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Emergence and Resilience in a Model of Innovation and Network Formation

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  • Rainer Andergassen
  • Franco Nardini
  • Massimo Ricottilli

Abstract

This paper studies the resilience of an evolving network of rationality bounded firms engaged in an active search to improve their technological capability through interaction with knowledge-heterogeneous neighbors. Firms update their observed neighborhood by adopting a specific search routine. It is shown that through simple heuristics their adaptive behavior translates into an emerging pattern of aggregate technological performance. Simulations assess the system resilience in terms of its capability to recover aggregate performance when subjected to periodic arrivals of innovation shocks. The paper argues that the routine firms adopt, chosen by tuning between either global or local search protocols, is crucial to determine the system’s aggregate performance and resilience. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Rainer Andergassen & Franco Nardini & Massimo Ricottilli, 2015. "Emergence and Resilience in a Model of Innovation and Network Formation," Networks and Spatial Economics, Springer, vol. 15(2), pages 293-311, June.
    • Handle: RePEc:kap:netspa:v:15:y:2015:i:2:p:293-311
    DOI: 10.1007/s11067-014-9262-6
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    Cited by:

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    2. Davide Antonioli & Alberto Marzucchi & Marco Modica, 2022. "Resilience, Performance and Strategies in Firms’ Reactions to the Direct and Indirect Effects of a Natural Disaster," Networks and Spatial Economics, Springer, vol. 22(3), pages 541-565, September.
    3. Parast, Mahour Mellat, 2020. "The impact of R&D investment on mitigating supply chain disruptions: Empirical evidence from U.S. firms," International Journal of Production Economics, Elsevier, vol. 227(C).

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