ABSTRACT

This chapter addresses some fundamental questions: how is it possible that an ordered world happens even if it stems from an incredibly vast set of alternatives and it is hit by stochastic perturbations? What mechanisms act within multi-level processes so that variations and stability can, however, occur? The ordered world which we are referring to is the product conceived as vector of attributes resulting from a huge amount of search developed in multiple spaces. What principles can be formulated in order to explain on the one hand the high-dimensionality of decision processes and search spaces and on the other their reduction, on the basis of widespread interactions among agents and economic units? In tackling these questions we aim at honing in on a precise research line (Lombardi 2008a) by adopting a cognitive and evolutionary perspective, which allows us to deepen two main topics: 1) the “interaction among competence, transaction costs and scale”, intrinsic to “the multifarious nature of firms” (Morroni 2006: 11); 2) the “co-relational nature of knowledge” (Saviotti 2007) as interactions between agents and environment unfold. In this chapter we tackle the problem of how stable and variable vectors of attributes (products) are created and compete with each other. The key field of analysis is based on information and knowledge flows which are produced by interacting units (individuals, teams, organizations). Interaction structures unroll through continuous exploiting and exploring activities performed in trying to solve techno-productive problems within the product development process. The proposed theoretical framework leads us to analyse problem solving activities during the production process in terms of unceasing mappings between multiple search spaces and sub-spaces, from which vectors of parameters referring to product components have to be sought out. The risk of incurring in a combinatorial explosion of alternatives during multiple mappings is avoided by means of some organizing principles, which are discussed in the chapter: (1) modularity, (2) decentralized research, (3) evolving networks of interdependencies, (4) building blocks for knowledge processes and the creation of rules, which constitute the deep structure organizing the world around us.