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Evolving networks of inventors

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  • R. Cowan
  • N. Jonard
  • J.-B. Zimmermann

Abstract

In this paper we develop a model of R&D alliance formation. Pairs of firms combine their knowledge in an attempt to innovate. Whether this attempt is successful depends in part on whether the pair has been successful in the past: accumulated experience teaches a pair of firms how to innovate together, but at the same time increases the similarity of their knowledge stocks. A tension exists between the desire for a familiar partner, and desire for a partner with complementary knowledge. How this tension is resolved depends on the nature of the innovation process itself, and the elasticity of substitution of different types of knowledge inputs in knowledge production. From the alliance-innovation process, a variety of networks form. In different parts of the parameter space we observe isolated agents, a dense, connected network, and small worlds.
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Suggested Citation

  • R. Cowan & N. Jonard & J.-B. Zimmermann, 2006. "Evolving networks of inventors," Journal of Evolutionary Economics, Springer, vol. 16(1), pages 155-174, April.
  • Handle: RePEc:spr:joevec:v:16:y:2006:i:1:p:155-174
    DOI: 10.1007/s00191-005-0013-1
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    More about this item

    Keywords

    Innovation; R&D collaboration; Networks; Knowledge; Computational experiment; L14; Z13; O3;
    All these keywords.

    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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