Hybrid simulation approach for technological innovation policy making in developing countries

Abstract

The aim of this study is to create a hybrid simulation model which is a combination of systems dynamic (SD) and agent-based modeling (ABM). It analyzes the market share of redesigned and independent designed technologies compared to the acquired ones. For this purpose, supply chains of technology suppliers and firms that trade on their own developed technologies through applying SD are modeled. In case of ABM, consumers’ decisions are influenced by marketing activities, word-of-mouth between consumers, and work experience of the companies. Delivery time is a key variable that affects the performance of each company. Additionally, some policies are proposed regarding the significant impacts of marketing on absorbing consumers, collaboration between development and manufacturing on the production rate, and resources on time to innovate. The key finding is that by improving marketing, collaboration, and resource management, market share of new developed technology will be improved.