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Micro-Macro Simulation of Technological Systems: Economic Effects of Spillovers

Research article
Cite this article as: B. Carlsson, G. Eliasson, E. Taymaz; 2024; Micro-Macro Simulation of Technological Systems: Economic Effects of Spillovers; International Journal of Microsimulation; 17(2); 213-232. doi: 10.34196/ijm.00297
8 figures and 2 tables

Figures

Incremental and Radical Innovation.
Manufacturing Output (index, NETRANDOM - 100).
Learning Rate (average annual growth rate per decade, percent).
R&D Stock (end of period, billion SEK).
Rate of Return (average annual return per decade, percent).
Stock of General Knowledge (end of period, billion SEK).
Stock of Special Skills (end of period, billion SEK).
Labor Productivity Growth Rate (percent per year).

Tables

Table 1
The markets for technology diffusion.
1.Competent people move between firms (labor market turnover).
2.New firms are spun of from firms or universities (innovative entry or entrepreneurship).
3.Firms appropriate technology through licensing or learning from other firms (Imitation).
4.Subcontractors learn from customer firms (competent purchasing).
5.Technology diffusion is administered within firms (internal technology transfer).
Table 2
Summary of Simulation Results
PERIODNETRANDOMNETGENHKNETINTERNETLINKLOWRECEPTLOWCONNECTNORECEPTNOCONNECTNONET
GNP growth rate (average annual growth rate per decade, percent)
13.383.243.603.572.882.922.601.991.36
23.053.042.952.803.042.842.352.111.59
33.573.443.733.712.462.651.552.711.08
43.913.893.723.824.161.14-0.483.140.26
53.643.352.393.873.83-1.61-1.313.04-0.64
Avg.3.513.393.283.553.271.590.942.600.73
Manufacturing growth rate (average annual growth rate per decade, percent)
14.554.104.764.753.703.573.382.721.65
23.953.933.613.364.213.573.082.942.37
34.394.204.384.402.983.431.843.931.10
44.324.174.394.254.460.19-2.173.53-0.48
54.043.511.104.224.08-3.28-2.583.361.95
Avg.4.253.983.654.203.891.500.713.300.54
GNP (relative to NETRANDOM, end of period)
11.001.001.021.020.950.980.900.870.81
21.000.991.041.010.960.980.840.800.71
31.000.941.010.990.820.900.660.700.55
41.000.980.981.000.880.650.420.680.38
51.000.960.881.010.850.380.260.640.25
Manufacturing output (relative to NETRANDOM, end of period)
11.000.981.021.030.910.960.850.840.74
21.001.001.051.010.980.950.800.780.65
31.000.930.970.960.780.840.580.680.48
41.000.990.920.970.860.550.300.660.29
51.000.960.781.000.790.260.150.640.16
Rate of return (average annual return per decade, percent)
1-1.82-1.13-0.90-0.90-1.81-0.81-0.88-0.59-1.22
2-6.72-6.62-4.35-5.92-7.44-7.20-5.71-6.75-6.80
34.714.8911.103.97-0.212.041.010.31-5.40
416.7620.4922.9317.757.4421.2910.244.680.61
522.7730.5321.4029.7814.2826.109.526.231.40
Avg.7.149.6310.048.942.458.282.840.78-2.28
Stock of special skills (end of period, billion SEK)
l102971011128698789380
21431471561221371259114089
3215125184175711259014199
4239202322349221686015768
5278348352466212555119156
Stock of general knowledge (end of period, billion SEK)
1111104110119107103104104106
2178162168170150158114140111
3261237286228215201119190121
43793144703772851277723787
5521549528683383815633066
R&D stock (end of period, billion SEK)
1797072926567645455
21611551591531311409511483
326020530020818718910913598
43553044694012451257716974
5472346526826325946224159
Learning rate (average annual growth rate per decade, percent)
16.525.915.516.153.185.584.140.160.16
23.694.194.043.593.264.952.360.020.02
34.292.453.423.783.103.452.200.020.02
43.503.384.904.743.881.980.490.020.02
53.503.203.674.103.000.470.250.040.02
Avg.4.303.834.314.473.683.291.890.050.05
Investment (average annual investment per decade, MSEK)
116,34716,02216,00616,81816,01415,79116,37419,20018,183
225,99924,51227,72223,00426,56425,19021,74733,70131,146
338,20237,79832,27916,61251,61723,87823,51495,11253,449
4125,990101,93254,82831,533100,86411,65722,117245,30059,344
5348,524215,37691,689213,401239,10011,70425,017812,50493,739
Labor productivity growth rate (average annual growth rate per decade, percent)
12.322.462.293.140.951.790.930.40-0.50
24.374.624.412.824.403.712.753.271.52
34.952.645.825.472.053.971.801.690.87
43.234.673.866.093.740.29-0.431.77-0.41
53.574.800.023.372.95-1.00-0.772.22-0.87
Avg.3.693.843.284.582.821.750.861.870.12

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