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An agent-based model approach to innovation niche creation in socio-technical transition pathways

Author

Listed:
  • Antonio Lopolito

    (Department of Production and Innovation (PrIME) - University of Foggia, Italy)

  • Piergiuseppe Morone

    (Department of Economics, Mathematics and Statistics- University of Foggia, Italy)

  • Richard Taylor

    (Stockholm Environment Institute - SEI Oxford, UK)

Abstract

The creation of an innovation niche depends on the interaction of three mechanisms involving: converging expectations, adequate level of individual and network power and efficient knowledge creation and diffusion (Lopolito and Morone, 2010). Such mechanisms define the key characteristics of a network of firms (i.e. the innovation niche), and the interaction among them guides the creation and development of a new technology. In this paper, we propose an agent-based model to investigate the dynamics characterising such interactions and the role that policy intervention can have in governing the niche development process. Specifically, we consider and assess the impact of two policy actions: (1) increasing actors' expectations towards the new technology by means of information spreading, and (2) providing subsidies aimed at stimulating technological switch. Our preliminary results confirm the importance of policy intervention and show the complementarity of the two policy measures considered. Hence, a mixed policy action could serve the purpose of a rapid and stable creation of an innovation-niche.

Suggested Citation

  • Antonio Lopolito & Piergiuseppe Morone & Richard Taylor, 2011. "An agent-based model approach to innovation niche creation in socio-technical transition pathways," Economics Bulletin, AccessEcon, vol. 31(2), pages 1780-1792.
    • Handle: RePEc:ebl:ecbull:eb-11-00124
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    File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I2-P163.pdf
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    References listed on IDEAS

    as
    1. van der Laak, W.W.M. & Raven, R.P.J.M. & Verbong, G.P.J., 2007. "Strategic niche management for biofuels: Analysing past experiments for developing new biofuel policies," Energy Policy, Elsevier, vol. 35(6), pages 3213-3225, June.
    2. Piergiuseppe Morone & Antonio Lopolito, 2010. "Socio-technical transition pathways and social networks: a toolkit for empirical innovation studies," Economics Bulletin, AccessEcon, vol. 30(4), pages 2720-2731.
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    Cited by:

    1. Lopolito, A. & Morone, P. & Taylor, R., 2013. "Emerging innovation niches: An agent based model," Research Policy, Elsevier, vol. 42(6), pages 1225-1238.
    2. Xie, Xuemei & Wang, Hongwei, 2021. "How to bridge the gap between innovation niches and exploratory and exploitative innovations in open innovation ecosystems," Journal of Business Research, Elsevier, vol. 124(C), pages 299-311.
    3. Liu, Xueying & Madlener, Reinhard, 2021. "The sky is the limit: Assessing aircraft market diffusion with agent-based modeling," Journal of Air Transport Management, Elsevier, vol. 96(C).

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    More about this item

    Keywords

    agent-based model; innovation niche; policy actions;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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