From innovation to diversification: a simple competitive model

Abstract

Few attempts have been proposed in order to describe the statistical features and historical evolution of the export bipartite matrix countries/products. An important standpoint is the introduction of a products network, namely a hierarchical forest of products that models the formation and the evolution of commodities. In the present article, we propose a simple dynamical model where countries compete with each other to acquire the ability to produce and export new products. Countries will have two possibilities to expand their export: innovating, i.e. introducing new goods, namely new nodes in the product networks, or copying the productive process of others, i.e. occupying a node already present in the same network. In this way, the topology of the products network and the country-product matrix evolve simultaneously, driven by the countries push toward innovation.

8 figures, 8 tables

References in corpus (5)

• Power-law distributions in empirical data
• The Building Blocks of Economic Complexity
• The Product Space Conditions the Development of Nations
• Randomizing bipartite networks: the case of the World Trade Web
• The Italian primary school-size distribution and the city-size: a complex nexus

Cited by in corpus (12)

• Nestedness in complex networks: Observation, emergence, and implications
• Network dynamics of innovation processes
• Computational Socioeconomics
• Detecting early signs of the 2007-2008 crisis in the world trade
• Urbanization and Economic Complexity
• Interacting discovery processes on complex networks
• The exploration of the Adjacent Possible explains the emergence and evolution of social networks
• Grand canonical validation of the bipartite International Trade Network
• Interacting Innovation processes: case studies from Reddit and Gutenberg
• Damping effect in innovation processes: case studies from Twitter
• Understanding European Integration with Bipartite Networks of Comparative Advantage
• Collaboration and followership: a stochastic model for activities in social networks