Abstract: This chapter explains policy implications of complexity and complex systems. It starts with the flawed neoclassical benchmark postulates for policy. From the volatility of the economic process, it concludes that a minimum of complexity of a political "control" system, a systemic policy with a long-run interaction and learning perspective, is required. Self-organization, through its fragility, requires specific policy interventions. "Meritorization," as a social evaluation of deficient spontaneous process outcomes, combines with "pragmatist" policy conceptions ("instrumental value principle," "negotiated economy"). Criteria are derived from characteristics of evolutionary processes. A new kind of private–public interrelation is established, which allows for a leaner policy. "Interactive" or "institutional" policy relates to the interaction system of the private agents, but leaves it free to adapt. Policy thus can initiate, accelerate, and/or stabilize coordination and cooperation. Instrumental complexes include the incentive structure, awareness of interdependence, and "futurity." Applications include industrial/spatial and cluster/network policies, information economics (intellectual property rights, open source, information openness), innovation economics, and development economics.
Publication Year: 2014
Publication Date: 2014-04-21
Language: en
Type: book-chapter
Indexed In: ['crossref']
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Cited By Count: 1
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