A Logic of Multi-Level Change of Routines

This paper tries to account for endogenous change of multi-level routines in terms of nested cycles of discovery, in a hierarchy of scripts.Higher-level scripts constitute the selection environment for lower level ones.On any level, a cycle of discovery proceeds from established dominant designs.When subjected to new conditions, a script first tries to adapt by proximate change, in differentiation, with novel selection of subscripts in existing nodes in existing script architecture.Next, in reciprocation it adopts new nodes from other, surrounding scripts.Next, it adapts script architecture, in novel configurations of old and new nodes.In this way, lower level change of subscripts can force higher-level change of superscripts.In this way, institutions may co-evolve with innovation.