One of the most influential evolutionary models in Nelson and Winter's book is the one dealing with industrial dynamics. From that model came out meaningful insights about market structure and technological change relationship. Despite the improvements made by evolutionary models that have arisen since Nelson and Winter's book, this stream of models still shares some of the original limitations from Nelson and Winter's model. All of those limitations are related to the technological search part of the model. Thus, this article aims to build a new technological search model with properties (technological cumulativeness, asymmetrical R&D spillovers and knowledge accumulation and intertemporal depreciation) that are capable to solve those limitations.
