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Self-Organizing Innovation Networks: When do Small Worlds Emerge?

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Author Info

  • Nicolas CARAYOL (BETA)
  • Pascale ROUX (GRES-LEREPS)

Abstract

In 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 Info

Paper provided by Groupement de Recherches Economiques et Sociales in its series Cahiers du GRES with number 2003-08.

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Date of creation: 2003
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Handle: RePEc:grs:wpegrs:2003-08

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Web page: http://gres.u-bordeaux4.fr/
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Related research

Keywords: Network Formation; Stochastic Stability; Preferential Meeting; Self-Organization;

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References

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Cited by:
  1. Duarte Leite & Pedro Campos & Isabel Mota, 2011. "Computational Results on Membership in R&D Cooperation Networks: To Be or Not To Be in a Research Joint Venture," FEP Working Papers 420, Universidade do Porto, Faculdade de Economia do Porto.
  2. Barr, Tavis & Roy, Udayan, 2008. "The effect of labor market monopsony on economic growth," Journal of Macroeconomics, Elsevier, vol. 30(4), pages 1446-1467, December.
  3. Cowan,Robin, 2004. "Network models of innovation and knowledge diffusion," Research Memorandum 016, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).

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