TY - JOUR
T1 - Econometrics and the Growth of Firms
T2 - Perspectives from Evolutionary Economics
AU - Coad, Alex
N1 - Funding Information:
History: This paper has been accepted for the Strategy Science Special Issue on Evolutionary Approaches to Innovation, the Firm, and the Dynamics of Industries. Funding: This work was supported by the National Research Foundation of Korea Grant funded by the Korean Government [Grant NRF-2018S1A3A2075175].
Publisher Copyright:
Copyright: © 2021 INFORMS
PY - 2021/12
Y1 - 2021/12
N2 - 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.
AB - 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.
KW - Evolutionary economics
KW - Firm growth
KW - Heterogeneity
KW - Multilevel
KW - Selection
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U2 - 10.1287/STSC.2021.0132
DO - 10.1287/STSC.2021.0132
M3 - Article
AN - SCOPUS:85122442649
SN - 2333-2050
VL - 6
SP - 338
EP - 352
JO - Strategy Science
JF - Strategy Science
IS - 4
ER -