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Cumulative Causation as Explanatory Theory for Innovation
Abstract
While numerous theories have been used to explain innovation, one found to be useful in recent years is cumulative causation. Its major focus on incremental and evolutionary change, the path dependent nature of change, and its circular and cumulative effects, make it particularly useful in helping to explain innovation. In this chapter the literature on cumulative causation theory is reviewed to highlight links between these characteristics of the theory and innovation, as well as influences such as problem solving, learning by using and doing, collaboration, specialisation and the clustering of industry in certain locations. These characteristics and influences are then used as a basis for reporting empirical research into the nature of innovation in manufacturing and processing in an Australian rural region, and the usefulness of the theory for explanatory purposes is evaluated.
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