The Economy as an Evolving Complex System IV

The contemporary global economy exhibits unprecedented structural complexity—characterized by nonlinear dynamics, adaptive behaviors, and emergent properties. Understanding these phenomena requires theoretical frameworks capable of addressing complexity, path dependence, and evolutionary processes.

Complexity economics has developed to address such intellectual challenges. Originating in a seminal 1987 Santa Fe Institute workshop and first described in The Economy as an Evolving Complex System (1988), this approach fundamentally reconceptualizes economic systems as complex adaptive systems. Subsequent volumes (1997, 2005) progressively developed this framework, offering new insights into finance, technological innovation, and social interactions.

Like each of its predecessors, this fourth volume is the product of an interdisciplinary workshop hosted at the Santa Fe Institute. It represents the latest synthesis, reflecting theoretical advances and methodological developments achieved over nearly four decades. Drawing on contributions from leading scholars worldwide, the chapters span foundational questions to policy applications—from agent-based modeling and network theory to macroeconomic dynamics, innovation systems, sustainability transitions, and inequality.

The result demonstrates complexity economics’ capacity to generate novel insights into phenomena that remain puzzling within traditional frameworks: financial instability, technological disruption, climate economics, and institutional change. This volume positions complexity economics as an essential analytical framework for understanding twenty-first-century economic realities.

More at: www.sfipress.org

On the equivalence between nonlinear graph-based dynamics and linear dynamics on higher-order networks

Lucas Lacasa
In network science, collective dynamics of complex systems are typically modelled as (nonlinear, often including many-body) vertex-level update rules evolving over a graph interaction structure. In recent years, frameworks that explicitly model such higher-order interactions in the interaction backbone (i.e. hypergraphs) have been advanced, somehow shifting the imputation of the effective nonlinearity from the dynamics to the interaction structure. In this work we discuss such structural–dynamical representation duality, and investigate how and when a nonlinear dynamics defined on the vertex set of a graph allows an equivalent representation in terms of a linear dynamics defined on the state space of a sufficiently richer, higher-order interaction structure. Using Carleman linearisation arguments, we show that finite polynomial dynamics defined in the |V| vertices of a graph admit an exact representation as linear dynamics on the state space of an hb-graph of order |V|, a combinatorial structure that extends hypergraphs by allowing vertex multiplicity, where the specific shape of the nonlinearity indicates whether the hb-graph is either finite or infinite (in terms of the number of hb-edges). For more general analytic nonlinearities, exact linear representation always require an hb-graph of infinite size, and its finite-size truncation provides an approximate representation of the original nonlinear graph-based dynamics.

Read the full article at: arxiv.org

Metrology of Complexity and Implications for the Study of the Emergence of Life

Sara Imari Walker
One of the longest standing open problems in science is how life arises from non-living matter. If it is possible to measure this transition in the lab, then it might be possible to understand the physical mechanisms by which the emergence of life occurs, which so far have evaded scientific understanding. A significant hurdle is the lack of standards or a framework for cross comparison across different experimental contexts and planetary environments. In this essay, I review current challenges in experimental approaches to origin of life chemistry, focusing on those associated with quantifying experimental selectivity versus de novo generation of molecular complexity, and I highlight new methods using molecular assembly theory to measure molecular complexity. This metrology-centered approach can enable rigorous testing of hypotheses about the cascade of major transitions in molecular order marking the emergence of life, while potentially bridging traditional divides between metabolism-first and genetics-first scenarios. Grounding the study of life’s origins in measurable complexity has significant implications for the search for life beyond Earth, suggesting paths toward theory-driven detection of biological complexity in diverse planetary contexts. As the field moves forward, standardized measurements of molecular complexity may help unify currently disparate approaches to understanding how matter transforms to life. Much remains to be done in this exciting frontier.

Read the full article at: arxiv.org

IS ALL THAT GLITTERS A NETWORK? SEARCHING FOR THE BOUNDARIES OF THE NETWORK APPROACH

ONERVA KORHONEN

Advances in Complex Systems Vol. 28, No. 08, 2530001 (2025)

Network analysis has become a powerful tool in various fields. However, the increasing popularity comes with potential problems. Unfamiliarity with the characteristics of the systems under investigation complicates network model construction and interpretation of analysis outcomes. While these issues require special attention in studies that apply the increasingly complex higher-order connectivity models, similar problems are associated with all, even the most simple, network models. Alongside technical issues, network scientists face a philosophical question: can the network approach discover the fundamental nature of a system, on the one hand, and produce useful information, on the other hand. In this perspective, I review the potential problems of the network approach and propose two solutions to address them: active evaluation of the potential and limitations of the network framework before applying a network model and a transition toward an interdisciplinary research practice to interpret analysis outcomes in their right context.

Read the full article at: www.worldscientific.com

State-Expanding Systems: A Constraint-Limited Theory of Novelty Growth

Costolo, Michael

This paper introduces a constraint-limited model of combinatorial growth that examines how feasibility scales with increasing system dimensionality. The framework analyzes the balance between expanding possibility spaces and constraint structures that prune feasible configurations. The model shows that when feasible configurations grow as c^n within a combinatorial space of size 2^n, the feasible fraction collapses for constant c < 2. Sustained novelty generation therefore requires c(n) to approach the combinatorial base, producing a narrow “complexity corridor” between regimes of trivial repetition and combinatorial sparsity. The paper derives the analytic structure of this corridor and explores it through numerical simulations and visualizations. The results suggest a possible structural explanation for why complex systems may emerge only within a narrow range where combinatorial expansion and constraint relaxation operate at comparable scales.  The manuscript includes the full mathematical derivation, simulation results, and discussion of implications for complex systems.

Read the full article at: zenodo.org