An Initial Agent Based Model for! Innovation Ecosystems!

The global economies have been trying various methods of investments in innovation to raise productivity, create jobs and improve life standards. For the same purpose, the United States has long been supporting the foundation of basic research and innovation for technological advances, which generate wealth over time. The productivity gains through technological advancements, labor specialization and innovation have been ar-ticulated by evolutionary economists since the middle of the twentieth century [1, 2]. However, it is still open to research how certain innovation ecosystems such as Silicon Valley are extremely productive and grow continuously while other similar systems lan-guish. Therefore it is critical for the national economic well-being to study, understand and more efficiently create the innovation ecosystems.! The economic entities in an innovation ecosystem are intertwined such that the success of an innovation depends not only on the innovating entities, but also on the suppliers and consumers of those entities. All of the members of an ecosystem coevolve and the innovations of an entity result in the innovations of others [3]. Over time, the technology space of the ecosystem changes in response to the innovations. In order to reflect thes