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An Analysis of the Impact of Business Networks on Technology Development: Using Agent-Based Modeling

An Analysis of the Impact of Business Networks on Technology Development: Using Agent-Based Modeling
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Author(s): Maryam Ebrahimi (Azad University, Iran)
Copyright: 2019
Pages: 25
Source title: Private Sector Innovations and Technological Growth in the MENA Region
Source Author(s)/Editor(s): Maryam Ebrahimi (Azad University, Iran)
DOI: 10.4018/978-1-5225-7086-8.ch002

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Abstract

This chapter proposes an agent-based model (ABM) of business networking at the level of an industry involving two technology products and populated with technology-based firms. Since technology-based companies trade technologies as products, the concept of new technology development (NTD) is generalized to the new product development. In ABM, each agent represents a small and medium-sized enterprise (SME) which might develop one technology based on some features including perceived value of the technology, perceived ability of NTD, and business network. By defining agents as being the current companies along with the new entrants, one can analyze the effect of the policy of “improving the entry of new companies into the industry” with and without business networking. The results of ABM demonstrated that business networking enhances the number of SMEs with the ability to develop new technologies, especially in a case where the number of new entrants is high.

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