ABSTRACT
Innovations-in the micro sense-is part of or is built into the very institution of human rationality as it unfolds in the gap. Simon's idea that it is the organization that infuses its members with rationality, a rationality they did not have before entering the organization, is from this speech-acting theory of (micro) innovation then misleading. Searle's rationality as reasoning suggests an affinity between the neo-classical definition of rational action as egoistic utility maximization and obligations to markets. This chapter highlights insights in line with speech-acting theory and to demonstrate how the Searlean theory of rationality as reasoning deepens those insights and demonstrates the limitations of the retrospective structural explanations that Jacobsen offers. It argues that the elusiveness of the concept of innovation and proposes that innovativeness is ubiquitous at the micro level of personal and interpersonal reasoning about what to do. The profit model in practice engaged the state in market modernization of all sections of Norwegian agriculture.
