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Ricardo Hausmann & J. Doyne Farmer on Evolving Technologies & Market Ecologies (EPE 03)

COMPLEXITY

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The Space of Capabilities

To do things, you need to have some capabilities. Product or industries are like words and productive capabilities as letters. Adam smith was the first complexity thinker. He realised that the market can self regulate to achieve ao. And we derive from this a theory of inequality, a theory of growth,. A theory even of the relationship between the state and the market.

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