Can we Drop Internal Selection in the Evolutionary Analysis of the Firm?
Evolutionary approaches of the firm devote a part of their analysis to firm's behaviour and to some processes acting inside the firm; however the firm's internal working is, most of the time, not deeply analyzed. In this perspective, this paper tempts to discover if "we can drop internal selection in the evolutionary analysis of the firm". In order to answer to this question, we propose a micro-simulation model of internal selection where firms are engaged in production and R&D activities. They carry out two kinds of R&D and do not run any imitation process. Internal selection acts on R&D projects and we measure the impact of the selection mechanism on the firms' performances. The model generates persistent differentiation between firms according to their internal selection process. CLASSIFICATION CODES: C63, L11, L21, O32.
Innovation, Internal Selection, Market Dynamics, R&D, Technological Performance