IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v31y2002i8-9p1405-1416.html
   My bibliography  Save this article

On firm growth in networks

Author

Listed:
  • Riccaboni, Massimo
  • Pammolli, Fabio

Abstract

This paper is explorative in nature. Based on an empirical analysis of two different industrial settings (life sciences, LS; information and communication technologies, ICT), it investigates network growth and firm growth in networks. We find a remarkable correspondence between a few fundamental findings of the ‘old’ stochastic approach to the analysis of firm internal growth, and empirically observed patterns of firm external growth through collaborative agreements. We show that scale-free behavior in real-world industrial networks can be accounted for by a general and parsimonious model, originally developed by Herbert Simon in 1955, based on entry and proportional growth. However, relevant departures from the stochastic benchmark are revealed that cannot be ascribed to the effect of mergers and acquisitions (M&As) and growth autocorrelation. Moreover, different regimes of growth are found to be at work in the life sciences for originators versus developers of new business opportunities, reflecting the fact that growth is driven by specialization and division of labor in the processes of generation and attraction/development of technological opportunities.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Riccaboni, Massimo & Pammolli, Fabio, 2002. "On firm growth in networks," Research Policy, Elsevier, vol. 31(8-9), pages 1405-1416, December.
    • Handle: RePEc:eee:respol:v:31:y:2002:i:8-9:p:1405-1416
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048-7333(02)00071-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. John Sutton, 1997. "Gibrat's Legacy," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 40-59, March.
    2. Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320.
    3. Giovanni Dosi, 2000. "Innovation, Organization and Economic Dynamics," Books, Edward Elgar Publishing, number 1248, December.
    4. 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.
    5. Freeman, C., 1991. "Networks of innovators: A synthesis of research issues," Research Policy, Elsevier, vol. 20(5), pages 499-514, October.
    6. Arora, Ashish & Gambardella, Alfonso, 1994. "The changing technology of technological change: general and abstract knowledge and the division of innovative labour," Research Policy, Elsevier, vol. 23(5), pages 523-532, September.
    7. Pammolli, Fabio & Riccaboni, Massimo, 2002. "Technological Regimes and the Growth of Networks: An Empirical Analysis," Small Business Economics, Springer, vol. 19(3), pages 205-215, November.
    8. Brock, W A, 1999. "Scaling in Economics: A Reader's Guide," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 8(3), pages 409-446, September.
    9. Richardson, G B, 1972. "The Organisation of Industry," Economic Journal, Royal Economic Society, vol. 82(327), pages 883-896, September.
    10. Zucker, Lynne G & Darby, Michael R & Brewer, Marilynn B, 1998. "Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises," American Economic Review, American Economic Association, vol. 88(1), pages 290-306, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anna Giunta & Domenico Scalera & Annamaria Nifo, 2008. "Divisione del lavoro, crescita e divari di performance nell'industria italiana degli anni '90," Departmental Working Papers of Economics - University 'Roma Tre' 0097, Department of Economics - University Roma Tre.
    2. Kelchtermans, Stijn & Leten, Bart & Rabijns, Maarten & Riccaboni, Massimo, 2022. "Do licensors learn from out-licensing? Empirical evidence from the pharmaceutical industry," Technovation, Elsevier, vol. 112(C).
    3. 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 and the Associazione ICC, vol. 26(4), pages 617-646.
    4. Luca Verginer & Federica Parisi & Jeroen van Lidth de Jeude & Massimo Riccaboni, 2022. "The Impact of Acquisitions in the Biotechnology Sector on R&D Productivity," Papers 2203.12968, arXiv.org, revised Jan 2024.
    5. Massimo Riccaboni & Alessandro Rossi & Stefano Schiavo, 2013. "Global networks of trade and bits," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 8(1), pages 33-56, April.
    6. M. Koenig & Claudio J. Tessone & Yves Zenou, "undated". "A Dynamic Model of Network Formation with Strategic Interactions," Working Papers CCSS-09-006, ETH Zurich, Chair of Systems Design.
    7. 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).
    8. Michael D. König & Xiaodong Liu & Yves Zenou, 2019. "R&D Networks: Theory, Empirics, and Policy Implications," The Review of Economics and Statistics, MIT Press, vol. 101(3), pages 476-491, July.
    9. repec:hal:wpspec:info:hdl:2441/f6h8764enu2lskk9p5487a6cm is not listed on IDEAS
    10. Luca Verginer & Federica Parisi & Jeroen Lidth de Jeude & Massimo Riccaboni, 2025. "Acquisitions as catalysts for inventor departures in the biotechnology industry," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-12, December.
    11. Daniele Schilirò, 2007. "Knowledge, Learning, Networks and Performance of Firms in Knowledge-Based Economies," CRANEC - Working Papers del Centro di Ricerche in Analisi economica e sviluppo economico internazionale crn0702, Università Cattolica del Sacro Cuore, Centro di Ricerche in Analisi economica e sviluppo economico internazionale (CRANEC).
    12. Giarratana, Marco S., 2004. "The birth of a new industry: entry by start-ups and the drivers of firm growth: The case of encryption software," Research Policy, Elsevier, vol. 33(5), pages 787-806, July.
    13. repec:hal:spmain:info:hdl:2441/f6h8764enu2lskk9p5487a6cm is not listed on IDEAS
    14. Olie, R.L. & Glunk, U. & Heijltjes, M.G., 2003. "Continuity and renewal at the top: performance effects of the level, extent, type and frequency of top management team changes," Research Memorandum 049, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    15. Robin Cowan & Nicolas Jonard & Jean-Benoit Zimmermann, 2007. "Bilateral Collaboration and the Emergence of Innovation Networks," Management Science, INFORMS, vol. 53(7), pages 1051-1067, July.
    16. Messeni Petruzzelli, Antonio, 2019. "Trading knowledge for status: Conceptualizing R&D alliance formation to achieve ambidexterity," Technological Forecasting and Social Change, Elsevier, vol. 145(C), pages 36-42.
    17. Fabio Pammolli & Massimo Riccaboni & Alessandro Spelta, 2021. "The network origins of Schumpeterian innovation," Journal of Evolutionary Economics, Springer, vol. 31(5), pages 1411-1431, November.
    18. M. C. Guardo & K. R. Harrigan, 2016. "Shaping the path to inventive activity: the role of past experience in R&D alliances," The Journal of Technology Transfer, Springer, vol. 41(2), pages 250-269, April.
    19. Nicholas S. Vonortas & Koichiro Okamura, 2013. "Network structure and robustness: lessons for research programme design," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(4), pages 392-411, June.
    20. Anna Giunta & Annamaria Nifo & Domenico Scalera, 2012. "Subcontracting in Italian Industry: Labour Division, Firm Growth and the North--South Divide," Regional Studies, Taylor & Francis Journals, vol. 46(8), pages 1067-1083, December.
    21. repec:spo:wpmain:info:hdl:2441/f6h8764enu2lskk9p5487a6cm is not listed on IDEAS
    22. , David, 2016. "The formation of networks with local spillovers and limited observability," Theoretical Economics, Econometric Society, vol. 11(3), September.
    23. Cowan, Robin, 2004. "Network models of innovation and knowledge diffusion," Research Memorandum 016, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    24. repec:spo:wpecon:info:hdl:2441/f6h8764enu2lskk9p5487a6cm is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lionel Nesta & Vincent Mangematin, 2002. "Industry Life Cycle, Knowledge Generation and Technological Networks," Grenoble Ecole de Management (Post-Print) hal-03398092, HAL.
    2. Rene Belderbos & Victor Gilsing & Shinya Suzuki, 2015. "Direct and mediated ties to universities: ‘Scientific’ absorptive capacity and innovation performance of pharmaceutical firms," Working Papers of Department of Management, Strategy and Innovation, Leuven 504836, KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven.
    3. Mauro Napoletano & Stefano Battiston & Michael D König & Frank Schweitzer, 2008. "The efficiency and evolution of R&D Networks," Working Papers hal-01066189, HAL.
    4. repec:spo:wpmain:info:hdl:2441/9933 is not listed on IDEAS
    5. Aija Leiponen, 2005. "Core complementarities of the corporation: organization of an innovating firm," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 26(6), pages 351-365.
    6. Dosi, Giovanni & Nelson, Richard R., 2010. "Technical Change and Industrial Dynamics as Evolutionary Processes," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 51-127, Elsevier.
    7. repec:hal:wpspec:info:hdl:2441/9933 is not listed on IDEAS
    8. Leiponen, Aija, . "Essays in the Economics of Knowledge: Innovation, Collaboration, and Organizational Complementarities," ETLA A, The Research Institute of the Finnish Economy, number 31, June.
    9. James E. Bessen, 2010. "Communicating Technical Knowledge," Levine's Working Paper Archive 661465000000000308, David K. Levine.
    10. Pammolli, Fabio & Riccaboni, Massimo, 2002. "Technological Regimes and the Growth of Networks: An Empirical Analysis," Small Business Economics, Springer, vol. 19(3), pages 205-215, November.
    11. Bettencourt, Luis M.A. & Lobo, Jose & Strumsky, Deborah, 2007. "Invention in the city: Increasing returns to patenting as a scaling function of metropolitan size," Research Policy, Elsevier, vol. 36(1), pages 107-120, February.
    12. repec:hal:spmain:info:hdl:2441/9933 is not listed on IDEAS
    13. repec:spo:wpecon:info:hdl:2441/9933 is not listed on IDEAS
    14. Malerba, Franco, 2007. "Innovation and the dynamics and evolution of industries: Progress and challenges," International Journal of Industrial Organization, Elsevier, vol. 25(4), pages 675-699, August.
    15. Giorgio Fagiolo & Mauro Napoletano & Andrea Roventini, 2008. "Are output growth-rate distributions fat-tailed? some evidence from OECD countries," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(5), pages 639-669.
    16. Pantic-Dragisic, Svjetlana & Söderlund, Jonas, 2020. "Swift transition and knowledge cycling: Key capabilities for successful technical and engineering consulting?," Research Policy, Elsevier, vol. 49(1).
    17. Luukkonen, Terttu, 2003. "Variability in Forms of Organisation in Biotechnology Firms," Discussion Papers 872, The Research Institute of the Finnish Economy.
    18. Pammolli, Fabio & Riccaboni, Massimo, 2004. "Market Structure and Drug Innovation," MPRA Paper 16212, University Library of Munich, Germany.
    19. Stephan, Michael, 2013. "Theorien der Industrieevolution," Discussion Papers on Strategy and Innovation 13-03, Philipps-University Marburg, Department of Technology and Innovation Management (TIM).
    20. Margarida Fontes, 2005. "Distant networking: The knowledge acquisition strategies of 'out-cluster' biotechnology firms," European Planning Studies, Taylor & Francis Journals, vol. 13(6), pages 899-920, September.
    21. Francesca Lotti & Enrico Santarelli, 2004. "Industry Dynamics and the Distribution of Firm Sizes: A Nonparametric Approach," Southern Economic Journal, John Wiley & Sons, vol. 70(3), pages 443-466, January.
    22. Olie, R.L. & Glunk, U. & Heijltjes, M.G., 2003. "Continuity and renewal at the top: performance effects of the level, extent, type and frequency of top management team changes," Research Memorandum 049, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    23. Peter Maskell & Mark Lorenzen, 2004. "The Cluster as Market Organisation," Urban Studies, Urban Studies Journal Limited, vol. 41(5-6), pages 991-1009, May.
    24. Maureen McKelvey & Bastian Rake, 2012. "Research Network Position and Innovative Performance: Evidence from the Pharmaceutical Industry," Jena Economics Research Papers 2012-021, Friedrich-Schiller-University Jena.

    More about this item

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:31:y:2002:i:8-9:p:1405-1416. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/respol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.