Quantum Physics Division
Faculty of PhysicsAdam Mickiewicz University
Publications

Microeconomic Evolution Model with Technology Diffusion

K. Cichy1

1 Faculty of Physics, Adam Mickiewicz University, ul. Umultowska 85, PL 61-614 Poznań, Poland

Acta Physica Polonica A, 121, B-16 (2012)
DOI: 10.1016/j.nuclphysb.2012.08.006

Abstract:

The model discussed in this paper is a modification of the model of macroeconomic evolution in stable regionally dependent fields, developed by Ausloos, Clippe and Pekalski in 2004. Like in the original model, firms exist on a square lattice and can move, merge, adapt and create spin-offs. However, in the new model the firms are described by a scalar parameter identified with their level of technology and by their market share. The probability of survival of a firm depends on the relation between the firm’s technology level and the level of the technological frontier. The model incorporates two mechanisms of technology diffusion - inner (resulting from the cooperation between firms and the creation of spin-offs) and outer (interaction with the technological frontier). In this way, we obtain a model of technological progress with technology diffusion. We investigate the properties of this model and perform empirical analysis for a group of OECD countries

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