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Antonio Lopolito, Piergiuseppe Morone and Richard Taylor
''An agent-based model approach to innovation niche creation in socio-technical transition pathways''
( 2011, Vol. 31 No.2 )
The creation of an innovation niche depends on the interaction of three mechanisms involving: converging expectations, adequate level of individual and network power and efficient knowledge creation and diffusion (Lopolito and Morone, 2010). Such mechanisms define the key characteristics of a network of firms (i.e. the innovation niche), and the interaction among them guides the creation and development of a new technology. In this paper, we propose an agent-based model to investigate the dynamics characterising such interactions and the role that policy intervention can have in governing the niche development process. Specifically, we consider and assess the impact of two policy actions: (1) increasing actors' expectations towards the new technology by means of information spreading, and (2) providing subsidies aimed at stimulating technological switch. Our preliminary results confirm the importance of policy intervention and show the complementarity of the two policy measures considered. Hence, a mixed policy action could serve the purpose of a rapid and stable creation of an innovation-niche.
Keywords: agent-based model, innovation niche, policy actions
JEL: O3 - Technological Change; Research and Development: General
L2 - Firm Objectives, Organization, and Behavior: General
Manuscript Received : Feb 21 2011 Manuscript Accepted : Jun 17 2011

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