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A model is developed to study the effectiveness of innovation and its impacton structure creation and structure change on agent-based societies. Theabstract model that is developed is easily adapted to any particular field. Inany interacting environment, the agents receive something from the environment(the other agents) in exchange for their effort and pay the environment acertain amount of value for the fulfilling of their needs or for the very priceof existence in that environment. This is coded by two bit strings and thedynamics of the exchange is based on the matching of these strings to those ofthe other agents. Innovation is related to the adaptation by the agents oftheir bit strings to improve some utility function.

Innovation Success and Structural Change: An Abstract Agent Based Study