Policy Simulation of Firms Cooperation in Innovation
This study utilizes results from an agent-based simulation model to conduct public policy simulation of firms’ networking and cooperation in innovation. The simulation game investigates the differences in sector responses to internal and external changes, including cross-sector spillovers, when applying three different policy strategies to promote cooperation in innovation. The public policy strategies include clustering to develop certain industries, incentives to encourage cooperative R&D and spin-off policies to foster entrepreneurship among R&D personnel. These policies are compared with the no-policy alternative evolving from the initial state serving as a benchmark to verify the gains (or loses) in the number of firms cooperating and networking. Firms’ behavior is defined according to empirical findings from analysis of determinants of firms’ participation in cooperation in innovation with other organizations using the Korean Innovation Survey. The analysis based on manufacturing sector data shows that firms’ decision to cooperate with partners is primarily affected positively by firm’s size and the share of employees involved in R&D activities. Then, each cooperative partnership is affected by a different set of determinants. The agent-based models are found to have a great potential to be used in decision support systems for policy makers. The findings indicate possible appropriate policy strategies to be applied depending on the target industries. We have applied few examples and showed how the results may be interpreted. Guidelines are provided on how to generalize the model to include a number of extensions that can serve as an optimal direction for future research in this area.
|Date of creation:||27 Mar 2014|
|Contact details of provider:|| Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden|
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bernhard Dachs & Bernd Ebersberger & Andreas Pyka, 2004. "Why do Firms Co-operate for Innovation? - A comparison of Austrian and Finnish CIS 3 results," Discussion Paper Series 255, Universitaet Augsburg, Institute for Economics.
- d'ASPREMONT, Claude & JACQUEMIN, Alexis, "undated".
"Cooperative and noncooperative R&D in duopoly with spillovers,"
CORE Discussion Papers RP
823, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- d'Aspremont, Claude & Jacquemin, Alexis, 1988. "Cooperative and Noncooperative R&D in Duopoly with Spillovers," American Economic Review, American Economic Association, vol. 78(5), pages 1133-1137, December.
- Miotti, Luis & Sachwald, Frederique, 2003. "Co-operative R&D: why and with whom?: An integrated framework of analysis," Research Policy, Elsevier, vol. 32(8), pages 1481-1499, September.
- Tesfatsion, Leigh S., 2001.
"Introduction to the Special Issue on Agent-Based Computational Economics,"
Staff General Research Papers Archive
10038, Iowa State University, Department of Economics.
- Tesfatsion, Leigh, 2001. "Introduction to the special issue on agent-based computational economics," Journal of Economic Dynamics and Control, Elsevier, vol. 25(3-4), pages 281-293, March.
- Tesfatsion, Leigh S., 2001. "Introduction to the Special Issue on Agent-Based Computational Economics," Staff General Research Papers Archive 1915, Iowa State University, Department of Economics.
- Albino, Vito & Carbonara, Nunzia & Giannoccaro, Ilaria, 2006. "Innovation in industrial districts: An agent-based simulation model," International Journal of Production Economics, Elsevier, vol. 104(1), pages 30-45, November.
- Jon Sigurdson, 1998. "Industry and State Partnership: The Historical Role of Theengineering Research Associations in Japan," Industry and Innovation, Taylor & Francis Journals, vol. 5(2), pages 209-241.
- Belderbos, Rene & Carree, Martin & Lokshin, Boris, 2004.
"Cooperative R&D and firm performance,"
Elsevier, vol. 33(10), pages 1477-1492, December.
- Alan Kirman, 2004.
"Economics And Complexity,"
World Scientific Book Chapters,
in: Industry And Labor Dynamics The Agent-Based Computational Economics Approach, chapter 2, pages 3-21
World Scientific Publishing Co. Pte. Ltd..
- Nigel Gilbert & Andreas Pyka & Petra Ahrweiler, 2001. "Innovation Networks - a Simulation Approach," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 4(3), pages 1-8.
- Flávio Lenz-Cesar & Almas Heshmati, 2012. "An econometric approach to identify determinants of cooperation for innovation among firms," Applied Economics Letters, Taylor & Francis Journals, vol. 19(3), pages 227-235, February.
- Matteo Richiardi, 2007. "Agent-based Computational Economics. A Short Introduction," LABORatorio R. Revelli Working Papers Series 69, LABORatorio R. Revelli, Centre for Employment Studies.
- Giorgio Fagiolo & Alessio Moneta & Paul Windrum, 2007. "A Critical Guide to Empirical Validation of Agent-Based Models in Economics: Methodologies, Procedures, and Open Problems," Computational Economics, Springer;Society for Computational Economics, vol. 30(3), pages 195-226, October.
- Piergiuseppe Morone & Richard Taylor, 2012. "Proximity, knowledge integration and innovation: an agenda for agent-based studies," Journal of Evolutionary Economics, Springer, vol. 22(1), pages 19-47, January.
- Sakakibara, Mariko, 2001. "Cooperative research and development: who participates and in which industries do projects take place?," Research Policy, Elsevier, vol. 30(7), pages 993-1018, August.
- Teece, David J., 1992. "Competition, cooperation, and innovation : Organizational arrangements for regimes of rapid technological progress," Journal of Economic Behavior & Organization, Elsevier, vol. 18(1), pages 1-25, June.
- Bayona, Cristina & Garcia-Marco, Teresa & Huerta, Emilio, 2001. "Firms' motivations for cooperative R&D: an empirical analysis of Spanish firms," Research Policy, Elsevier, vol. 30(8), pages 1289-1307, October.
- Belderbos, Rene & Carree, Martin A & Diederen, Bert & Lokshin, Boris & Veugelers, Reinhilde, 2003.
"Heterogeneity in R&D Cooperation Strategies,"
CEPR Discussion Papers
4021, C.E.P.R. Discussion Papers.
- Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September.
When requesting a correction, please mention this item's handle: RePEc:hhs:cesisp:0357. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vardan Hovsepyan)
If references are entirely missing, you can add them using this form.