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Recombinant knowledge and the evolution of innovation networks

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  • König, Michael D.
  • Battiston, S.
  • Napoletano, M.
  • Schweitzer, F.

Abstract

We introduce a new model for the evolution of networks of firms exchanging knowledge in R&D partnerships. Innovation is assumed to result from the recombination of knowledge among firms in an R&D intensive industry. The decision of two firms to establish a new partnerships or to terminate an existing one, is based on their marginal revenues and costs, which in turn depend on the position they occupy in the network. Moreover, the formation of a collaboration has significant external effects on the other firms in the same connected component of the network. We show that this decentralized partner selection process leads to the existence of multiple equilibrium structures. Finally, by means of computer simulations, we study the properties of the emerging equilibrium networks and we show that they reproduce the stylized facts of R&D networks.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 79 (2011)
Issue (Month): 3 (August)
Pages: 145-164

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Handle: RePEc:eee:jeborg:v:79:y:2011:i:3:p:145-164

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Web page: http://www.elsevier.com/locate/jebo

Related research

Keywords: R&D networks Knowledge recombination Network efficiency Network formation;

References

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Citations

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Cited by:
  1. Mauro Caminati, 2012. "Self sustaining R&D networks," Department of Economics University of Siena 653, Department of Economics, University of Siena.
  2. Mauro Napoletano & Mario V Tomasello & Antonios Garas & Frank Schweitzer, 2013. "The Rise and Fall of R&D Networks," Sciences Po publications 2013-15, Sciences Po.
  3. Peeters, T.J.G., 2013. "External knowledge search and use in new product development," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5906731, Tilburg University.
  4. Mauro Napoletano & Mario V Tomasello & Antonios Garas & Frank Schweitzer, 2013. "The Rise and Fall of R&D Networks," Sciences Po Economics Discussion Papers 2013-15, Sciences Po Departement of Economics.
  5. Herbert Dawid & Tim Hellmann, 2012. "The Evolution of R&D Networks," Working Papers 467, Bielefeld University, Center for Mathematical Economics.
  6. Stefania Vitali & Stefano Battiston & Mauro Gallegati, . "Financial fragility and distress propagation in a network of regions," Working Papers ETH-RC-12-016, ETH Zurich, Chair of Systems Design.
  7. König, Michael D. & Battiston, Stefano & Napoletano, Mauro & Schweitzer, Frank, 2012. "The efficiency and stability of R&D networks," Games and Economic Behavior, Elsevier, vol. 75(2), pages 694-713.

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