This paper's aim is to present a theoretical extension of the evolutionary model of industrial dynamics proposed by Nelson and Winter (1982b), introducing some analytical modifications in the process that defines the result of the firm's technological search. It is introduced a mechanism that positevely reinforces the random process that defines the result of the firms' attempts to make innovations/imitations by P&D expenses. This new version intend to surpass a limitation persisting in the whole stream of evolutionary models. Although they have been eliminating other simplifications of the model, all of them still follow the Nelson-Winter model technological search process closely. Finally, it will be presented some preliminary simulations seeking to evaluate the implications of this change on the industry performance (price, productivity) and, particularly, on the stability of firms' competitive performance in terms of market share.
evolutionary model of industrial dynamics; technological cumulativeness; simulation of industrial dynamics
