FINNOV

Abstract: The economy can be conceived as a complex adaptive system which can be studied by means of Agent-based Modelling (ABM) techniques. ABM was chosen by AGENTS (Work Package 7 within the FINNOV project) to be the most appropriate environment as they studied the extent to which the decision to innovate and expand/contract the scale of production by investing or hiring/firing of employees are affected by: i) the availability of finance and ii) the degree of financial fragility/robustness, analysed the impact of different types of financing sources on the firms’ profile and explored the impact of different public policies on the financial structure of firms and on their resulting innovation, growth and employment performance.