Sequential production, modularity and technological change

Most production processes involve a number of coordinated stages. Starting from recent work on adaptive complex systems and product design, the present paper discusses how interdependencies between the individual operations of a production process affect technological change and how the degree and structure of interdependence itself develops over time. I show that there are notable differences between modular product architectures and decomposable production processes. In addition, the decomposability of production processes itself evolves over time. Fundamental advances in knowledge, experiential learning and technological innovations cause endogenous changes in the degree of decomposability.