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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. 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.
  3. Gay, Brigitte, 2008. "Firm dynamic governance of global innovation by means of flexible networks of connections," MPRA Paper 12525, University Library of Munich, Germany.
  4. 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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