INNOVATION REGIMES, ENTRY AND MARKET-STRUCTURE

This paper contains a description of an evolutionary model of industri al dynamics and a report on the simulation study of the model. The pre sentation of the model is partitioned into two sections. In the first section I focus on the economic features of industrial development wit h no technological change imbedded, while an extended version of this model with the search for innovation process included is presented in the next section. In the next two sections, results of the simulation study on technological regimes and firm entry are presented. Technolog ical regimes relate to different types of innovation captured by the m odel, so I consider the cost regime, the technical performance regime and the capital productivity regime. In Sect. III I investigate the in fluence of the different types of innovation on the development of the industry, particularly on industry concentration and on the products' price distribution, and in the fourth section an evolution of industr y structure with the possibility of firm entry is investigated.