What is Cooperation-Competition

This chapter introduces artificial life as a means of exploring strategic relations dynamics between firms and local authorities within a local biotechnology cluster. It argues that artificial life, combined with a conception of bioclusters as complex adaptive systems, offers a significant approach to understanding the co-evolution of strategies and the potential vulnerability of such systems. The simulation model involves firms and local government administrations that negotiate to share a quasi-rent, and which, to this end, use strategies that are to a greater or lesser extent sophisticated or opportunistic. The results show that the firms adjust their bargaining strategies according to their assessment of gains which might be collectively generated. The results also bring to light that the local authorities play a regulatory role against opportunism and that they are the key players in local coordination. Stemming from these simulations, the authors develop promising new avenues of theoretical and empirical research.