Evolution of Research Collaboration Networks and Their Impact on Firm Innovation Output

Abstract

How do ego-networks evolve? How does such evolution affect firms’ innovation output? This chapter uses a longitudinal sample of firms in the biotechnology industry to address these questions. We use social network theory to develop a model of the structure and dynamics of firms’ interorganizational research collaboration ego-networks. Using novel longitudinal methods, this chapter demonstrates how research collaboration ego-networks in the biotechnology industry change over time and how this evolution affects focal firms’ subsequent innovative output. The model is tested on a sample of 482 biotechnology firms over a span of 17 years (1990–2006). The results indicate the significant impacts of ego-network size, ego-network growth, and the inclusion of new members in the ego-network on the innovation output of biotechnology firms. Our results also suggest that enlarging ego-networks by adding new and diverse members presents significant management challenges.

Citation

Demirkan, I. and Deeds, D.L. (2014), "Evolution of Research Collaboration Networks and Their Impact on Firm Innovation Output", Understanding the Relationship Between Networks and Technology, Creativity and Innovation (Technology, Innovation, Entrepreneurship and Competitive Strategy, Vol. 13), Emerald Group Publishing Limited, Leeds, pp. 67-95. https://doi.org/10.1108/S1479-067X(2013)0000013006