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On the creation of networks and knowledge

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Author Info
Cowan,Robin
Jonard,Nicolas
Zimmermann,J-B (MERIT)

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Abstract

This paper examines the evolution of networks when innovation takes place as a result of agents bringing together their knowledge endowments. Agents freely form pairs creating a globally stable matching. paired agents combine their existing knowledge to create new knowledge. We study the properties of the dynamic network formed by these interactions, and the resultant knowledge dynamics. Each agent carries an amount of knowledge of a certain type, and the innovative output of a pair is a function of the partners'' endowments and types. We find evidence that the pattern of substitution between quantity and type of knowledge in the innovation function is vital in determining the growth of knowledge, the emergence of expertise and the stability of a number of network structures. Network structure itself exhibits a phase change when the relative importance of diversity compared to quantity increases beyond a threshold value.

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Publisher Info
Paper provided by Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology in its series Research Memoranda with number 010.

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Date of creation: 2004
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Handle: RePEc:dgr:umamer:2004010

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Keywords: economics of technology ;

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  1. Lorenzo Cassi & Lorenzo Zirulia, 2008. "The opportunity cost of social relations: On the effectiveness of small worlds," Journal of Evolutionary Economics, Springer, vol. 18(1), pages 77-101, February. [Downloadable!] (restricted)
    Other versions:
  2. R. Cowan & N. Jonard & J.-B. Zimmermann, 2006. "Evolving networks of inventors," Journal of Evolutionary Economics, Springer, vol. 16(1), pages 155-174, April. [Downloadable!] (restricted)
    Other versions:
  3. Zirulia,Lorenzo, 2004. "The evolution of R&D networks," Research Memoranda 007, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
  4. Cowan,Robin, 2004. "Network models of innovation and knowledge diffusion," Research Memoranda 016, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
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This page was last updated on 2009-11-13.

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