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Evolving Networks of Inventors

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  • Cowan,Robin
  • Jonard,Nicolas
  • Zimmermann,J-B

    (MERIT)

Abstract

In this paper a model for the formation of strategic alliances is studied. Innovation results from the recombination of knowledge held by the partners to the collaboration, and from the history of their collaboration. Innovation brings partners closer together, while at the same time the repetition of partnerships fosters trust and helps improving the outcome of each round of cooperation. A tension exists between innovating with people I know in order to reduce uncertainty at the expense of the net benefit fromour joint effort, and innovating with strangers with whom the outcome of joint innovation can be greater but at a larger risk of failure. This “organized proximity”, built through the experience of cooperation, can be at the origin of strongly structured networks of innovation, where agents’ relations focus on limited cliques of partners. (JEL Classification: L14, Z13, O3, Keywords: Networks, Innovation, Network Formation, Knowledge)

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Bibliographic Info

Paper provided by Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT) in its series Research Memorandum with number 018.

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Date of creation: 2004
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Handle: RePEc:unm:umamer:2004018

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Keywords: industrial organization ;

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  1. Plouraboue, F. & Steyer, A. & Zimmermann, J.B., 1996. "Learning Induced Criticality in Consumers' Adoption Pattern: A Neural Network Approach," G.R.E.Q.A.M. 96a28, Universite Aix-Marseille III.
  2. Martin L. Weitzman, 1998. "Recombinant Growth," The Quarterly Journal of Economics, MIT Press, vol. 113(2), pages 331-360, May.
  3. Peretto, P. & Smulders, J.A., 2002. "Technological distance, growth and scale effects," Open Access publications from Tilburg University urn:nbn:nl:ui:12-89730, Tilburg University.
  4. Cowan,Robin & Jonard,Nicolas & Zimmermann,J-B, 2004. "On the creation of networks and knowledge," Research Memorandum 010, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  5. Granstrand, Ove & Sjolander, Soren, 1990. "Managing innovation in multi-technology corporations," Research Policy, Elsevier, vol. 19(1), pages 35-60, February.
  6. Goyal, S. & Joshi, S., 2000. "Networks of Collaboration in Oligopoly," Econometric Institute Research Papers EI 9952-/A, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
  7. Kirman, Alan P. & Vriend, Nicolaas J., 2001. "Evolving market structure: An ACE model of price dispersion and loyalty," Journal of Economic Dynamics and Control, Elsevier, vol. 25(3-4), pages 459-502, March.
  8. Klos, Tomas B. & Nooteboom, Bart, 2001. "Agent-based computational transaction cost economics," Journal of Economic Dynamics and Control, Elsevier, vol. 25(3-4), pages 503-526, March.
  9. Nooteboom, B., 2005. "Learning and Governance in Inter-Firm Relations," Discussion Paper 2005-38, Tilburg University, Center for Economic Research.
  10. Weisbuch, Gerard & Alan Kirman & Dorothea K. Herreiner, 1996. "Market Organization," Discussion Paper Serie B 391, University of Bonn, Germany.
  11. Adonis Yatchew, 1998. "Nonparametric Regression Techniques in Economics," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 669-721, June.
  12. Joel A. C. Baum & Andrew V. Shipilov & Tim J. Rowley, 2003. "Where do small worlds come from?," Industrial and Corporate Change, Oxford University Press, vol. 12(4), pages 697-725, August.
  13. Cowan,Robin & Jonard,Nicolas & Zimmermann,J-B, 2004. "Networks as Emergent Structures from Bilateral Collaboration," Research Memorandum 017, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  14. Erev, Ido & Roth, Alvin E, 1998. "Predicting How People Play Games: Reinforcement Learning in Experimental Games with Unique, Mixed Strategy Equilibria," American Economic Review, American Economic Association, vol. 88(4), pages 848-81, September.
  15. Sumit Joshi, 2000. "Networks of Collaboration in Oligopoly," Econometric Society World Congress 2000 Contributed Papers 0623, Econometric Society.
  16. Olsson, Ola, 2000. " Knowledge as a Set in Idea Space: An Epistemological View on Growth," Journal of Economic Growth, Springer, vol. 5(3), pages 253-75, September.
  17. Mowery, David C. & Oxley, Joanne E. & Silverman, Brian S., 1998. "Technological overlap and interfirm cooperation: implications for the resource-based view of the firm," Research Policy, Elsevier, vol. 27(5), pages 507-523, September.
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