National system of innovation and technological differentiation : a multi- country evolutionary model (preliminary version).

Abstract

The paper introduces an agent-based model in which the national system of innovation (NSI) is a main determinant of the wealth of nations. The model is defined as a self-organizing economy where agents are countries with thei r own capabilities for imitation and innovation. The interactions among countries are given by the relative competitiveness of a country in world economy, which is represented by functions that connect their prices, demands, technologies, and incomes. The simulations show that the model reproduces countries hierarchies that have been found in several empirical studies.