Emergence and Resilience in a Model of Innovation and Network Formation

Rainer Andergassen, Franco Nardini and Massimo Ricottilli

Networks and Spatial Economics, 2015, vol. 15, issue 2, 293-311

Abstract: This paper studies the resilience of an evolving network of rationality bounded firms engaged in an active search to improve their technological capability through interaction with knowledge-heterogeneous neighbors. Firms update their observed neighborhood by adopting a specific search routine. It is shown that through simple heuristics their adaptive behavior translates into an emerging pattern of aggregate technological performance. Simulations assess the system resilience in terms of its capability to recover aggregate performance when subjected to periodic arrivals of innovation shocks. The paper argues that the routine firms adopt, chosen by tuning between either global or local search protocols, is crucial to determine the system’s aggregate performance and resilience. Copyright Springer Science+Business Media New York 2015

Keywords: Network resilience; Innovation; Heterogeneous knowledge (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s11067-014-9262-6

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