Analysis of diffusion of technology using genetic algorithms

Abstract

This paper studies the influence of variables on the discovery and diffusion of technologies in competitive markets. The objective was to verify whether strategic groups can be associates when using or developing conventional or innovative technology. A mathematical method of search and optimization was used, inspired in a mechanism based on genetics and on the evolution of a population of live beings. The resultssuggest that the interaction of innovative companies can, simultaneously, allow an improvement of the technology and create obstacles for the entrance of new competitors. Although the model is a simplification of the reality that does not allow to incorporate all the complexity of the market, it makes possible a study of corporate behaviors and of the evolution of technological strategies, mainly in situations where empirical data are difficult to be sampled or where specific cases fail to provide information that can be generalized.