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Network embeddedness and the exploration of novel technologies: Technological distance, betweenness centrality and density

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Author Info
Gilsing, Victor
Nooteboom, Bart
Vanhaverbeke, Wim
Duysters, Geert
van den Oord, Ad

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Abstract

This paper aims to understand better the innovation potential of a firm's alliance network. Here we analyze the role of an alliance network in terms of the technological distance between partners, a firm's network position (centrality) and total network density. We study how these three elements of an alliance network, separately and in combination, affect the 'twin tasks' in exploration, namely novelty creation on the one hand and its efficient absorption on the other hand. For an empirical test, we study technology-based alliance networks in the pharmaceutical, chemical and automotive industries. Our findings indicate that successful exploration indeed seems to require a delicate balance between these two exploration tasks. A second conclusion is that different network positions yield different pay-offs in terms of the number of explorative patents. In other words, success rates for exploration are not spread equally across firms. However, position alone does not tell the full story. Our empirical findings clearly indicate that exploration success also depends on the other two dimensions of embeddedness, namely technological distance and network density. The three elements of network embeddedness need to be considered jointly in order to understand their complementary effects on both novelty creation and absorptive capacity.

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File URL: http://www.sciencedirect.com/science/article/B6V77-4TR97J7-1/2/b6ccced8266e8543570ef49b4e8813ce
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Publisher Info
Article provided by Elsevier in its journal Research Policy.

Volume (Year): 37 (2008)
Issue (Month): 10 (December)
Pages: 1717-1731
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Handle: RePEc:eee:respol:v:37:y:2008:i:10:p:1717-1731

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Related research
Keywords: Innovation Interfirm collaboration Technological exploration Technological distance Absorptive capacity;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Rebecca Henderson & Iain Cockburn, 1996. "Scale, Scope, and Spillovers: The Determinants of Research Productivity in Drug Discovery," RAND Journal of Economics, The RAND Corporation, vol. 27(1), pages 32-59, Spring. [Downloadable!] (restricted)
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  2. Fleming, Lee & Sorenson, Olav, 2001. "Technology as a complex adaptive system: evidence from patent data," Research Policy, Elsevier, vol. 30(7), pages 1019-1039, August. [Downloadable!] (restricted)
  3. Wuyts, Stefan & Colombo, Massimo G. & Dutta, Shantanu & Nooteboom, Bart, 2005. "Empirical tests of optimal cognitive distance," Discussion Paper 45, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  4. Mowery, David C & Oxley, Joanne E, 1995. "Inward Technology Transfer and Competitiveness: The Role of National Innovation Systems," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 67-93, February.
  5. Hagedoorn,John & Duysters,Geert, 2000. "Learning in Dynamic Inter-firm Networks - The Efficacy of Multiple Contacts," Research Memoranda 009, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
  6. Gilsing, V. & Nooteboom, B., 2004. "Density and strength of ties in innovation networks: an analysis of multimedia and biotechnology," ECIS Working Papers 04.16, Eindhoven Centre for Innovation Studies, Eindhoven University of Technology. [Downloadable!]
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  7. Cooper, Arnold C. & Schendel, Dan, 1976. "Strategic responses to technological threats," Business Horizons, Elsevier, vol. 19(1), pages 61-69, February. [Downloadable!] (restricted)
  8. Kogut, Bruce, 1989. "The Stability of Joint Ventures: Reciprocity and Competitive Rivalry," Journal of Industrial Economics, Blackwell Publishing, vol. 38(2), pages 183-98, December. [Downloadable!] (restricted)
  9. Teece, David J., 1986. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," Research Policy, Elsevier, vol. 15(6), pages 285-305, December. [Downloadable!] (restricted)
  10. Nooteboom, B. & Vanheverbeke, W.P.M. & Duysters, G.M. & Gilsing, V.A. & Oord van den, A,J,, 2005. "Optimal cognitive distance and absorptive capacity," ECIS Working Papers 05.05, Eindhoven Centre for Innovation Studies, Eindhoven University of Technology. [Downloadable!]
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  11. Vanhaverbeke, W.P.M. & Beerkens, B.E. & Duysters, G.M., 2003. "Explorative and exploitative learning strategies in technology-based alliance networks," ECIS Working Papers 03.22, Eindhoven Centre for Innovation Studies, Eindhoven University of Technology. [Downloadable!]
  12. Zvi Griliches, 1979. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 92-116, Spring. [Downloadable!] (restricted)
    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Nooteboom, Bart, 2006. "Learning and innovation in inter-organizational relationships and networks," Discussion Paper 39, Tilburg University, Center for Economic Research. [Downloadable!]
  2. Edward Bergman & Gunther Maier, 2009. "Network central: regional positioning for innovative advantage," The Annals of Regional Science, Springer, vol. 43(3), pages 615-644, September. [Downloadable!] (restricted)
  3. Moritz Müller & Robin COWAN & Geert Duysters & Nicolas JONARD, 2009. "Knowledge Structures," Working Papers of BETA 2009-24, Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg. [Downloadable!]
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