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Integrated Versus Core-Periphery Structures in Regional Biotechnology Networks

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  • Rank, Charlotte
  • Rank, Olaf
  • Wald, Andreas

Abstract

This paper examines the importance of networks of interfirm cooperation in biotechnology. As in other knowledge-intensive industries, network-like cooperation is suggested to be a critical factor for companies as they enable the unobstructed exchange of information and knowledge. A discussion of the extant literature reveals two competing perspectives on corporate networks in high-tech industries. While one group of actors has argued that due to the high importance of information and knowledge in these industries, companies are embedded in dense interorganizational collaboration networks, others have suggested that a dense core may be distinguished from a sparse periphery in these networks. By applying a network analytical approach we test both propositions empirically for a regional network in biotechnology. Our findings show that the assumption of dense interorganizational networks does not seem to hold true. Instead, we find support for the assumption that within regional networks, a considerable number of companies are only loosely connected to the network's dense core.

Suggested Citation

  • Rank, Charlotte & Rank, Olaf & Wald, Andreas, 2006. "Integrated Versus Core-Periphery Structures in Regional Biotechnology Networks," European Management Journal, Elsevier, vol. 24(1), pages 73-85, February.
  • Handle: RePEc:eee:eurman:v:24:y:2006:i:1:p:73-85
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    Cited by:

    1. Shepherd, Richard K. & Pryke, Stephen D., 2014. "Regional rail planning; a study of the importance of ‘steering’ and ‘pragmatism’ in stakeholder networks," European Management Journal, Elsevier, vol. 32(4), pages 616-624.
    2. Muhamed Kudic & Wilfried Ehrenfeld & Toralf Pusch, 2015. "On the trail of core–periphery patterns in innovation networks: measurements and new empirical findings from the German laser industry," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(1), pages 187-220, October.
    3. Kudic, Muhamed & Ehrenfeld, Wilfried & Pusch, Toralf, 2015. "Isolation and Innovation – Two Contradictory Concepts? Explorative Findings from the German Laser Industry," IWH Discussion Papers 1/2015, Halle Institute for Economic Research (IWH).
    4. Michael Fritsch & Muhamed Kudic, 2016. "Preferential Attachment and Pattern Formation in R&D Networks - Plausible explanation or just a widespread myth?," Jena Economic Research Papers 2016-005, Friedrich-Schiller-University Jena.
    5. Martin-Rios, Carlos, 2014. "Why do firms seek to share human resource management knowledge? The importance of inter-firm networks," Journal of Business Research, Elsevier, vol. 67(2), pages 190-199.
    6. Gräbner, Claudius & Heinrich, Torsten & Kudic, Muhamed, 2016. "Structuration processes in complex dynamic systems - an overview and reassessment," MPRA Paper 69095, University Library of Munich, Germany.
    7. Calvin Weng & Tugrul Daim, 2012. "Structural Differentiation and Its Implications—Core/Periphery Structure of the Technological Network," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 3(4), pages 327-342, December.

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