Self-Organizing Innovation Networks: When do Small Worlds Emerge?
AbstractIn this paper, we present a model of 'collective innovation' built upon the network formation formalism. In our model, agents localized on a circle benefit from knowledge flows from other agents with whom they are directly or indirectly connected. They support costs for direct connections which are linearly increasing with geographic distance. The dynamic process of network formation exhibits prefeRential meeting for close agents (in the relational network and in the geographic metrics). We show how the set of stochastically stable networks selected in the long run is affected by the degree of knowledge transferability. We find critical values of this parameter for which stable \"small world\" networks are dynamically selected.
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Bibliographic InfoPaper provided by Groupement de Recherches Economiques et Sociales in its series Cahiers du GRES with number 2003-08.
Date of creation: 2003
Date of revision:
Network Formation; Stochastic Stability; Preferential Meeting; Self-Organization;
Find related papers by JEL classification:
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
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