THE ROLE OF SMALL BUSINESS BASED STRUCTURES IN PROMOTING INNOVATION, AND CREATING EMPLOYMENT, AS COMPARED TO OLIGOPOLISTIC BASED STRUCTURES

Megan Khoshyaran
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Megan Khoshyaran: Department of Economics, Catholic University of Leuven, Belgium

Chapter 17 in Industry and Labor Dynamics:The Agent-Based Computational Economics Approach, 2004, pp 350-373 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractThe main idea of this paper is to prove that economic structures that are based on small businesses function better than oligopolies. Small business structures promote growth inducing innovation, while oligopolies seek incremental and continuous innovations. Thus the former system creates employment, and the latter modifies employment. To prove this claim, six propositions are introduced and analysed. The main argument used for the analysis is the nature of the tasks performed, and its relation to innovation. The six propositions use the variable of the tasks performed in various aspects of the comparison of the two systems.

Keywords: Simulation; Agent-Based; Computational Economics; Labor; Industrial Dynamics; Innovation; Cluster; Firm Behavior (search for similar items in EconPapers)
Date: 2004
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