If the Alliance Fits . . . : Innovation and Network Dynamics
AbstractNetwork 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 InfoPaper provided by Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg in its series Working Papers of BETA with number 2008-06.
Date of creation: 2008
Date of revision:
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Other versions of this item:
- Cowan, Robin & Jonard, Nicolas, 2008. "If the Alliance Fits . . . : Innovation and Network Dynamics," MERIT Working Papers 022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-04-29 (All new papers)
- NEP-INO-2008-04-29 (Innovation)
- NEP-NET-2008-04-29 (Network Economics)
- NEP-SOC-2008-04-29 (Social Norms & Social Capital)
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- 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.
- Joel A. C. Baum & Robin Cowan & Nicolas Jonard, 2010. "Network-Independent Partner Selection and the Evolution of Innovation Networks," Management Science, INFORMS, vol. 56(11), pages 2094-2110, November.
- Baum, Joel & Cowan, Robin & Jonard, Nicolas, 2009. "Network-independent partner selection and the evolution of innovation networks," MERIT Working Papers 022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- 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.
- Gay, Brigitte, 2008. "Firm dynamic governance of global innovation by means of flexible networks of connections," MPRA Paper 12525, University Library of Munich, Germany.
- 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.
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