IDEAS home Printed from https://ideas.repec.org/p/pec/wpaper/2010-1.html
   My bibliography  Save this paper

Innovation and Diversity in a Dynamic Knowledge Network

Author

Listed:
  • Tamás Sebestyén

    (UNIVERSITY OF PÉCS-FACULTY OF BUSINESS AND ECONOMICS)

Abstract

In this paper we examine the evolution of network formation. We present a model in which companies in an industry can innovate alone or in alliance with others. Alliance formation is based on the cognitive distance of companies. If two companies form an alliance, their probability of success in innovation depends on their proximity in knowledge space, that is, their cognitive distance. Knowledge, on the other hand, is modelled in two dimensions: breadth and depth. The main results of our analysis are that in the present setting heterogeneity decreases among companies whilst innovation can increase and decrease also, depending on the initial parameters of the industry's knowledge endowment. The model also reveales the importance of external shocks in maintaining heterogeneity and concludes with a possible typology of cluster evolution among the dimensions of heterogeneity and innovativeness.

Suggested Citation

  • Tamás Sebestyén, 2010. "Innovation and Diversity in a Dynamic Knowledge Network," UPFBE Working Paper Series 2010/1, Faculty of Business and Economics, University Pécs.
    • Handle: RePEc:pec:wpaper:2010/1
    as

    Download full text from publisher

    File URL: https://journals.lib.pte.hu/index.php/workingpapers/article/view/5930/5656
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anne Marie Knott, 2003. "Persistent heterogeneity and sustainable innovation," Strategic Management Journal, Wiley Blackwell, vol. 24(8), pages 687-705, August.
    2. Max-Peter Menzel & Dirk Fornahl, 2007. "Cluster Life Cycles - Dimensions and Rationales of Cluster Development," Jena Economics Research Papers 2007-076, Friedrich-Schiller-University Jena.
    3. Molina-Morales, F. Xavier & Martinez-Fernandez, M. Teresa, 2004. "How much difference is there between industrial district firms? A net value creation approach," Research Policy, Elsevier, vol. 33(3), pages 473-486, April.
    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. Nils Grashof, 2020. "Sinking or swimming in the cluster labour pool? A firm-specific analysis of the effect of specialized labour," Jena Economics Research Papers 2020-006, Friedrich-Schiller-University Jena.
    2. Ron Martin & Peter Sunley, 2011. "Conceptualizing Cluster Evolution: Beyond the Life Cycle Model?," Regional Studies, Taylor & Francis Journals, vol. 45(10), pages 1299-1318, November.
    3. Max-Peter Menzel, 2010. "Sources of ‘Second Generation Growth’: Spin-off Processes in the Emerging Biochip Industries in Jena and Berlin," Chapters, in: Dirk Fornahl & Sebastian Henn & Max-Peter Menzel (ed.), Emerging Clusters, chapter 10, Edward Elgar Publishing.
    4. Sam Tavassoli, 2011. "A Comparative Investigation of Firms' Innovative behaviors During Different Stages of the Cluster Life-Cycle (Cover study for PhD dissertation)," ERSA conference papers ersa10p1045, European Regional Science Association.
    5. Nicole Litzel & Joachim Möller, 2011. "Industrial Clusters and Economic Integration: Theoretic Concepts and an Application to the European Metropolitan Region Nuremberg," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume II, chapter 12, Edward Elgar Publishing.
    6. Luís Cabral, 2016. "Living Up to Expectations: Corporate Reputation and Persistence of Firm Performance," Strategy Science, INFORMS, vol. 1(1), pages 2-11, March.
    7. Rakesh B. Sambharya & Jooh Lee, 2014. "Renewing Dynamic Capabilities Globally: An Empirical Study of the World’s Largest MNCs," Management International Review, Springer, vol. 54(2), pages 137-169, April.
    8. Ron Martin, 2010. "Roepke Lecture in Economic Geography—Rethinking Regional Path Dependence: Beyond Lock-in to Evolution," Economic Geography, Taylor & Francis Journals, vol. 86(1), pages 1-27, January.
    9. Broekel, Tom & Fornahl, Dirk & Morrison, Andrea, 2015. "Another cluster premium: Innovation subsidies and R&D collaboration networks," Research Policy, Elsevier, vol. 44(8), pages 1431-1444.
    10. Hsu, Bo-Xiang & Chen, Yi-Min & Yan, Ting-Yu, 2021. "Industrial targeting and firm performance: An integrated approach to industry selection," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    11. Fanbo Li & Hongfeng Zhang, 2022. "How the “Absorption Processes” of Urban Innovation Contribute to Sustainable Development—A Fussy Set Qualitative Comparative Analysis Based on Seventy-Two Cities in China," Sustainability, MDPI, vol. 14(23), pages 1-22, November.
    12. Ron Boschma & Koen Frenken, 2010. "The Spatial Evolution of Innovation Networks: A Proximity Perspective," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 5, Edward Elgar Publishing.
    13. Porumboiu Cristina, 2022. "The Need of Venture Capital Investors in Life Sciences Clusters: a Comparison between Romania and Germany," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 16(1), pages 1038-1046, August.
    14. Raphaël Suire & Jérôme Vicente, 2009. "Clusters for life or life cycles of clusters. From declining to resilient clusters," Post-Print halshs-00460129, HAL.
    15. Isabel Díez-Vial & Marta Fernández-Olmos, 2015. "Knowledge spillovers in science and technology parks: how can firms benefit most?," The Journal of Technology Transfer, Springer, vol. 40(1), pages 70-84, February.
    16. Ron Martin & Peter Sunley, 2010. "The Place of Path Dependence in an Evolutionary Perspective on the Economic Landscape," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 3, Edward Elgar Publishing.
    17. repec:hig:wpaper:wp-brp-11-sti-2013 is not listed on IDEAS
    18. Jirjahn, Uwe & Kraft, Kornelius, 2006. "Do Spillovers Stimulate Incremental or Drastic Product Innovations? Hypotheses and Evidence from German Establishment Data," ZEW Discussion Papers 06-023, ZEW - Leibniz Centre for European Economic Research.
    19. Dirk Fornahl & Christina Guenther, 2009. "Persistence and Change of Regional Industrial Activities: The Impact of Diversification in the German Machine Tool Industry," European Planning Studies, Taylor & Francis Journals, vol. 18(12), pages 1911-1936, September.
    20. Elizabeth Garnsey & Erik Stam & Brychan Thomas, 2010. "The Emergence and Development of the Cambridge Ink Jet Printing Industry," Chapters, in: Dirk Fornahl & Sebastian Henn & Max-Peter Menzel (ed.), Emerging Clusters, chapter 11, Edward Elgar Publishing.
    21. Evert-Jan Visser, 2009. "The Complementary Dynamic Effects of Clusters and Networks," Industry and Innovation, Taylor & Francis Journals, vol. 16(2), pages 167-195.

    More about this item

    Keywords

    Knowledge network; Innovation; Knowledge heterogeneity; Alliance formation; Cluster evolution.;
    All these keywords.

    JEL classification:

    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    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:pec:wpaper:2010/1. 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: Tamás Sebestyén (email available below). General contact details of provider: https://edirc.repec.org/data/feptehu.html .

    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.