METHODOLOGICAL INDIVIDUALISM AS A FOUNDATION FOR INNOVATION IN THE BIOECONOMY: AN APPLICATION OF THE MANAUS FREE TRADE ZONE’S BIOECONOMY PRIORITY PROGRAM

Abstract

Methodological individualism represents an important analytical tradition in the Social Sciences and Economics by arguing that social phenomena can be understood through the actions, decisions, and interactions of individuals. In the field of innovation, this perspective complements approaches that focus exclusively on institutional and organizational factors by emphasizing the microfoundations of human action in the development of new products, processes, and services. In this context, this study aims to examine how methodological individualism provides theoretical foundations for understanding innovation in the bioeconomy, using the Priority Bioeconomy Program of the Manaus Free Trade Zone (PPBio-ZFM) as an empirical reference. The research adopts a qualitative, theoretical, and exploratory approach based on a bibliographic review of methodological individualism, innovation theory, and bioeconomy. The theoretical framework integrates the contributions of Karl Popper, Friedrich Hayek, Joseph Schumpeter, Israel Kirzner, and Ubiratan Iorio, while also considering the critiques advanced by Chafim and Krivochein and Mariana Mazzucato. The findings suggest that innovation is best understood through the complementarity between the microfoundations of human action and the institutional conditions that shape the economic environment. While institutions, public policies, and governance mechanisms create incentives and reduce uncertainty, innovation ultimately depends on individuals capable of identifying opportunities, mobilizing knowledge, and transforming resources into innovative solutions. The study concludes that the PPBio provides empirical evidence of this complementarity, contributing to the theoretical debate on innovation within the bioeconomy.