This document discusses knowledge-based economies and innovation networks. It notes that knowledge-based economies are driven by knowledge creation, distribution, and application. Innovation occurs through various stages and interactions between actors. In these economies, firms form collaborative networks to share costs, gain access to new research, and acquire technologies. National innovation systems contribute new knowledge through research, education, and knowledge transfer. Investments in knowledge can increase productivity and transform factors of production into new products and processes, driving long-term growth. Partner selection for collaborative networks can involve genetic algorithms or multi-criteria optimization methods.

1. Simulation of Alliance
Networks Composition in
Knowledge Economy
Victor Romanov,
Daria Novototskih
13th International
Workshop on
Enterprise &
Organizational
Modeling and
Simulation
(EOMAS)
12 - 13 June 2017,
Essen, Germany
In conjunction with
CAiSE 2017

2. Knowledge-based economy
“Knowledge-based economy” is economy that
directly based on the creation, distribution and
application of knowledge and information.
 Driver of productivity and economic growth
 New role of information, technology and learning in
economic performance
 Emerging “information society”
 New growth theory

3. Main stages of knowledge
movement
Research &
Knowledge
Generation
Development of
New Products,
Technologies and
Services
Production
Market &
Profit
Obtaining
Innovation process has a number of stages that should
be distinguished while producing a new technology

4. collaboration
New model of enterprise
communications
MODEL
digital economy
new enterprise relations
Innovation
knowledge-based
idea
In such terms management systems with single control center can not cope with the
increased flow of economic information and increasingly superseded by self-managing
network systems based on horizontal relationships - collaborations, specific forms of
cooperation, non-hierarchical.
E1
E2 E3
E4state

5. Inter-firm interactive
communication
In the knowledge-based economy, firms
search for linkages to promote inter-firm
interactive communication and for outside
partners and networks to provide
complementary assets.
These relationships help firms:
 to spread the costs and risk associated with
innovation among a greater number of
organizations,
 to gain access to new research results,
 to acquire key technological components of
a new product or process,
 to share assets in manufacturing, marketing
and distribution.

6. Innovation and novelty production
implementation
Innovation is the result of numerous interactions by a
community of actors and institutions, which together
form what are termed national innovation systems.
• In the knowledge-based economy, the science system
contributes to the key functions of:
• knowledge production – developing and providing
new knowledge;
• knowledge transmission – educating and developing
human resources;
• knowledge transfer – disseminating knowledge and
providing inputs to problem solving.

7. Increment of knowledge in product
function
Investments in knowledge can increase the productive
capacity of the other factors of production as well as
transform them into new products and processes. And
since these knowledge investments are characterized by
increasing (rather than decreasing) returns, they are the
key to long-term economic growth.
The firm has the Cobb-Douglas production function:
yjt = 0 + lljt + kkjt + jt + εjt,
where yjt is the log of output of firm j in period t, ljt the
log of labor, and kjt the log of capital.

8. Main steps in partner selection
process

9. Genetic algorithm application for
partner selection
• Step 1 Initializing.
• Step 2 Selecting, crossover and mutating.
• Step 3 Combinating.
• Step 4 Stopping.
• Otherwise, go to Step 2.

10. Partner selection with many
heterogeneous criteria
Scalar optimization mechanism - the best choice for a given scalar quality
criterion (x) variant x X:
C0(x) = x X|x = arg max (x) .
 Conditionally - extreme gear - selection, defined scheme of mathematical
programming with the objective function f0(x) and restrictions f1(x) , i = 1,
,m:
Cмп (x) = x X|x = arg [max f0(x), fi(x) 0, i = 1, ,k].
 Optimization mechanism of dominance, defined by a binary relation R:
CR(x) = x X| y X, xRy .
 The locking mechanism: choice non-improvable by R elements x:
CR (x) = x X| y X, y x .
 The mechanism of restrictions defined by a binary relation R and a given
element u G and choice of x X, better by R than u G:
Cu(x) = x X| xRu .
 Selection based on Pareto criterion C (x) can be regarded selection rule as:
C (х)= x X | ( y X)( > ) or as relation:
x R y ( i)( i(x) i(y)) ( i)( i(x)> i(y)), (i=1,…,k).

11. Thanks for attention!
Questions?