Emergence of Innovation Networks from R&D Cooperation with Endogenous Absorptive Capacity
Ivan Savin and
Abiodun Egbetokun
No 2013-022, Jena Economics Research Papers from Friedrich-Schiller-University Jena
Abstract:
This paper extends the existing literature on strategic R&D alliances by presenting a model of innovation networks with endogenous absorptive capacity. The networks emerge as a result of bilateral cooperation over time between firms occupying different locations in the knowledge space. Social capital is ignored, and firms ally purely on the basis of knowledge considerations. Partner selection is driven largely by absorptive capacity which is itself influenced by cognitive distance and investment allocation between inventive and absorptive R&D. Cognitive distance between firms changes as a function of the intensity of cooperation and innovation. Within different knowledge regimes, we examine the structure of networks that emerge and how firms perform within such networks. Our model replicates some stylised empirical results on network structure and the contingent effects of network position on innovative performance. We find networks that exhibit small world properties which are generally robust to changes in the knowledge regime. Second, subject to the extent of knowledge spillovers, certain network strategies such as occupying brokerage positions or maximising accessibility to potential partners pay off. Third and most importantly, absorptive capacity plays an important role in network evolution: firms with different network strategies indeed differ in the build-up of absorptive capacity.
Keywords: absorptive capacity; agent-based modeling; cognitive distance; dynam- ics; innovation; knowledge spillovers; networks (search for similar items in EconPapers)
JEL-codes: C61 C63 D83 D85 L14 O33 (search for similar items in EconPapers)
Date: 2013-05-22
New Economics Papers: this item is included in nep-cmp, nep-cse, nep-ino, nep-knm, nep-net, nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)
Downloads: (external link)
https://oweb.b67.uni-jena.de/Papers/jerp2013/wp_2013_022.pdf (application/pdf)
Related works:
Journal Article: Emergence of innovation networks from R&D cooperation with endogenous absorptive capacity (2016)
Working Paper: Emergence of innovation networks from R&D cooperation with endogenous absorptive capacity (2016)
Working Paper: Emergence of Innovation Networks from R&D Cooperation with Endogenous Absorptive Capacity (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2013-022
Access Statistics for this paper
More papers in Jena Economics Research Papers from Friedrich-Schiller-University Jena
Bibliographic data for series maintained by Markus Pasche ().