Unlocking Coevolution and Inclusive Innovations: Dynamics of Marginalised Agents in Immature Innovation Systems

Maria Luisa Villalba, Danilo Spinola and Walter Ruiz

No 31, CAFE Working Papers from Centre for Accountancy, Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University

Abstract: This article explores the coevolutionary dynamics of immature innovation systems (IMIS), focusing on the role of marginalized agents often excluded from Conventional Innovation Systems (CIS). Marginalized agents, such as informal entrepreneurs or low-resource communities, are key actors in addressing local challenges but are typically overlooked in mainstream innovation processes, making it crucial to understand how they can be integrated into broader systems. Using an Agent-Based Model (ABM) based on Villalba (2023) and Ruiz et al. (2016), we examine how interactions between agents with different innovation and inclusion capabilities drive system evolution. The model integrates learning and unlearning processes, allowing agents to adapt and build capabilities over time. Through simulations that vary social thresholds, agent configurations, NOPI (Needs, Opportunities, Problems and Ideas) complexity, and the presence or absence of learning, we find that while higher social thresholds and complex NOPIs foster agent specialization, they can limit the inclusion of marginalized agents. Conversely, the absence of learning results in system stagnation despite increased short-term inclusion. By adopting a system-wide perspective, this paper contributes to the literature on innovation systems by analyzing how the relationships between marginalized and conventional actors influence inclusion dynamics. Our ABM captures the complex interplay of inclusion, coevolution, and capability complementarity within IMIS, offering deeper insights into how marginalized agents drive inclusive innovation and emphasizing the importance of fostering both innovation and inclusion capabilities for sustainable, equitable outcomes.

Keywords: Coevolution; Heterogeneous agents; Immature innovation system; Developing countries; Excluded agents (search for similar items in EconPapers)
Date: 2024-11-08
New Economics Papers: this item is included in nep-cse, nep-ent, nep-evo, nep-hme, nep-ino, nep-pke and nep-sbm
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