Anglia Ruskin University
Browse
Pasqualino_et_al_2021.pdf (1.1 MB)

A business transition model for sustianability-oriented industrial innovation and feedback on employment, inequality and inflation

Download (1.1 MB)
conference contribution
posted on 2023-07-26, 15:33 authored by Roberto Pasqualino, Melissa Demartini, Faezeh Bagheri
This paper presents the IN4.0-SD, a novel system dynamics model to capture the dynamic interplay of industrial innovation, inequality, and inflation. The IN4.0-SD is a closed system economic model composed of three agents: traditional factory, licence-business, and household. Licence-business and traditional factory are both assumed to supply one product to the economy and fundamentally differ among each other in their business model. While the traditional factory produces and sells capital goods making revenue out of sales, licence-business detaches the concept of production from sales moving toward an intangible economy, charging for a fee licence of their tools that can be distributed via a network economy. Licence-business is assumed to be a key driver for change in the assets structure in both the traditional and licence-business companies, both in terms of productivity, efficiency, and labour requirement for operations. Simulations show the level of flexibility of the model in addressing a variety of scenarios, playing at the threshold of technology development, inequality rise, massive unemployment and providing an archetype for sustainability type models. The model can provide a good base when applied to sustainability type scenarios that deal with energy transitions, climate change mitigation, and socio-technical transformations.

History

Number of pages

1165

Publisher

System Dynamics Society

ISBN

9781713844181

Conference proceeding

International Conference of the System Dynamics Society 2021

Name of event

2021 International System Dynamics Conference

Location

Chicago, US

Event start date

2021-07-25

Event finish date

2021-07-30

File version

  • Published version

Language

  • eng

Legacy posted date

2021-10-22

Legacy creation date

2021-10-22

Legacy Faculty/School/Department

Faculty of Science & Engineering

Usage metrics

    ARU Outputs

    Categories

    No categories selected

    Exports