IDEAS home Printed from https://ideas.repec.org/p/zbw/iwhdps/iwh-1-14.html
   My bibliography  Save this paper

Exploring the Evolution of Innovation Networks in Science-driven and Scale-intensive Industries: New Evidence from a Stochastic Actor-based Approach

Author

Listed:
  • Buchmann, Tobias
  • Hain, Daniel
  • Kudic, Muhamed
  • Müller, Matthias

Abstract

Our primary goal is to analyse the drivers of evolutionary network change processes by using a stochastic actor-based simulation approach. We contribute to the literature by combining two unique datasets, concerning the German laser and automotive industry, between 2002 and 2006 to explore whether geographical, network-related, and techno-logical determinants affect the evolution of networks, and if so, as to what extent these determinants systematically differ for science-driven industries compared to scale-intensive industries. Our results provide empirical evidence for the explanatory power of network-related determinants in both industries. The 'experience effect' as well as the 'transitivity effects' are significant for both industries but more pronounced for laser manufacturing firms. When it comes to 'geographical effects' and 'technological effects' the picture changes considerably. While geographical proximity plays an important role in the automotive industry, firms in the laser industry seem to be less dependent on geographical closeness to cooperation partners; instead they rather search out for cooperation opportunities in distance. This might reflect the strong dependence of firms in science-driven industries to access diverse external knowledge, which cannot necessarily be found in the close geographical surrounding. Technological proximity negatively influences cooperation decisions for laser source manufacturers, yet has no impact for automotive firms. In other words,technological heterogeneity seems to explain, at least in science-driven industries, the attractiveness of potential cooperation partners.

Suggested Citation

  • Buchmann, Tobias & Hain, Daniel & Kudic, Muhamed & Müller, Matthias, 2014. "Exploring the Evolution of Innovation Networks in Science-driven and Scale-intensive Industries: New Evidence from a Stochastic Actor-based Approach," IWH Discussion Papers 1/2014, Halle Institute for Economic Research (IWH).
  • Handle: RePEc:zbw:iwhdps:iwh-1-14
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/90173/1/776115766.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
    2. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    3. Oerlemans, L.A.G. & Meeus, M.T.H. & Boekema, F.W.M., 2001. "Firm clustering and innovation," Other publications TiSEM c4398688-1710-449a-83e7-e, Tilburg University, School of Economics and Management.
    4. 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.
    5. Bruce Kogut & Udo Zander, 1992. "Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology," Organization Science, INFORMS, vol. 3(3), pages 383-397, August.
    6. Joel A. C. Baum & Tony Calabrese & Brian S. Silverman, 2000. "Don't go it alone: alliance network composition and startups' performance in Canadian biotechnology," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 267-294, March.
    7. Ron Boschma & Ron Martin (ed.), 2010. "The Handbook of Evolutionary Economic Geography," Books, Edward Elgar Publishing, number 12864.
    8. Carlsson, Bo & Jacobsson, Staffan & Holmen, Magnus & Rickne, Annika, 2002. "Innovation systems: analytical and methodological issues," Research Policy, Elsevier, vol. 31(2), pages 233-245, February.
    9. Guido Buenstorf, 2007. "Evolution on the Shoulders of Giants: Entrepreneurship and Firm Survival in the German Laser Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 30(3), pages 179-202, May.
    10. 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.
    11. Bernard L. Simonin, 1999. "Ambiguity and the process of knowledge transfer in strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 20(7), pages 595-623, July.
    12. Joshua Lospinoso & Michael Schweinberger & Tom Snijders & Ruth Ripley, 2011. "Assessing and accounting for time heterogeneity in stochastic actor oriented models," Advances in Data Analysis and Classification, Springer;German Classification Society - Gesellschaft für Klassifikation (GfKl);Japanese Classification Society (JCS);Classification and Data Analysis Group of the Italian Statistical Society (CLADAG);International Federation of Classification Societies (IFCS), vol. 5(2), pages 147-176, July.
    13. Anne Ter Wal & Ron Boschma, 2011. "Co-evolution of Firms, Industries and Networks in Space," Regional Studies, Taylor & Francis Journals, vol. 45(7), pages 919-933.
    14. Guido Buenstorf & Steven Klepper, 2010. "Submarket dynamics and innovation: the case of the US tire industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(5), pages 1563-1587, October.
    15. Thomas Brenner & Uwe Cantner & Holger Graf, 2011. "Innovation Networks: Measurement, Performance and Regional Dimensions," Industry and Innovation, Taylor & Francis Journals, vol. 18(1), pages 1-5.
    16. Lorenzo Cassi & Nicoletta Corrocher & Franco Malerba & Nicholas Vonortas, 2008. "Research Networks As Infrastructure For Knowledge Diffusion In European Regions," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(7-8), pages 663-676.
    17. Jovanovic, Boyan & MacDonald, Glenn M, 1994. "The Life Cycle of a Competitive Industry," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 322-347, April.
    18. Tobias Buchman & Andreas Pyka, 2012. "Innovation Networks," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 33, Edward Elgar Publishing.
    19. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    20. Evert-Jan Visser, 2009. "The Complementary Dynamic Effects of Clusters and Networks," Industry and Innovation, Taylor & Francis Journals, vol. 16(2), pages 167-195.
    21. Horst Hanusch & Andreas Pyka, 2007. "Principles of Neo-Schumpeterian Economics," Cambridge Journal of Economics, Oxford University Press, vol. 31(2), pages 275-289, March.
    22. Gerhard G. Van De Bunt & Marijtje A.J. Van Duijn & Tom A.B. Snijders, 1999. "Friendship Networks Through Time: An Actor-Oriented Dynamic Statistical Network Model," Computational and Mathematical Organization Theory, Springer, vol. 5(2), pages 167-192, July.
    23. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    24. Gordon Walker & Bruce Kogut & Weijian Shan, 1997. "Social Capital, Structural Holes and the Formation of an Industry Network," Organization Science, INFORMS, vol. 8(2), pages 109-125, April.
    25. Dirk Fornahl & Tom Broekel & Ron Boschma, 2011. "What drives patent performance of German biotech firms? The impact of R&D subsidies, knowledge networks and their location," Papers in Regional Science, Wiley Blackwell, vol. 90(2), pages 395-418, June.
    26. Utterback, James M & Abernathy, William J, 1975. "A dynamic model of process and product innovation," Omega, Elsevier, vol. 3(6), pages 639-656, December.
    27. Pierre-Alexandre Balland, 2012. "Proximity and the Evolution of Collaboration Networks: Evidence from Research and Development Projects within the Global Navigation Satellite System (GNSS) Industry," Regional Studies, Taylor & Francis Journals, vol. 46(6), pages 741-756, September.
    28. Horst Hanusch & Andreas Pyka (ed.), 2007. "Elgar Companion to Neo-Schumpeterian Economics," Books, Edward Elgar Publishing, number 2973.
    29. Keld Laursen & Francesca Masciarelli & Andrea Prencipe, 2012. "Regions Matter: How Localized Social Capital Affects Innovation and External Knowledge Acquisition," Organization Science, INFORMS, vol. 23(1), pages 177-193, February.
    30. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    31. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and Sustainability of Competitive Advantage," Management Science, INFORMS, vol. 35(12), pages 1504-1511, December.
    32. Cooke, Philip, 2001. "Regional Innovation Systems, Clusters, and the Knowledge Economy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 945-974, December.
    33. 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.
    34. Eric von Hippel, 1994. ""Sticky Information" and the Locus of Problem Solving: Implications for Innovation," Management Science, INFORMS, vol. 40(4), pages 429-439, April.
    35. Julie M. Hite & William S. Hesterly, 2001. "The evolution of firm networks: from emergence to early growth of the firm," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 275-286, March.
    36. Holger Graf, 2006. "Networks in the Innovation Process," Books, Edward Elgar Publishing, number 4249.
    37. Gilbert, Nigel & Ahrweiler, Petra & Pyka, Andreas, 2007. "Learning in innovation networks: Some simulation experiments," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 378(1), pages 100-109.
    38. Edward K. Y. Chen, 1983. "The Diffusion of Technology," Palgrave Macmillan Books, in: Multinational Corporations, Technology and Employment, chapter 4, pages 69-93, Palgrave Macmillan.
    39. Tom Broekel & Holger Graf, 2010. "Structural properties of cooperation networks in Germany: From basic to applied research," Jena Economics Research Papers 2010-078, Friedrich-Schiller-University Jena.
    40. Robert M. Grant & Charles Baden‐Fuller, 2004. "A Knowledge Accessing Theory of Strategic Alliances," Journal of Management Studies, Wiley Blackwell, vol. 41(1), pages 61-84, January.
    41. Maskell, Peter & Malmberg, Anders, 1999. "Localised Learning and Industrial Competitiveness," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 167-185, March.
    42. Klepper, Steven, 1997. "Industry Life Cycles," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 6(1), pages 145-181.
    43. Tom Broekel & Holger Graf, 2012. "Public research intensity and the structure of German R&D networks: a comparison of 10 technologies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(4), pages 345-372, April.
    44. Alan Kirman, 1993. "Ants, Rationality, and Recruitment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(1), pages 137-156.
    45. Johannes van Biesebroeck, 2003. "Productivity Dynamics with Technology Choice: An Application to Automobile Assembly," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(1), pages 167-198.
    46. Africa Ariño & José de la Torre, 1998. "Learning from Failure: Towards an Evolutionary Model of Collaborative Ventures," Organization Science, INFORMS, vol. 9(3), pages 306-325, June.
    47. Prashant Kale & Harbir Singh & Howard Perlmutter, 2000. "Learning and protection of proprietary assets in strategic alliances: building relational capital," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 217-237, March.
    48. Leon Oerlemans & Marius Meeus, 2005. "Do Organizational and Spatial Proximity Impact on Firm Performance?," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 89-104.
    49. Thomas Scherngell & Michael J. Barber, 2009. "Spatial interaction modelling of cross‐region R&D collaborations: empirical evidence from the 5th EU framework programme," Papers in Regional Science, Wiley Blackwell, vol. 88(3), pages 531-546, August.
    50. Buchmann, Tobias & Pyka, Andreas, 2013. "The evolution of innovation networks: The case of a German automotive network," FZID Discussion Papers 70-2013, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    51. Aino Halinen & Asta Salmi & Virpi Havila, 1999. "From Dyadic Change to Changing Business Networks: An Analytical Framework," Journal of Management Studies, Wiley Blackwell, vol. 36(6), pages 779-794, November.
    52. Pavitt, Keith, 1998. "The inevitable limits of EU R&D funding," Research Policy, Elsevier, vol. 27(6), pages 559-568, September.
    53. Gary Hamel, 1991. "Competition for competence and interpartner learning within international strategic alliances," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 83-103, June.
    54. Toby E. Stuart, 2000. "Interorganizational alliances and the performance of firms: a study of growth and innovation rates in a high‐technology industry," Strategic Management Journal, Wiley Blackwell, vol. 21(8), pages 791-811, August.
    55. Amin, Ash & Wilkinson, Frank, 1999. "Learning, Proximity and Industrial Performance: An Introduction," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 121-125, March.
    56. Russell W. Coff, 2003. "The emergent knowledge-based theory of competitive advantage: an evolutionary approach to integrating economics and management," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 245-251.
    57. Lee Fleming & Charles King & Adam I. Juda, 2007. "Small Worlds and Regional Innovation," Organization Science, INFORMS, vol. 18(6), pages 938-954, December.
    58. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    59. Rajesh Kumar & Kofi O. Nti, 1998. "Differential Learning and Interaction in Alliance Dynamics: A Process and Outcome Discrepancy Model," Organization Science, INFORMS, vol. 9(3), pages 356-367, June.
    60. Ingemar Dierickx & Karel Cool, 1989. "Asset Stock Accumulation and the Sustainability of Competitive Advantage: Reply," Management Science, INFORMS, vol. 35(12), pages 1514-1514, December.
    61. Thomas Scherngell & Michael Barber, 2011. "Distinct spatial characteristics of industrial and public research collaborations: evidence from the fifth EU Framework Programme," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(2), pages 247-266, April.
    62. Grupp, Hariolf, 2000. "Learning in a Science-Driven Market: The Case of Lasers," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 9(1), pages 143-172, March.
    63. 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.
    64. Muhamed Kudic, 2015. "Innovation Networks in the German Laser Industry," Economic Complexity and Evolution, Springer, edition 127, number 978-3-319-07935-6, June.
    65. Matthew O. Jackson & Brian W. Rogers, 2007. "Meeting Strangers and Friends of Friends: How Random Are Social Networks?," American Economic Review, American Economic Association, vol. 97(3), pages 890-915, June.
    66. Elisa Giuliani, 2010. "Network dynamics in regional clusters: The perspective of an emerging economy," Papers in Evolutionary Economic Geography (PEEG) 1014, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2010.
    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. Patrick Wolf & Tobias Buchmann, 2021. "Analyzing development patterns in research networks and technology," Review of Evolutionary Political Economy, Springer, vol. 2(1), pages 55-81, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kudic, Muhamed & Pyka, Andreas & Sunder, Marco, 2013. "Network Formation: R&D Cooperation Propensity and Timing Among German Laser Source Manufacturers," IWH Discussion Papers 9/2013, Halle Institute for Economic Research (IWH).
    2. Kudic, Muhamed & Pyka, Andreas & Günther, Jutta, 2012. "Determinants of Evolutionary Change Processes in Innovation Networks – Empirical Evidence from the German Laser Industry," IWH Discussion Papers 7/2012, Halle Institute for Economic Research (IWH).
    3. Kudic, Muhamed & Guhr, Katja, 2013. "Cooperation Events, Ego-Network Characteristics and Firm Innovativeness – Empirical Evidence from the German Laser Industry," IWH Discussion Papers 6/2013, Halle Institute for Economic Research (IWH).
    4. Muhamed Kudic & Wilfried Ehrenfeld & Toralf Pusch, 2015. "On the trail of core–periphery patterns in innovation networks: measurements and new empirical findings from the German laser industry," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(1), pages 187-220, October.
    5. Mariia Shkolnykova & Muhamed Kudic, 2022. "Who benefits from SMEs’ radical innovations?—empirical evidence from German biotechnology," Small Business Economics, Springer, vol. 58(2), pages 1157-1185, February.
    6. Kudic, Muhamed & Bönisch, Peter & Dominguez Lacasa, Iciar, 2010. "Analyzing Innovation Drivers in the German Laser Industry: the Role of Positioning in the Social and Geographical Space," IWH Discussion Papers 22/2010, Halle Institute for Economic Research (IWH).
    7. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.
    8. Michael Fritsch & Muhamed Kudic, 2022. "Micro dynamics and macro stability in inventor networks," The Journal of Technology Transfer, Springer, vol. 47(2), pages 353-382, April.
    9. Kudic, Muhamed & Ehrenfeld, Wilfried & Pusch, Toralf, 2015. "Isolation and Innovation – Two Contradictory Concepts? Explorative Findings from the German Laser Industry," IWH Discussion Papers 1/2015, Halle Institute for Economic Research (IWH).
    10. Müller, Matthias & Kudic, Muhamed & Vermeulen, Ben, 2021. "The influence of the structure of technological knowledge on inter-firm R&D collaboration and knowledge discovery: An agent-based simulation approach," Journal of Business Research, Elsevier, vol. 129(C), pages 570-579.
    11. T. Ravichandran & Simona Ileana Giura, 2019. "Knowledge Transfers in Alliances: Exploring the Facilitating Role of Information Technology," Information Systems Research, INFORMS, vol. 30(3), pages 726-744, September.
    12. Haider, Sajjad & Mariotti, Francesca, 2016. "The orchestration of alliance portfolios: The role of alliance portfolio capability," Scandinavian Journal of Management, Elsevier, vol. 32(3), pages 127-141.
    13. Joan Crespo & Raphaël Suire & Jérôme Vicente, 2016. "Network structural properties for cluster long-run dynamics: evidence from collaborative R&D networks in the European mobile phone industry," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(2), pages 261-282.
    14. Ron Boschma & Pierre-Alexandre Balland & Mathijs de Vaan, 2014. "The formation of economic networks: a proximity approach," Chapters, in: André Torre & Frédéric Wallet (ed.), Regional Development and Proximity Relations, chapter 7, pages 243-266, Edward Elgar Publishing.
    15. Li, Zhengyu, 2016. "Essays on knowledge sourcing and technological capability : A knowledge structure perspective," Other publications TiSEM b8ff31fc-c57b-4bc3-b5a4-0, Tilburg University, School of Economics and Management.
    16. Mariia Shkolnykova & Muhamed Kudic, 2020. "Who benefits from radical innovations of SMEs? - Empirical evidence from the German Biotechnology," Bremen Papers on Economics & Innovation 2003, University of Bremen, Faculty of Business Studies and Economics.
    17. Hundt, Christian & Holtermann, Linus & Steeger, Jonas & Bersch, Johannes, 2019. "Cluster externalities, firm capabilities, and the recessionary shock: How the macro-to-micro-transition shapes firm performance during stable times and times of crisis," ZEW Discussion Papers 19-008, ZEW - Leibniz Centre for European Economic Research.
    18. Pinar Ozcan, 2018. "Growing with the market: How changing conditions during market growth affect formation and evolution of interfirm ties," Strategic Management Journal, Wiley Blackwell, vol. 39(2), pages 295-328, February.
    19. Abbasiharofteh, Milad & Kogler, Dieter F. & Lengyel, Balázs, 2023. "Atypical combinations of technologies in regional co-inventor networks," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 52(10), pages 1-1.
    20. Tom Broekel & Marcel Bednarz, 2018. "Disentangling link formation and dissolution in spatial networks: An Application of a Two-Mode STERGM to a Project-Based R&D Network in the German Biotechnology Industry," Networks and Spatial Economics, Springer, vol. 18(3), pages 677-704, September.

    More about this item

    Keywords

    network evolution; innovation network; automotive industry; SIENA;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

    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:zbw:iwhdps:iwh-1-14. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwhhhde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.