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Self-Organizing Innovation Networks: When do Small Worlds Emerge?

  • Nicolas CARAYOL (BETA)
  • Pascale ROUX (GRES-LEREPS)

In this paper, we present a model of 'collective innovation' built upon the network formation formalism. In our model, agents localized on a circle benefit from knowledge flows from other agents with whom they are directly or indirectly connected. They support costs for direct connections which are linearly increasing with geographic distance. The dynamic process of network formation exhibits prefeRential meeting for close agents (in the relational network and in the geographic metrics). We show how the set of stochastically stable networks selected in the long run is affected by the degree of knowledge transferability. We find critical values of this parameter for which stable \"small world\" networks are dynamically selected.

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Paper provided by Groupement de Recherches Economiques et Sociales in its series Cahiers du GRES (2002-2009) with number 2003-08.

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Date of creation: 2003
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Handle: RePEc:grs:wpegrs:2003-08
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  12. Reinganum, Jennifer F., 1989. "The timing of innovation: Research, development, and diffusion," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 14, pages 849-908 Elsevier.
  13. R. Cowan & N. Jonard & J.-B. Zimmermann, 2002. "The Joint Dynamics of Networks and Knowledge," Computing in Economics and Finance 2002 354, Society for Computational Economics.
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