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Evolution is the adaptation of a group of entities that occurs on a macro-level over a period of many life cycles reflecting the response of the collection of agents to changes in their environment. Evolution functions through a process of, variety production, interaction, selection, and replication which works to select those elements within a system that are best suited to their operating environment.

Through the iteration of this process of evolution over a prolonged period, a complex adaptive system can go from starting simple to becoming more complex. Although the idea of evolution is associated with ecosystems, complexity theory deals with the concept on a slightly more abstract level as it applies to all complex adaptive systems from the development of civilization to financial markets, cultures, and technologies.