There’s some hand-waving that goes on in microeconomics when it describes production. How do firms know how and how much to make? Besides firms, how else is production organised in national systems? Are production vector sets useful? Building on Nelson and Winter’s (1984) early insights on some of the challenges of traditional microeconomics, this article moves from the so-called ‘linear model’ and provides insights on how heuristics -especially in terms of visual representation-extends the thinking of which institutions and organisations help economies learn through improvements in existing production and innovation, and why Institutional Variety is a necessary concept for economics.
To cite this article: Smita Srinivas (2021): Heuristics and the microeconomics of innovation and
development, Innovation and Development, DOI: 10.1080/2157930X.2021.1986894
To link to this article: https://doi.org/10.1080/2157930X.2021.1986894