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If the Alliance Fits . . . : Innovation and Network Dynamics

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  • Robin Cowan
  • Nicolas Jonard

Abstract

Network formation is often said to be driven by social capital considerations. A typical pattern observed in the empirical data on strategic alliances is that of small world networks: dense subgroups of firms interconnected by (few) clique-spanning ties. The typical argument is that there is social capital value both to being embedded in a dense cluster, and to bridging disconnected clusters. In this paper we develop and analyze a simple model of joint innovation where we are able to reproduce these features, based solely on the assumption that successful partnering demands some intermediate amount of similarity between the partners.

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Bibliographic Info

Paper provided by Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg in its series Working Papers of BETA with number 2008-06.

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Date of creation: 2008
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Handle: RePEc:ulp:sbbeta:2008-06

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Cited by:
  1. Joel BAUM & Robin COWAN & Nicolas JONARD, 2009. "Network-independent partner selection and the evolution of innovation networks," Working Papers of BETA 2009-23, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  2. Schoenmakers, Wilfred & Duysters, Geert & Vanhaverbeke, Wim, 2008. "Radical versus Non-Radical Inventions," UNU-MERIT Working Paper Series 036, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
  3. Saebi, Tina & Dong, Qinqin, 2008. "Strategic motivations for Sino-Western alliances: a comparativeanalysis of Chinese and Western alliance formation drivers," UNU-MERIT Working Paper Series 030, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
  4. Bhuyan, Radhika & Mytelka, Lynn K., 2008. "Changing Configuration of Alternative Energy Systems," UNU-MERIT Working Paper Series 031, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
  5. SadreGhazi, Shuan & Duysters, Geert, 2008. "Serving low-income markets: Rethinking Multinational Corporations’ Strategies," UNU-MERIT Working Paper Series 024, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
  6. Martin Srholec, 2008. "A multilevel analysis of innovation in developing countries," Working Papers on Innovation Studies 20080812, Centre for Technology, Innovation and Culture, University of Oslo.
  7. Michel Beine & Paul De Grauwe & Marianna Grimaldi, 2008. "Networks-independent partner selection and the evolution of innovation networks," CREA Discussion Paper Series 08-14, Center for Research in Economic Analysis, University of Luxembourg.
  8. Kesidou, Effie & Szirmai, Adam, 2008. "Local Knowledge Spillovers, Innovation and Economic Performance in Developing Countries: A discussion of alternative specifications," UNU-MERIT Working Paper Series 033, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
  9. Théophile T. Azomahou & Raouf Boucekkine & Phu Nguyen-Vanc, . "Promoting Clean Technologies: The Energy Market Structure Crucially Matters," Working Papers 2008_13, Business School - Economics, University of Glasgow.
  10. Gay, Brigitte, 2008. "Firm dynamic governance of global innovation by means of flexible networks of connections," MPRA Paper 12525, University Library of Munich, Germany.
  11. Mario Maggioni & Teodora Uberti, 2011. "Networks and geography in the economics of knowledge flows," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(5), pages 1031-1051, August.
  12. Lokshin, Boris & Mohnen, Pierre, 2008. "Wage effects of R&D tax incentives:Evidence from the Netherlands," UNU-MERIT Working Paper Series 034, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.

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