IDEAS home Printed from https://ideas.repec.org/a/spr/joevec/v24y2014i4p817-834.html
   My bibliography  Save this article

The dynamic of innovation networks: a switching model on technological change

Author

Listed:
  • Gabriele Tedeschi
  • Stefania Vitali
  • Mauro Gallegati

Abstract

In this paper, we introduce an agent-based model where heterogeneous firms compare and modify their innovation strategies, so generating an evolving network structure. By implementing dynamic behavioral switching via a fitness mechanism based on agents’ performance, companies can endogenously modify their tactics for technological change and switch among three groups: stand-alone innovators, collaborative innovators and imitators. On the one hand, we study the properties of the emerging networks and we show that they reproduce the stylized facts of innovation networks. Moreover, we focus the analysis on the impact of these three innovation categories on the macro economic aggregate, finding that collaborative companies are those having the highest positive impact on the economic system. On the other hand, we use the model to study the effect of different economic innovation policies in increasing macroeconomic performance. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Gabriele Tedeschi & Stefania Vitali & Mauro Gallegati, 2014. "The dynamic of innovation networks: a switching model on technological change," Journal of Evolutionary Economics, Springer, vol. 24(4), pages 817-834, September.
    • Handle: RePEc:spr:joevec:v:24:y:2014:i:4:p:817-834
    DOI: 10.1007/s00191-014-0374-4
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00191-014-0374-4
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s00191-014-0374-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Brock, William A. & Hommes, Cars H., 1998. "Heterogeneous beliefs and routes to chaos in a simple asset pricing model," Journal of Economic Dynamics and Control, Elsevier, vol. 22(8-9), pages 1235-1274, August.
    2. Edoardo Gaffeo & Domenico Delli Gatti & Saul Desiderio & Mauro Gallegati, 2008. "Adaptive Microfoundations for Emergent Macroeconomics," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 34(4), pages 441-463.
    3. Malerba, Franco, 1992. "Learning by Firms and Incremental Technical Change," Economic Journal, Royal Economic Society, vol. 102(413), pages 845-859, July.
    4. Bruce C. Greenwald & Joseph E. Stiglitz, 1993. "Financial Market Imperfections and Business Cycles," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(1), pages 77-114.
    5. Czarnitzki, Dirk & Fier, Andreas, 2003. "Publicly Funded R&D Collaborations and Patent Outcome in Germany," ZEW Discussion Papers 03-24, ZEW - Leibniz Centre for European Economic Research.
    6. Gerasymchuk, S. & Pavlov, O.V., 2010. "Asset Price Dynamics with Local Interactions under Heterogeneous Beliefs," CeNDEF Working Papers 10-02, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
    7. Goyal, Sanjeev & Joshi, Sumit, 2004. "Erratum to "Networks of collaboration in oligopoly": [Games Econ. Behav. 43 (1) (2003) 57-85]," Games and Economic Behavior, Elsevier, vol. 46(1), pages 219-219, January.
    8. Bronwyn Hall, 2004. "The financing of research and development," Chapters, in: Anthony Bartzokas & Sunil Mani (ed.), Financial Systems, Corporate Investment in Innovation, and Venture Capital, chapter 2, Edward Elgar Publishing.
    9. Valentyn Panchenko & Sergiy Gerasymchuk & Oleg V. Pavlov, 2007. "Asset price dynamics with small world interactions under hetereogeneous beliefs," Working Papers 149, Department of Applied Mathematics, Università Ca' Foscari Venezia.
    10. Hinloopen, Jeroen, 2000. "Strategic R&D Co-operatives," Research in Economics, Elsevier, vol. 54(2), pages 153-185, June.
    11. Greenwald, Bruce C & Stiglitz, Joseph E, 1990. "Asymmetric Information and the New Theory of the Firm: Financial Constraints and Risk Behavior," American Economic Review, American Economic Association, vol. 80(2), pages 160-165, May.
    12. Stefania Vitali & Gabriele Tedeschi & Mauro Gallegati, 2013. "The impact of classes of innovators on technology, financial fragility, and economic growth," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(4), pages 1069-1091, August.
    13. Xulia González & Jordi Jaumandreu & Consuelo Pazo, 2005. "Barriers to Innovation and Subsidy Effectiveness," RAND Journal of Economics, The RAND Corporation, vol. 36(4), pages 930-949, Winter.
    14. Goyal, Sanjeev & Joshi, Sumit, 2003. "Networks of collaboration in oligopoly," Games and Economic Behavior, Elsevier, vol. 43(1), pages 57-85, April.
    15. Tedeschi, Gabriele & Iori, Giulia & Gallegati, Mauro, 2012. "Herding effects in order driven markets: The rise and fall of gurus," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 82-96.
    16. Dirk Czarnitzki & Bernd Ebersberger & Andreas Fier, 2007. "The relationship between R&D collaboration, subsidies and R&D performance: Empirical evidence from Finland and Germany," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1347-1366.
    17. Andreas Pyka & Thomas Grebel, 2006. "Agent-Based Modelling — A Methodology for the Analysis of Qualitative Development Processes," Contributions to Economics, in: Francesco C. Billari & Thomas Fent & Alexia Prskawetz & Jürgen Scheffran (ed.), Agent-Based Computational Modelling, pages 17-35, Springer.
    18. Russo, Alberto & Catalano, Michele & Gaffeo, Edoardo & Gallegati, Mauro & Napoletano, Mauro, 2007. "Industrial dynamics, fiscal policy and R&D: Evidence from a computational experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 64(3-4), pages 426-447.
    19. Dosi, Giovanni & Fagiolo, Giorgio & Roventini, Andrea, 2010. "Schumpeter meeting Keynes: A policy-friendly model of endogenous growth and business cycles," Journal of Economic Dynamics and Control, Elsevier, vol. 34(9), pages 1748-1767, September.
    20. Dosi, Giovanni, et al, 1997. "Industrial Structures and Dynamics: Evidence, Interpretations and Puzzles," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 6(1), pages 3-24.
    21. Eric Bartelsman & Stefano Scarpetta & Fabiano Schivardi, 2005. "Comparative analysis of firm demographics and survival: evidence from micro-level sources in OECD countries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(3), pages 365-391, June.
    22. John Hagedoorn & Rajneesh Narula, 1996. "Choosing Organizational Modes of Strategic Technology Partnering: International and Sectoral Differences," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(2), pages 265-284, June.
    23. Roijakkers, Nadine & Hagedoorn, John, 2006. "Inter-firm R&D partnering in pharmaceutical biotechnology since 1975: Trends, patterns, and networks," Research Policy, Elsevier, vol. 35(3), pages 431-446, April.
    24. Klepper, Steven & Simons, Kenneth L, 1997. "Technological Extinctions of Industrial Firms: An Inquiry into Their Nature and Causes," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 6(2), pages 379-460, March.
    25. Lee Fleming & Charles King & Adam I. Juda, 2007. "Small Worlds and Regional Innovation," Organization Science, INFORMS, vol. 18(6), pages 938-954, December.
    26. Jaider Vega-Jurado & Antonio Gutiérrez-Gracia & Ignacio Fernández-de-Lucio, 2009. "Does external knowledge sourcing matter for innovation? Evidence from the Spanish manufacturing industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 18(4), pages 637-670, August.
    27. Lenzu, Simone & Tedeschi, Gabriele, 2012. "Systemic risk on different interbank network topologies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(18), pages 4331-4341.
    28. Goyal, Sanjeev & Joshi, Sumit, 2003. "Networks of collaboration in oligopoly," Games and Economic Behavior, Elsevier, vol. 43(1), pages 57-85, April.
    29. Michael L. Katz, 1986. "An Analysis of Cooperative Research and Development," RAND Journal of Economics, The RAND Corporation, vol. 17(4), pages 527-543, Winter.
    30. Joost Vandenbossche & Thomas Demuynck, 2013. "Network Formation with Heterogeneous Agents and Absolute Friction," Computational Economics, Springer;Society for Computational Economics, vol. 42(1), pages 23-45, June.
    31. König, Michael D. & Battiston, S. & Napoletano, M. & Schweitzer, F., 2011. "Recombinant knowledge and the evolution of innovation networks," Journal of Economic Behavior & Organization, Elsevier, vol. 79(3), pages 145-164, August.
    32. Blake LeBaron & Ryuichi Yamamoto, 2008. "The Impact of Imitation on Long Memory in an Order-Driven Market," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 34(4), pages 504-517.
    33. Richard E. Caves, 1998. "Industrial Organization and New Findings on the Turnover and Mobility of Firms," Journal of Economic Literature, American Economic Association, vol. 36(4), pages 1947-1982, December.
    34. Holger Görg & Eric Strobl, 2007. "The Effect of R&D Subsidies on Private R&D," Economica, London School of Economics and Political Science, vol. 74(294), pages 215-234, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Turco, Enrico & Bazzana, Davide & Rizzati, Massimiliano & Ciola, Emanuele & Vergalli, Sergio, 2023. "Energy price shocks and stabilization policies in the MATRIX model," Energy Policy, Elsevier, vol. 177(C).
    2. Massimiliano Carlo Pietro Rizzati & Emanuele Ciola & Enrico Turco & Davide Bazzana & Sergio Vergalli, 2025. "Beyond Green Preferences: Demand-side and Supply-side Drivers in the Low-Carbon Transition," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(5), pages 1239-1295, May.
    3. Christophe Charlier & Ankinée Kirakozian, 2020. "Public policies for household recycling when reputation matters," Journal of Evolutionary Economics, Springer, vol. 30(2), pages 523-557, April.
    4. Na Zhao & Congcong Lei & Hui Liu & Chunlin Wu, 2022. "Improving the Effectiveness of Organisational Collaborative Innovation in Megaprojects: An Agent-Based Modelling Approach," Sustainability, MDPI, vol. 14(15), pages 1-21, July.
    5. Lorenzo Zirulia, 2023. "Path dependence in evolving R&D networks," Journal of Evolutionary Economics, Springer, vol. 33(1), pages 149-177, January.
    6. Grilli, Ruggero & Tedeschi, Gabriele & Gallegati, Mauro, 2020. "Business fluctuations in a behavioral switching model: Gridlock effects and credit crunch phenomena in financial networks," Journal of Economic Dynamics and Control, Elsevier, vol. 114(C).
    7. Berardi, Simone & Tedeschi, Gabriele, 2017. "From banks' strategies to financial (in)stability," International Review of Economics & Finance, Elsevier, vol. 47(C), pages 255-272.
    8. Colasante, Annarita, 2016. "Evolution of Cooperation in Public Good Game," MPRA Paper 72577, University Library of Munich, Germany.
    9. Ciola, Emanuele & Turco, Enrico & Gurgone, Andrea & Bazzana, Davide & Vergalli, Sergio & Menoncin, Francesco, 2023. "Enter the MATRIX model:a Multi-Agent model for Transition Risks with application to energy shocks," Journal of Economic Dynamics and Control, Elsevier, vol. 146(C).
    10. Mansour Naser Alraja & Faris Alshubiri & Basel M. Khashab & Mahmood Shah, 2023. "The financial access, ICT trade balance and dark and bright sides of digitalization nexus in OECD countries," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 13(2), pages 177-209, June.
    11. Barbosa, Sergio & Sáiz, Patricio & Zofío, José L., 2024. "The emergence and historical evolution of innovation networks: On the factors promoting and hampering patent collaboration in technological lagging economies," Research Policy, Elsevier, vol. 53(5).
    12. Stefan Behfar & Ekaterina Turkina & Thierry Burger-Helmchen, 2017. "Network tie structure causing OSS group innovation and growth," Post-Print hal-02153061, HAL.
    13. Colasante, Annarita, 2017. "Selection of the distributional rule as an alternative tool to foster cooperation in a Public Good Game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 468(C), pages 482-492.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stefania Vitali & Gabriele Tedeschi & Mauro Gallegati, 2013. "The impact of classes of innovators on technology, financial fragility, and economic growth," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(4), pages 1069-1091, August.
    2. Berardi, Simone & Tedeschi, Gabriele, 2017. "From banks' strategies to financial (in)stability," International Review of Economics & Finance, Elsevier, vol. 47(C), pages 255-272.
    3. Stuart McDonald & Mohamad Alghamdi & Bernard Pailthorpe, 2012. "The Emergence of a Small World in a Network of Research Joint Ventures," Discussion Papers Series 469, School of Economics, University of Queensland, Australia.
    4. Malerba, Franco, 2007. "Innovation and the dynamics and evolution of industries: Progress and challenges," International Journal of Industrial Organization, Elsevier, vol. 25(4), pages 675-699, August.
    5. Mario V. Tomasello & Mauro Napoletano & Antonios Garas & Frank Schweitzer, 2017. "The rise and fall of R&D networks," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(4), pages 617-646.
    6. Ruggero Grilli & Gabriele Tedeschi & Mauro Gallegati, 2015. "Markets connectivity and financial contagion," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 10(2), pages 287-304, October.
    7. Giovanni Dosi & Andrea Roventini, 2017. "Agent-Based Macroeconomics and Classical Political Economy: Some Italian Roots," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(3), pages 261-283, November.
    8. Michael D. König & Xiaodong Liu & Yves Zenou, 2019. "R&D Networks: Theory, Empirics, and Policy Implications," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 476-491, July.
    9. Mauro Napoletano & Stefano Battiston & Michael D König & Frank Schweitzer, 2008. "The efficiency and evolution of R&D Networks," Working Papers hal-01066189, HAL.
    10. repec:hal:wpspec:info:hdl:2441/f6h8764enu2lskk9p5487a6cm is not listed on IDEAS
    11. Lenzu, Simone & Tedeschi, Gabriele, 2012. "Systemic risk on different interbank network topologies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(18), pages 4331-4341.
    12. repec:spo:wpmain:info:hdl:2441/9933 is not listed on IDEAS
    13. Grilli, Ruggero & Tedeschi, Gabriele & Gallegati, Mauro, 2014. "Bank interlinkages and macroeconomic stability," International Review of Economics & Finance, Elsevier, vol. 34(C), pages 72-88.
    14. repec:hal:wpspec:info:hdl:2441/9935 is not listed on IDEAS
    15. repec:spo:wpecon:info:hdl:2441/9935 is not listed on IDEAS
    16. repec:hal:wpspec:info:hdl:2441/7346 is not listed on IDEAS
    17. repec:spo:wpecon:info:hdl:2441/f6h8764enu2lskk9p5487a6cm is not listed on IDEAS
    18. Mauro Caminati, 2021. "Knowledge distance and R&D collaboration in Cournot oligopoly," Metroeconomica, Wiley Blackwell, vol. 72(1), pages 57-81, February.
    19. repec:spo:wpmain:info:hdl:2441/9935 is not listed on IDEAS
    20. repec:hal:spmain:info:hdl:2441/9933 is not listed on IDEAS
    21. Bernd Ebersberger, 2011. "Public funding for innovation and the exit of firms," Journal of Evolutionary Economics, Springer, vol. 21(3), pages 519-543, August.
    22. repec:hal:spmain:info:hdl:2441/9935 is not listed on IDEAS
    23. repec:spo:wpmain:info:hdl:2441/f6h8764enu2lskk9p5487a6cm is not listed on IDEAS
    24. Dawid, Herbert & Hellmann, Tim, 2014. "The evolution of R&D networks," Journal of Economic Behavior & Organization, Elsevier, vol. 105(C), pages 158-172.
    25. repec:hal:wpspec:info:hdl:2441/9933 is not listed on IDEAS
    26. Bettina Becker, 2013. "The Determinants of R&D Investment: A Survey of the Empirical Research," Discussion Paper Series 2013_09, Department of Economics, Loughborough University, revised Sep 2013.
    27. repec:hal:spmain:info:hdl:2441/7346 is not listed on IDEAS
    28. Krogmann, Yin & Riedel, Nadine & Schwalbe, Ulrich, 2013. "Inter-firm R&D networks in pharmaceutical biotechnology: What determines firm's centrality-based partnering capability," FZID Discussion Papers 75-2013, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    29. repec:spo:wpecon:info:hdl:2441/9933 is not listed on IDEAS
    30. repec:spo:wpecon:info:hdl:2441/7346 is not listed on IDEAS
    31. repec:hal:spmain:info:hdl:2441/f6h8764enu2lskk9p5487a6cm is not listed on IDEAS
    32. Emmanuel Petrakis & Nikolas Tsakas, 2018. "The effect of entry on R&D networks," RAND Journal of Economics, RAND Corporation, vol. 49(3), pages 706-750, September.
    33. König, Michael D. & Battiston, S. & Napoletano, M. & Schweitzer, F., 2011. "Recombinant knowledge and the evolution of innovation networks," Journal of Economic Behavior & Organization, Elsevier, vol. 79(3), pages 145-164, August.
    34. repec:spo:wpmain:info:hdl:2441/7346 is not listed on IDEAS
    35. Jérôme Dollinger & Ana Mauleon & Vincent Vannetelbosch, 2024. "R &d and market sharing agreements," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 78(3), pages 877-922, November.
    36. Vasileios Zikos, 2010. "R&D Collaboration Networks in Mixed Oligopoly," Southern Economic Journal, John Wiley & Sons, vol. 77(1), pages 189-212, July.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joevec:v:24:y:2014:i:4:p:817-834. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.