It was the creation of a closed system of independent parts, all conceived as fitting together in a linear, even a mechanical way. Necessary assumptions of this model were that everyone had perfect knowledge, that all expectations were identical, and that all resources were already allocated to their most valued use. It implied that economies are, or ought to be, continuous, orderly and stable. This process fundamentally misrepresented the character of economy as a complex system. Transition, not equilibrium, has become the standard operating condition.
Flexibility is the way to adapt, and to survive and prosper in an epoch of transition.
The recognition of the role of economic gain in the achievement of technical advance can be traced back at least to the father of modern philosophy, Rene Descart. Adam Smith indicated how, as a by-product, the division of labor would yield improvements in methods of production. However, he failed to develop a theory of technical advance as a deliberate economic process. Due to lack of considering knowledge as an variable, it is hardly possible to study innovation and technology in the context of the Static model, although their roles in economic development may seem so obvious. The place of technology in economic analysis is, and always has been, fundamentally ambiguous.