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If the Alliance Fits . . . : Innovation and Network Dynamics

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Author Info
Cowan, Robin () (UNU-MERIT)
Jonard, Nicolas () (University of Luxembourg)

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Abstract

Network formation is often said to be driven by social capital considerations. A typical pattern observed in the empirical data on strategic alliances is that of small world networks: dense subgroups of firms interconnected by (few) clique-spanning ties. The typical argument is that there is social capital value both to being embedded in a dense cluster, and to bridging disconnected clusters. In this paper we develop and analyze a simple model of joint innovation where we are able to reproduce these features, based solely on the assumption that successful partnering demands some intermediate amount of similarity between the partners.

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Paper provided by United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology in its series UNU-MERIT Working Paper Series with number 022.

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Date of creation: 2008
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Handle: RePEc:dgr:unumer:2008022

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Web page: http://www.merit.unu.edu

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Related research
Keywords: Network formation; Strategic alliances; Knowledge portfolios; Knowledge transfer;

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Find related papers by JEL classification:
D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives

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  1. Beine Michel & De Grauwe Paul & Grimaldi Marianna, 2008. "Networks-independent partner selection and the evolution of innovation networks," CREA Discussion Paper Series 08-14, Center for Research in Economic Analysis, University of Luxembourg. [Downloadable!]
  2. Kesidou, Effie & Szirmai, Adam, 2008. "Local Knowledge Spillovers, Innovation and Economic Performance in Developing Countries: A discussion of alternative specifications," UNU-MERIT Working Paper Series 033, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
  3. Joel BAUM & Robin COWAN & Nicolas JONARD, 2009. "Network-independent partner selection and the evolution of innovation networks," Working Papers of BETA 2009-23, Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg. [Downloadable!]
    Other versions:
  4. Azomahou, Théophile & Boucekkine, Raouf & Nguyen-Van, Phu, 2008. "Promoting clean technologies: The energy market structure crucially matters," UNU-MERIT Working Paper Series 032, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
    Other versions:
  5. Schoenmakers, Wilfred & Duysters, Geert & Vanhaverbeke, Wim, 2008. "Radical versus Non-Radical Inventions," UNU-MERIT Working Paper Series 036, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
  6. Saebi, Tina & Dong, Qinqin, 2008. "Strategic motivations for Sino-Western alliances: a comparativeanalysis of Chinese and Western alliance formation drivers," UNU-MERIT Working Paper Series 030, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
  7. Lokshin, Boris & Mohnen, Pierre, 2008. "Wage effects of R&D tax incentives:Evidence from the Netherlands," UNU-MERIT Working Paper Series 034, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
  8. Srholec, Martin, 2008. "A Multilevel Analysis of Innovation in Developing Countries," UNU-MERIT Working Paper Series 040, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
    Other versions:
  9. Bhuyan, Radhika & Mytelka, Lynn K., 2008. "Changing Configuration of Alternative Energy Systems," UNU-MERIT Working Paper Series 031, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
  10. SadreGhazi, Shuan & Duysters, Geert, 2008. "Serving low-income markets: Rethinking Multinational Corporations’ Strategies," UNU-MERIT Working Paper Series 024, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
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