Simulation models of technological innovation: A Review

The use of simulation modelling techniques in studies of technological innovation dates back to Nelson and Winter''s 1982 book "An Evolutionary Theory of Economic Change" and is an area which has been steadily expanding ever since. Four main issues are identified in reviewing the key contributions that have been made to this burgeoning literature. Firstly, a key driver in the construction of computer simulations has been the desire to develop more complicated theoretical models capable of dealing with the complex phenomena characteristic of technological innovation. Secondly, no single model captures all of the dimensions and stylised facts of innovative learning. Indeed this paper argues that one can usefully distinguish between the various contributions according to the particular dimensions of the learning process which they explore. To this end the paper develops a taxonomy which usefully distinguishes between these dimensions and also clarifies the quite different perspectives underpinning the contributions made by mainstream economists and non-mainstream, neo-Schumpeterian economists. This brings us to a third point highlighted in the paper. The character of simulation models which are developed are heavily influenced by the generic research questions of these different schools of thought. Finally, attention is drawn to an important distinction between the process of learning and adaptation within a static environment, and dynamic environments in which the introduction of new artefacts and patterns of behaviour change the selective pressure faced by agents. We show that modellers choosing to explore one or other of these settings reveal their quite different conceptual understandings of "technological innovation".economics of technology ;

Reviewing agent-based modelling of socio-ecosystems: a methodology for the analysis of climate change adaptation and sustainability

The integrated - environmental, economic and social - analysis of climate change calls for a paradigm shift as it is fundamentally a problem of complex, bottom-up and multi-agent human behaviour. There is a growing awareness that global environmental change dynamics and the related socio-economic implications involve a degree of complexity that requires an innovative modelling of combined social and ecological systems. Climate change policy can no longer be addressed separately from a broader context of adaptation and sustainability strategies. A vast body of literature on agent-based modelling (ABM) shows its potential to couple social and environmental models, to incorporate the influence of micro-level decision making in the system dynamics and to study the emergence of collective responses to policies. However, there are few publications which concretely apply this methodology to the study of climate change related issues. The analysis of the state of the art reported in this paper supports the idea that today ABM is an appropriate methodology for the bottom-up exploration of climate policies, especially because it can take into account adaptive behaviour and heterogeneity of the system's components.Review, Agent-Based Modelling, Socio-Ecosystems, Climate Change, Adaptation, Complexity.

From Social Simulation to Integrative System Design

As the recent financial crisis showed, today there is a strong need to gain "ecological perspective" of all relevant interactions in socio-economic-techno-environmental systems. For this, we suggested to set-up a network of Centers for integrative systems design, which shall be able to run all potentially relevant scenarios, identify causality chains, explore feedback and cascading effects for a number of model variants, and determine the reliability of their implications (given the validity of the underlying models). They will be able to detect possible negative side effect of policy decisions, before they occur. The Centers belonging to this network of Integrative Systems Design Centers would be focused on a particular field, but they would be part of an attempt to eventually cover all relevant areas of society and economy and integrate them within a "Living Earth Simulator". The results of all research activities of such Centers would be turned into informative input for political Decision Arenas. For example, Crisis Observatories (for financial instabilities, shortages of resources, environmental change, conflict, spreading of diseases, etc.) would be connected with such Decision Arenas for the purpose of visualization, in order to make complex interdependencies understandable to scientists, decision-makers, and the general public.Comment: 34 pages, Visioneer White Paper, see http://www.visioneer.ethz.c

Digital Ecosystems: Ecosystem-Oriented Architectures

We view Digital Ecosystems to be the digital counterparts of biological ecosystems. Here, we are concerned with the creation of these Digital Ecosystems, exploiting the self-organising properties of biological ecosystems to evolve high-level software applications. Therefore, we created the Digital Ecosystem, a novel optimisation technique inspired by biological ecosystems, where the optimisation works at two levels: a first optimisation, migration of agents which are distributed in a decentralised peer-to-peer network, operating continuously in time; this process feeds a second optimisation based on evolutionary computing that operates locally on single peers and is aimed at finding solutions to satisfy locally relevant constraints. The Digital Ecosystem was then measured experimentally through simulations, with measures originating from theoretical ecology, evaluating its likeness to biological ecosystems. This included its responsiveness to requests for applications from the user base, as a measure of the ecological succession (ecosystem maturity). Overall, we have advanced the understanding of Digital Ecosystems, creating Ecosystem-Oriented Architectures where the word ecosystem is more than just a metaphor.Comment: 39 pages, 26 figures, journa

Learning in evolutionary environments

Not availabl

Does Empirical Embeddedness Matter? Methodological Issues on Agent-Based Models for Analytical Social Science

The paper deals with the use of empirical data in social science agent-based models. Agent-based models are too often viewed just as highly abstract thought experiments conducted in artificial worlds, in which the purpose is to generate and not to test theoretical hypotheses in an empirical way. On the contrary, they should be viewed as models that need to be embedded into empirical data both to allow the calibration and the validation of their findings. As a consequence, the search for strategies to find and extract data from reality, and integrate agent-based models with other traditional empirical social science methods, such as qualitative, quantitative, experimental and participatory methods, becomes a fundamental step of the modelling process. The paper argues that the characteristics of the empirical target matter. According to characteristics of the target, ABMs can be differentiated into case-based models, typifications and theoretical abstractions. These differences pose different challenges for empirical data gathering, and imply the use of different validation strategies.Agent-Based Models, Empirical Calibration and Validation, Taxanomy of Models

Evolutionary Game Theory

Articl