Engineering Value Chain Simulation and Innovation

This chapter provides a systematic method to understand the innovation implications of complex engineering systems through value chain simulation. Particularly, we explore the usefulness of agent-based simulation for studying engineering value chains, a field of inquiry that has attracted increasing research interests. Essentially, given the network character of engineering value chains, we discuss why an agent-based simulation approach is particularly suitable for studying engineering value chains by reviewing related literature and discussing the state of the art in the field. A case of using agent-based simulation to study innovation diffusion (i.e. firm–customer relationship) in an engineering value chain is presented to demonstrate the value of the approach in studying high value engineering networks. We finally discuss opportunities and challenges of adopting agent-based simulation for future high value engineering network study.

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