Innovation networks - A simulation approach

A multi-agent simulation embodying a theory of innovation networks has been built and used to suggest a number of policy-relevant conclusions. The sim ulation animates a model of innovation (the successful exploitation of new ideas) and this model is briefly described. Agents in the model representin g firms, policy actors, research labs, etc. each have a knowledge base that they use to generate `artefacts' that they hope will be innovations. The s uccess of the artefacts is judged by an oracle that evaluates each artefact using a criterion that is not available to the agents. Agents are able to follow strategies to improve their artefacts either on their own (through i ncremental improvement or by radical changes), or by seeking partners to co ntribute additional knowledge. It is shown though experiments with the mode l's parameters that it is possible to reproduce qualitatively the character istics of innovation networks in two sectors: personal and mobile communica tions and biotechnology.