@article{0117b8d3daf94d378333c02ba15b97e8,
title = "The production recipes approach to modeling technological innovation: An application to learning by doing",
abstract = "We do two things in this paper. First, we put forward some elements of a microeconomic theory of technological evolution. This involves adding nascent (essentially undiscovered) technologies to the existing technologies of neoclassical production theory, and, more importantly, expanding the notion of the production plan to include the recipe - the complete description of the underlying engineering process. Second, we use the recipes approach in constructing a simple microeconomic model of shop-floor learning by doing. We simulate the dynamics of the model and report the effects of changes in the basic parameters on the resulting engineering experience curves. For correctly chosen values of these parameters, the predictions of the model match the observed experience curves.",
keywords = "D20, D21, D24, D83, Engineering experience curves, L23, Learning by doing, Learning curves, O30, Production recipes, Technological evolution",
author = "Philip Auerswald and Stuart Kauffman and Jos{\'e} Lobo and Karl Shell",
note = "Funding Information: We dedicate this paper to Ken Arrow and Bob Solow. We gratefully acknowledge the research support of the Santa Fe Institute and the following at Cornell University: National Science Foundation Grant SES-9012780, the Thorne Fund, the Center for Analytic Economics, and the Center for Applied Mathematics. We have benefitted from the good advice and thoughtful comments of many colleagues including: Ken Arrow, Yves Balasko, Will Baumol, Larry Blume, Michael Cohen, Guido Cozzi, Avinash Dixit, Rick Durrett, Christian Duttweiler, David Easley, Theo Eicher, Charles Engel, Huberto Ennis, Duncan Foley, Rod Garratt, Christian Ghiglino, Aditya Goenka, Ralph Gomory, John Guckenheimer, Tom Holmes, Wim Hordijk, Boyan Jovanovic, Ken Judd, Alan Kirman, Jenny Li, Matt Mitchell, Dick Nelson, Yaw Nyarko, Salvador Ortigueira, Jim Peck, Bob Pollak, Luis Rivas-Anduray, Manuel Santos, Jos{\'e} Scheinkman, Bob Solow, Tim Volgelsang, and Henry Wan. We thank Gaetano Antinolfi and Todd Keister, who gave detailed and timely comments, and Melvyn Teo, who was an excellent research assistant. We are indebted to Bennett Levitan, the author of the basic program we used for our simulations, for allowing us to use his code and helping us to modify it. Copyright: Copyright 2020 Elsevier B.V., All rights reserved.",
year = "2000",
month = mar,
doi = "10.1016/s0165-1889(98)00091-8",
language = "English (US)",
volume = "24",
pages = "389--450",
journal = "Journal of Economic Dynamics and Control",
issn = "0165-1889",
publisher = "Elsevier",
number = "3",
}