[citation needed] His major research areas, where he is the author and editor of several works, include economics of innovation and technological change, industrial organization and industrial dynamics, theory of the firm and corporate governance, evolutionary theory, economic growth and development.
S.F.2 The learning processes that firms undertake to carry out innovations are characterized by trials, errors and unexpected success.
Such constraints emerge because inputs are characterized by low substitutability due to the physical and chemical limits involved in the production process.
The trial and error procedures adopted by firms to improve along a technological trajectory (S.F.2) have taken Dosi to assess the issue of uncertainty.
Such a fact is strongly at odds with any assumption of "perfect rationality" or "farsightedness" on the side of economic agents, which is a foundational element of the Neoclassical approach.
Dosi has analyzed this issue by assessing the ways in which economic agents perceive and deal with choices that have an uncertain outcome.
[9]: 145 Crucially, though, the fact that such types of uncertainties limit the computational rationality of agents leads them precisely to develop routines and decision rules that are the likely explanation of their heterogeneous behaviours.
[10][4] For such argument to be valid, the characteristics of firms would need to evolve in time toward a normal distribution, possibly showing some shrinking of the support.
Notably, this theoretical implication poses an unresolved challenge to the arguments put forward by Milton Friedman in his essay The Methodology of Positive Economics.
However, the empirical findings that constitute S.F.3 prove the exact opposite of Friedman's prediction: very different "genes" survive in the market.