IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v51y2017i8p1179-1191.html
   My bibliography  Save this article

Institutional change and network evolution: explorative and exploitative tie formations of co-inventors during the dot-com bubble in the Research Triangle region

Author

Listed:
  • Max-Peter Menzel
  • Maryann P. Feldman
  • Tom Broekel

Abstract

Institutional change and network evolution: explorative and exploitative tie formations of co-inventors during the dot-com bubble in the Research Triangle region. Regional Studies. This paper investigates how institutions impact tie formation, arguing that institutions can direct firm strategies towards exploration or towards exploitation. It translates these strategies into tie formations: explorative tie formation produces structural holes as a source of good ideas, while exploitative tie formation closes structural holes to facilitate the mobilization of resources to move ideas into products. Using the example of co-inventors in information and communication technology in Research Triangle region during the dot-com bubble, explorative tie formation during the bubble and exploitative tie formations after its burst were expected. Stochastic actor-oriented models did not clearly support our assumptions. It was found that the emergence of venture capital led to a large variance in connection patterns during the bubble, probably resulting from overlapping institutional effects. After the burst of the bubble, these incoherencies disappeared.

Suggested Citation

  • Max-Peter Menzel & Maryann P. Feldman & Tom Broekel, 2017. "Institutional change and network evolution: explorative and exploitative tie formations of co-inventors during the dot-com bubble in the Research Triangle region," Regional Studies, Taylor & Francis Journals, vol. 51(8), pages 1179-1191, August.
    • Handle: RePEc:taf:regstd:v:51:y:2017:i:8:p:1179-1191
    DOI: 10.1080/00343404.2016.1278300
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00343404.2016.1278300
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343404.2016.1278300?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lee Fleming & Koen Frenken, 2007. "The Evolution Of Inventor Networks In The Silicon Valley And Boston Regions," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 53-71.
    2. Ron A. Boschma & Rik Wenting, 2007. "The spatial evolution of the British automobile industry: Does location matter?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(2), pages 213-238, April.
    3. Wagner, S. & Cockburn, I., 2010. "Patents and the survival of Internet-related IPOs," Research Policy, Elsevier, vol. 39(2), pages 214-228, March.
    4. Joshua Lerner, 2002. "Boom and bust in the venture capital industry and the impact on innovation," Economic Review, Federal Reserve Bank of Atlanta, vol. 87(Q4), pages 25-39.
    5. Michael Storper & Anthony J. Venables, 2004. "Buzz: face-to-face contact and the urban economy," Journal of Economic Geography, Oxford University Press, vol. 4(4), pages 351-370, August.
    6. Feldman, Maryann & Lowe, Nichola, 2015. "Triangulating regional economies: Realizing the promise of digital data," Research Policy, Elsevier, vol. 44(9), pages 1785-1793.
    7. Elisa Giuliani, 2007. "The selective nature of knowledge networks in clusters: evidence from the wine industry," Journal of Economic Geography, Oxford University Press, vol. 7(2), pages 139-168, March.
    8. Ron A. Boschma & Anet B.R. Weterings, 2005. "The effect of regional differences on the performance of software firms in the Netherlands," Journal of Economic Geography, Oxford University Press, vol. 5(5), pages 567-588, October.
    9. Anne L.J. Ter Wal, 2013. "Cluster Emergence and Network Evolution: A Longitudinal Analysis of the Inventor Network in Sophia-Antipolis," Regional Studies, Taylor & Francis Journals, vol. 47(5), pages 651-668, May.
    10. Lorenzo Cassi & Anne Plunket, 2015. "Research Collaboration in Co-inventor Networks: Combining Closure, Bridging and Proximities," Regional Studies, Taylor & Francis Journals, vol. 49(6), pages 936-954, June.
    11. Boschma, Ron & Capone, Gianluca, 2015. "Institutions and diversification: Related versus unrelated diversification in a varieties of capitalism framework," Research Policy, Elsevier, vol. 44(10), pages 1902-1914.
    12. Suarez, Fernando F., 2004. "Battles for technological dominance: an integrative framework," Research Policy, Elsevier, vol. 33(2), pages 271-286, March.
    13. Hellmann, Thomas & Puri, Manju, 2000. "The Interaction between Product Market and Financing Strategy: The Role of Venture Capital," The Review of Financial Studies, Society for Financial Studies, vol. 13(4), pages 959-984.
    14. 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.
    15. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
    16. Guido Buenstorf & Dirk Fornahl, 2009. "B2C—bubble to cluster: the dot-com boom, spin-off entrepreneurship, and regional agglomeration," Journal of Evolutionary Economics, Springer, vol. 19(3), pages 349-378, June.
    17. Harald Bathelt & Patrick Cohendet, 2014. "The creation of knowledge: local building, global accessing and economic development—toward an agenda," Journal of Economic Geography, Oxford University Press, vol. 14(5), pages 869-882.
    18. Giovanni Dosi, 2000. "Finance, Innovation and Industrial Change," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 21, pages 621-641, Edward Elgar Publishing.
    19. Corrocher, Nicoletta & Malerba, Franco & Montobbio, Fabio, 2007. "Schumpeterian patterns of innovative activity in the ICT field," Research Policy, Elsevier, vol. 36(3), pages 418-432, April.
    20. Richard Whitley, 2006. "Project-based firms: new organizational form or variations on a theme?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 15(1), pages 77-99, February.
    21. Max-Peter Menzel & Johannes Kammer, 2012. "Industry Evolution in Varieties-of-Capitalism: a Survival Analysis on Wind Turbine Producers in Denmark and the USA," Papers in Evolutionary Economic Geography (PEEG) 1220, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2012.
    22. Tim Rowley & Dean Behrens & David Krackhardt, 2000. "Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor industries," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 369-386, March.
    23. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    24. Geoffrey M. Hodgson, 1998. "The Approach of Institutional Economics," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 166-192, March.
    25. Carlota Perez, 2009. "The double bubble at the turn of the century: technological roots and structural implications," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(4), pages 779-805, July.
    26. Anne Ter Wal & Ron Boschma, 2011. "Co-evolution of Firms, Industries and Networks in Space," Regional Studies, Taylor & Francis Journals, vol. 45(7), pages 919-933.
    27. Florida, Richard & Kenney, Martin, 1988. "Venture capital and high technology entrepreneurship," Journal of Business Venturing, Elsevier, vol. 3(4), pages 301-319.
    28. Peter Dicken & Anders Malmberg, 2001. "Firms in Territories: A Relational Perspective," Economic Geography, Taylor & Francis Journals, vol. 77(4), pages 345-363, October.
    29. Breschi, Stefano & Lissoni, Francesco & Malerba, Franco, 2003. "Knowledge-relatedness in firm technological diversification," Research Policy, Elsevier, vol. 32(1), pages 69-87, January.
    30. Martin Schr�der & Helmut Voelzkow, 2016. "Varieties of Regulation: How to Combine Sectoral, Regional and National Levels," Regional Studies, Taylor & Francis Journals, vol. 50(1), pages 7-19, January.
    31. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    32. Ann Markusen, 1996. "Sticky Places in Slippery Space: A Typology of Industrial Districts," Economic Geography, Taylor & Francis Journals, vol. 72(3), pages 293-313, July.
    33. Nooteboom, Bart, 1999. "Innovation, Learning and Industrial Organisation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(2), pages 127-150, March.
    34. Gerald S. Graham, 1956. "The Ascendancy Of The Sailing Ship 1850-85," Economic History Review, Economic History Society, vol. 9(1), pages 74-88, August.
    35. Gil Avnimelech & Maryann Feldman, 2010. "Regional Corporate Spawning and the Role of Homegrown Companies," Review of Policy Research, Policy Studies Organization, vol. 27(4), pages 475-489, July.
    36. Link, Albert N & Scott, John T, 2003. "The Growth of Research Triangle Park," Small Business Economics, Springer, vol. 20(2), pages 167-175, March.
    37. Max-Peter Menzel, 2015. "Interrelating Dynamic Proximities by Bridging, Reducing and Producing Distances," Regional Studies, Taylor & Francis Journals, vol. 49(11), pages 1892-1907, November.
    38. Steven Klepper, 2007. "Disagreements, Spinoffs, and the Evolution of Detroit as the Capital of the U.S. Automobile Industry," Management Science, INFORMS, vol. 53(4), pages 616-631, April.
    39. Tom Broekel & Pierre-Alexandre Balland & Martijn Burger & Frank Oort, 2014. "Modeling knowledge networks in economic geography: a discussion of four methods," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 423-452, September.
    40. Paul Gompers & Josh Lerner, 2001. "The Venture Capital Revolution," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 145-168, Spring.
    41. Lee Fleming & Charles King & Adam I. Juda, 2007. "Small Worlds and Regional Innovation," Organization Science, INFORMS, vol. 18(6), pages 938-954, December.
    42. Robert Hassink & Claudia Klaerding & Pedro Marques, 2014. "Advancing Evolutionary Economic Geography by Engaged Pluralism," Regional Studies, Taylor & Francis Journals, vol. 48(7), pages 1295-1307, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hermans, Frans, 2021. "The contribution of statistical network models to the study of clusters and their evolution," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 100(2), pages 379-403.
    2. Mads Bruun Ingstrup & Max-Peter Menzel, 2019. "The emergence of relatedness between industries: The example of offshore oil and gas and offshore wind energy in Esbjerg, Denmark," PEGIS geo-disc-2019_15, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    3. Milad Abbasiharofteh & Tom Broekel, 2021. "Still in the shadow of the wall? The case of the Berlin biotechnology cluster," Environment and Planning A, , vol. 53(1), pages 73-94, February.
    4. Graf, Holger & Broekel, Tom, 2020. "A shot in the dark? Policy influence on cluster networks," Research Policy, Elsevier, vol. 49(3).
    5. Abbasiharofteh, Milad & Kogler, Dieter F. & Lengyel, Balázs, 2023. "Atypical combinations of technologies in regional co-inventor networks," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 52(10), pages 1-1.
    6. Mads Bruun Ingstrup & Max-Peter Menzel, 2019. "The emergence of relatedness between industries: The example of offshore oil and gas and offshore wind energy in Esbjerg, Denmark," Papers in Evolutionary Economic Geography (PEEG) 1929, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2019.
    7. Abbasiharofteh, Milad, 2020. "Endogenous effects and cluster transition: a conceptual framework for cluster policy," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 28(12), pages 2508-2531.
    8. Francesco Quatraro & Stefano Usai, 2017. "Knowledge flows, externalities and innovation networks," Regional Studies, Taylor & Francis Journals, vol. 51(8), pages 1133-1137, August.
    9. Sonja Opper, 2023. "Social network and institution-based strategy research," Asia Pacific Journal of Management, Springer, vol. 40(1), pages 329-351, March.
    10. Barbosa, Sergio & Sáiz, Patricio & Zofío, José L., 2024. "The emergence and historical evolution of innovation networks: On the factors promoting and hampering patent collaboration in technological lagging economies," Research Policy, Elsevier, vol. 53(5).
    11. Milad Abbasiharofteh & Tom Broekel & Lars Mewes, 2024. "The Roles of Geographic Distance and Technological Complexity in U.S. Interregional Co-patenting Over Almost Two Centuries," Papers in Evolutionary Economic Geography (PEEG) 2414, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2024.

    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. Mads Bruun Ingstrup & Max-Peter Menzel, 2019. "The emergence of relatedness between industries: The example of offshore oil and gas and offshore wind energy in Esbjerg, Denmark," PEGIS geo-disc-2019_15, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    2. Mads Bruun Ingstrup & Max-Peter Menzel, 2019. "The emergence of relatedness between industries: The example of offshore oil and gas and offshore wind energy in Esbjerg, Denmark," Papers in Evolutionary Economic Geography (PEEG) 1929, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2019.
    3. Max-Peter Menzel & Johannes Kammer, 2019. "Industry evolution in Varieties of Capitalism: a comparison of the Danish and US wind turbine industries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(6), pages 1381-1403.
    4. Christian Longhi, 2017. "Cluster Dynamics: Learning from Competitiveness Cluster Policy. The Case of 'Secure Communicating Solutions' in the French Provence-Alpes-Côte d'Azur Region," GREDEG Working Papers 2017-42, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    5. Hervas Oliver,Jose Luis & Gonzalez,Gregorio & Caja,Pedro, 2014. "Clusters and industrial districts: where is the literature going? Identifying emerging sub-fields of research," INGENIO (CSIC-UPV) Working Paper Series 201409, INGENIO (CSIC-UPV).
    6. Pierre-Alexandre Balland & Ron Boschma & Koen Frenken, 2015. "Proximity and Innovation: From Statics to Dynamics," Regional Studies, Taylor & Francis Journals, vol. 49(6), pages 907-920, June.
    7. Sándor Juhász, 2021. "Spinoffs and tie formation in cluster knowledge networks," Small Business Economics, Springer, vol. 56(4), pages 1385-1404, April.
    8. Mario V. Tomasello & Mauro Napoletano & Antonios Garas & Frank Schweitzer, 2017. "The rise and fall of R&D networks," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(4), pages 617-646.
    9. Thomas J. Hannigan & Alessandra Perri & Vittoria Giada Scalera, 2016. "The Dispersed Multinational: Does Connectedness Across Spatial Dimensions Lead to Broader Technological Search?," Working Papers 11, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    10. Christian Longhi, 2015. "Clusters and collective learning networks: the case of the Competitiveness Cluster ‘Secure Communicating Solutions’ in the French Provence-Alpes-Côte d’Azur Region," Working Papers halshs-01248304, HAL.
    11. Max-Peter Menzel & Johannes Kammer, 2017. "Industry Evolution in Varieties of Capitalism: a Comparison of the Danish and US Wind Turbine Industries," Papers in Evolutionary Economic Geography (PEEG) 1716, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2017.
    12. Holger Graf, 2013. "Inventor Networks in Emerging Key Technologies: Information Technology vs. Semiconductors," Economic Complexity and Evolution, in: Guido Buenstorf & Uwe Cantner & Horst Hanusch & Michael Hutter & Hans-Walter Lorenz & Fritz Rahmeyer (ed.), The Two Sides of Innovation, edition 127, pages 55-76, Springer.
    13. Ron Boschma & Pierre-Alexandre Balland & Dieter Franz Kogler, 2015. "Relatedness and technological change in cities: the rise and fall of technological knowledge in US metropolitan areas from 1981 to 2010," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(1), pages 223-250.
    14. Andrea Morrison & Ron Boschma, 2019. "The spatial evolution of the Italian motorcycle industry (1893–1993): Klepper’s heritage theory revisited," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(3), pages 613-634.
    15. Ron Boschma, 2017. "Relatedness as driver behind regional diversification: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 1702, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2017.
    16. Menzel, Max-Peter & Kammer, Johannes, 2017. "Industry Evolution in Varieties of Capitalism: a Comparison of the Danish and US Wind Turbine Industries," Papers in Innovation Studies 2017/9, Lund University, CIRCLE - Centre for Innovation Research.
    17. Marie Ferru & Alain Rallet, 2016. "Proximity dynamics and the geography of innovation: diminishing returns or renewal?," Post-Print hal-02025328, HAL.
    18. Ron Boschma & Koen Frenken, 2015. "Evolutionary Economic Geography," Papers in Evolutionary Economic Geography (PEEG) 1518, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2015.
    19. Rik Wenting & Oedzge Atzema & Koen Frenken, 2011. "Urban Amenities and Agglomeration Economies? The Locational Behaviour and Economic Success of Dutch Fashion Design Entrepreneurs," Urban Studies, Urban Studies Journal Limited, vol. 48(7), pages 1333-1352, May.
    20. Robert Huggins & Daniel Prokop & Piers Thompson, 2020. "Universities and open innovation: the determinants of network centrality," The Journal of Technology Transfer, Springer, vol. 45(3), pages 718-757, June.

    More about this item

    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:taf:regstd:v:51:y:2017:i:8:p:1179-1191. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    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.