Economic Performance, Inter-Firm Relations and Local Institutional Engineering in a Computational Prototype of Industrial Districts

Industrial districts can be conceived as complex systems characterised by a network of interactions amongst heterogeneous, localised, functionally, integrated and complementary firms. In a previous paper, we have introduced an industrial district computational prototype, showing that the economic performance of an industrial district proceeds to the form through which firms interact and co-ordinate each others. In this paper, we use such computational framework to experiment different options of local institutional engineering', trying to understand how specific supporting institutions' could perform macro-collective activities, such as, i.e., technology research, transfer and information, improving the technological adaptation of firms. Is a district more than a simple aggregation of localised firms? What can explain the economic performance of firms localised into the same space? Could some options of 'local institutional engineering, improve the performance of a district? Could such options set aside the problem of how firms dynamically interact? These are questions explored in this paper

Economic Performance, Inter-Firm Relations and Local Institutional Engineering in a Computational Prototype of Industrial Districts

Industrial districts can be conceived as complex systems characterised by a network of interactions amongst heterogeneous, localised, functionally, integrated and complementary firms. In a previous paper, we have introduced an industrial district computational prototype, showing that the economic performance of an industrial district proceeds to the form through which firms interact and co-ordinate each others. In this paper, we use such computational framework to experiment different options of local institutional engineering', trying to understand how specific supporting institutions' could perform macro-collective activities, such as, i.e., technology research, transfer and information, improving the technological adaptation of firms. Is a district more than a simple aggregation of localised firms? What can explain the economic performance of firms localised into the same space? Could some options of 'local institutional engineering, improve the performance of a district? Could such options set aside the problem of how firms dynamically interact? These are questions explored in this paper

Horizontal and Vertical Multiple Implementations in a Model of Industrial Districts

In this paper we discuss strategies concerning the implementation of an agent-based simulation of complex phenomena. The model we consider accounts for population decomposition and interaction in industrial districts. The approach we follow is twofold: on one hand, we implement progressively more complex models using different approaches (vertical multiple implementations); on the other hand, we replicate the agent-based simulation with different implementations using jESOF, JAS and plain C++ (horizontal multiple implementations). By using both different implementation approaches and a multiple implementation strategy, we highlight the benefits that arise when the same model is implemented on radically different simulation environments, comparing the advantages of multiple modeling implementations. Our findings provide some important suggestions in terms of model validation, showing how models of complex systems tend to be extremely sensitive to implementation details. Finally we point out how statistical techniques may be necessary when comparing different platform implementations of a single model.Replication of Models; Model Validation; Agent-Based Simulation

An agent-based model as a tool of planning at a sub-regional scale

This paper describes an agent-based model developed to simulate the impact that different planning policies may have in enhancing the attractiveness of the industrial estates located in a network of four municipalities located in the North of Portugal. The policies were simulated using three scenarios that can be distinguished by the municipal level of coordination they are implemented and by the type of action performed. In the model, enterprises are agents looking for a suitable location and the estates attractiveness is based on their level of facilities, amenities, accessibility and in the cost of soil. The coordinated qualification of the industrial estates is the most effective policy to strengthen their attractiveness. It was in this scenario that more industrial estates become attractive and more enterprises relocated. Results also indicate that the promotion of diffused and unqualified industrial estates is an inefficient policy to attract enterprises.Portuguese Foundation for Science and Technology (SFRH/BD/48567/2008 grant

Regional innovation systems as complex adaptive systems: The case of lagging European regions

This article proposes an agent-based model to support the development of self-sustaining regional innovation systems (RIS). The model is the base of a computational laboratory, CARIS (Complex Adaptive Regional Innovation System), which aims at evaluating the self-sustainability of RIS and at investigating what are the resources, competencies and mechanisms able to trigger powerful innovation and economic growth processes. Such a topic is particularly interesting for the so-called lagging regions, which, notwithstanding noticeable policy interventions, have been unable to significantly improve their innovation performances. Results of this study show that the exploration capacity, the propensity to cooperation, and the endowed competencies of actors belonging to a region could be considered as key aspects in affecting the regional innovation performance. This means that policy-makers should (i) incentivize investments in research and development activities both at the public and private levels; (ii) support public-private partnerships; (iii) enhance national and regional university systems; and (iv) increase the number of researchers employed both in the public and private sectors. In the next future, the CARIS laboratory could be adopted as policy support instrument to evaluate how much effective are current innovation policies and what are the most effective ones to reassess the current patterns

Micro Behavioural Attitudes and Macro Technological Adaptation in Industrial Districts. An Agent-Based Prototype

Industrial Districts (IDs) are complex productive systems based on an evolutionary network of heterogeneous, functionally integrated and complementary firms, which are within the same market and geographical space. Setting up a prototype, able to reproduce an idealised ID, we model cognitive processes underlying the behaviour of ID firms. ID firms are bounded rationality agents, able to process information coming from technology and market environment and from their relational contexts. They are able to evaluate such information and to transform it into courses of action, routinising their choices, monitoring the environment, categorising, typifying and comparing information. But they have bounded cognitive resources: attention, time and memory. We test two different settings: the first one shows ID firms behaving according to a self-centred attitude, while the second one shows ID firms behaving according to a social centred attitude. We study how such a strong difference at micro-level can affect at macro-level the technological adaptation of IDs

Micro Behavioural Attitudes and Macro Technological Adaptation in Industrial Districts: An Agent-Based Prototype

Industrial Districts (IDs) are complex productive systems based on an evolutionary network of heterogeneous, functionally integrated and complementary firms, which are within the same market and geographical space. Setting up a prototype, able to reproduce an idealised ID, we model cognitive processes underlying the behaviour of ID firms. ID firms are bounded rationality agents, able to process information coming from technology and market environment and from their relational contexts. They are able to evaluate such information and to transform it into courses of action, routinising their choices, monitoring the environment, categorising, typifying and comparing information. But they have bounded cognitive resources: attention, time and memory. We test two different settings: the first one shows ID firms behaving according to a self-centred attitude, while the second one shows ID firms behaving according to a social centred attitude. We study how such a strong difference at micro-level can affect at macro-level the technological adaptation of IDs

Reputation

In this chapter, the role of reputation as a distributed instrument for social order is addressed. A short review of the state of the art will show the role of reputation in promoting (a) social control in cooperative contexts - like social groups and subgroups - and (b) partner selection in competitive contexts, like (e-) markets and industrial districts. In the initial section, current mechanisms of reputation - be they applied to electronic markets or MAS - will be shown to have poor theoretical backgrounds, missing almost completely the cognitive and social properties of the phenomenon under study. In the rest of the chapter a social cognitive model of reputation developed in the last decade by some of the authors will be presented. Its simulation-based applications to the theoretical study of norm-abiding behaviour, partner selection and to the refinement and improvement of current reputation mechanisms will be discussed. Final remarks and ideas for future research will conclude the chapte

Economic Performance, Inter-Firm Relations and Local Institutional Engineering in a Computational Prototype of Industrial Districts

Industrial districts can be conceived as complex systems characterised by a network of interactions amongst heterogeneous, localised, functionally integrated and complementary firms. In a previous paper, we have introduced an industrial district computational prototype, showing that the economic performance of an industrial district proceeds to the form through which firms interact and co-ordinate each others. In this paper, we use such computational framework to experiment different options of “local institutional engineeringâ€, trying to understand how specific “supporting institutions†could perform macro-collective activities, such as, i.e., technology research, transfer and information, improving the technological adaptation of firms. Is a district more than a simple aggregation of localised firms? What can explain the economic performance of firms localised into the same space? Could some options of “local institutional engineering†improve the performance of a district? Could such options set aside the problem of how firms dynamically interact? These are questions explored in this paper.Agent-Based Computational Model, Industrial Districts, Technological Change, Local Institutional Engineering.