In defence of evolutionary explanation: coping with technological change

Abstract

When trying to explain the behaviour of innovating firms and their technology strategies it is necessary to be able to explain the phenomenon of technological change and underlying mechanisms that determine it. Therefore, one has to take a closer look at different explanations offered for technological change. This paper examines the logic of evolutionary explanation and compares it to intentional explanations used in neoclassical economics when coping with technological change and innovation activities of the firms in turbulent environments. The problems of standard intentional explanation will be stressed and an alternative evolutionary explanation will be offered for a starting point when explaining the behaviour of innovating firms and creating technology strategies for them.