The Innovation-Institution Connection: One Simple Diagram
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Abstract
The purpose of this note is to introduce a simple diagram that I suggest provides an intuitive and useful way of looking at the connection between institutions and innovations, regardless of what level of institutions one is concerned with. The 'back-of-the-envelope' diagram focuses attention on the effects of a new idea on the existing ideas that some institution might represent, and the sort of innovated institution that it might help engender.
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