Innovation in Industrial Districts: An Agent-Based Simulation Model

Despite the wideness of the literature on industrial districts (IDs), the driving processes of ID innovation have not still received much attention: Questions about how new innovation processes emerge, how, when and where they evolve are minimally addressed in the literature. To address these questions new theoretical approaches and methodologies are needed. In the paper we approach this topic by adopting complexity science and by using the agent-based simulation methodology. In particular, an agent-based simulation is conducted to investigate how innovation processes in IDs have to be modified to assure their survival in a highly competitive environment.