Emergence of Innovation Networks from R&D Cooperation with Endogenous Absorptive Capacity
This paper extends the existing literature on strategic R&D alliances by presenting a model of innovation networks with endogenous absorptive capacity. The networks emerge as a result of bilateral cooperation over time between firms occupying different locations in the knowledge space. Social capital is ignored, and firms ally purely on the basis of knowledge considerations. Partner selection is driven largely by absorptive capacity which is itself influenced by cognitive distance and investment allocation between inventive and absorptive R&D. Cognitive distance between firms changes as a function of the intensity of cooperation and innovation. Within different knowledge regimes, we examine the structure of networks that emerge and how firms perform within such networks. Our model replicates some stylised empirical results on network structure and the contingent effects of network position on innovative performance. We find networks that exhibit small world properties which are generally robust to changes in the knowledge regime. Second, subject to the extent of knowledge spillovers, certain network strategies such as occupying brokerage positions or maximising accessibility to potential partners pay off. Third and most importantly, absorptive capacity plays an important role in network evolution: firms with different network strategies indeed differ in the build-up of absorptive capacity.
|Date of creation:||22 May 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +049 3641/ 9 43000
Fax: +049 3641/ 9 43000
Web page: http://www.jenecon.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Abiodun Egbetokun & Ivan Savin, 2012.
"Absorptive Capacity and Innovation: When Is It Better to Cooperate?,"
Jena Economic Research Papers
2012-056, Friedrich-Schiller-University Jena.
- Abiodun Egbetokun & Ivan Savin, 2014. "Absorptive capacity and innovation: when is it better to cooperate?," Journal of Evolutionary Economics, Springer, vol. 24(2), pages 399-420, April.
- Nooteboom, B. & Gilsing, V.A. & Vanhaverbeke, W.P.M. & Duijsters, G.M. & Oord, A., 2006.
"Network Embeddedness and the Exploration of Novel Technologies : Technological Distance, Betweenness Centrality and Density,"
2006-32, Tilburg University, Center for Economic Research.
- Gilsing, Victor & Nooteboom, Bart & Vanhaverbeke, Wim & Duysters, Geert & van den Oord, Ad, 2008. "Network embeddedness and the exploration of novel technologies: Technological distance, betweenness centrality and density," Research Policy, Elsevier, vol. 37(10), pages 1717-1731, December.
- Gilsing, V.A. & Nooteboom, B. & van Haverbeke, W.P.M. & Duijsters, G.M. & Oord, A., 2008. "Network embeddedness and the exploration of novel technologies : Technological distance, betweenness centrality and density," Other publications TiSEM 762e80f1-0adc-4184-b1be-9, Tilburg University, School of Economics and Management.
- Victor Gilsing & Bart Noteboom & Wim Vanhaverbeke & Geert Duysters & Ad van Noord, 2006. "Network embeddedness and the exploration of novel technologies: technological distance, betweenness centrality and density," Working Papers 06-08, Eindhoven Center for Innovation Studies, revised Apr 2006.
- Joel A. C. Baum & Andrew V. Shipilov & Tim J. Rowley, 2003. "Where do small worlds come from?," Industrial and Corporate Change, Oxford University Press, vol. 12(4), pages 697-725, August.
- Nooteboom, B. & Vanhaverbeke, W.P.M. & Duijsters, G.M. & Gilsing, V.A. & Oord, A., 2006.
"Optimal Cognitive Distance and Absorptive Capacity,"
2006-33, Tilburg University, Center for Economic Research.
- Nooteboom, Bart & Van Haverbeke, Wim & Duysters, Geert & Gilsing, Victor & van den Oord, Ad, 2007. "Optimal cognitive distance and absorptive capacity," Research Policy, Elsevier, vol. 36(7), pages 1016-1034, September.
- Nooteboom, B. & Vanheverbeke, W.P.M. & Duysters, G.M. & Gilsing, V.A. & Oord van den, A,J,, 2005. "Optimal cognitive distance and absorptive capacity," Working Papers 05.05, Eindhoven Center for Innovation Studies.
- Antonelli, Cristiano & Krafft, Jackie & Quatraro, Francesco, 2010.
"Recombinant knowledge and growth: The case of ICTs,"
Structural Change and Economic Dynamics,
Elsevier, vol. 21(1), pages 50-69, March.
- Cristiano Antonelli & Jackie Krafft & Francesco Quatraro, 2010. "Recombinant knowledge and growth: The case of ICT," Post-Print halshs-00727614, HAL.
- Andersen Birgitte & Rossi Federica, 2010. "Recombinant Knowledge and Growth: The Case Of Icts," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201001, University of Turin.
- Cristiano Antonelli & Jackie Krafft & Francesco Quatraro, 2010. "Recombinant Knowledge and Growth: The Case of ICTs," Post-Print hal-00448649, HAL.
- Joel BAUM & Robin COWAN & Nicolas JONARD, 2009.
"Network-independent partner selection and the evolution of innovation networks,"
Working Papers of BETA
2009-23, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- Joel A. C. Baum & Robin Cowan & Nicolas Jonard, 2010. "Network-Independent Partner Selection and the Evolution of Innovation Networks," Management Science, INFORMS, vol. 56(11), pages 2094-2110, November.
- Baum, Joel & Cowan, Robin & Jonard, Nicolas, 2009. "Network-independent partner selection and the evolution of innovation networks," MERIT Working Papers 022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Gilli, M. & Winker, P., 2003. "A global optimization heuristic for estimating agent based models," Computational Statistics & Data Analysis, Elsevier, vol. 42(3), pages 299-312, March.
- D. Blueschke & V. Blueschke-Nikolaeva & Ivan Savin, 2012.
"New Insights Into Optimal Control of Nonlinear Dynamic Econometric Models: Application of a Heuristic Approach,"
Jena Economic Research Papers
2012-008, Friedrich-Schiller-University Jena.
- Blueschke, D. & Blueschke-Nikolaeva, V. & Savin, I., 2013. "New insights into optimal control of nonlinear dynamic econometric models: Application of a heuristic approach," Journal of Economic Dynamics and Control, Elsevier, vol. 37(4), pages 821-837.
- Winker, Peter & Gilli, Manfred, 2004. "Applications of optimization heuristics to estimation and modelling problems," Computational Statistics & Data Analysis, Elsevier, vol. 47(2), pages 211-223, September.
- Wuyts, Stefan & Colombo, Massimo G. & Dutta, Shantanu & Nooteboom, Bart, 2005.
"Empirical tests of optimal cognitive distance,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 58(2), pages 277-302, October.
- Wuyts, S.H.K. & Colombo, M. & Dutta, S. & Nooteboom, B., 2005. "Empirical Tests of Optimal Cognitive Distance," Discussion Paper 2005-45, Tilburg University, Center for Economic Research.
- Wuyts, S.H.K. & Colombo, M.G. & Dutta, S. & Nooteboom, B., 2004. "Empirical Tests Of Optimal Cognitive Distance," ERIM Report Series Research in Management ERS-2004-007-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- Venkatesh Bala & Sanjeev Goyal, 2000. "A Noncooperative Model of Network Formation," Econometrica, Econometric Society, vol. 68(5), pages 1181-1230, September.
- Uwe Cantner & Andreas Meder, 2007. "Technological proximity and the choice of cooperation partner," Journal of Economic Interaction and Coordination, Springer, vol. 2(1), pages 45-65, June.
- 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.
- Fabrizio, Kira R., 2009. "Absorptive capacity and the search for innovation," Research Policy, Elsevier, vol. 38(2), pages 255-267, March.
When requesting a correction, please mention this item's handle: RePEc:jrp:jrpwrp:2013-022. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Markus Pasche)
If references are entirely missing, you can add them using this form.