The article develops a model laying a foundation for the idea that the relationships between competitors in the knowledge diffusion market can be described by a Lotka�Volterra system. The model can accommodate both the scenario of prey�predator and that of competition between innovators and imitators. Analytic results and numerical simulations show that a stable coexistence equilibrium is feasible under both scenarios. The work also discusses the conditions under which these results are achievable.
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