The model discussed in this paper is a modification of the model of macroeconomic evolution in stable regionally dependent fields, developed by Ausloos, Clippe and Pękalski in 2004 (Physica A 337 (2004) 269-287; cond-mat/0401144). Like in the original model, firms exist on a square lattice and can move, merge, adapt and create spin-offs. However, in the new model the firms are described by a scalar parameter identified with their level of technology and by their weight (size). The probability of survival of a firm depends on the relation between the firm's technology level and the level of the technological frontier. The model incorporates two mechanisms of technology diffusion - inner (resulting from the cooperation between firms and the creation of spin-offs) and outer (interaction with the technological frontier). In this way, we obtain a model of technological progress with technology diffusion. We investigate the properties of this model and perform empirical analysis for a group of OECD countries.

1. PRESENTATION: Microeconomic evolution model with technology diffusion, PDF document, version 1.4, 0.5MB

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