While numerous theories have been used to explaiin innovation, one found to be useful iin recent years is cumulative causation. Its major focus on incremental and evolutionary change, the path-dependent nature of change, andit circular and cumulative effects, make it paraticularly useful in helping to explain innovation. Iin this chapter the literature on cumulative causation theory is reviewed to highlight links between these characterics of the theory and innovation, as well as influences such as problem solving, learning by using and doing, collaboration and 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.
|Title of host publication||Innovation in business and enterprise|
|Subtitle of host publication||Technologies and frameworks|
|Editors||Latif Al- Al-hakim, Chen Jin|
|Place of Publication||Hershey, PA|
|Number of pages||18|
|Publication status||Published - 2010|
Bamberry, G. (2010). Cumulative causation as explanatory theory for innovation. In L. A. Al-hakim, & C. Jin (Eds.), Innovation in business and enterprise: Technologies and frameworks (1 ed., pp. 1-18). IGI Global. https://doi.org/10.4018/978-1-61520-643-8.ch001