Template-type: ReDIF-Paper 1.0
Author-Name: Baum, Joel
Author-Email: baum@rotman.utoronto.ca
Author-Workplace-Name: Rotman School of Management, University of Toronto
Author-Name: Cowan, Robin
Author-Email: cowan@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University
Author-Name: Jonard, Nicolas
Author-Email: nicolas.jonard@uni.lu
Author-Workplace-Name: Universite du Luxembourg
Title: Network-independent partner selection and the evolution of innovation networks
Abstract: Empirical research on strategic alliances has focused on the idea that 
	 alliance partners are selected on the basis of social capital 
	 considerations. In this paper we emphasize instead the role of 
	 complementary knowledge stocks (broadly defined) in partner selection, 
	 arguing not only that knowledge complementarity should not be 
	 overlooked, but that is may be the true causal force behind alliance 
	 formation. To marshal evidence on this point, we design a simple model 
	 of partner selection in which firms ally for the purpose if learning and 
	 innovating, and in doing so create an industry network. We abstract 
	 completely from network-based structural and strategic motives for 
	 partner selection and focus instead on the idea that firms' knowledge 
	 bases must "fit" in order for joint learning and innovation to be 
	 possible, and thus for an alliance to be feasible. The striking result 
	 is what while containing no social capital considerations, the simple 
	 model replicates the firm conduct, network structure, and contingent 
	 effects of network position on performance observed and discussed in the 
	 empirical literature.
Classification-JEL: D85, D24, L14, L24, O33
Keywords: Network formation and dynamics, Innovation, Knowledge, Alliances 
Series: UNU-MERIT Working Papers
Creation-Date: 2009
Number: 022
File-URL: http://www.merit.unu.edu/publications/wppdf/2009/wp2009-022.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2009022