Radical Innovation and Network Evolution
AbstractThis paper examines how a radical technological innovation affects alliance formation of firms and subsequent network structures. We use longitudinal data of interfirm R&D collaborations in the biopharmaceutical industry in which a new technological regime is established. Our findings suggest that it requires radical technological change for firms to leave their embedded path of existing alliances and form new alliances with new partners. While new partners are mostly found through the firms’ existing network, we provide some insight into distant link formation with unknown partners, which contributes to our understanding of how ‘small-worlds’ might emerge.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 07-039/3.
Date of creation: 10 May 2007
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Web page: http://www.tinbergen.nl
Pharmaceutical industry; Biotechnology industry; R&D; Technological change; Alliances; Networks;
Find related papers by JEL classification:
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-11 (All new papers)
- NEP-CSE-2007-06-11 (Economics of Strategic Management)
- NEP-INO-2007-06-11 (Innovation)
- NEP-MIC-2007-06-11 (Microeconomics)
- NEP-NET-2007-06-11 (Network Economics)
- NEP-SOC-2007-06-11 (Social Norms & Social Capital)
- NEP-TID-2007-06-11 (Technology & Industrial Dynamics)
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- Luís F. Tironi & Bruno de O. Cruz, 2008. "Inovação Incremental ou Radical: Há Motivos para Diferenciar? Uma Abordagem com Dados da PINTEC," Discussion Papers, Instituto de Pesquisa EconÃ´mica Aplicada - IPEA 1360, Instituto de Pesquisa Econômica Aplicada - IPEA.
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