Recognizing Investment Opportunities at the Onset of Recoveries

This model focuses on the decision to invest in novel fields of activity. Making such decisions implies that managers recognize he potentialities of emerging technological patterns, which is not a trivial ability. Ultimately, it depends on the mental categories that they developed through their working life, which may or may not be appropriate for the situation they are facing. In this article, investment decision-making is modeled by means of a Kohonen neural network. Its neurons represent firms as decision-amkers, and their weights correspond to the coefficients of a disaggregated accelerator