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Radical Innovation and Network Evolution

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Author Info

  • Sandra Phlippen

    ()
    (Erasmus Universiteit Rotterdam)

  • Massimo Riccaboni

    ()
    (University of Florida)

Abstract

This 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 Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 07-039/3.

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Date of creation: 10 May 2007
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Handle: RePEc:dgr:uvatin:20070039

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Web page: http://www.tinbergen.nl

Related research

Keywords: Pharmaceutical industry; Biotechnology industry; R&D; Technological change; Alliances; Networks;

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Cited by:
  1. 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 Econômica Aplicada - IPEA 1360, Instituto de Pesquisa Econômica Aplicada - IPEA.

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