This is the title of a book by Brian Arthur who is associated with the Santa Fe Institute in New Mexico and a leader in complexity economics (see Fact Sheet 8). Inspired by Joseph Schumpeter, Arthur developed a theory of technological change generated within the economic model, leading to increasing rates of return in a dynamically changing economic system, whereas the static neoclassical economic model shows decreasing returns. Arthur’s model explains technology as a continuous, organically evolving process which bears a strong resemblance to Darwin’s theory of evolution (though the selection process has to be different). Innovation doesn’t arise out of thin air but is always based on current technology, and once an innovation is adopted, it gives rise to further change involving a hierarchy of underlying technologies. The whole pattern is subject to continuing evolution and has to keep fitting in with this evolution in conditions of constant dynamic change.