Typology of Institutions - Theory: Classification of Institutions via the Methods for Transmission and Modification of Knowledge

Abstract

We introduce the new typology of institutions. The classification is made via the methods for preparing of new generation to activity in a frame of the institution. We detect that only three types of institutions exist.

First is the personality-nominal type of institutional coding individual: each operation in collective activity (profession) is unique and inseparable from the individual. The specific persons (“elders”) conserve the knowledge in these institutions. This type of economic institutions is typical for conditions, when one individual is coded into one unique professional activities.

Second is the professional-nominal (traditional) type of institutional coding for individual: a certain set of individuals is encoded in a unique professional activity. This profession is essential characteristics for individual: this occupation he/she can not to change during all life. The certain group of individuals (“priests”) conserves the knowledge with using of the memory of specific individuals, and in the form of “canonical” texts. This type of coding strongly limit all forms of life for the individual within this institution: institution rejects everything, which not belonged to institutional knowledge. The individuals, which are the carriers of atypical knowledge (atypical professional or economic behavior), are removed outside from the institution.

Third is the universal-conceptual institutional type of coding for individual: individual freely changes the professional activity (i.e. he/she can be encoded in several various types of professional activities), knowledge is stored in a form, which is accessible to all individuals.

We show that the market economy and the science exist only for the universal-conceptual institutional type of coding for individual.

Keywords: Institution, typology, type of institution, new generation, transmission of knowledge, modification of knowledge

JEL Classification: B41, D7, D8, E66, H10, I21, K10, N01, O00, P00