Fits and Misfits: Technological Matching and R&D Networks
AbstractThis paper presents an economic model of R&D network formation through the creation of strategic alliances. Firms are randomly endowed with knowledge elements. They base their alliance decisions purely on the technological fit of potential partners, ignoring social capital considerations and indirect benefits on the network. This is sufficient to generate equilibrium networks with the small world properties of observed alliance networks, namely short pairwise distances and local clustering. The equilibrium networks are more clustered than "comparable" random graphs, while they have similar characteristic path length. Two extreme regimes of competition are examined, to show that while the competition has a quantitative effect on the equilibrium networks (density is lower with competition), the small world features of the equilibrium networks are preserved.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 042.
Date of creation: 2009
Date of revision:
network formation; small worlds; R&D networks; strategic alliances; business clusters;
Other versions of this item:
- Nicolas Jonard & R. Cowan & B. Sanditov, 2009. "Fits and Misfits : Technological Matching and R & D Networks," CREA Discussion Paper Series 09-12, Center for Research in Economic Analysis, University of Luxembourg.
- Cowan, Robin & Jonard, Nicolas & Sanditov, Bulat, 2009. "Fits and Misfits: Technological Matching and R&D Networks," MERIT Working Papers 042, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Francis Bloch, 1995. "Endogenous Structures of Association in Oligopolies," RAND Journal of Economics, The RAND Corporation, vol. 26(3), pages 537-556, Autumn.
- Jackson, Matthew O. & Rogers, Brian W., 2005.
"The economics of small worlds,"
1214, California Institute of Technology, Division of the Humanities and Social Sciences.
- 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.
- Sanjeev Goyal & Sumit Joshi, 2000.
"Networks of Collaboration in Oligopoly,"
Tinbergen Institute Discussion Papers
00-092/1, Tinbergen Institute.
- Sumit Joshi, 2000. "Networks of Collaboration in Oligopoly," Econometric Society World Congress 2000 Contributed Papers 0623, Econometric Society.
- 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.
- Sanjeev Goyal & Marco van der Leij & Jose Luis Moraga, 2004.
"Economics: An Emerging Small World?,"
Tinbergen Institute Discussion Papers
04-001/1, Tinbergen Institute.
- Sanjeev Goyal & Marco van der Leij & José Luis Moraga Gonzales, 2004. "Economics: An Emerging Small World?," CESifo Working Paper Series 1287, CESifo Group Munich.
- Sanjeev Goyal & Marco van der Leij & José Luis Moraga-Gonzàlez, 2004. "Economics: An Emerging Small World?," Working Papers 2004.84, Fondazione Eni Enrico Mattei.
- Carayol, Nicolas & Roux, Pascale, 2009.
"Knowledge flows and the geography of networks: A strategic model of small world formation,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 71(2), pages 414-427, August.
- Nicolas Carayol & Pascale Roux, 2006. "Knowledge flows and the geography of networks. A strategic model of small worlds formation," Working Papers of BETA 2006-16, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- Matthew O. Jackson & Asher Wolinsky, 1994.
"A Strategic Model of Social and Economic Networks,"
1098, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Sanjeev Goyal & Sumit Joshi, 2006. "Unequal connections," International Journal of Game Theory, Springer, vol. 34(3), pages 319-349, October.
- Galeotti, Andrea & Goyal, Sanjeev & Kamphorst, Jurjen, 2006.
"Network formation with heterogeneous players,"
Games and Economic Behavior,
Elsevier, vol. 54(2), pages 353-372, February.
- Andrea Galeotti & Sanjeev Goyal, 2002. "Network Formation with Heterogeneous Players," Tinbergen Institute Discussion Papers 02-069/1, Tinbergen Institute.
- Andrea Galeotti & Sanjeev Goyal & Jurjen Kamphorst, 2003. "Network Formation with Heterogeneous Players," Economics Discussion Papers 562, University of Essex, Department of Economics.
- Balconi, Margherita & Breschi, Stefano & Lissoni, Francesco, 2004. "Networks of inventors and the role of academia: an exploration of Italian patent data," Research Policy, Elsevier, vol. 33(1), pages 127-145, January.
- Joshi, Sumit, 2008. "Endogenous formation of coalitions in a model of a race," Journal of Economic Behavior & Organization, Elsevier, vol. 65(1), pages 62-85, January.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ad Notten).
If references are entirely missing, you can add them using this form.