Production thus becomes autocatalytic and self-reproductive, as the production of higher-order capital goods furthers the production of lower-order consumer goods, with capital continuously improved through innovation to create better lower-order goods. Looking at the process in these terms, we can think of technology, innovation, and production as adaptive learning, incremental steps generated by previous steps and that lead to other steps—each of which becomes, teleonomically, like von Baer’s caterpillar’s means to the yet undiscovered ends of the butterfly.
