IDEAS home Printed from https://ideas.repec.org/p/jrp/jrpwrp/2016-021.html
   My bibliography  Save this paper

The selective nature of innovator networks: from the nascent to the early growth phase of the organizational life cycle

Author

Listed:
  • Uwe Cantner

    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Tina Wolf

    (University of Southern Denmark, Department of Marketing and Management)

Abstract

Earlier studies have shown that entrepreneurs play a key role in shaping regional development. Innovator networks where these entrepreneurs are members of have been identified as one among many critical factors for their firms' success. This paper intents to go one step further and analyses in how far differing characteristics of these networks lead to different firm performances along the early stages of the organizational life cycle (nascent stage, emergent stage, early growth stage). A sample of 149 patenting (innovative) firms in Thuringia is analysed, using data from the commercial register and the German patent office. The results show that there is an inverted u-shaped relationship between the chances of a firm to survive and the connectivity of the network the firms are connected to but only in the later stage of the early organizational life cycle; while the structure of the ego-network never plays a role. A quite central position in the network shows-up to be unfavourable.

Suggested Citation

  • Uwe Cantner & Tina Wolf, 2016. "The selective nature of innovator networks: from the nascent to the early growth phase of the organizational life cycle," Jena Economics Research Papers 2016-021, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2016-021
    as

    Download full text from publisher

    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2016/wp_2016_021.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Murray, Fiona, 2004. "The role of academic inventors in entrepreneurial firms: sharing the laboratory life," Research Policy, Elsevier, vol. 33(4), pages 643-659, May.
    2. Uwe Cantner & Michael Stützer, 2010. "The Use and Effect of Social Capital in New Venture Creation - Solo Entrepreneurs vs. New Venture Teams," Jena Economics Research Papers 2010-012, Friedrich-Schiller-University Jena.
    3. Granato, Nadia & Farhauer, Oliver, 2007. "Die Abgrenzung von Arbeitsmarktregionen: Gütekriterien und -maßzahlen," Discussion Papers 2007/2, Technische Universität Berlin, School of Economics and Management.
    4. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521728355, March.
    5. Eric Bartelsman & Stefano Scarpetta & Fabiano Schivardi, 2005. "Comparative analysis of firm demographics and survival: evidence from micro-level sources in OECD countries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(3), pages 365-391, June.
    6. 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.
    7. Nooteboom, B. & Gilsing, V.A., 2004. "Density And Strength Of Ties In Innovation Networks: A Competence And Governance View," ERIM Report Series Research in Management ERS-2004-005-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    8. Gordon Walker & Bruce Kogut & Weijian Shan, 1997. "Social Capital, Structural Holes and the Formation of an Industry Network," Organization Science, INFORMS, vol. 8(2), pages 109-125, April.
    9. repec:bla:jindec:v:46:y:1998:i:4:p:453-88 is not listed on IDEAS
    10. Ejermo, Olof & Karlsson, Charlie, 2006. "Interregional inventor networks as studied by patent coinventorships," Research Policy, Elsevier, vol. 35(3), pages 412-430, April.
    11. Andrea Larson & Jennifer A. Starr, 1993. "A Network Model of Organization Formation," Entrepreneurship Theory and Practice, , vol. 17(2), pages 5-15, January.
    12. Uwe Cantner & Holger Graf, 2010. "Growth, Development and Structural Change of Innovator Networks: The Case of Jena," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 17, Edward Elgar Publishing.
    13. Dietmar Harhoff & Konrad Stahl & Michaerl Woywode, 1998. "Legal Form, Growth and Exit of West German Firms—Empirical Results for Manufacturing, Construction, Trade and Service Industries," Journal of Industrial Economics, Wiley Blackwell, vol. 46(4), pages 453-488, December.
    14. Gilsing, V. & Nooteboom, B., 2004. "Density and strength of ties in innovation networks: an analysis of multimedia and biotechnology," Working Papers 04.16, Eindhoven Center for Innovation Studies.
    15. Peggy A. Golden & Marc Dollinger, 1993. "Cooperative Alliances and Competitive Strategies in Small Manufacturing Firms," Entrepreneurship Theory and Practice, , vol. 17(4), pages 43-56, July.
    16. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521899604, March.
    17. 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.
    18. Uwe Cantner & Maximilian Goethner & Michael Stuetzer, 2010. "Disentangling the Effects of New Venture Team Functional Heterogeneity on New Venture Performance," Jena Economics Research Papers 2010-029, Friedrich-Schiller-University Jena.
    19. Ostgaard, Tone A. & Birley, Sue, 1994. "Personal networks and firm competitive strategy--A strategic or coincidental match?," Journal of Business Venturing, Elsevier, vol. 9(4), pages 281-305, July.
    20. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, December.
    21. Meagher, Kieron & Rogers, Mark, 2004. "Network density and R&D spillovers," Journal of Economic Behavior & Organization, Elsevier, vol. 53(2), pages 237-260, February.
    22. Breschi, Stefano & Catalini, Christian, 2010. "Tracing the links between science and technology: An exploratory analysis of scientists' and inventors' networks," Research Policy, Elsevier, vol. 39(1), pages 14-26, February.
    23. Lobo, José & Strumsky, Deborah, 2008. "Metropolitan patenting, inventor agglomeration and social networks: A tale of two effects," Journal of Urban Economics, Elsevier, vol. 63(3), pages 871-884, May.
    24. Heckmann, Markus & Schnabel, Claus, 2005. "Überleben und Beschäftigungsentwicklung neu gegründeter Betriebe," Discussion Papers 39, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    25. Uwe Cantner & Tina Wolf, 2016. "On regional innovator networks as hubs for innovative ventures," Jena Economics Research Papers 2016-006, Friedrich-Schiller-University Jena.
    26. Chaim Fershtman & Neil Gandal, 2011. "Direct and indirect knowledge spillovers: the “social network” of open‐source projects," RAND Journal of Economics, RAND Corporation, vol. 42(1), pages 70-91, March.
    27. Balconi, Margherita & Breschi, Stefano & Lissoni, Francesco, 2004. "Networks of inventors and the role of academia: an exploration of Italian patent data," Research Policy, Elsevier, vol. 33(1), pages 127-145, January.
    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. Hans Löfsten & Anders Isaksson & Heikki Rannikko, 2023. "Entrepreneurial networks, geographical proximity, and their relationship to firm growth: a study of 241 small high-tech firms," The Journal of Technology Transfer, Springer, vol. 48(6), pages 2280-2306, December.
    2. Lei Xu & Ronggui Ding & Lei Wang, 2022. "How to facilitate knowledge diffusion in collaborative innovation projects by adjusting network density and project roles," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(3), pages 1353-1379, March.
    3. Wilhelmsson, Mats, 2007. "The Spatial Distribution of Innovation Networks," Working Paper Series in Economics and Institutions of Innovation 91, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    4. Yuji Honjo & Masatoshi Kato, 2019. "Do initial financial conditions determine the exit routes of start-up firms?," Journal of Evolutionary Economics, Springer, vol. 29(3), pages 1119-1147, July.
    5. 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.
    6. Wilhelmsson, Mats, 2007. "How Can Research Networks Improve The Innovation Process?," Working Paper Series in Economics and Institutions of Innovation 108, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    7. Goossen, Martin C. & Paruchuri, Srikanth, 2022. "Measurement errors and estimation biases with incomplete social networks: replication studies on intra-firm inventor network analysis," Research Policy, Elsevier, vol. 51(1).
    8. Michael Fritsch & Moritz Zoellner, 2020. "The fluidity of inventor networks," The Journal of Technology Transfer, Springer, vol. 45(4), pages 1063-1087, August.
    9. Christopher Hayter, 2013. "Conceptualizing knowledge-based entrepreneurship networks: perspectives from the literature," Small Business Economics, Springer, vol. 41(4), pages 899-911, December.
    10. Wim Vanhaverbeke & Victor Gilsing & Bonnie Beerkens & Geert Duysters, 2009. "The Role of Alliance Network Redundancy in the Creation of Core and Non‐core Technologies," Journal of Management Studies, Wiley Blackwell, vol. 46(2), pages 215-244, March.
    11. Mats Wilhelmsson, 2009. "The spatial distribution of inventor networks," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 645-668, September.
    12. Tobias Buchman & Andreas Pyka, 2012. "Innovation Networks," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 33, Edward Elgar Publishing.
    13. Gottschalk, Sandra & Greene, Francis J. & Höwer, Daniel & Müller, Bettina, 2014. "If you don't succeed, should you try again? The role of entrepreneurial experience in venture survival," ZEW Discussion Papers 14-009, ZEW - Leibniz Centre for European Economic Research.
    14. 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.
    15. Jiang He & M. Hosein Fallah, 2014. "Dynamics of Inventor Networks and the Evolution of Technology Clusters," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 38(6), pages 2174-2200, November.
    16. Nicos Nicolaou & Sue Birley, 2003. "Social Networks in Organizational Emergence: The University Spinout Phenomenon," Management Science, INFORMS, vol. 49(12), pages 1702-1725, December.
    17. Klapper, Leora & Love, Inessa & Randall, Douglas, 2014. "New firm registration and the business cycle," Policy Research Working Paper Series 6775, The World Bank.
    18. Maksim Belitski & Julia Korosteleva & Julia Korosteleva, 2012. "Entrepreneurial Dynamics and Higher Education Institutions: Evidence from the Post-Communist World," UCL SSEES Economics and Business working paper series 120, UCL School of Slavonic and East European Studies (SSEES).
    19. Rosa Caiazza & Maksim Belitski & David B. Audretsch, 2020. "From latent to emergent entrepreneurship: the knowledge spillover construction circle," The Journal of Technology Transfer, Springer, vol. 45(3), pages 694-704, June.
    20. Bartz, Wiebke & Winkler, Adalbert, 2016. "Flexible or fragile? The growth performance of small and young businesses during the global financial crisis — Evidence from Germany," Journal of Business Venturing, Elsevier, vol. 31(2), pages 196-215.

    More about this item

    Keywords

    Innovation; Entrepreneurship; Networks; Inventor; Patents; Survival;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

    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:jrp:jrpwrp:2016-021. 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: Markus Pasche (email available below). General contact details of provider: http://www.jenecon.de .

    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.