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The dynamics of firms in a micro-to-macro model: The role of training, learning and innovation

Author

Listed:
  • Erol Taymaz

    () (Middle East Technical University, Ankara, Turkey)

  • G, rard Ballot

    () (Universit, Panth, on-Assas & ERMES-CNRS, 92, rue d'Assas, F-75270 Paris, France)

Abstract

We analyze the co-evolution of the performances of firms and of the economy in an evolutionary micro-to-macro model of the Swedish economy. The model emphasizes the interactions between human capital (or competences) and technological change at the firm level and their effects on aggregate growth, taking into account the micro-macro feedbacks. The model features learning-by-doing, incremental and radical innovations, user-producer learning at the firm level, and a change in the techno-economic paradigm. We find that there is an optimal sequence for the firm to allocate their resources: (1) build a general human capital stock before the change in the techno-economic paradigm, (2) spend on R&D, and (3) invest in specific human capital. Innovators fare better than imitators on average, not only because they innovate, but also because they build a competence base, which supports the learning from other firms.

Suggested Citation

  • Erol Taymaz & G, rard Ballot, 1997. "The dynamics of firms in a micro-to-macro model: The role of training, learning and innovation," Journal of Evolutionary Economics, Springer, vol. 7(4), pages 435-457.
  • Handle: RePEc:spr:joevec:v:7:y:1997:i:4:p:435-457
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    Citations

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    Cited by:

    1. David B. Audretsch & Dirk Dohse, 2007. "Location: A Neglected Determinant of Firm Growth," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(1), pages 79-107, April.
    2. Erkan Erdil & H. Tolga Göksidan, 2015. "Review of International Production and Global Value Chain Studies: the Case of Turkish Regional Networks," STPS Working Papers 1504, STPS - Science and Technology Policy Studies Center, Middle East Technical University, revised Dec 2015.
    3. Olivier Goudet & Jean-Daniel Kant & Gérard Ballot, 2016. "WorkSim: A Calibrated Agent-Based Model of the Labor Market Accounting for Workers' Stocks and Gross Flows," Post-Print hal-01510768, HAL.
    4. repec:kap:compec:v:50:y:2017:i:1:d:10.1007_s10614-016-9577-0 is not listed on IDEAS
    5. Olivier Goudet & Gérard Ballot & Jean-Daniel Kant, 2015. "How to choose a contract type in the French Labor Market : an agent-based model," Post-Print hal-01512938, HAL.
    6. Gérard Ballot & Erol Taymaz, 1999. "Technological Change, Learning and Macro-Economic Coordination: an Evolutionary Model," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 2(2), pages 1-3.
    7. Carlsson , Bo, 2016. "Industrial Dynamics: A Review of the Literature 1990-2009," Papers in Innovation Studies 2016/3, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    8. Adli Abouzeedan & Boo Edgar & Thomas Hedner, 2011. "Can Innovation Enhance Entrepreneurial Activities of a Region? An Analysis Utilizing the Entrepreneurial Remedy Model (EREM)," ERSA conference papers ersa10p1277, European Regional Science Association.
    9. Gerard Ballot & Antoine Mandel & Annick Vignes, 2015. "Agent-based modeling and economic theory: where do we stand?," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 10(2), pages 199-220, October.
    10. Thomas Hedner & Hanadi Almubaraki & Michael Busler & Adli Abouzeedan, 2011. "Business and Technology Incubators and their Role in the Nordic Countries in Comparison to the GCC countries: An Analysis of Current Affairs," ERSA conference papers ersa10p1283, European Regional Science Association.
    11. Jakob Grazzini & Matteo G. Richiardi, 2013. "Consistent Estimation of Agent-Based Models by Simulated Minimum Distance," LABORatorio R. Revelli Working Papers Series 130, LABORatorio R. Revelli, Centre for Employment Studies.
    12. Santos-Arteaga, Francisco J. & Di Caprio, Debora & Tavana, Madjid & O’Connor, Aidan, 2017. "Innovation dynamics and labor force restructuring with asymmetrically developed national innovation systems," International Business Review, Elsevier, vol. 26(1), pages 36-56.
    13. Dittrich, Koen & Duysters, Geert & de Man, Ard-Pieter, 2007. "Strategic repositioning by means of alliance networks: The case of IBM," Research Policy, Elsevier, vol. 36(10), pages 1496-1511, December.
    14. Heshmati, Almas & Lenz-Cesar, Flávio, 2013. "Determinants and Policy Simulation of Firms Cooperation in Innovation," IZA Discussion Papers 7487, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Evolutionary theory ; Endogeneous growth ; Human capital ; Innovation ; Diffusion ; Learning ; Artificial intelligence ; Microsimulation;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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