Upward and downward complementarity: the meso core of evolutionary growth theory

We propose that the concept of complementarity can take two distinct meanings in evolutionary economics: one referring to Adam Smith’s notion of increasing specialization and the division of labour, which we denote ‘downward complementarity’ (wholes into new parts); and a second type that refers to the discovery of emergent complementarity between extant or new components and products, which we call ‘upward complementarity’ (parts into new wholes). We outline this new conception and explore some of its analytic and theoretic implications.