The Dynamic of Innovation Networks: A Switching Model on Technological Change

23 Pages Posted: 13 Oct 2012  

Mauro Gallegati

Università Politecnica delle Marche - Faculty of Economics

Gabriele Tedeschi

Università Politecnica delle Marche - Faculty of Economics; Jaume I University - Department of Economics

Stefania Vitali

Università Politecnica delle Marche - Faculty of Economics; Department of Physics, Università di Palermo, italy; ETH Zurich

Date Written: August 2012

Abstract

In this paper we introduce an agent-based model with heterogeneous firms which compare their mutual innovation strategies on different network structures. By implementing a dynamic behavioral switching via a fitness mechanism based on agents performance, companies can endogenously modify their tactics of technological change and switch among three groups: stand-alone innovators, collaborative innovators and imitators. We focus the analysis on the impact of these three innovation categories on micro, meso and macro aggregates. Our findings show that collaborative companies are those having the highest positive impact on the economic system. Moreover, we study the properties of the emerging networks and we show that they reproduce the stylized facts of R&D networks. The model is then used to study the effect of different fiscal innovation policies in increasing macroeconomic performance.

Keywords: Innovation Network, Preferential Attachment, Fiscal Policy

JEL Classification: D8, L2, O3, O4

Suggested Citation

Gallegati, Mauro and Tedeschi, Gabriele and Vitali, Stefania, The Dynamic of Innovation Networks: A Switching Model on Technological Change (August 2012). Available at SSRN: https://ssrn.com/abstract=2160789 or http://dx.doi.org/10.2139/ssrn.2160789

Mauro Gallegati

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy
++390712207188 (Phone)
++390712207102 (Fax)

Gabriele Tedeschi

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

Jaume I University - Department of Economics ( email )

Campus del Riu Sec.
E-12071 Castellon
Spain

Stefania Vitali (Contact Author)

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

Department of Physics, Università di Palermo, italy ( email )

Viale delle Scienze, Ed. 17
Palermo, PA 90128
Italy

ETH Zurich ( email )

Weinbergstrasse 56/58
8092 Zurich, CH-1015
Switzerland

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