1. Home
  2. Vol 8, No 5 (2024)
  3. Shkalenko

A New Concept of Techno-Economic Institutions within Institutional Economics: Integrating Technologies and Institutional Frameworks

Anna V. Shkalenko, Svetlana A. Kozlova

Abstract


This study investigates the concept of techno-economic institutions within institutional economics, focusing on the integration of technologies into economic frameworks to foster development. The primary objective is to introduce and advocate for the novel concept of “techno-economic institutions,” which is essential for embedding technologies into the socio-economic environment. This research employs a comprehensive methodological approach, including theoretical analysis, literature review, comparative studies, and case studies, to develop a new analytical model and provide fresh insights. The key findings include a comparative analysis of the interplay between institutions and technologies, a variational model detailing the life cycles of General-Purpose Technologies (GPTs), and an in-depth examination of institutional roles. The econometric models developed in this study demonstrate the significant impact of ICT patents and SCM systems on government efficiency, empirically validating the proposed theoretical framework. This paper contributes to the academic discourse by offering a methodologically robust and empirically substantiated examination of technological advancements in institutional frameworks, highlighting the importance of flexible institutional structures capable of adapting to technological change. These insights provide actionable recommendations for policymakers and suggest strategic investments in technological infrastructure to enhance government performance. Future research should explore the generalizability of these findings in different institutional contexts and examine variability in technology-institution interactions across diverse geopolitical landscapes.

 

Doi: 10.28991/ESJ-2024-08-05-022

Full Text: PDF


Keywords


Techno-Economic Institutions; Technological Determinism; Technological Integration; Techno-Institutional Mechanisms; Governmental Efficiency; Interaction of Technology and Institutions; General-Purpose Technologies (GPTs); Institutional Frameworks...

References


Brette, O. (2003). Thorstein Veblen’s theory of institutional change: Beyond technological determinism. The European Journal of the History of Economic Thought, 10(3), 455–477. doi:10.1080/0967256032000106698.

Davidson, S. (2024). The economic institutions of artificial intelligence. Journal of Institutional Economics, 20, 20. doi:10.1017/S1744137423000395.

Veblen, T. (2017). The theory of the leisure class. Routledge, New York, United States. doi:10.4324/9781315135373.

Veblen, T. (2003). The theory of business enterprise. Charles Scribner’s Sons, New York, United States.

Khan, S. R. (2023). New institutional economics and economic development. Ethnicity and Development, Routledge, Milton Park, United Kingdom. doi:10.4324/9781032630878-1.

Margaryan, A., & Terzyan, H. (2023). Interaction of inflation and corruption in developing markets in the context of technological changes. Economic Annals-XXI, 203(5–6), 16–24. doi:10.21003/ea.V203-02.

Hanna, N.K. (2024). The Global, Technological, and Institutional Contexts. Economic Development in the Digital Age. Palgrave Macmillan, Cham, Switzerland. doi:10.1007/978-3-031-54569-6_1.

Nayyar, R., & Luiz, J. M. (2023). Location choice and Indian outward foreign direct investment: Institutional thresholds and differentiating between institutional quality and institutional distance. Journal of Institutional Economics, 20, 6. doi:10.1017/S1744137423000292.

Hayden, F. G. (2006). Policymaking for a good society: the social fabric matrix approach to policy analysis and program evaluation. Springer Science & Business Media, XVI, 252. doi:10.1007/0-387-29370-1.

Horner, J. (1989). The Role of Technology: An Institutionalist Debate. Journal of Economic Issues, 23(2), 579–586. doi:10.1080/00213624.1989.11504924.

Acemoglu, D., & Robinson, J. A. (2012). Why Nations Fail: The Origins of Power, Prosperity and Poverty. ASEAN Economic Bulletin, 29(2), 168. doi:10.1355/ae29-2j.

Nelson, R. R. (2005). Technology, Institutions, and Economic Growth. Harvard University Press, Cambridge, United States. doi:10.2307/j.ctv23dxd5h.

Faundez, J. (2016). Douglass North’s Theory of Institutions: Lessons for Law and Development. Hague Journal on the Rule of Law, 8(2), 373–419. doi:10.1007/s40803-016-0028-8.

North, D. (1997). Institutions, Institutional Change, and Economic Performance. Cambridge University Press, Cambridge, United Kingdom. doi:10.1017/CBO9780511808678.

Lipsey, R. G., Carlaw, K. I., & Bekar, C. T. (2005). Economic transformations: general purpose technologies and long-term economic growth. Oxford University Press, Cambridge, United Kingdom. doi:10.1093/oso/9780199285648.001.0001.

Ayres, C. (1962). The Theory of Economic Progress. Schocken Books, New York, Unites States.

Kingston, C., & Caballero, G. (2009). Comparing theories of institutional change. Journal of Institutional Economics, 5(2), 151–180. doi:10.1017/s1744137409001283.

DeGregori, T. (1978). The poverty of affluence: The limits of growth in a world of technology and change. Forum for Social Economics, 8(1), 8-19. doi:10.1007/BF02826171.

Schrepel, T. (2024). The evolution of economies, technologies, and other institutions: exploring W. Brian Arthur’s insights. Journal of Institutional Economics, 20, 21. doi:10.1017/S1744137424000067.

Vasiljeva, M. V., Semin, A. N., Ponkratov, V. V., Kuznetsov, N. V., Kostyrin, E. V., Semenova, N. N., Ivleva, M. I., Zekiy, A. O., Ruban-Lazareva, N. V., Elyakov, A. L., & Muda, I. (2023). Impact of Corporate Social Responsibility on the Effectiveness of Companies’ Business Activities. Emerging Science Journal, 7(3), 768–790. doi:10.28991/ESJ-2023-07-03-08.

Frolov, D. (2023). Digital capitalism and new institutionalism. Digital Capitalism and New Institutionalism. Routledge, Milton Park, United Kingdom. doi:10.4324/9781003267430.

Chang, H. J. (2011). Reply to the comments on Institutions and Economic Development: Theory, Policy and History. Journal of Institutional Economics, 7(4), 595–613. doi:10.1017/S174413741100035X.

Demsetz, H. (2000). Dogs and tails in the economic development story. Institutions, Contracts and Organizations, Edward Elgar Publishing, Cheltenham, United Kingdom. doi:10.4337/9781781952764.00020.

Allen, D. W. E., Berg, C., Lane, A. M., MacDonald, T., & Potts, J. (2023). The exchange theory of web3 governance. Kyklos, 76(4), 659–675. doi:10.1111/kykl.12345.

Amable, B. (2024). Brief Encounter. The Distant Co-evolution of Régulation Theory and Evolutionary Economics. Review of Political Economy, 1–22. doi:10.1080/09538259.2024.2373737.

Marchant, G. E. (2021). Professional Societies as Adopters and Enforcers of AI Soft Law. IEEE Transactions on Technology and Society, 2(4), 183-191. doi:10.1109/TTS.2021.3116524.

Murtazashvili, I., Murtazashvili, J. B., Weiss, M. B. H., & Madison, M. J. (2022). Blockchain Networks as Knowledge Commons. International Journal of the Commons, 16(1), 108–119. doi:10.5334/ijc.1146.

Davidson, S., Potts, J. (2022). The Entrepreneurial State and the Platform Economy. Questioning the Entrepreneurial State, Springer, Cham, Switzerland. doi:10.1007/978-3-030-94273-1_2.

De Filippi, P., Mannan, M., & Reijers, W. (2022). The alegality of blockchain technology. Policy and Society, 41(3), 358–372. doi:10.1093/polsoc/puac006.

Alston, E., Law, W., Murtazashvili, I., & Weiss, M. (2022). Blockchain networks as constitutional and competitive polycentric orders. Journal of Institutional Economics, 18(5), 707–723. doi:10.1017/S174413742100093X.

De Vasconcellos, S. L., Monticelli, J. M., Santos, A. M. Dos, & Falaster, C. (2024). A Scientometric Analysis of Institutions in the International Business Research. RAE Revista de Administracao de Empresas, 64(1), e2022-0310. doi:10.1590/S0034-759020240106.

Grebennikova, A. A., & Zyuzin, S. Y. (2017). Technologies of state and municipal management: A dictionary. University Education, Saratov, 1-90. doi:10.23682/67838.

Eller, W. S., Gerber, B. J., & Robinson, S. E. (2018). Public administration research methods: Tools for evaluation and evidence-based practice. Routledge, Milton Park, United Kingdom. doi:10.4324/9781315163727.

Tikhomirov, B. I., & Frenkel, A. A. (2017). Boris Tik homirov, Alexander Frenkel on Unified Socio-Economic Policy and Strategic Planning. Economic Policy, 12(4), 82–117. doi:10.18288/1994-5124-2017-4-04.

James, O., & Van Ryzin, G. G. (2016). Incredibly Good Performance. The American Review of Public Administration, 47(1), 23–35. doi:10.1177/0275074015580390.

Polterovich, V., Dmitriev, M., Yakovlev, A., Gurvich, E., & Auzan, A. (2017). The fate of economic programs and reforms in Russia (Proceedings of the roundtable discussion at the XVIII April international academic conference on economic and social development). Voprosy Ekonomiki, 6(6), 22–44. doi:10.32609/0042-8736-2017-6-22-44.

Grinberg, R., & Komolov, O. (2020). Import of Institutions: Theoretical Aspect and Practical Experience. Economic and Social Changes: Facts, Trends, Forecast, 3(69), 2. doi:10.15838/esc.2020.3.69.2.

Tambovtsev, V. (2017). Planning and opportunism. Voprosy Ekonomiki, 1(1), 22–39. doi:10.32609/0042-8736-2017-1-22-39.

Kupryashin, G. L. (2017). Institutional traps and crises of public administration. Public Administration. Electronic bulletin, (60), 94-121.

Smorgunov, L. V. (2011). The problem of methodological synthesis in contemporary comparative political science. Vestnik of Saint Petersburg University. Series 6. Political Science. International Relations, 1, 76-84.

Tromp, E., Pechenizkiy, M., & Gaber, M. M. (2017). Expressive modeling for trusted big data analytics: techniques and applications in sentiment analysis. Big Data Analytics, 2(1), 1-28. doi:10.1186/s41044-016-0018-9.

Shash, N. N. (2015). Managing the effectiveness of state programs: Methodological foundations for developing a program budget. Manager, 1, 4-15.

Moynihan, D. P., & Kroll, A. (2015). Performance Management Routines That Work? An Early Assessment of the GPRA Modernization Act. Public Administration Review, 76(2), 314–323. doi:10.1111/puar.12434.

Alvesson, M., & Spicer, A. (2018). Neo-Institutional Theory and Organization Studies: A Mid-Life Crisis? Organization Studies, 40(2), 199–218. doi:10.1177/0170840618772610.

Choi, M., & Rocheteau, G. (2020). New Monetarism in Continuous Time: Methods and Applications. The Economic Journal, 131(634), 658–696. doi:10.1093/ej/ueaa093.

Galí, J. (2018). The state of new Keynesian economics: A partial assessment. Journal of Economic Perspectives, 32(3), 87–112. doi:10.1257/jep.32.3.87.

Eichenbaum, M., Rebelo, S., & Trabandt, M. (2020). Epidemics in the New Keynesian Model. National Bureau of Economic Research, Working Paper 27430, National Bureau of Economic Research, Cambridge, United States. doi:10.3386/w27430.

Byrkjeflot, H., du Gay, P., Greve, C. (2018). What is the ‘Neo-Weberian State’ as a Regime of Public Administration? The Palgrave Handbook of Public Administration and Management in Europe. Palgrave Macmillan, London, United Kingdom. doi:10.1057/978-1-137-55269-3_50.

Reiter, R., & Klenk, T. (2018). The manifold meanings of ‘post-New Public Management’ – a systematic literature review. International Review of Administrative Sciences, 85(1), 11–27. doi:10.1177/0020852318759736.

Mungiu-Pippidi, A. (2020). The rise and fall of good-governance promotion. Journal of Democracy, 31(1), 88–102. doi:10.1353/jod.2020.0007.

Parkhurst, J. (2016). The Politics of Evidence. Routledge, Milton Park, United Kingdom. doi:10.4324/9781315675008.

Smith, C., Vajdic, C. M., & Stephenson, N. (2023). Techno-legal expertise and the datafication of the state: Big data, accountability and the value of a social license with institutional roots. Futures, 154, 103263. doi:10.1016/j.futures.2023.103263.

Jang, H., Lee, S., & Yoon, B. (2023). Data-driven techno-socio co-evolution analysis based on a topic model and a hidden Markov model. Technovation, 126, 102813. doi:10.1016/j.technovation.2023.102813.

Lowe, B. H., & Genovese, A. (2022). What theories of value (could) underpin our circular futures? Ecological Economics, 195, 107382. doi:10.1016/j.ecolecon.2022.107382.

Wu, B., Gu, Q., Liu, Z., & Liu, J. (2023). Clustered institutional investors, shared ESG preferences and low-carbon innovation in family firm. Technological Forecasting and Social Change, 194, 122676. doi:10.1016/j.techfore.2023.122676.

Amin, N., Shabbir, M. S., Song, H., Farrukh, M. U., Iqbal, S., & Abbass, K. (2023). A step towards environmental mitigation: Do green technological innovation and institutional quality make a difference? Technological Forecasting and Social Change, 190, 122413. doi:10.1016/j.techfore.2023.122413.

Buffa, A. M., & Hodor, I. (2023). Institutional investors, heterogeneous benchmarks and the comovement of asset prices. Journal of Financial Economics, 147(2), 352–381. doi:10.1016/j.jfineco.2022.11.002.

Zhang, F., Yang, B., & Zhu, L. (2023). Digital technology usage, strategic flexibility, and business model innovation in traditional manufacturing firms: The moderating role of the institutional environment. Technological Forecasting and Social Change, 194, 122726. doi:10.1016/j.techfore.2023.122726.

Betancourt, E. E. W. (2023). Artificial Intelligence and Organizational Change. Qeios, London, United Kingdom. doi:10.32388/mb70u3.

Facchini, F., Massin, S., & Brookes, K. (2024). The relationship between institutional quality, trust and private savings. Journal of Institutional Economics, 20(2), 302–317. doi:10.1017/S1744137423000346.

Merlo, E., & Paris, I. (2024). Institutional Failures and Innovation. In The Italian Fashion System. Palgrave Studies in Economic History (pp. 97–143). Palgrave Macmillan. doi:10.1007/978-3-031-52375-5_3.

Ahn, M. J., & Chen, Y. C. (2022). Digital transformation toward AI-augmented public administration: The perception of government employees and the willingness to use AI in government. Government Information Quarterly, 39(2), 101664. doi:10.1016/j.giq.2021.101664.

Tan, E., Mahula, S., & Crompvoets, J. (2022). Blockchain governance in the public sector: A conceptual framework for public management. Government Information Quarterly, 39(1), 101625. doi:10.1016/j.giq.2021.101625.

Lnenicka, M., Rizun, N., Alexopoulos, C., & Janssen, M. (2024). Government in the metaverse: Requirements and suitability for providing digital public services. Technological Forecasting and Social Change, 203(1), 101888. doi:10.1016/j.techfore.2024.123346.

Dubyna, M., Kholiavko, N., Zhavoronok, A., Safonov, Y., Krylov, D., & Tochylina, Y. (2022). The ICT Sector in Economic Development of the Countries of Eastern Europe: a Comparative Analysis. WSEAS Transactions on Business and Economics, 19, 169–185. doi:10.37394/23207.2022.19.18.

Spicer, Z., Lyons, J., & Calvert, M. (2023). Preparedness and crisis-driven policy change: COVID-19, digital readiness, and information technology professionals in Canadian local government. Canadian Public Administration, 66(2), 176–190. doi:10.1111/capa.12517.

Arthur, W. B. (2014). Complexity Economics: A Different Framework for Economic Thought. Santa Fe Institute Working Paper, Santa Fe, United States. Available online: https://www.santafe.edu/research/results/working-papers/complexity-economics-a-different-framework-for-eco. (accessed on September 2024).

WIPO (2022). Global Innovation Index 2022: Switzerland, the U.S., and Sweden lead the Global Innovation Ranking; China Approaches Top 10; India and Türkiye Ramping Up Fast; Impact-Driven Innovation Needed in Turbulent Times. Available online: https://www.wipo.int/pressroom/en/articles/2022/article_0011.html. (accessed on September 2024).

National Research University Higher School of Economics. (2022). Regional Innovation Development Ranking of Russia, HSE University, Moscow, Russia. Available online: https://region.hse.ru/rankingid19 (accessed on August 2024).

Rosstat. (2024). Monitoring the development of the information society in the Russian Federation. Federal State Statistics Service, Moscow, Russia Available online: https://rosstat.gov.ru/storage/mediabank/monitor(1).xls (accessed on August 2024).

Worldwide Governance Indicators. (2024). Government effectiveness index. World Bank, Washington, United States. Available online: https://www.worldbank.org/en/publication/worldwide-governance-indicators/interactive-data-access (accessed on May 2024).

Lanzara, G.F. (2009). Building digital institutions: ICT and the rise of assemblages in government. ICT and Innovation in the Public Sector. Technology, Work and Globalization. Palgrave Macmillan, London, United Kingdom. doi:10.1057/9780230227293_2.

Frolov, D. (2020). Blockchain and institutional complexity: An extended institutional approach. Journal of Institutional Economics, 17(1), 21–36. doi:10.1017/S1744137420000272.

Loasby, B. J. (2001). Cognition, imagination and institutions in demand creation. Journal of Evolutionary Economics, 11(1), 7–21. doi:10.1007/PL00003857.

Bresnahan, T. F., & Trajtenberg, M. (1995). General purpose technologies “Engines of growth”? Journal of Econometrics, 65(1), 83–108. doi:10.1016/0304-4076(94)01598-T.

Lipsey, R. G., & Nakamura, A. (2006). Services Industries and the Knowledge-based Economy. University of Calgary Press, Calgary, Canada.

Glaziev, S. Yu., Lvov, D. S., & Fetisov, G. G. (1992). Evolution of Techno-Economic Systems: Opportunities and Limits of Centralized Regulation. Nauka, Moscow, Russia.

Dosi, G. (1982). Technological paradigms and technological trajectories. A suggested interpretation of the determinants and directions of technical change. Research Policy, 11(3), 147–162. doi:10.1016/0048-7333(82)90016-6.

Nelson, R. R., & Winter, S. G. (1982). An Evolutionary Theory of Economic Change. Harvard University Press, Cambridge, United States.

Perez, C. (2002). Technological Revolutions and Financial Capital. Edward Elgar, Cheltenham, United Kingdom. doi:10.4337/9781781005323.

Spicer, A. (2009). The Normalization of Corrupt Business Practices: Implications for Integrative Social Contracts Theory (ISCT). Journal of Business Ethics, 88(S4), 833–840. doi:10.1007/s10551-009-0319-2.

Yazgın, D. Ö. (2024). a Sociopolitical Assessment of Technology Development in Istanbul, Turkey. Istanbul Journal of Social Sciences and Humanities, 1(1), 40–58. doi:10.62185/issn.3023-5448.1.1.4.

Gallagher, S., & Crisafi, A. (2009). Mental institutions. Topoi, 28(1), 45–51. doi:10.1007/s11245-008-9045-0.

Douglas, M. (2010). How institutions think. Syracuse University Press, New York, United States.

Varshavsky, A. E. (2015). Problematic innovations: Emergence, spread, and risks. Institute of Economics, Russian Academy of Sciences, Moscow, Russia.

Diver, L. (2021). Digisprudence: Code as Law Rebooted. Edinburgh University Press, Edinburgh, Scotland. doi:10.1515/9781474485340.

Landini, F. (2013). Institutional change and information production. Journal of Institutional Economics, 9(3), 257–284. doi:10.1017/S1744137413000064.

Edsforth, R. (2012). A Great Leap Forward: 1930s Depression and U.S. Economic Growth. Journal of American History, 99(2), 634–635. doi:10.1093/jahist/jas245.

Bekar, C., Carlaw, K., & Lipsey, R. (2018). General purpose technologies in theory, application and controversy: a review. Journal of Evolutionary Economics, 28(5), 1005–1033. doi:10.1007/s00191-017-0546-0.

Inshakov, O. V. (2009). The unity of conditions, resources, and factors of production in the context of evolutionary economic theory. VolGTU, Volgograd, Russia.

Semin, A., Vasiljeva, M., Sokolov, A., Kuznetsov, N., Maramygin, M., Volkova, M., Zekiy, A., Elyakova, I., & Nikitina, N. (2020). Improving Early Warning System Indicators for Crisis Manifestations in the Russian Economy. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 171. doi:10.3390/joitmc6040171.

Frolov, D. P. (2020). Post-institutionalism: Beyond the institutional mainstream. Voprosy Ekonomiki, 2020(5), 107–140. doi:10.32609/0042-8736-2020-5-107-140.


Full Text: PDF

DOI: 10.28991/ESJ-2024-08-05-022

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Anna V. Shkalenko, Svetlana A. Kozlova