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The Evolution of Innovation Networks and Spin-off Entrepreneurship: The Case of RAD

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  • Amnon Frenkel
  • Emil Israel
  • Shlomo Maital

Abstract

We conducted an in-depth analysis of an Israeli startup, RAD Bynet, founded in 1981, that has intentionally, through the vision of its founder, given rise to 129 other startups employing some 15,000 workers, and created a unique "cloud". Through a survey of the existing firms, we sought to explore the nature of this ecosystem and to quantify the relationships that exist between the mother company and the enterprises that emerge from it. Our main findings were: (a) social and technological proximity encourages the tendency of the companies to maintain business relationships that probably contribute to knowledge exchange, while technological diversity drives innovation and startup formation; and (b) firms will choose to cooperate on the basis of a shared past and personal proximity relations, as well as technological proximity at a certain level; "viral clouds" of startups like the one we studied can thus intentionally be designed and developed .

Suggested Citation

  • Amnon Frenkel & Emil Israel & Shlomo Maital, 2015. "The Evolution of Innovation Networks and Spin-off Entrepreneurship: The Case of RAD," European Planning Studies, Taylor & Francis Journals, vol. 23(8), pages 1646-1670, August.
    • Handle: RePEc:taf:eurpls:v:23:y:2015:i:8:p:1646-1670
    DOI: 10.1080/09654313.2014.998171
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    1. Thomas J. Allen, 1984. "Managing the Flow of Technology: Technology Transfer and the Dissemination of Technological Information Within the R&D Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262510278, April.
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    Cited by:

    1. Chao Zhang & Jiancheng Guan, 2017. "How to identify metaknowledge trends and features in a certain research field? Evidences from innovation and entrepreneurial ecosystem," Scientometrics, Springer;Akadémiai Kiadó, vol. 113(2), pages 1177-1197, November.

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