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Parameters of Regional Cooperative Behavior in the German Biotech Industry – A Quantitative Social Network Analysis

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  • Mitze, Timo
  • Strotebeck, Falk

Abstract

We analyse the determinants of network formation in Germany's biotechnology industry using social network analysis combined with a regression approach for count data. Outcome variable of interest is the degree centrality of German regions, which is specified as a function of the region's innovative and economic performance as well as biotech-related policy variables. The inclusion of the latter allows us to shed new light on the question to what extent R&D-based cluster policies are able to impact on the formation of the German biotech network. Our results show that policy indicators such as the volume of public funding for collaborative R&D activity are positively correlated with the region's overall and interregional degree centrality. However, besides this direct funding effect, we do not observe any further (non-pecuniary) advantages such as prestige or image effects. Regarding the role played by locational factors as elements of the sector-specific and broader regional innovation system, we find that the number of biotech patent applications, the share of regional hightech start-ups and the population density among other factors are positively correlated with the region's position in the German biotechnology network.

Suggested Citation

  • Mitze, Timo & Strotebeck, Falk, 2012. "Parameters of Regional Cooperative Behavior in the German Biotech Industry – A Quantitative Social Network Analysis," Ruhr Economic Papers 374, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
  • Handle: RePEc:zbw:rwirep:374
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    Keywords

    biotechnology; network formation; degree centrality; R&D policy;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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