Where do new resources come from? We build on the premise that environments feature vast reservoirs of latent resources, uses and resource combinations. However, identifying this value can be costly and difficult. In this paper we consider the thought experiment of an endowment-less firm and how...

We do two things in this paper. First, we put forward some elements of a microeconomic theory of technological evolution. This involves adding nascent (essentially undiscovered) technologies to the existing technologies of neoclassical production theory, and, more importantly, expanding the...

We explore the limitations of the adaptationist view of evolution and propose an alternative. While gradual adaptation can explain some biological and economic diversity, it cannot account for radical innovation (especially during the past 10,000 years). We argue that ubiquitously available but...

Using the theory of the adjacent possible (TAP), we describe a recombination process, agent epistemology, and the contours of rationality under creative evolution. In so doing, we rederive Hayek's results about local knowledge, reinforce the salience of heuristics over traditional rational...