Simulation of the effects of technology policies with an evolutionary model of industrial dynamics

Abstract

Policies that intend to promote incentives to innovate, and the subsequent studies of these policies, are a recent occurrence in a number of countries. In the context of this article, the option chosen was to adopt a simulation model that embodied an unprecedented analysis with respect to the effects of such policies. This path is justified within the perception that the innovation phenomenon is an integral part of a system - the industrial system - marked by complex dynamics. This perception led to the development of a model to simulate industrial dynamics in the context of a hypothetical industry with two different values being assigned to one of the model's parameters. Based on these values, two sets of simulation were generated, which supposedly simulate the dynamics of high and low technology industries. The results of such simulations suggest that the effects of each type of technological policy are extremely sensitive to the prevailing technological regime in each industry.

Keywords:
Technological policies; Industrial dynamics; Simulation; Technological regime; Evolutionary model