Market performance and competition: A product life cycle model

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Policy Advice Derived from Simulation Models

When advising policy we face the fundamental problem that economic processes are uncertain. Consequently, policy can err. In this paper we show how the use of simulation models can reduce policy errors by inferring empirically reliable and meaningful statements about economic processes. We suggest that policy is best based on so-called abductive simulation models, which help to better understand how policy measures can influence economic processes. We show that abductive simulation models use a combination of theoretical and empirical analysis based on different data sets. By way of example we show what policy can learn with the help of abductive simulation models, namely how policy measures can influence the emergence of a regional cluster.Policy Advice, Simulation Models, Uncertainty, Methodology

Policy Advice Derived From Simulation Models

When advising policy we face the fundamental problem that economic processes are connected with uncertainty and thus policy can err. In this paper we show how the use of simulation models can reduce policy errors. We suggest that policy is best based on so-called abductive simulation models, which help to better understand how policy measures can influence economic processes. We show that abductive simulation models use a combination of theoretical and empirical analysis based on different data sets. This helps inferring empirically reliable and meaningful statements about how policy measures influence economic processes. By way of example we show how research subsidies by the government influence the likelihood that a regional cluster emerges.Policy Advice, Simulation Models, Uncertainty, Methodology

Empirical calibration of simulation models

simulation, models

The invisible college of the economics of innovation and technological change

The research area of the economics of innovation and technological change (EITC) has flourished over the past decades. While it was a relatively marginal field of economics in the 1950s and 1960s, the field has now grown to become a major part of economic analysis. Because many of the early scholars in the field were rather critical about the standard tools of (neoclassical) economics, EITC has become a research area in which a curious mix of mainstream methodology and alternative approaches co-exists and co-evolves. The paper reports on a survey that was conducted among scholars in the field. We construct networks of scholars, based on weak or strong linkages. Strong linkages are defined as relations between co-workers, weak linkages as relations between people that meet in the circuit of conferences, workshops, etc., or just read each other’s work. We also explore how network linkages are related to opinions on the field, e.g., which are the important journals or important centers of activity.economics of technology ;