6 Reflection
In this paper, we have discussed the type of challenges that policy makers face
when they seek to enhance growth in a capitalist economy. We have seen that
firms suffer uncertainties, inefficiencies and market failures, both in everyday
operations management generating immediate value from the current products as
well as in innovation management to generate new products for future value. We
have made a case for agent-based modeling as a policy evaluation tool because it
(i) allows modeling the (necessary) real-world complexity with agent heuristics
reflecting the bounded rationality of firms and inherent uncertainties they seek to
deal with, and (ii) allows experimentation with and ex ante evaluation of effects of
(a mix of) policy instruments that closely match(es) those sought to use in reality