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Recombinant knowledge and the evolution of innovation networks


  • König, Michael D.
  • Battiston, S.
  • Napoletano, M.
  • Schweitzer, F.


We introduce a new model for the evolution of networks of firms exchanging knowledge in R&D partnerships. Innovation is assumed to result from the recombination of knowledge among firms in an R&D intensive industry. The decision of two firms to establish a new partnerships or to terminate an existing one, is based on their marginal revenues and costs, which in turn depend on the position they occupy in the network. Moreover, the formation of a collaboration has significant external effects on the other firms in the same connected component of the network. We show that this decentralized partner selection process leads to the existence of multiple equilibrium structures. Finally, by means of computer simulations, we study the properties of the emerging equilibrium networks and we show that they reproduce the stylized facts of R&D networks.

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  • König, Michael D. & Battiston, S. & Napoletano, M. & Schweitzer, F., 2011. "Recombinant knowledge and the evolution of innovation networks," Journal of Economic Behavior & Organization, Elsevier, vol. 79(3), pages 145-164, August.
  • Handle: RePEc:eee:jeborg:v:79:y:2011:i:3:p:145-164

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    Cited by:

    1. Mauro Caminati, 2016. "Knowledge specialization and R&D collaboration," Journal of Evolutionary Economics, Springer, vol. 26(2), pages 247-270, May.
    2. Dawid, Herbert & Hellmann, Tim, 2014. "The evolution of R&D networks," Journal of Economic Behavior & Organization, Elsevier, vol. 105(C), pages 158-172.
    3. Savin, Ivan & Egbetokun, Abiodun, 2016. "Emergence of innovation networks from R&D cooperation with endogenous absorptive capacity," Journal of Economic Dynamics and Control, Elsevier, vol. 64(C), pages 82-103.
    4. repec:eee:jeborg:v:145:y:2018:i:c:p:424-434 is not listed on IDEAS
    5. Mario V. Tomasello & Mauro Napoletano & Antonios Garas & Frank Schweitzer, 2017. "The rise and fall of R&D networks," Industrial and Corporate Change, Oxford University Press, vol. 26(4), pages 617-646.
    6. Vitali, Stefania & Battiston, Stefano & Gallegati, Mauro, 2016. "Financial fragility and distress propagation in a network of regions," Journal of Economic Dynamics and Control, Elsevier, vol. 62(C), pages 56-75.
    7. Gabriele Tedeschi & Stefania Vitali & Mauro Gallegati, 2014. "The dynamic of innovation networks: a switching model on technological change," Journal of Evolutionary Economics, Springer, vol. 24(4), pages 817-834, September.
    8. Peeters, T.J.G., 2013. "External knowledge search and use in new product development," Other publications TiSEM 300ebb34-b090-4210-b95e-f, Tilburg University, School of Economics and Management.
    9. Andersson, David E. & Galaso, Pablo & Saiz, Patricio, 2017. "Patent Networks, Collaboration Patterns, and National Innovation Systems. Sweden and Spain during the Second Industrial Revolution," Working Papers in Economic History 2017/02, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    10. Jingjing Wang & Chi Leung & Yue Kwok, 2015. "Stochastic control model for R&D race in a mixed duopoly with spillovers and knowledge stocks," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 38(2), pages 177-195, October.
    11. König, Michael D. & Battiston, Stefano & Napoletano, Mauro & Schweitzer, Frank, 2012. "The efficiency and stability of R&D networks," Games and Economic Behavior, Elsevier, vol. 75(2), pages 694-713.
    12. Mauro Caminati, 2012. "Self sustaining R&D networks," Department of Economics University of Siena 653, Department of Economics, University of Siena.
    13. Emmanuel Petrakis & Nikolas Tsakas, 2016. "The effect of entry on R&D networks," University of Cyprus Working Papers in Economics 08-2016, University of Cyprus Department of Economics.
    14. repec:spo:wpecon:info:hdl:2441/f6h8764enu2lskk9p5487a6cm is not listed on IDEAS
    15. Johannes Van Der Pol & Jean-Paul Rameshkoumar & David Virapin & Bernard Zozime, 2014. "A preminary analysis of knowledge flows: The case of structural composite materials in aeronautics," Working Papers hal-01284991, HAL.


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