Pavel Luksha. Paper presented at the 2008 meeting of the European Association of Evolutionary Political Economists, dedicated to the implications of the emerging theory of organizational niche construction, in respect to Neo-Schumpeterian models of industrial evolution

1. Effects of niche construction for the evolution of industries Presentation for EAEPE Conference 2008 Session on the Theory of the Firm University RomaTre, Italy 8 November 2006

5. Consideration of environment in adaptationist / selectionist paradigm E E’ G G’ natural selection natural selection genetic inheritance variation disturban- ces G – gene pool of a given population of organisms E – environment for given population of organisms G’ = f (G, E, ∆ (G)) ∆ (E) ∆ (G) Much of the studies in evolutionary biology traditionally treat environment as complex and independent from impact of population (Lewontin, 2000; Laland et al., 2000) [from (Laland et al.,2000), amended by the present author] E’ = h (E, ∆ (E))

6. Organisms matter: actively changing environments

7. Concept of niche construction Niche construction: the process whereby organisms, through their metabolism, their activities, and their choices, modify their own and each other’s niches. Niche construction may result in changes in one or more natural selection pressures (Odling-Smee et al., 2003). E E’ G G’ ∆ (E) ∆ (G) natural selection niche construction niche construction natural selection genetic inheritance environment inheritance [from (Laland et al.,2000), amended by the present author] E’ = h(G, E, ∆ (E)) G’ = f(G, E, ∆ (G))

9. Niche construction concept in industrial evolution R’ = f (R, E, ∆(R)) E’ = h (R, E, ∆(E)) Niche construction: a sustained change made to the resources and relations in the organizational environment that has long-lasting effects upon the strategy of the firm and its constituents E E’ R R’ ∆ (E) ∆ (R) environmental pressures construction of environment construction of environment environmental pressures institutional inheritance routine inheritance

18. Simulation results sample Legend: green = ‘niche utilizing’, red = ‘niche constructing’, blue = ‘adapting’ Note: variables in the last period DO NOT go to zero