Based on a model of network encoding and dynamics called the artificial genome, we propose a segmental duplication and divergence model for evolving artificial regulatory networks. We find that this class of networks share structural properties with natural transcriptional regulatory networks. Specifically, these networks can display scale-free and small-world structures. We also find that these networks have a higher probability to operate in the ordered regimen, and a lower probability to operate in the chaotic regimen. That is, the dynamics of these networks is similar to that of natural networks. The results show that the structure and dynamics inherent in natural networks may be in part due to their method of generation rather than being exclusively shaped by subsequent evolution under natural selection. Based on a model of network encoding and dynamics called the artificial genome, we propose a segmental duplication and divergence model for evolving artificial regulatory networks. We find that this class of networks share structural properties with natural transcriptional regulatory networks. Specifically, these networks can display scale-free and small-world structures. We also find that these networks have a higher probability to operate in the ordered regimen, and a lower probability to operate in the chaotic regimen. That is, the dynamics of these networks is similar to that of natural networks. The results show that the structure and dynamics inherent in natural networks may be in part due to their method of generation rather than being exclusively shaped by subsequent evolution under natural selection.