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Innovation and market dynamics: A two-mode network approach to user-producer relation

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  • Uwe Cantner
  • Marco Guerzoni
  • Arianna Martinelli

Abstract

In this paper we propose a new mental representation of how markets, technology and their interaction concur in explaining the why of a certain innovation instead of another. We empirically test this theory in the telecommunication switches industry. We consider innovation as a new alignment of needs and opportunities, where markets and technology are not the sources, but the actors in this alignment process. In order to accomplish this task, we suggest proxies for technological opportunities, market needs, and, at the same time, for interactions of these two elements. We make use of a statistical tool that grasps the matching nature of this interactive phenomenon.

Suggested Citation

  • Uwe Cantner & Marco Guerzoni & Arianna Martinelli, 2012. "Innovation and market dynamics: A two-mode network approach to user-producer relation," LEM Papers Series 2012/09, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    • Handle: RePEc:ssa:lemwps:2012/09
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    References listed on IDEAS

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    1. Marco Guerzoni, 2010. "The impact of market size and users' sophistication on innovation: the patterns of demand," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(1), pages 113-126.
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    5. Franco Malerba & Richard Nelson & Luigi Orsenigo & Sidney Winter, 2007. "Demand, innovation, and the dynamics of market structure: The role of experimental users and diverse preferences," Journal of Evolutionary Economics, Springer, vol. 17(4), pages 371-399, August.
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    7. Carolina Castaldi & Roberto Fontana & Alessandro Nuvolari, 2009. "‘Chariots of fire’: the evolution of tank technology, 1915–1945," Journal of Evolutionary Economics, Springer, vol. 19(4), pages 545-566, August.
    8. Martinelli, Arianna, 2012. "An emerging paradigm or just another trajectory? Understanding the nature of technological changes using engineering heuristics in the telecommunications switching industry," Research Policy, Elsevier, vol. 41(2), pages 414-429.
    9. Lionel Nesta & Pier Paolo Saviotti, 2005. "Coherence Of The Knowledge Base And The Firm'S Innovative Performance: Evidence From The U.S. Pharmaceutical Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 53(1), pages 123-142, March.
    10. Bart Verspagen, 2007. "Mapping Technological Trajectories As Patent Citation Networks: A Study On The History Of Fuel Cell Research," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 10(01), pages 93-115.
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    Keywords

    user-producer interaction; two-mode network; telecommunication manufacturing industry;
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