The Dynamic of Innovation Networks : A Switching Model on Technological Change

In this paper we introduce an agent-based model with heterogeneous firms which compare their mutual innovation strategies on different network structures. By implementing a dynamic behavioral switching via a fitness mechanism based on agents performance, companies can endogenously modify their tactics of technological change and switch among three groups: stand-alone innovators, collaborative innovators and imitators. We focus the analysis on the impact of these three innovation categories on micro, meso and macro aggregates. Our findings show that collaborative companies are those having the highest positive impact on the economic system. Moreover, we study the properties of the emerging networks and we show that they reproduce the stylized facts of R&D networks. The model is then used to study the effect of different fiscal innovation policies in increasing macroeconomic performance