Policy Incentives for Innovation Diffusion: An Agent-Based Simulation

Policy makers are increasingly required to play a proactive role in the stimulation of innovation creation and diffusion. Such a role poses serious challenges having to do with the design and implementation of effective policies, which requires a deep understanding of diffusion processes. This paper presents an agent-based decision support tool for policy makers, providing useful insights in the design of incentive policies aimed at maximizing the diffusion of a generic innovation among a population of potential adopters. Such public intervention is tested in an agent-based framework in order to assess its efficiency and effectiveness. The results show the opportunity to give incentives in order to stimulate a particular diffusive phenomenon, giving useful insights to policy makers as regards the target to address specific policies.