No abstract

An innovation‐diffusion model was developed with agent‐based modelling (ABM); the model is used to study technical innovation and its diffusion process in China. The results are as follows: only a small fraction of firms conduct independent product‐innovation, and most firms prefer imitation and/or purchases; most of the innovative firms are located in the East; approximately three or four technology generation products can exist in the market simultaneously; preferential policies can speed the process of innovation diffusion and improve economies of less developed areas, especially in Middle China; lastly, preferential policies can also improve the labour attractiveness of the Middle, West and Northeast and reduce emigration to the East.