We propose a new co-evolutionary computational two-sector approach to the design of national innovation policy that recognizes the importance of inter-sectoral absorptive capacity constraints in innovation linkages between sectors in an economy. We show how the innovative capacity of an upstream...

For the past century economists have proposed a suite of theories relating to industrial dynamics, technological change and innovation. There has been an implication in these models that the institutional environment is stable. However, a new class of institutional technologies — most notably...