IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2205.07677.html
   My bibliography  Save this paper

Network embeddedness indicates the innovation potential of firms

Author

Listed:
  • Giacomo Vaccario
  • Luca Verginer
  • Antonios Garas
  • Mario V. Tomasello
  • Frank Schweitzer

Abstract

Firms' innovation potential depends on their position in the R&D network. But details on this relation remain unclear because measures to quantify network embeddedness have been controversially discussed. We propose and validate a new measure, coreness, obtained from the weighted k-core decomposition of the R&D network. Using data on R&D alliances, we analyse the change of coreness for 14,000 firms over 25 years and patenting activity. A regression analysis demonstrates that coreness explains firms' R&D output by predicting future patenting.

Suggested Citation

  • Giacomo Vaccario & Luca Verginer & Antonios Garas & Mario V. Tomasello & Frank Schweitzer, 2022. "Network embeddedness indicates the innovation potential of firms," Papers 2205.07677, arXiv.org.
  • Handle: RePEc:arx:papers:2205.07677
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2205.07677
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Blundell, Richard & Griffith, Rachel & Van Reenen, John, 1995. "Dynamic Count Data Models of Technological Innovation," Economic Journal, Royal Economic Society, vol. 105(429), pages 333-344, March.
    2. Bronwyn H. Hall & Adam B. Jaffe & Manuel Trajtenberg, 2001. "The NBER Patent Citation Data File: Lessons, Insights and Methodological Tools," NBER Working Papers 8498, National Bureau of Economic Research, Inc.
    3. 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.
    4. Weijan Shan & Gordon Walker & Bruce Kogut, 1994. "Interfirm cooperation and startup innovation in the biotechnology industry," Strategic Management Journal, Wiley Blackwell, vol. 15(5), pages 387-394, June.
    5. Gilsing, Victor & Nooteboom, Bart & Vanhaverbeke, Wim & Duysters, Geert & van den Oord, Ad, 2008. "Network embeddedness and the exploration of novel technologies: Technological distance, betweenness centrality and density," Research Policy, Elsevier, vol. 37(10), pages 1717-1731, December.
    6. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-333, March.
    7. Manfred Paier & Thomas Scherngell, 2011. "Determinants of Collaboration in European R&D Networks: Empirical Evidence from a Discrete Choice Model," Industry and Innovation, Taylor & Francis Journals, vol. 18(1), pages 89-104.
    8. Giacomo Vaccario & Mario V. Tomasello & Claudio J. Tessone & Frank Schweitzer, 2018. "Quantifying knowledge exchange in R&D networks: a data-driven model," Journal of Evolutionary Economics, Springer, vol. 28(3), pages 461-493, August.
    9. Corey C. Phelps, 2010. "A longitudinal study of the influence of alliance network structure and composition on firm exploratory innovation," Post-Print hal-00528392, HAL.
    10. Jason Owen-Smith & Walter W. Powell, 2004. "Knowledge Networks as Channels and Conduits: The Effects of Spillovers in the Boston Biotechnology Community," Organization Science, INFORMS, vol. 15(1), pages 5-21, February.
    11. 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.
    12. Freeman, C., 1991. "Networks of innovators: A synthesis of research issues," Research Policy, Elsevier, vol. 20(5), pages 499-514, October.
    Full references (including those not matched with items on IDEAS)

    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. Takashi Iino & Hiroyasu Inoue & Yukiko U. Saito & Yasuyuki Todo, 2021. "How does the global network of research collaboration affect the quality of innovation?," The Japanese Economic Review, Springer, vol. 72(1), pages 5-48, January.
    2. 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.
    3. Haifeng Wang & Longwei Tian & Yuan Li, 2019. "A tale of two cultures: Social networks and competitive advantage," Asia Pacific Journal of Management, Springer, vol. 36(2), pages 321-347, June.
    4. Gilsing, Victor A. & Cloodt, Myriam & Bertrand–Cloodt, Danielle, 2016. "What makes you more central? Antecedents of changes in betweenness-centrality in technology-based alliance networks," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 209-221.
    5. Hohberger, Jan & Kruger, Heidi & Almeida, Paul, 2020. "Does separation hurt? The impact of premature termination of R&D alliances on knowledge acquisition and innovation," Research Policy, Elsevier, vol. 49(6).
    6. Guan, Jiancheng & Zhang, Jingjing & Yan, Yan, 2015. "The impact of multilevel networks on innovation," Research Policy, Elsevier, vol. 44(3), pages 545-559.
    7. Gupeng Zhang & Xiao Wang & Hongbo Duan, 2020. "Obscure but important: examining the indirect effects of alliance networks in exploratory and exploitative innovation paradigms," Scientometrics, Springer;Akadémiai Kiadó, vol. 124(3), pages 1745-1764, September.
    8. Massimo Colombo & Liliana Doganova & Evila Piva & Diego D’Adda & Philippe Mustar, 2015. "Hybrid alliances and radical innovation: the performance implications of integrating exploration and exploitation," The Journal of Technology Transfer, Springer, vol. 40(4), pages 696-722, August.
    9. Maureen McKelvey & Bastian Rake, 2012. "Research Network Position and Innovative Performance: Evidence from the Pharmaceutical Industry," Jena Economics Research Papers 2012-021, Friedrich-Schiller-University Jena.
    10. Wadhwa, Anu & Phelps, Corey & Kotha, Suresh, 2016. "Corporate venture capital portfolios and firm innovation," Journal of Business Venturing, Elsevier, vol. 31(1), pages 95-112.
    11. Uwe Cantner & Holger Graf, 2011. "Innovation Networks: Formation, Performance and Dynamics," Chapters, in: Cristiano Antonelli (ed.), Handbook on the Economic Complexity of Technological Change, chapter 15, Edward Elgar Publishing.
    12. Ellen Enkel & Annika Groemminger & Sebastian Heil, 2018. "Managing technological distance in internal and external collaborations: absorptive capacity routines and social integration for innovation," The Journal of Technology Transfer, Springer, vol. 43(5), pages 1257-1290, October.
    13. Guan, JianCheng & Zuo, KaiRui & Chen, KaiHua & Yam, Richard C.M., 2016. "Does country-level R&D efficiency benefit from the collaboration network structure?," Research Policy, Elsevier, vol. 45(4), pages 770-784.
    14. Marcus Wagner & Wilfried Zidorn, 2017. "Effects of extent and diversity of alliancing on innovation: the moderating role of firm newness," Small Business Economics, Springer, vol. 49(4), pages 919-936, December.
    15. Na Zhang & Lu Cheng & Chao Sun & Julie Callaert & Bart Looy, 2023. "The role of inter- and intra-organisational networks in innovation: towards requisite variety," Scientometrics, Springer;Akadémiai Kiadó, vol. 128(7), pages 4117-4136, July.
    16. Liang, Xinning & Liu, Anita M.M., 2018. "The evolution of government sponsored collaboration network and its impact on innovation: A bibliometric analysis in the Chinese solar PV sector," Research Policy, Elsevier, vol. 47(7), pages 1295-1308.
    17. Jacob, Jojo & Duysters, Geert, 2017. "Alliance network configurations and the co-evolution of firms' technology profiles: An analysis of the biopharmaceutical industry," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 90-102.
    18. Ying Teng & Eli Gimmon & Wentong Lu, 2021. "Do Interlocks Lead to the Convergence of Interfirm Innovation Performance? Evidence From China," SAGE Open, , vol. 11(2), pages 21582440211, April.
    19. Avimanyu Datta, 2011. "Combining Networks, Ambidexterity and Absorptive Capacity to Explain Commercialization of Innovations: A Theoretical Model from Review and Extension," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 2(4), pages 2-25, December.
    20. Dahlke, Johannes & Beck, Mathias & Kinne, Jan & Lenz, David & Dehghan, Robert & Wörter, Martin & Ebersberger, Bernd, 2024. "Epidemic effects in the diffusion of emerging digital technologies: evidence from artificial intelligence adoption," Research Policy, Elsevier, vol. 53(2).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:arx:papers:2205.07677. 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: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    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.