Reading List · Economics

The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics

by Eric D. Beinhocker (2006)

A complexity economics manifesto that treats the economy as an evolving system

"Wealth is the result of evolutionary processes, and economic systems are evolutionary systems."

- Eric D. Beinhocker

Why It Matters

Beinhocker bridges evolutionary biology and economics explicitly. His framework for understanding markets as complex adaptive systems provides theoretical grounding for treating business strategy as an evolutionary problem.

Key Ideas

  • Wealth creation is an evolutionary process of differentiate-select-amplify
  • Markets are complex adaptive systems, not equilibrium machines
  • Business strategies are 'fit' or 'unfit' to their environments, like organisms
  • Innovation is the primary driver of long-term wealth creation

How It Connects to This Framework

The entire Biology of Business framework shares Beinhocker's vision of applying evolutionary thinking to economics. Book 1's ecosystem thinking and Book 6's evolutionary dynamics are particularly aligned.

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Tags

economicscomplexityevolutionmarkets