Template-type: ReDIF-Paper 1.0
Author-Name: Cowan, Robin
Author-Email: cowan@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, and BETA, Universite Louis Pasteur
Author-Name: Jonard, Nicolas
Author-Email: nicolas.jonard@uni.lu
Author-Workplace-Name: Universite du Luxembourg.
Author-Name: Sanditov, Bulat
Author-Email: sanditov@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, and Maastricht University
Title: Fits and Misfits: Technological Matching and R&D Networks
Abstract: This paper presents an economic model of R&D network formation through 
	 the creation of strategic alliances. Firms are randomly endowed with 
	 knowledge elements. They base their alliance decisions purely on the 
	 technological fit of potential partners, ignoring social capital 
	 considerations and indirect benefits on the network. This is sufficient 
	 to generate equilibrium networks with the small world properties of 
	 observed alliance networks, namely short pairwise distances and local 
	 clustering. The equilibrium networks are more clustered than 
	 "comparable" random graphs, while they have similar characteristic path 
	 length. Two extreme regimes of competition are examined, to show that 
	 while the competition has a quantitative effect on the equilibrium 
	 networks (density is lower with competition), the small world features 
	 of the equilibrium networks are preserved.
Classification-JEL: D85, O32
Keywords: network formation, small worlds, R&D networks, strategic alliances,
	 business clusters
Series: UNU-MERIT Working Papers
Creation-Date: 2009
Number: 2009-042
File-URL: https://unu-merit.nl/publications/wppdf/2009/wp2009-042.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2009042