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The Dynamics of the Inventor Network in German Biotechnology: Geographical Proximity versus Triadic Closure

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  • Anne L.J. Ter Wal

Abstract

Economic geography has developed a stronghold analysing how geography impacts innovation. Yet, despite increased interest in networks, a critical assessment of the role of geography in the evolution of networks is still lacking. This paper juxtaposes geographical proximity with the network of prior ties as alternative mechanisms for tie formation. Analysing the evolution of inventor networks in German biotechnology, the paper theoretically argues and empirically demonstrates that - as the technological regime of an industry changes over time - inventors increasingly rely on network resources by forming links to partners of partners, whilst the direct impact of geographical proximity on tie formation decreases.

Suggested Citation

  • Anne L.J. Ter Wal, 2011. "The Dynamics of the Inventor Network in German Biotechnology: Geographical Proximity versus Triadic Closure," Papers in Evolutionary Economic Geography (PEEG) 1102, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2011.
    • Handle: RePEc:egu:wpaper:1102
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    References listed on IDEAS

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    1. Lemarie, Stephane & Mangematin, Vincent & Torre, Andre, 2001. "Is the Creation and Development of Biotech SMEs Localised? Conclusions Drawn from the French Case," Small Business Economics, Springer, vol. 17(1-2), pages 61-76, Aug.-Sept.
    2. Vincent Mangematin & André Torre, 2001. "Creation and development of biotech SMEs : the French case [Création et développement de PME dans le secteur des biotechnologies : le cas français]," Post-Print hal-02670171, HAL.
    3. Anne Ter Wal & Ron Boschma, 2011. "Co-evolution of Firms, Industries and Networks in Space," Regional Studies, Taylor & Francis Journals, vol. 45(7), pages 919-933.
    4. Jason Owen-Smith & Walter W. Powell, 2004. "Knowledge Networks as Channels and Conduits: The Effects of Spillovers in the Boston Biotechnology Community," Organization Science, INFORMS, vol. 15(1), pages 5-21, February.
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    Citations

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    Cited by:

    1. Tom Broekel & Matt� Hartog, 2013. "Explaining the Structure of Inter-Organizational Networks using Exponential Random Graph Models," Industry and Innovation, Taylor & Francis Journals, vol. 20(3), pages 277-295, April.
    2. repec:wip:wpaper:7 is not listed on IDEAS
    3. Ernest Miguélez, 2012. "How do geographically mobile innovators influence network formation?," Papers in Evolutionary Economic Geography (PEEG) 1208, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2012.
    4. Cassi, Lorenzo & Plunket, Anne, 2010. "The determinants of co-inventor tie formation: proximity and network dynamics," MPRA Paper 27303, University Library of Munich, Germany.
    5. Lorenzo Cassi & Anne Plunket, 2015. "Research Collaboration in Co-inventor Networks: Combining Closure, Bridging and Proximities," Regional Studies, Taylor & Francis Journals, vol. 49(6), pages 936-954, June.
    6. Lorenzo Cassi & Anne Plunket, 2014. "Proximity, network formation and inventive performance: in search of the proximity paradox," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 395-422, September.
    7. Ernest Miguélez & Rosina Moreno, 2013. "Do Labour Mobility and Technological Collaborations Foster Geographical Knowledge Diffusion? The Case of European Regions," Growth and Change, Wiley Blackwell, vol. 44(2), pages 321-354, June.
    8. Sidonia von Proff & Thomas Brenner, 2011. "The Dynamics of Inter-Regional Collaboration – An Analysis of Co-Patenting," Working Papers on Innovation and Space 2011-06, Philipps University Marburg, Department of Geography.
    9. Horváth, Márton & Hau-Horváth, Orsolya, 2014. "A földrajzi közelség szerepe az innovációs együttműködésekben - illúzió vagy valós tényező?. Szakirodalmi áttekintés [The role of geographical proximity in efforts to cooperate on innovation - illu," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1419-1446.
    10. Broekel, Tom & Fornahl, Dirk & Morrison, Andrea, 2015. "Another cluster premium: Innovation subsidies and R&D collaboration networks," Research Policy, Elsevier, vol. 44(8), pages 1431-1444.
    11. Pierre-Alexandre Balland & Mathijs De Vaan & Ron Boschma, 2013. "The dynamics of interfirm networks along the industry life cycle: The case of the global video game industry, 1987--2007," Journal of Economic Geography, Oxford University Press, vol. 13(5), pages 741-765, September.
    12. Abbasiharofteh, Milad, 2020. "Endogenous effects and cluster transition: a conceptual framework for cluster policy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 28(12), pages 2508-2531.
    13. Tom Broekel & Matte Hartog, 2013. "Determinants of cross-regional R and D collaboration networks: an application of exponential random graph models," Working Papers on Innovation and Space 2013-04, Philipps University Marburg, Department of Geography.
    14. Tom Broekel & Matte Hartog, 2011. "Explaining the structure of inter-organizational networks using exponential random graph models: does proximity matter?," Papers in Evolutionary Economic Geography (PEEG) 1107, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2011.
    15. Timo Mitze & Falk Strotebeck, 2012. "What Drives Regional Cooperative Behavior in German Biotechnology? Embedding Social Network Analysis in a Regression Framework," ERSA conference papers ersa12p629, European Regional Science Association.
    16. Ernest Miguelez, 2013. "How does geographical mobility of inventors influence network formation?," WIPO Economic Research Working Papers 07, World Intellectual Property Organization - Economics and Statistics Division, revised Apr 2013.
    17. Florian Umlauf, 2014. "Network Determinants of a Collaborative Funding System: The Case of the German Innovation Policy," Papers on Economics and Evolution 2014-03, Philipps University Marburg, Department of Geography.
    18. Ron Boschma & Pierre-Alexandre Balland & Dieter Kogler, 2011. "A relational approach to knowledge spillovers in biotech. Network structures as drivers of inter-organizational citation patterns," Papers in Evolutionary Economic Geography (PEEG) 1120, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2011.
    19. Ernest Miguele & Rosina Moreno, 2012. "Do labour mobility and networks foster geographical knowledge diffusion? The case of European regions," Working Papers XREAP2012-14, Xarxa de Referència en Economia Aplicada (XREAP), revised Jul 2012.

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    More about this item

    Keywords

    network evolution; geographical proximity; triadic closure; inventor networks;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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