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The evolution of R&D networks

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  • Zirulia, Lorenzo

    (MERIT)

Abstract

This paper models the formation of R&D networks in an oligopolistic industry. In particular, it focuses on the coevolutionary process involving firms’ technological capabilities, market structure and the network of interfirm technological agreements.The main result of the paper is that the R&D network can work as a strong selection mechanism in the industry, creating ex post asymmetries among ex ante similar firms. This is due to a self-reinforcing, path-dependent process, in which events in the early stages of the industry affect firms’ survival in the long run. In this framework, both market and technological externalities created by the formation of cooperative agreements play a crucial roe. Although the R&D network creates profound differences at the beginning, which are reflected by an unequal distribution of links, it tends to eliminate them as it becomes denser and denser. The nature of the technological environment affects the speed of the transition and some of the characteristics of the industry in the long run.

Suggested Citation

  • Zirulia, Lorenzo, 2004. "The evolution of R&D networks," Research Memorandum 007, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:umamer:2004007
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    File URL: https://www.merit.unu.edu/publications/rmpdf/2004/rm2004-007.pdf
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    References listed on IDEAS

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    5. Goyal, Sanjeev & Joshi, Sumit, 2003. "Networks of collaboration in oligopoly," Games and Economic Behavior, Elsevier, vol. 43(1), pages 57-85, April.
    6. Ozman, Müge, 2003. "Self-Organizing Inter-Firm Networks," Research Memorandum 022, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    7. Olsson, Ola, 2000. "Knowledge as a Set in Idea Space: An Epistemological View on Growth," Journal of Economic Growth, Springer, vol. 5(3), pages 253-275, September.
    8. 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.
    9. Goyal, Sanjeev & Joshi, Sumit, 2003. "Networks of collaboration in oligopoly," Games and Economic Behavior, Elsevier, vol. 43(1), pages 57-85, April.
    10. Cohen, Wesley M & Klepper, Steven, 1996. "A Reprise of Size and R&D," Economic Journal, Royal Economic Society, vol. 106(437), pages 925-951, July.
    11. Michael L. Katz, 1986. "An Analysis of Cooperative Research and Development," RAND Journal of Economics, The RAND Corporation, vol. 17(4), pages 527-543, Winter.
    12. Nigel Gilbert & Andreas Pyka & Petra Ahrweiler, 2001. "Innovation Networks - a Simulation Approach," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 4(3), pages 1-8.
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    industrial organization ;

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