Econometrics and the Growth of Firms: Perspectives from Evolutionary Economics

Alex Coad*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

This article discusses recent results and future research possibilities in the areas of econometrics and firm growth, drawing on Dosi and Marengo's “10 building blocks” of evolutionary theory. These 10 building blocks are: dynamics first!, microfoundations, realism is a virtue, bounded rationality, persistent heterogeneity, novelty in the system, selection mechanisms, emergent properties at the aggregate level, emergence of organizational forms and institutions, and coevolution across levels of analysis and timescales. As it happens, many of our comments relate to the theme of “realism is a virtue.” We also suggest, in some cases, which econometric techniques might be more appropriate for research into firm growth and performance, given these 10 building blocks.

Original languageEnglish
Pages (from-to)338-352
Number of pages15
JournalStrategy Science
Volume6
Issue number4
DOIs
Publication statusPublished - 2021 Dec
Externally publishedYes

Keywords

  • Evolutionary economics
  • Firm growth
  • Heterogeneity
  • Multilevel
  • Selection

ASJC Scopus subject areas

  • Management Science and Operations Research
  • Business and International Management
  • Strategy and Management
  • Management of Technology and Innovation

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