Evolutionary Economics

Evolutionary economics is a school of economic thought that is inspired by evolutionary biology. It deals with the study of processes that transform the economy using evolutionary methodology. It has the roots in Darwin’s theory of evolution through the process of natural selection. Evolutionary economics uses this Darwin’s framework to understand how small, random variations could be accumulated over time that resulted in the emergence of a completely different form.

In addition, evolutionary economics also draws upon Karl Marx’s theory of economic development. Marx based his theory of economic development on the premise of evolving economic systems. According to Marx, over the course of history superior economic systems would replace inferior ones. Inferior economic systems contained both internal contradictions and inefficiencies that made them impossible to survive over the long term. In Marx's view of history, feudalism was replaced by capitalism, and eventually capitalism would be replaced by communism.

Evolutionary economics started in the 19^th century and it is still an important school of modern economics.