Innovation is a spontaneous order

Viewed from the market failure perspective, the order of the innovation process is a planned rational order-a taxis. However, from the theory of market process, innovation is a spontaneous order-a cosmos. How one understands the order of innovation thus turns on priors of the order of markets. This paper proposes five new arguments for the order of innovation, none of which derive from a theory of markets. All five further develop the spontaneous-order view of innovation. These are: (1) science as a spontaneous order; (2) new business models; (3) co-operation in developing technologies; (4) clusters and innovation externalities; and (5) copying processes and local adaptation.