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Competition, Variety and Technological Evolution: A Replicator Dynamics Model

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  • Saviotti, P P
  • Mani, G S

Abstract

In this paper a model of technological evolution based on replicator dynamics is developed. Such a model is based on a twin characteristics representation of product technology and on a population approach. The model can give a general representation of technological evolution but this paper concentrates on the relationship between variety and competition. Variety is considered to be a very important variable influencing economic development. By means of the characteristics and population approach adopted in this paper it is possible to distinguish between inter- and intra-technology competition. In this paper it is demonstrated that the variety of the system can only increase if intra-technology competition is more intense than inter-technology competition. Intuitively this implies that new technologies will only be able to emerge if incumbent technologies experience the competition coming from the new ones to be weaker than their own internal competition.

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Bibliographic Info

Article provided by Springer in its journal Journal of Evolutionary Economics.

Volume (Year): 5 (1995)
Issue (Month): 4 (December)
Pages: 369-92

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Handle: RePEc:spr:joevec:v:5:y:1995:i:4:p:369-92

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Cited by:
  1. Montobbio, Fabio, 2002. "An evolutionary model of industrial growth and structural change," Structural Change and Economic Dynamics, Elsevier, vol. 13(4), pages 387-414, December.
  2. Andreas Pyka & Paolo Saviotti, 2001. "Innovation Networks in the Biotechnology-Based Sectors," Discussion Paper Series 205, Universitaet Augsburg, Institute for Economics.
  3. Geoffrey Hodgson & Kainan Huang, 2012. "Evolutionary game theory and evolutionary economics: are they different species?," Journal of Evolutionary Economics, Springer, vol. 22(2), pages 345-366, April.
  4. Jha, Pushkar. P. & Lampel, Joseph, 2014. "Performance feedback, competitive repertoire simplicity, and technological evolution in a televised design contest," Research Policy, Elsevier, vol. 43(2), pages 403-413.
  5. Benjamin David, 2014. "Contribution of ICT on Labor Market Polarization: an Evolutionary Approach," EconomiX Working Papers 2014-25, University of Paris West - Nanterre la Défense, EconomiX.
  6. Kaldasch, Joachim, 2014. "Evolutionary Model of Moore’s Law," MPRA Paper 54397, University Library of Munich, Germany.
  7. van der Vooren, A. & Alkemade, F. & Hekkert, M.P., 2013. "Environmental performance and firm strategies in the dutch automotive sector," Transportation Research Part A: Policy and Practice, Elsevier, vol. 54(C), pages 111-126.
  8. Jurgen Essletzbichler & David Rigby, 2005. "Technological evolution as creative destruction of process heterogeneity: evidence from US plant-level data," Economic Systems Research, Taylor & Francis Journals, vol. 17(1), pages 25-45.
  9. Silverberg,Gerald, 1997. "Evolutionary modeling in economics : recent history and immediate prospects," Research Memorandum 008, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  10. Uwe Cantner & Jens J. Krüger & René Söllner, 2012. "Product quality, product price, and share dynamics in the German compact car market," Industrial and Corporate Change, Oxford University Press, vol. 21(5), pages 1085-1115, October.
  11. Saviotti, Pier Paolo, 1998. "On the dynamics of appropriability, of tacit and of codified knowledge," Research Policy, Elsevier, vol. 26(7-8), pages 843-856, April.
  12. Wezel, Filippo Carlo, 2002. "The organization enacts the environment and the environment feeds back : mortality rates in the UK motorcycle industry, 1895-1993," Research Report 02G41, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  13. Safarzynska, Karolina & van den Bergh, Jeroen C.J.M., 2011. "Beyond replicator dynamics: Innovation-selection dynamics and optimal diversity," Journal of Economic Behavior & Organization, Elsevier, vol. 78(3), pages 229-245, May.
  14. van den Bergh, Jeroen C.J.M., 2008. "Optimal diversity: Increasing returns versus recombinant innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 565-580, December.
  15. Frenken, Koen & Saviotti, Paolo P. & Trommetter, Michel, 1999. "Variety and niche creation in aircraft, helicopters, motorcycles and microcomputers," Research Policy, Elsevier, vol. 28(5), pages 469-488, June.

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