Industry dynamics in complex product spaces: An evolutionary model
AbstractIn 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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Bibliographic InfoArticle provided by Elsevier in its journal Structural Change and Economic Dynamics.
Volume (Year): 21 (2010)
Issue (Month): 1 (March)
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Web page: http://www.elsevier.com/locate/inca/525148
Innovation Complex products industries Industry evolution;
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