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The Dynamics of Innovation Networks




We analyse the changing contribution of networks to the innovative performance of 30 pharmaceutical companies from 1989 to 1997. Count data models show that collaborations with universities and biotechnology companies are important determinants of the firms' innovative performance, but their respective contributions diverge when industry matures. Larger firms enjoy a significant size advantage and in-house research activities are highly significant. Returns to scale in research are decreasing over time while the size advantage is increasing. The changing contribution of networks to knowledge production suggests that these are phase-specific, which has substantial managerial and policy implications.

Suggested Citation

  • Lionel Nesta & Vincent Mangematin, 2004. "The Dynamics of Innovation Networks," SPRU Working Paper Series 114, SPRU - Science and Technology Policy Research, University of Sussex.
  • Handle: RePEc:sru:ssewps:114

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    References listed on IDEAS

    1. Zucker, Lynne G & Darby, Michael R & Armstrong, Jeff, 1998. "Geographically Localized Knowledge: Spillovers or Markets?," Economic Inquiry, Western Economic Association International, vol. 36(1), pages 65-86, January.
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    Cited by:

    1. Jane Marceau, 2007. "Bringing science to life in Australia: the need for a new approach in human health biotechnology policy," The Journal of Technology Transfer, Springer, vol. 32(4), pages 303-327, August.
    2. Birgit Aschhoff & Tobias Schmidt, 2008. "Empirical Evidence on the Success of R&D Cooperation—Happy Together?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 33(1), pages 41-62, August.

    More about this item


    pharmaceutical industry; biotechnology; innovative processes; networks;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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