Innovation Regimes, Entry and Market Structure

The paper contains a description of an evolutionary model of industrial dynamics and a report on simulation study of the model. The presentation of the model is partitioned into two sections, in the first section we focus on the economic features of industrial development with no technological change embedded, extended version of this model with the search for innovation process included is presented in the next section. In the next two sections results of simulation study on technological regimes and firms entry are presented. Technological regimes relate to different types of innovation captured by the model, so we consider the cost regime, the technical performance regime and the capital productivity regime. In section III we investigate the influence of this different types of innovation on development of the industry, particularly on the industry concentration and on the products' price distribution. In the next section evolution of industry structure with possibility of firms entries is investigated