Distributed innovation in the form of open- and user innovation affects the evolution of the market. This paper presents an agent-based model where the agents are users and firms that both seek to reap the benefits of innovation. We use this model to examine the interaction between firms and...

In industrializing regions, foreign investments often generate spillovers through regional backward links. This situation may create a gap between private and social valuations of resources, resulting in a level of local content below what would be optimal for the economy. This situation creates...