Working Paper BETA #9914

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Title : Competing R&D Strategies in an Evolutionary Industry Model

Author(s) : Murat Yildizoglu

Abstract : This article aims to test the relevance of learning through Genetic Algorithms, in opposition with fixed R&D rules, in a simplified version of the evolutionary industry model of Nelson and Winter. These two R&D strategies are compared from the points of view of industry performance (welfare) and firms' relative performance (competitive edge): the results of simulations clearly show that learning is a source of technological and social efficiency as well as a mean for market domination.

Key-words : Learning,Innovation, Industry dynamics, Bounded rationality, Learning, Genetic algorithms

JEL Classification : NA