Innovation effort

In this paper we have proposed a new model of technological change, which emphasises the role of recombinant innovation in processes of technological transitions. The action of innovating agents is central in the model, which is an aspect that recognises the important role of entrepreneurs in technological change (Schumpeter, 1912; Garud and Karnoe, 2001). Innovation is made by innovators but it is shaped by adopters. The model accounts for the stylised facts of technological change, such as technological lock-in, experimental failure, punctuated change and irreversibility.

By running an extensive simulation experiment we have analysed the role of the innovation effort in different conditions of population size and network externalities. The main conclusion that can be drawn from the model holds that the innovation effort in a society has the biggest impact on technological progress when it is just large enough to create new varieties that subsequently can be fused through recombinant innovation triggering a technological transition.

(Frenkena et al. 2012:33)

Frenkena, K. ,Izquierdo, L. and Zeppini, P. 2012. Branching innovation, recombinant innovation, and endogenous technological transitions. Environmental Innovation and Societal Transitions, Vol. 4, pp.25—35.

Marinova, D. 2004. Actualizing Innovation Effort: The Impact of Market Knowledge Diffusion in a Dynamic System of Competition. Journal of Marketing Vol. 68, No. 3, pp. 1-20.

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