, pazar şekillenmesi, Hayek, evrimci iktisat

Kaynakça

• Andersen, E. S. (1996), Evolutionary Economics: Post-Schumpeterian Contributions, New York: Pinter.
• Araujo, L., Finch, J. and Kjellberg, H. (2010), “Reconnecting Marketing to Markets: An Introduction”, Araujo, L., Finch, J. and Kjellberg, H. (Eds.), Reconnecting Marketing to Markets, Oxford: Oxford University Press, pp. 1-10
• Arena, R. and Larrouy, A. (2015), “The Role of Psychology in Austrian Economics and Game Theory: Subjectivity and Coordination”, GREDEG Working Paper Series 2015-5
• Aspers, P. (2009), “How Are Markets Made?”, Max-Planck-Institut für Gesellschaftsforschung Working Paper 2/09.
• Atuahene-Gima, K. and Ko, A. (2001), “An empirical investigation of the effect of market orientation and entrepreneurship orientation alignment on product innovation”, Organization Science, Vol. 12, No. 1, pp. 54-74.
• Bain, J. (1956), Barriers to New Competition, Cambridge: Harvard University Press.
• Bhar, R. and Hamori, S. (2005), Empirical Techniques in Finance, Berlin and Heidelberg: Springer.
• Birner, J. (2017). “F. A. Hayek’s Economics, a Neglected Part of His Work”, https://www.researchgate.net/publication/320591934_FA_Hayek%27s_economics_a_neglected_part_of_his_work (Retrieved: 25 June 2020)
• Buenstorf, G. (2007), “Creation and pursuit of entrepreneurial opportunities: An evolutionary economics perspective”, Small Business Economics, Vol. 28, No. 4, pp. 323-337.
• Butos, W. N. (2010), “The Unexpected Fertility of Hayek’s Cognitive Theory: An Introduction to The Social Science of Hayek’s ‘The Sensory Order’”, Butos, W. N. (Ed.), The Social Science of Hayek’s ‘The Senory Order’, https://doi.org/10.1108/aaec
• Callon, M. (2010), “Marketing as an Art and Science of Market Framing: Commentary”, Araujo, L., Finch, J. and Kjellberg, H. (Eds.), Reconnecting Marketing to Markets, Oxford: Oxford University Press, pp. 224-233
• Cantner, U. and Hanusch, H. (1997), “Evolutorische Ökonomik – Konzeption und Analytik”, WISU, Vol. 8-9, pp. 776-785.
• Cecere, G., Corrocher, N., Gossart, C. and Ozman, M. (2014), “Lock-In and Path Dependence: An Evolutionary Approach to Eco-Innovations”, Journal of Evolutionary Economics, Vol. 24, pp. 1037-1065.
• Chesbrough, H. (2003), “Open innovation: A new paradigm for understanding industrial innovation”, Chesbrough, H., Vanhaverbeke, W. and West, J. (Eds.), Open innovation: Researching a new paradigm, New York: Oxford University Press, pp. 1-13.
• Dopfer, K. (2005), “Evolutionary economics: A theoretical framework”, Dopfer, K. (Ed.), The evolutionary foundations of economics, Cambridge: Cambridge University Press, pp. 3-55.
• Dosi, G. (1990), “Economic Change and Its Interpretation, or, Is There a ‘Schumpeterian Approach’?”, Heertje, A. & Perlman, M. (Eds.), Evolving Technology and Market Structure – Studies in Schumpeterian Economics, Ann Arbor: University of Michigan Press, pp. 335-342.
• Drucker, P. (2008), The Essential Drucker, New York: HarperBusiness.
• Dubuisson, S. (1998), “Codification et ajustement: deux moyens pour l’élaboration d’une mémoire de l’organisation: le cas d’une activité de service”, Revue Internationale de Systémique, Vol. 12, No. 1, pp. 83-98.
• Ebner, A. (2005), “Hayek on Entrepreneurship: Competition, Market Process and Cultural Evolution”, Backhaus, J. G. (Ed.), Entrepreneurship, Money and Coordination – Hayek’s Theory of Cultural Evolution, Cheltenham: Edward Elgar, pp. 131-149.
• Erkut, B. (2016a), “Entrepreneurship and Economic Freedom: Do Objective and Subjective Data Reflect the Same Tendencies?”, Entrepreneurial Business and Economics Review, Vol. 4, No. 3, pp. 11-26.
• Erkut, B. (2016b), “Product Innovation and Market Shaping: Bridging the Gap with Cognitive Evolutionary Economics”, Indraprastha Journal of Management, Vol. 4, No. 2, pp. 3-24.
• Erkut, B. (2016c), “Perceiving Innovation: Who ‘Makes’ SAP Labs India and How?”, South Asian Journal of Business and Management Cases, Vol. 5, No. 1, pp. 116-125.
• Erkut, B. (2018), “The Emergence of the ERP Software Market between Product Innovation and Market Shaping”, Journal of Open Innovation: Technology, Market, and Complexity, Vol. 4, No. 3, http://dx.doi.org/10.3390/joitmc4030023
• Fuster, J. M (2011), “Hayek in Today’s Cognitive Neuroscience”, Marsh, L. (Ed.), Hayek in Mind: Hayek’s Philosophical Psychology, Bingley: Emerald, pp. 3-11.
• Grupp, H. (1997), Messung und Erklärung des Technischen Wandels – Grundzüge einer empirischen Innovationsökonomik, Berlin and Heidelberg: Springer.
• Hayek, F. A. (1945), “The Use of Knowledge in the Society”, American Economic Review, Vol. 35, No. 4, pp. 519-530.
• Hayek, F. A. (1948), Individualism and Economic Order, Chicago: University of Chicago Press.
• Hayek, F. A. (1952), The Sensory Order: An Inquiry into the Foundations of Theoretical Psychology, Chicago: University of Chicago Press.
• Hayek, F. A. (1973), Law, Legislation and Liberty: A New Statement of the Liberal Principles of Justice and Political Economy, Vol. 1: Rules and Order, Chicago: University of Chicago Press.
• Hayek, F. A. (1978), New Studies in Philosophy, Economics and the History of Ideas, London: Routledge.
• Hodgson, G. M. (1998), “Evolutionary Economics”, Davis, J. B., Hands, D. W. and Maki, U. (Eds.), The Handbook of Economic Methodology, Northampton: Edward Elgar, pp. 160-167.
• Hodgson, G. M. (2002), “Darwinism in Economics: From Analogy to Ontology”, Journal of Evolutionary Economics, Vol. 12, pp. 259-281.
• Hodgson, G. M. (2007), “Meanings of Methodological Individualism”, Journal of Economic Methodology, Vol. 14, No. 2, pp. 211-226.
• Merriam Webster Online (2020), “Innovation”, https://www.merriam-webster.com/dictionary/innovation (Retrieved 20 June, 2020)
• Jaworski, B., Kohli, A. K. and Sahay, A. (2000), “Market-Driven versus Driving Markets”, Journal of Academy of Marketing Science, Vol. 28, No. 1, pp. 45-54.
• Kirzner, I. (1997), “Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach”, Journal of Economic Literature, Vol. 35, No. 1, pp. 60-85.
• Lanzillotti, R. F. (2003), “Schumpeter, Product Innovation and Public Policy: The Case of Cigarettes”, Journal of Evolutionary Economics, Vol. 13, pp. 469-490.
• Lehmann-Waffenschmidt, M. (2002), “Neuer Fokus Viabilität: Zur Bedeutung der Position des (radikalen) Konstruktivismus für die Wirtschaftswissenschaften und die Nachhaltigkeitsdebatte“, Ökologisches Wirtschaften, Vol. 6, pp. 23-25.
• Lehmann-Waffenschmidt, M. (2004), “Der kontingenztheoretische Ansatz zur Strukturanalyse verlaufs- und ergebnisoffener wirtschaftlicher Prozesse“, Wissenschaftliche Zeitschrift der Technischen Universität Dresden, Vol. 53, No. 3-4, pp. 131-136.
• Lehmann-Waffenschmidt, M. (2008), “Strukturähnlichkeiten und- ungleichheiten evolvierender Ökonomien“, Wissenschaftliche Zeitschrift der Technischen Universität Dresden, Vol. 57, No. 3–4, pp. 105–109.
• Lehmann-Waffenschmidt, M. (2010), “Contingency and Causality in Economic Processes”, European Review, Vol. 18, No. 4, pp. 481-505.
• Lehmann-Waffenschmidt, M. and Erkut, B. (2018), “Putting the ‘Mental’ into the Governmental: How Can Nudges Improve Shock Coping?”, New Perspectives on Political Economy, Vol. 14, No. 1-2, pp. 51-62.
• Mason. E. S. (1939), “Price and Production Policies of Large-Scale Enterprise”. American Economic Review, Vol. 29, pp. 61-74.
• Maxfield, S. (2008), “Reconciling Corporate Citizenship and Competitive Strategy: Insights from Economic Theory”, Journal of Business Ethics, Vol. 80, pp. 367-377.
• Nenonen, S., Kjellberg, H., Pels, J., Cheung, L., Lindeman, S., Mele, C., Sajtos, L. and Storbacka, K. (2014), “A New Perspective on Market Dynamics: Market Plasticity and the Stability-Fluidity Dialectics”, Marketing Theory, Vol. 14, No. 3, pp. 269-289.
• Nelson, R. R. and Winter, S. G. (1982), An Evolutionary Theory of Economic Change, Cambridge and London: Harvard University Press.
• Olivia, G. (2015), “The Road to Servomechanisms: The Influence of Cybernetics on Hayek from the Sensory Order to the Social Order”, The Center for the History of Political Economy Working Paper Series, 2015-11.
• Pfähler, W. and Wiese, H. (2006), Unternehmensstrategien im Wettbewerb: Eine spieltheoretische Analyse, Berlin and Heidelberg: Springer.
• Potts, J. and Morrison, K. (2009). Nudging Innovation. Fifth Generation Innovation, Behavioural Constraints, and The Role of Creative Business – Considerations for the NESTA Innovation Vouchers Pilot. London: National Endowment for Science, Technology, and the Arts (NESTA).
• Potts, J. (2014), “Innovation is a spontaneous order”, Cosmos+Taxis, Vol. 2, No. 1, pp. 1-10.
• Rizzello, S. and Spada, A. (2013), “The Oversight of Behavioral Economics on Hayek’s Insights”, Frantz, R. and Leeson, R. (Eds.), Hayek and Behavioral Economics, Hampshire: Palgrave Macmillan, pp. 301-312.
• Rogers, E. M. (1995), Diffusion of Innovations, New York: The Free Press.
• Saeed, S., Yousafzai, S. Y. and Engelen, A. (2014), “On Cultural and Macroeconomic Contingencies of the Entrepreneurial Orientation-Performance Relationship”, Entrepreneurship Theory and Practice, Vol. 38, No. 2, pp. 255-290.
• Sastry, B. (2005), “Market Structure and Incentives for Innovation”, www.intertic.org/Policy%20Papers/Sastry.pdf (Retrieved: 10 June 2020)
• Schumpeter, J. A. (1908), Das Wesen und der Hauptinhalt der theoretischen Nationalökonomie, Munich and Leipzig: Duncker & Humblot.
• Schumpeter, J. A. (1934), The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest and the Business Cycle (2nd Edition), Cambridge: Harvard University Press.
• Schumpeter, J. A. (1950), Capitalism, Socialism and Democracy (3rd Edition), London: Allen and Unwin.
• Sundbo, J. and Toivonen. M. (2011), User-Based Innovation in Services, Cheltenham: Edward Elgar.
• Teubal, M. and Zuscovitch, E. (1997), “Evolutionary Product Differentiation and Market Creation in Turbulent Economic Environments”, Economics of Innovation and New Technology, Vol. 4, pp. 265-285.
• Thaler, R. H. and Sunstein, C. R. (2008), Nudge: Improving Decisions About Health, Wealth and Happiness, New Haven and London: Yale University Press.
• Tuomi, I. (2002), Networks of Innovation: Change and Meaning in the Age of the Internet, Oxford: Oxford University Press.
• Von Hippel, E. (1986), “Lead Users: A Source of Novel Product Concepts”, Management Science, Vol. 32, No. 7, pp. 791-805.
• Voßkamp, R. (2002), “Innovationsökonomik II“, Erlei, M. and Lehmann-Waffenschmidt, M. (Eds.), Curriculum Evolutorische Ökonomik, Marburg: Metropolis, pp. 57-84.
• Witt, U. (1996), “A ‘Darwinian Revolution’ in Economics?”, Journal of Institutional and Theoretical Economics, Vol. 125, No. 4, pp. 707-715.
• Witt, U. (1998), “Imagination and leadership – The neglected dimension of an evolutionary theory of the firm”, Journal of Economic Behavior & Organization, Vol. 35, pp. 161-177.
• Witt, U. (2013), “Competition as an Ambiguous Discovery Procedure”, Economics and Philosophy, 29, pp. 121-138.
• Witt, U. (2014), “The Future of Evolutionary Economics: Why the Modalities of Explanation Matter”, Journal of Institutional Economics, Vol. 10, No. 4, pp. 645-664.
• Woodward, J. (1958), Management and Technology, London: Her Majesty's Stationery Office.
• Woodward, J. (1965), Industrial Organization: Theory and Practice, Oxford: Oxford University Press.