Working Paper #2008-022
If the Alliance Fits . . . : Innovation and Network Dynamics
Network formation is often said to be driven by social capital
considerations. A typical pattern observed in the empirical data on
strategic alliances is that of small world networks: dense subgroups of
firms interconnected by (few) clique-spanning ties. The typical argument
is that there is social capital value both to being embedded in a dense
cluster, and to bridging disconnected clusters. In this paper we develop
and analyze a simple model of joint innovation where we are able to
reproduce these features, based solely on the assumption that successful
partnering demands some intermediate amount of similarity between the
partners.
- Keywords
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- Network formation
- Strategic alliances
- Knowledge portfolios UNU-MERIT Working Papers ISSN 1871-9872
- JEL codes
-
- D83
- D85
- L14
- D74
Cite this as
APA 7th ed.Cowan, R., & Jonard, N. (2008). If the Alliance Fits . . . : Innovation and Network Dynamics (UNU-MERIT Working Paper No. 2008-022). UNU-MERIT. https://unu-merit.nl/publications/working-papers/abstract/?id=3327