Theory of Innovation and Causal Dynamics

  • Sangaralingam Ramesh


The theories of technological change generally fall into two categories. These include the Demand-pull and the Technology Push theories associated with technological change. Which of these two theories hold as implications not only for the determinants of how demand varies over time, but also for the determinants of innovation? Moreover, changes in the level of innovative activity are a result of changes in demand, and are not the reason for the volatility of demand. This knowledge is useful in pinpointing the actual causes of the changes in innovative activity.


Technological change Causal dynamics Demand Demand-pull Theory 


  1. Anderson, J. (1991), Is human cognition adaptive, Behavioural and Brain Sciences, 14, pp. 471–517.Google Scholar
  2. Appleby, J. (1976), Ideology and Theory: The Tension Between Political and Economic Liberalism in Seventeenth Century England, The American Historical Review, Vol. 81, No. 3, pp. 499–515.CrossRefGoogle Scholar
  3. Audretsch, D., and Feldman, M. (2004), Knowledge Spillovers and the Geography of Innovation, IN Handbook of Regional and Urban Economics, Volume 4, Henderson, J., and Thisse, J. (Eds), Elsevier B.V.Google Scholar
  4. Ayres, R.U. (1985), A Schumpeterian model of technological substitution. Technological Forecasting and Social Change 27: 375–383.CrossRefGoogle Scholar
  5. Bergek, A., Jacobson, S., Carlsson, B., Lindmark, S., and Rickne, A. (2008), Analysing the functional dynamics of technological innovation systems: A Scheme of Analysis, Research Policy, 37, pp. 407–429.CrossRefGoogle Scholar
  6. Blaug, M. (1964), Economic Theory and Economic History in Great Britain, 1650–1776, Past & Present, No. 28, pp. 111–116.Google Scholar
  7. Burt, R. (1987), Social Contagion and Innovation: Cohesion versus Structural Equivalence,’ American Journal of Sociology, 92, 1287–1335.CrossRefGoogle Scholar
  8. Cainelli, G., Evangelista, R., and Savona, M. (2006), Innovation and Economic Performance in Services: A Firm Level Analysis, Cambridge Journal of Economics, 30, pp. 435–458.CrossRefGoogle Scholar
  9. Carr, W. (2013), The Origins of the Wars of German Unification, Routledge, London.Google Scholar
  10. Christensen, C. (2006), The Ongoing Process of Building a Theory of Disruption, J. Prod. Innov. Manag, 23, pp. 39–55.CrossRefGoogle Scholar
  11. Coleman, D. (1980), Mercantilism Revisited, The Historical Journal, Vol. 23, No. 4, pp. 773–791.CrossRefGoogle Scholar
  12. Coleman, J.S., Katz, E., and Menzel, H. (1966), Medical Innovation, Bobbs-Merrill, Indianapolis.Google Scholar
  13. Coleman, J. S. (1986), Social theory, social research, and a theory of action, American Journal of Sociology, 91, 1309–1335.CrossRefGoogle Scholar
  14. Collier, J. (2006), Great Inventions–The Steam Engine, Marshall Cavendish Benchmark, New York.Google Scholar
  15. Dooley, K., and Ven, A. (1999), Explaining Complex Organisational Dynamics, Organisational Science, Vol. 10, No. 3281–292.CrossRefGoogle Scholar
  16. Dosi, G. (1982), Technological Paradigms and Technological Trajectories: A Suggested Interpretation of the Determinants and Directions of Technological Change, Research Policy 11, pp. 147–162.CrossRefGoogle Scholar
  17. Ekelund, R., and Tollison, R. (1980), Mercantilist Origins of the Corporation, The Bell Journal of Economics, Vol. 11, No. 2, pp. 715–720.CrossRefGoogle Scholar
  18. Elmslie, B. (2015), Early English Mercantilists and the Support of Liberal Institutions, History of Political Economy, 47:3.CrossRefGoogle Scholar
  19. Ericsson, J., and Irandoust, M. (2001), On the Causality Between Foreign Direct Investment and Output: A Comparative Study, The International Trade Journal, Vol. XV, No. 1 1–26.Google Scholar
  20. Etzkowitz, H., and Leydesdorff, L. (2000), The Dynamics of Innovation; From National Systems and ‘Mode 2’ to a Triple Helix of University-industry-government relation, Research Policy, 29, pp. 109–123.CrossRefGoogle Scholar
  21. Feldman, M.P. (1994a). The Geography of Innovation. Kluwer Academic, Boston.CrossRefGoogle Scholar
  22. Feldman, M. (1994b). “Knowledge Complementarity and Innovation”. Small Business Economics 6 (3), 363–372.CrossRefGoogle Scholar
  23. Findlay, C., and Lumsden, C. (1988), The Creative Mind: Toward an Evolutionary Theory of Discovery and Innovation, J. Social Biol. Struct, 11, pp. 3–55.CrossRefGoogle Scholar
  24. Gaido, D. (2016), Rudolf Hilferding on English Mercantilism, History of Political Economy, 48:3.449–470.CrossRefGoogle Scholar
  25. Geroski, P., and Walters, C. (1995), Innovative Activity and the Business Cycle, The Economic Journal, Vol. 105, No. 431, pp. 916–928.CrossRefGoogle Scholar
  26. Gould, J.D. (1955), The Trade Crisis of the Early 1920’s and English Economic Thought, The Journal of Economic History, Vol. 15, No. 2, pp. 121–133.CrossRefGoogle Scholar
  27. Grampp, W. (1952), The Liberal Elements in English Mercantilism, The Quarterly Journal of Economics, Vol. 66, No. 4, pp. 465–501.CrossRefGoogle Scholar
  28. Hage, J.T. (1999), Organisational Innovation and Organisational Change, Annual Reviews Sociology, Vol. 25, pp. 597–622.CrossRefGoogle Scholar
  29. Harkema, S. (2003), A Complex Adaptive Perspective on Learning Within Innovation Projects, The Learning Organization, Vol. 10 Issue: 6, pp. 340–346, doi: Scholar
  30. Heaton, H. (1937), Heckscher on Mercantilism, Journal of Political Economy, Vol. 45, No. 3, pp. 370–393.CrossRefGoogle Scholar
  31. Hedstrom, P., Sandell, R., and Stern, C. (2000), Mesolevel Networks and the Diffusion of Social Movements: The Case of the Swedish Social Democratic Party, American Journal of Sociology, 106, pp. 145–172.CrossRefGoogle Scholar
  32. Hedstrom, P., and Wennberg, K. (2017), Causal Mechanism in Organisation and Innovation Studies, Innovation, 19:1, pp. 91–102.CrossRefGoogle Scholar
  33. Herlitz, L. (1964) The Concept of Mercantilism, Scandinavian Economic History Review, 12:2, 101–120, DOI: Scholar
  34. Hill, D. (1969), Richard Arkwright and the Water Frame, Proceedings of the Institution of Mechanical Engineers, Vol. 184, Issue 1 1175–1178.CrossRefGoogle Scholar
  35. Hills, R. (1970), Sir Richard Arkwright and his patent Granted in 1769, The Royal Society Journal of the History of Science, Vol. 24, Issue 2 254–260.Google Scholar
  36. Hinton, R.W.K. (1955), The Mercantile System in the Time of Thomas Mun, The Economic History Review, New Series, Vol. 7, No. 3, pp. 277–290.CrossRefGoogle Scholar
  37. Hughes, T.P. (1983), Networks of Power: Electrification of Western Society 1880–1930, Johns Hopkins University Press, Baltimore, MD.Google Scholar
  38. Hunt, S., and Morgan, R. (1996), The Resource-Advantage Theory of Competition: Dynamics, Path Dependencies, and Evolutionary Dimensions, Journal of Marketing, Vol. 60, No. 4, pp. 107–114.CrossRefGoogle Scholar
  39. Inoue-Nakamura, N., and Matsuzawa, T. (1997), Development of Stone Tool Use by Wild Chimpanzees, Journal of Comparative Psychology, Vol. III (2), pp. 159–173.CrossRefGoogle Scholar
  40. Irwin, D. (1996), Against the Tide: An Intellectual History of Free Trade. Princeton, NJ.: Princeton University Press.Google Scholar
  41. Johnson, E.A.J. (1928), Some Evidence of Mercantilism in the Massachusetts-Bay, The New England Quarterly, Vol. 1, No. 3, pp. 371–395.CrossRefGoogle Scholar
  42. Kalat, J. (2007), Biological Psychology, Thomson Wadsworth, Belmont, California, USA.Google Scholar
  43. Kingstone, A., Smilek, D., and Eastwood, J. (2008), Cognitive Ethology: A New Approach for Studying Human Cognition, British Journal of Psychology, 99, pp. 317–340.CrossRefGoogle Scholar
  44. Koob, A. (2009), The Root of Thought: Unlocking Glia – The Brain Cell That Will Help Us Sharpen Our Wits, Heal Injury and Treat Brain Disease, Pearson Education, New Jersey, USA.Google Scholar
  45. Knight, K.D. (1963), A Study of Technological Innovation. The Evolution of Digital Computers, DPhil Thesis, Carnegie, Institute of Technology, Pittsburgh.Google Scholar
  46. Levine, P. (2013), The British Empire – Sunrise to Sunset, 2nd Edition, Routledge, London.CrossRefGoogle Scholar
  47. Macleod, C. (1988), Inventing the Industrial Revolution, The English Patent System, 1660–1800, Cambridge University Press, Cambridge.CrossRefGoogle Scholar
  48. Malmberg, A., and Maskell, P. (2002), The Elusive Concept of Localisation Economies: Towards a Knowledge-Based Theory of Spatial Clustering, Environment and Planning, Vol. 34, pp. 429–449.CrossRefGoogle Scholar
  49. Markus, M., and Robey, D. (1988), Informational Technology and Organisational Change: Causal Structure in Theory and Research, Management Science, Vol. 34, No. 5, pp. 583–598.CrossRefGoogle Scholar
  50. McGuire, W.J. (1983a), Search for the Self: Going Beyond Self-esteem and the Reactive Self. In Zucker, R., Arnoff, J., and Rabin, A. (Eds), Personality and the Prediction of Behaviour, Academic Press, New York.Google Scholar
  51. McGuire, W. (1983b), A Contextualist Theory of Knowledge: Its Implications For Innovation and Reform in Psychological Research, Advances in Experimental Social Psychology, Vol. 16.Google Scholar
  52. Miettinen, R. (1999), The riddle of things: Activity theory and actor-network theory as approaches to studying innovations, Mind, Culture, and Activity, 6:3, 170–195, DOI: Scholar
  53. Mirza, R. (2007), The Rise and Fall of the American Empire: A Re-Interpretation of History, Economics and Philosophy:1492–2006, Trafford Publishing, Victoria, Canada.Google Scholar
  54. Mokyr, K., and Nye, J. (2007), Distributional Coalitions, the Industrial Revolution, the Origins of Economic Growth in Britain, Southern Economic Journal, Vol. 74, No. 1, pp. 50–70.Google Scholar
  55. Mone, M., McKinley, W., and Barker, V. (1998), Organisational Decline and Innovation: A Contingency Framework, The Academy of Management Review, Vol. 23, No. 1, pp. 115–132.CrossRefGoogle Scholar
  56. Monge, P., Cozzens, M., and Contractor, N. (1992), Communication and Motivational Predictors of the Dynamics of Organisational Innovation, Organisation Science, Vol. 3, No. 2 250–274.CrossRefGoogle Scholar
  57. Mumford, M. D., & Gustafson, S. B. (2007), Creative Thought: Cognition and Problem Solving in a Dynamic System. IN Creativity Research Handbook (Vol. 2, pp. 33–77), M. A. Runco (Ed.), Cresskill, NJ: Hampton.Google Scholar
  58. Mumford, M., Hunter, S., and Byrne, C. (2009), What is the Fundamental? The Role of Cognition in Creativity and Innovation, Industrial and Organisational Psychology 2, pp. 353–356.CrossRefGoogle Scholar
  59. Mun, T., (1621) 1986, A Discourse of Trade, from England unto the East-Indies, New York: Augustus M. Kelley.Google Scholar
  60. Murmann, J., and Frenken, K. (2006), Toward a Systematic Framework for Research on Dominant Designs, Technological Innovations, and Industrial Change, Research Policy, 35, pp. 925–952.CrossRefGoogle Scholar
  61. Nooteboom, B. (1994), Innovation and Diffusion in Small Firms: Theory & Evidence, Small Business Economics, 6, pp. 327–347.CrossRefGoogle Scholar
  62. Oers, B., Wardekker, W., Elbers, E., and Veer, R. (2008), The Transformation of Learning: Advances in Cultural-Historical Activity Theory, Cambridge University Press, Cambridge.CrossRefGoogle Scholar
  63. Pecquet, G.M. (2003), British Mercantilism and Crop Controls in the Tobacco Colonies: A Study of Rent-Seeking Costs, 22 Cato Journal 467.Google Scholar
  64. Pincus, S. (2012), Rethinking Mercantilism: Political Economy, the British Empire, and the Atlantic World in the 17th and 18th Centuries, The William and Mary Quarterly, Vol. 69, No. 1, pp. 3–34.CrossRefGoogle Scholar
  65. Pradella, L. (2014), New Developments and the Origins of Methodological Nationalism, Competition and Change, Vol. 18, No. 2, pp. 180–193.CrossRefGoogle Scholar
  66. Rogoff, B. (2003), The Cultural Nature of Human Development, Oxford University Press, Oxford.Google Scholar
  67. Room, G., Spence, A., Evangelou, E., Zeppini, P., Pugliese, E., Napolitano, L. (2017), Dynamics of Cumulative Innovation in Complex Social Systems (DCICSS). UK: University of Bath.Google Scholar
  68. Ruef, M. (2002), Strong ties, weak ties and islands: Structural and cultural predictors of organisational innovation, Industrial and Corporate Change, Vol. 11, No. 3, pp. 427–449.CrossRefGoogle Scholar
  69. Russell, B. (2014), James Watt: Making the World Anew, Reaktion Books Ltd., London.Google Scholar
  70. Saad, M. (2000), Development Through Technology Transfer: Creating New Organisational and Cultural Understanding, Intellect Books, Portland, Oregon.Google Scholar
  71. Saltz, E. (1971), The Cognition Bases of Human Learning, Homewood, Dorsey Press.Google Scholar
  72. Scherer, F.M. (1965), Invention and Innovation in the Watt-Boulton Steam-Engine Venture, Technology & Culture, Vol. 6, No. 2, pp. 165–187.CrossRefGoogle Scholar
  73. Schmoller, G. (1884), The Mercantile System and Its Historical Significance.Google Scholar
  74. Schmookler, J. (1966), Invention and Economic Growth, Harvard University Press, Cambridge, MA.CrossRefGoogle Scholar
  75. Schumpeter, J.A. (2000), Entrepreneurship as Innovation. In Swedberg, R. (Ed), Entrepreneurship, Oxford University Press, Oxford pp. 51–75.Google Scholar
  76. Scott, W.R. (1951), The Constitution and Finance of English, Scottish, and Irish Joint-Stock Companies to 1720, Vols. 1, 2. New York: Peter Smith.Google Scholar
  77. Smith, A. (1776), The Wealth of Nations, Reproduced 2014, CreateSpace Independent Publishing Platform.Google Scholar
  78. Somers, M., and Block, F. (2005), From Poverty to Perversity: Ideas, Markets and Institutions over 200 Years of Welfare Debate, American Sociological review, Vol. 70, pp. 260–287.CrossRefGoogle Scholar
  79. Strang, D., and Meyer, J. (1993), Institutional Conditions for Diffusion, Theory and Society, 22, pp. 487–511.CrossRefGoogle Scholar
  80. Van de Ven, A., and Huber, G. (1990), Longitudinal Field Research Methods for Studying Processes of Organisational Change, Organisation Science, Vol. 1, No. 3, pp. 213–219.CrossRefGoogle Scholar
  81. Van Kleeck, M. H., & Kosslyn, S. M. (1991), Visual Information Processing: A Perspective, IN: Attention and Performance XIV, Meyer, D., & Kornblum, S. (Eds.), Bradford Books/MIT Press, Cambridge, MA.Google Scholar
  82. Viner, J. (1930), English Theories of Foreign Trade Before Adam Smith, Journal of Political Economy, Vol. 38, No. 3, pp. 249–301.CrossRefGoogle Scholar
  83. Williams, W. (1958), The Age of Mercantilism: An Interpretation of the American Political Economy, 1763 to 1828, The William and Mary Quarterly, Vol. 15, No. 4, pp. 419–437.CrossRefGoogle Scholar
  84. Wolfe, R. (1994), Organisational Innovation: Review, Critique and Suggested Research Directions, Journal of Management Studies, 31:3.CrossRefGoogle Scholar
  85. Woodman, R., Sawyer, J., and Griffin, R. (1993), Toward a Theory of Organisational Creativity, The Academy of Management Review, Vol. 18, No. 2, pp. 293–321.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Sangaralingam Ramesh
    • 1
  1. 1.Department for Continuing EducationUniversity of Oxford, Rewley HouseOxfordUK

Personalised recommendations