Agent-Based Model of IPR and Innovation]{An Agent-Based Model of Intellectual Property Rights Regimes and Innovation: A Comparative Study of Namibia and South Africa

Abstract This study develops and implements an agent-based model (ABM) that endogenizes intellectual property rights (IPR) regimes and examines their impact on innovation dynamics in Namibia and South Africa. By integrating micro-level agent behaviors with macro-level Markov chain regime switching, the study analyzes how institutional persistence and volatility shape innovation trajectories. Using Monte Carlo simulations, variance-based global sensitivity analysis (Sobol), and spectral analysis of estimated transition matrices, the study demonstrates that South Africa exhibits stronger long-run persistence in strong IPR regimes and more stable innovation outcomes,whereas Namibia presents faster convergence but higher volatility. The integrated methodological framework provides both numerical robustness and theoretical validation of the model.