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Industry dynamics in complex product spaces: An evolutionary model

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  • Marengo, Luigi
  • Valente, Marco

Abstract

In this paper we present an evolutionary simulation model of industry dynamics with product innovation and differentiated demand in complex product industries, i.e. industries where products are made of many components, possibly belonging to different technologies, and providing a variety of services to consumers who have heterogeneous preferences. We analyze how the complexity of the product space, the strategies that firms follow to search this space either innovating or imitating, and the differentiation of consumers' preference interact to determine the structure and evolutions of the industry.

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  • Marengo, Luigi & Valente, Marco, 2010. "Industry dynamics in complex product spaces: An evolutionary model," Structural Change and Economic Dynamics, Elsevier, vol. 21(1), pages 5-16, March.
    • Handle: RePEc:eee:streco:v:21:y:2010:i:1:p:5-16
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    3. Cevikarslan, Salih, 2013. "Optimal patent length and patent breadth in an R&D driven market with evolving consumer preferences: An evolutionary multi-agent based modelling approach," MERIT Working Papers 2013-020, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Jun, Bogang & Kim, Tai-Yoo, 2015. "A neo-Schumpeterian perspective on the analytical macroeconomic framework: The expanded reproduction system," Hohenheim Discussion Papers in Business, Economics and Social Sciences 11-2015, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    5. Cevikarslan S., 2015. "Research joint ventures in an R&D driven market with evolving consumer preferences: An evolutionary multi-agent based modelling approach," MERIT Working Papers 2015-007, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Peili Yu & Junguo Shi & Bert M. Sadowski & Önder Nomaler, 2020. "Catching Up in the Face of Technological Discontinuity: Exploring the Role of Demand Structure and Technological Regimes in the Transition from 2G to 3G in China," Journal of Evolutionary Economics, Springer, vol. 30(3), pages 815-841, July.
    7. Dosi, G. & Pereira, M.C. & Roventini, A. & Virgillito, M.E., 2022. "Technological paradigms, labour creation and destruction in a multi-sector agent-based model," Research Policy, Elsevier, vol. 51(10).
    8. Cevikarslan, Salih, 2013. "Heterogeneity in innovation strategies, evolving consumer preferences and market structure: An evolutionary multi-agent based modelling approach," MERIT Working Papers 2013-019, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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