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ICC Advance Access originally published online on May 7, 2008
Industrial and Corporate Change 2008 17(3):513-531; doi:10.1093/icc/dtn015
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© The Author 2008. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved.

Scaling heuristics shape technology! Should economic theory take notice?

Sidney G. Winter

Correspondence: Sidney G. Winter, Department of Management, 2000 SH-DH, 3620 Locust Walk, The Wharton School, Philadelphia, PA 19104-6370, USA. e-mail: winter{at}wharton.upenn.edu

In some economics textbooks production theory is developed axiomatically. The "divisibility axiom" presents a bold affront to realism. It distorts the static theory and forecloses some potential encounters with technological change. The article reviews propositions about geometrical scaling that have long been recognized as relevant to the realities studied in many fields, including industrial organization economics. The article concludes by sketching a program of reform for production theory that would make connections to Dosi's concepts of technological paradigms and trajectories (Dosi, 1982).


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