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Most known learning algorithms for dynamic neural networks in non-stationary environments need global computations to perform credit assignment. These algorithms either are not local in time or not local in space. Those algorithms which are local in both time and space usually can not deal sensibly with `hidden units. In contrast, as far as we can judge by now, learning rules in biological systems with many `hidden units are local in both space and time. In this paper we propose a parallel on-line learning algorithm which performs local computations only, yet still is designed to deal with hidden units and with units whose past activations are `hidden in time. The approach is inspired by Hollands idea of the bucket brigade for classifier systems, which is transformed to run on a neural network with fixed topology. The result is a feedforward or recurrent `neural dissipative system which is consuming `weight-substance and permanently trying to distribute this substance onto its co...
Jürgen Schmidhuber (Sun,) studied this question.