evolutionary perspective2006-06-10 Theoretical core of most research on innovation. Adapt to an uncertain and changing environment. By introducing strategic variations. Assume a dynamic model (patterns of change, rates of change, alternative paths of change; convergence, steady states or ranges; pace and path of strategic change; birth, restructuring, product innovation, merger, technological change, failure). Variation and selection. Variation. How do strategic variants develop? Search and learn strategic options. Rate and path of innovation. Innovation brought by existing organizations vs. through the founding of new organizations. What is varying? Firms, or their strategies? Selection. Selection often do not function as a smoothly and rapidly optimizing force. Within and among firms. Internal and external selection. Internal selection environment that reflects the relevant pressures in the external environment and produces externally viable new strategic variations that are internally selected and retained. This perspective explain evolutionary processes both at the firm level (firms adopting variations in its routines and selecting the fittest through organizational processes) and industry level (firms introducing routines new to the market, which select the best ones through a competitive process). Strategic dynamics. Variation and strategic search, selection and retention. Path dependence. Future possibilities are constrained by past developments. Local optima Recombining existing routines. Explain technological innovation and industry development. Industry transformation and technological evolution. | 
