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Creative Destruction, Knowledge Appropriation and Structural Change

An Unresolved Dilemma in Developing Countries

December 2007

By Analia Erbes, Verónica Robert and Gabriel Yoguel

This paper is based on complex system theory applied to social science with the objective of contributing to a larger understanding of economic development. It stresses the relevance given to absorption and connectivity capacities and to the complex system properties of self-organization and adaptation in order to shed light on systems in different levels of aggregation. The present work establishes the relationship between capacities and properties and in turn with the way they interact with the creative destruction processes, knowledge appropriation and structural change. Finally, the paper discusses some policy-related issues derived from the complex system analytical approach.

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