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Author Info
Moritz Müller
Robin COWAN
Geert Duysters
Nicolas JONARD

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Abstract

This paper investigates how technological distance between firms affects their network of R&D alliances. Our theoretic model assumes that the benefit of an alliance between two firms is given by their technological distance. This benefit-distance relationship determines the ego-network of each firm as well as the overall network structure. Empirical relevance is confirmed for the bio-pharmaceutical industry. Although we find that the network structure is largely explained by firm size, technological distance determines the positioning of firms in the network.

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Publisher Info
Paper provided by Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg in its series Working Papers of BETA with number 2009-24.

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Date of creation: 2009
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Handle: RePEc:ulp:sbbeta:2009-24

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Related research
Keywords: technological distance; research alliance; network formation; pharmaceutical industry.;

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  1. Orsenigo, L. & Pammolli, F. & Riccaboni, Massimo, 2001. "Technological change and network dynamics: Lessons from the pharmaceutical industry," Research Policy, Elsevier, vol. 30(3), pages 485-508, March. [Downloadable!] (restricted)
  2. Gilsing, Victor & Nooteboom, Bart & Vanhaverbeke, Wim & Duysters, Geert & van den Oord, Ad, 2008. "Network embeddedness and the exploration of novel technologies: Technological distance, betweenness centrality and density," Research Policy, Elsevier, vol. 37(10), pages 1717-1731, December. [Downloadable!] (restricted)
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  3. Cockburn, Iain M & Henderson, Rebecca M, 1998. "Absorptive Capacity, Coauthoring Behavior, and the Organization of Research in Drug Discovery," Journal of Industrial Economics, Blackwell Publishing, vol. 46(2), pages 157-82, June. [Downloadable!] (restricted)
  4. Penin, Julien, 2005. "Patents versus ex post rewards: A new look," Research Policy, Elsevier, vol. 34(5), pages 641-656, June. [Downloadable!] (restricted)
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  5. Marcel Fafchamps & Flore Gubert, 2007. "Risk Sharing and Network Formation," American Economic Review, American Economic Association, vol. 97(2), pages 75-79, May. [Downloadable!]
  6. Arora, Ashish & Gambardella, Alfonso, 1990. "Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology," Journal of Industrial Economics, Blackwell Publishing, vol. 38(4), pages 361-79, June. [Downloadable!] (restricted)
  7. Nooteboom, Bart & Van Haverbeke, Wim & Duysters, Geert & Gilsing, Victor & van den Oord, Ad, 2007. "Optimal cognitive distance and absorptive capacity," Research Policy, Elsevier, vol. 36(7), pages 1016-1034, September. [Downloadable!] (restricted)
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  8. Patel, Pari & Pavitt, Keith, 1987. "Is Western Europe losing the technological race?," Research Policy, Elsevier, vol. 16(2-4), pages 59-85, August. [Downloadable!] (restricted)
  9. Robert P. Gilles & Cathleen Johnson, 2000. "original papers : Spatial social networks," Review of Economic Design, Springer, vol. 5(3), pages 273-299. [Downloadable!] (restricted)
  10. Matthew O. Jackson, 2003. "A Survey of Models of Network Formation: Stability and Efficiency," Game Theory and Information 0303011, EconWPA. [Downloadable!]
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  11. Arundel, Anthony & Kabla, Isabelle, 1998. "What percentage of innovations are patented? empirical estimates for European firms," Research Policy, Elsevier, vol. 27(2), pages 127-141, June. [Downloadable!] (restricted)
  12. Cowan, Robin & Jonard, Nicolas, 2004. "Network structure and the diffusion of knowledge," Journal of Economic Dynamics and Control, Elsevier, vol. 28(8), pages 1557-1575, June. [Downloadable!] (restricted)
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  13. Hunter, David R. & Goodreau, Steven M. & Handcock, Mark S., 2008. "Goodness of Fit of Social Network Models," Journal of the American Statistical Association, American Statistical Association, vol. 103, pages 248-258, March. [Downloadable!] (restricted)
  14. Soete, Luc, 1987. "The impact of technological innovation on international trade patterns: The evidence reconsidered," Research Policy, Elsevier, vol. 16(2-4), pages 101-130, August. [Downloadable!] (restricted)
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