A theory based dynamical model of innovation processes

We present an agent-based model of innovation processes, based upon a theory of innovationby Lane and Maxfield. The theory inspires and constrains the features of the model,thus reducing the embarasse de richesse that is one of the major methodological problems ofagent-based modeling. Artefacts are produced by agents using recipes; the basic dynamics,absent innovation, is one of production and sales, where the external world supplies "rawmaterials" and external demand. Depending upon the initial conditions, self-sustainingcycles of production and exchange can emerge among the agents. Innovation \u2013 that is,the generation of new recipes, in particular desired directions, called "goals" \u2013 results insubstantial modification of the system dynamics. Two innovation regimes are introduced:a "lonely" mode, in which each agent tries to introduce new products by itself, and a"relational" mode, in which two agents can improve their reciprocal knowledge and candecide to try to jointly develop a new artifact