Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2007-05-10
Number: 07-039/3
Author-Name: Sandra Phlippen
Author-Email: phlippen@few.eur.nl
Author-Workplace-Name: Erasmus Universiteit Rotterdam
Author-Name: Massimo Riccaboni
Author-Email: riccaboni@unifi.it
Author-Workplace-Name: University of Florida
Title: Radical Innovation and Network Evolution
Abstract: This paper examines how a radical technological innovation affects alliance formation of firms and subsequent network structures. We use longitudinal data of interfirm R&D collaborations in the biopharmaceutical industry in which a new technological regime is established. Our findings suggest that it requires radical technological change for firms to leave their embedded path of existing alliances and form new alliances with new partners. While new partners are mostly found through the firms’ existing network, we provide some insight into distant link formation with unknown partners, which contributes to our understanding of how ‘small-worlds’ might emerge.
Classification-JEL: O32; O31; L14; L24; M13; M21
Keywords: Pharmaceutical industry; Biotechnology industry; R&D; Technological change; Alliances; Networks
File-Url: https://papers.tinbergen.nl/07039.pdf
File-Format: application/pdf
File-Size: 364826 bytes
Handle: RePEc:tin:wpaper:20070039