Technological Development of the Economy: “Creative Destruction” and Combinatorial Effect

#1. Event Horison
Technological Development of the Economy: “Creative Destruction” and Combinatorial EffectTechnological Development of the Economy: “Creative Destruction” and Combinatorial Effect

A strong determinant of modern economic growth from the standpoint of evolutionary economy are new combinations that are considered to be the main generator of technological and institutional changes. However, review and description of economic development on the basis of the principle of “creative destruction” is not satisfactory, since it does not take into account the effects of technologies combination with obtaining a new quality of the economic system in terms of its technological level, affecting the work of specific institutions. Taxonomic approach to describing economic and technological evolution becomes unconvincing, at least insufficient for forming well-founded variants of economic policy of growth and decision-making on managing technological changes. The examples show the influence of the “combinatorial buildup” principle within the observed technological changes, as well as the need to use this principle at the level of both theoretical description of the problem of economic growth and formation of a scientific-technological policy of growth for developed and developing countries.