Evolutionary Economics

Evolutionary Economics is a branch of economic theory that views economies as dynamic systems evolving over time, much like biological organisms. In the context of Institutional Economics, it emphasizes the role of institutions—laws, norms, and social practices—in shaping economic behavior and innovation. It suggests that economic change arises from complex interactions among individuals, ideas, and institutions, leading to new practices and technologies. This approach recognizes that economies are not static but continually adapt and transform in response to new challenges and opportunities, similar to how species adapt in nature.