IDEAS home Printed from https://ideas.repec.org/p/qld/uq2004/469.html
   My bibliography  Save this paper

The Emergence of a Small World in a Network of Research Joint Ventures

Author

Abstract

Using a data set spanning the period 1899-2000, we construct a network of RJVs and track the pattern of growth of this network over time. The resulting R&D network is emergent in the sense that RJVs are contained within it, connected to other RJVs by the existence firms sharing membership with multiple RJVs. This paper shows that the largest growth in the R&D networks occurred during the last three decades of the Twentieth Century. During this growth period, the R&D network has a pattern of collaboration that can be characterized as having the “small world†property. This has implications for the rate of information diffusion across the network, as it implies that many non-collaborating firms are in fact quite close to each other in terms of degree of separation. We show that this network structure is due to the presence of a small number of highly connected firms that collaborate across multiple RJVs. These firms have an important characteristic in that without their presence in the network, the R&D network looses its cohesiveness and the small world property disappears. Hence, these highly connected firms have an important role to play in determining the overall robustness of the R&D network.

Suggested Citation

  • Stuart McDonald & Mohamad Alghamdi & Bernard Pailthorpe, 2012. "The Emergence of a Small World in a Network of Research Joint Ventures," Discussion Papers Series 469, School of Economics, University of Queensland, Australia.
  • Handle: RePEc:qld:uq2004:469
    as

    Download full text from publisher

    File URL: http://www.uq.edu.au/economics/abstract/469.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Hagedoorn, John & Link, Albert N. & Vonortas, Nicholas S., 2000. "Research partnerships1," Research Policy, Elsevier, vol. 29(4-5), pages 567-586, April.
    2. Cantner, Uwe & Graf, Holger, 2006. "The network of innovators in Jena: An application of social network analysis," Research Policy, Elsevier, vol. 35(4), pages 463-480, May.
    3. S. Redner, 1998. "How popular is your paper? An empirical study of the citation distribution," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 4(2), pages 131-134, July.
    4. W. Salant, Stephen & Shaffer, Greg, 1998. "Optimal asymmetric strategies in research joint ventures," International Journal of Industrial Organization, Elsevier, vol. 16(2), pages 195-208, March.
    5. 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.
    6. Goyal, Sanjeev & Joshi, Sumit, 2003. "Networks of collaboration in oligopoly," Games and Economic Behavior, Elsevier, vol. 43(1), pages 57-85, April.
    7. Jasjit Singh, 2005. "Collaborative Networks as Determinants of Knowledge Diffusion Patterns," Management Science, INFORMS, vol. 51(5), pages 756-770, May.
    8. Sanjeev Goyal & Marco J. van der Leij & José Luis Moraga-Gonzalez, 2006. "Economics: An Emerging Small World," Journal of Political Economy, University of Chicago Press, vol. 114(2), pages 403-432, April.
    9. Bastian Westbrock, 2010. "Natural concentration in industrial research collaboration," RAND Journal of Economics, RAND Corporation, vol. 41(2), pages 351-371.
    10. Kamien, Morton I. & Zang, Israel, 2000. "Meet me halfway: research joint ventures and absorptive capacity," International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 995-1012, October.
    11. Freeman, C., 1991. "Networks of innovators: A synthesis of research issues," Research Policy, Elsevier, vol. 20(5), pages 499-514, October.
    12. Corinne Autant-Bernard & Pascal Billand & Christophe Bravard & Nadine Massard, 2006. "Network effects in R&D partnership : Evidence from the European collaborations in micro and nanotechnologie," Post-Print hal-00375333, HAL.
    13. De Bondt, Raymond, 1997. "Spillovers and innovative activities," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 1-28, February.
    14. Greg Shaffer & Stephen W. Salant, 1999. "Unequal Treatment of Identical Agents in Cournot Equilibrium," American Economic Review, American Economic Association, vol. 89(3), pages 585-604, June.
    15. Wagner, Caroline S. & Leydesdorff, Loet, 2005. "Network structure, self-organization, and the growth of international collaboration in science," Research Policy, Elsevier, vol. 34(10), pages 1608-1618, December.
    16. Kamien, Morton I & Muller, Eitan & Zang, Israel, 1992. "Research Joint Ventures and R&D Cartels," American Economic Review, American Economic Association, vol. 82(5), pages 1293-1306, December.
    17. Spence, Michael, 1984. "Cost Reduction, Competition, and Industry Performance," Econometrica, Econometric Society, vol. 52(1), pages 101-121, January.
    18. Melissa A. Schilling & Corey C. Phelps, 2007. "Interfirm Collaboration Networks: The Impact of Large-Scale Network Structure on Firm Innovation," Management Science, INFORMS, vol. 53(7), pages 1113-1126, July.
    19. 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.
    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. Johannes Van Der Pol, 2015. "Structural dynamics of the French aerospace sector: A network analysis," Working Papers hal-01284993, HAL.
    2. Johannes van der Pol, 2018. "Explaining the structure of collaboration networks: from firm-level strategies to global network structure," Cahiers du GREThA 2018-02, Groupe de Recherche en Economie Théorique et Appliquée.
    3. Johannes VAN DER POL, 2016. "Social interactions between innovating firms: an analytical review of the literature," Cahiers du GREThA 2016-23, Groupe de Recherche en Economie Théorique et Appliquée.
    4. Brendan Markey-Towler & John Foster, 2013. "Understanding the causes of income inequality in complex economic systems," Discussion Papers Series 478, School of Economics, University of Queensland, Australia.
    5. Johannes VAN DER POL, 2016. "The French Aerospace Sector Collaboration Network : Structural Dynamics And Firm Performance," Cahiers du GREThA 2016-24, Groupe de Recherche en Economie Théorique et Appliquée.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:qld:uq2004:469. 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: (SOE IT). General contact details of provider: http://edirc.repec.org/data/decuqau.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.