Defining structure and detecting the emergence of complexity in nature
are inherently subjective, though essential, scientific activities. D
espite the difficulties, these problems can be analyzed in terms of ho
w model-building observers infer from measurements the computational c
apabilities embedded in nonlinear processes; An observer's notion of w
hat is ordered, what is random, and what is complex in its environment
depends directly on its computational resources: the amount of raw me
asurement data, of memory, and of time available for estimation and in
ference. The discovery of structure in an environment depends more cri
tically and subtlely though on how those resources are organized. The
descriptive power of the observer's chosen (or implicit) computational
model class, for example, can be an overwhelming determinant in findi
ng regularity in data. This paper presents an overview of an inductive
framework-hierarchical epsilon-machine reconstruction-in which the em
ergence of complexity is associated with the innovation of new computa
tional model classes. Complexity metrics for detecting structure and q
uantifying emergence, along with an analysis of the constraints on the
dynamics of innovation, are outlined. Illustrative examples are drawn
from the onset of unpredictability in nonlinear systems, finitary non
deterministic processes, and cellular automata pattern recognition. Th
ey demonstrate how. finite inference resources drive the innovation of
new structures and so lead to the emergence of complexity.