There is new light for the dismal science. Economics as a social science is concerned with the foundational factors underlying the production, distribution, and consumption of goods and services. And over the last century the application of economic analysis has spread and is seen across a diverse fields (business, finance, health care, government) and subjects (war, crime, education, law, politics, religion, social institutions, science, environment). Economics has become one of the most complex of fields to study and understand. But instead of growing more dismal, there is new light. Network scientists are providing old fields like economics with new ways to look at and understand these complex, networked systems. All too often, those furthest from the core discipline of a problem are most likely to provide an innovative solution.
In the words of MIT scientist César Hidalgo
, economics is a relatively ephemeral subject, resting on deep roots in a process that goes back to the foundations of energy and matter and information.
And in viewing the economy in such primal terms, he concludes that the factors that drive resilience and innovation in nature’s networks or ecosystems — namely diversity — should likewise be predictive of an economy’s resilience, innovation, and ability to grow.
Traditional economic measures fail to capture the kind of diversity that drives growth. Identifying factors of production such a... Read more