An agent-based simulation model representing a theory of the dynamic processes involved in innovation in modern knowledge-based industries is described. The agent-based approach allows the representation of heterogeneous agents that have individual and varying stocks of knowledge. The simulation...

Why agent-based modelling is useful for economists -- Starting agent-based modelling -- Heterogeneous demand -- Social demand -- Benefits of barter -- The market -- Labour market -- International trade -- Banking -- The tragedy of the commons

The competitiveness of firms, regions and countries greatly depends on the generation, dissemination and application of new knowledge. Modern innovation research is challenged by the need to incorporate knowledge generation and dissemination processes into the analysis so as to disentangle the...