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on Network Economics |
| By: | Nooteboom,Bart; Gilsing,Victor; Vanhaverbeke,Wim; Duysters,Geert; Oord,Ad van den (Tilburg University, Center for Economic Research) |
| Abstract: | In this paper we analyze the innovative performance of alliance networks as a function of the technological distance between partners, a firm's network position (centrality) and total network density. We study how these three elements of an alliance network, apart and in combination, affect the 'twin tasks' in exploration, namely novelty creation on the one hand and its efficient absorption on the other hand. For an empirical test, we study technology-based alliance networks in the pharmaceutical, chemical and automotive industry. |
| Keywords: | innovation networks;cognitive distance;centrality;density |
| JEL: | O31 O32 L14 L24 L25 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:200632&r=net |
| By: | Simon Deakin |
| Abstract: | Prior to the industrial revolution, the predominant form of economic organization in western Europe and north America was the guild. Guilds were network forms, loose associations of independent producers, with strong local and regional identities, in which cooperation and competition were combined. The decline of the guild was brought about in large part by legal changes which privileged the emerging conjunction of the vertically integrated enterprise and mass consumer market. If present- day network forms are not be consigned to the margins of capitalism as their predecessors were, we need a set of legal concepts and techniques which can underpin and protect network relations, most importantly in the context of competition law. |
| Keywords: | networks, guilds, vertical integration, industrialisation, competition law. |
| JEL: | K21 L14 L22 |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:cbr:cbrwps:wp322&r=net |
| By: | Andrea Morrison (CESPRI and Department of Economics and Quantitative Methods, Università Bocconi, Milano and Università del Piemonte Orientale, Novara, Italy); Roberta Rabellotti (Department of Economics and Quantitative Methods, Università del Piemonte Orientale, Novara, Italy) |
| Abstract: | A well-grounded empirical and theoretical literature shows that local production systems can benefit from external economies generated by a shared ‘industrial atmosphere’. Many scholars would agree that in contexts as industrial districts, clusters and local systems, economic actions are strongly embedded in social and institutional factors. Nevertheless, many scholars would instead debate about the nature, boundaries and processes underpinning ‘industrial atmosphere’. This paper aims at contributing to this field of studies by entering into the black box of the ‘industrial atmosphere’ reconstructing the informal contacts underpinning collective learning in a local production system. The study is based on empirical evidence collected at firm level in an Italian wine local system and uses methods of network analysis. |
| Keywords: | Social Networks, Knowledge, Industrial Clusters, Wine Sector |
| JEL: | O31 R10 Z13 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:cri:cespri:wp174&r=net |
| By: | Holger Graf (University of Jena, Faculty of Economics); Tobias Henning |
| Abstract: | Universities and public research organizations are said to be an integrative and essential element of a functioning innovation system as they play a vital role not only in the generation of new technological knowledge, but also in its diffusion. We analyse four East German local networks of innovators which differ in structure and innovative performance and investigate the characteristic role of public research within these local systems by applying methods of social network analysis. Our results show that universities and non-university institutions of public research are key actors in all regional networks of innovators both in terms of patent output and in terms of centrality of their position in the networks. Further we find the 'thicker' networks to have more central public research organizations. Higher centrality of public research compared to private actors may be due to the fact that universities are explicitly designed to give away their knowledge and that they increasingly face the need to raise external funds. |
| Keywords: | Innovator Networks; Public research; R+D Cooperation; Mobility |
| JEL: | O31 Z13 R11 |
| Date: | 2006–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:jen:jenasw:2006-19&r=net |
| By: | Lorenzo Cassi (CESPRI, Università Commerciale Bocconi, Milano, Italy); Lorenzo Zirulia (CESPRI, Università Commerciale Bocconi, Milano, Italy) |
| Abstract: | The aim of this paper is to extend the theoretical literature on knowledge and network structure by considering explicitly the choice to use the social network as a learning mechanism. In the model, we consider a set of actors that creates and diffuses knowledge. They are located on a lattice (identifying the social space) and they are directly connected with a small number of other individuals. Their aim is to increase their personal knowledge. We assume that individuals can learn in two ways: individually, by elaborating their personal knowledge; or socially, by interacting with other individuals in their social neighbourhood. Given this framework, we compare network structures in terms of efficiency and equity. We find that networks characterized by low average distance perform well in the short run, when the opportunity cost of using the network is low, but cliquish networks are more efficient in the long run, when the opportunity cost is high. However, a "small world" structure, characterized both by low average distance and high cliquishness, is the most equal structure in terms of knowledge distribution. |
| Keywords: | Knowledge, Networks, Small worlds, Diffusion, Learning |
| JEL: | D83 O33 Z13 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:cri:cespri:wp175&r=net |
| By: | Daniel Nepelski |
| Abstract: | This paper examines how electronic procurement influences the organization of economic transactions. It seeks evidence for ICT-induced changes in how companies organize their activities and whether ICT lead to more competitive and transparent markets. Testing the relationship between the effect of electronic procurement on procurement cost and sourcing strategy, I provide new evidence that electronic procurement leads to more market transactions. This leads to the conclusion that electronic procurement increases market transparency, lowers search and supplier switching costs and improves the management of supply chain and contradicts the predictions that ICT will lead to a dominance of network-like organizational form and an increasing reliance on hybrid forms of organizing economic transactions. Two implications emerge from these results. The first one is relevant for companies engaging in ICT projects. ICT combined with changes in business strategy leads to a reduction of market transaction costs and, as a result, opens up new possibilities in terms of how business activities can be organized and/or how to structure competition in upstream markets. This effect of new technologies is of clear benefit to companies successfully implementing and using new technologies. The second implication is of great importance for companies whose customers implement ICT to intensify competition among suppliers. Changing environment forces them to adapt to new market conditions and look for new ways of maintaining profitability. |
| Keywords: | information technology and firm boundaries, markets vs. hierarchies, sourcing strategy, electronic procurement |
| JEL: | L22 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp587&r=net |
| By: | Mariana Bode; Oliver Budzinski (Faculty of Business Administration and Economics, Philipps Universitaet Marburg) |
| Abstract: | In times of globalization, trade liberalization and deregulation of specific industries, competition authorities face new challenges in order to protect national as well as international competition. With companies operating in various countries, fading market frontiers and increasing crossborder trade, new strategies must be developed in order to overcome threats to domestic markets resulting of anticompetitive behavior abroad. Even though solutions such as the “Effects Doctrine” or bilateral agreements allow – albeit imperfectly – countries to protect their domestic market, there are no laws safeguarding the global economy and international competition. Thus, the request arises to establish an international competition policy regime in order to harmonize countries’ competition laws, to reduce conflicts due to cross-border anti-competitive behavior and to support developing countries in reaching Western standards. Among several approaches, two are of significant interest: On the one hand, the World Trade Organization (WTO) could be enhanced by a board of supervision for international competition issues including a harmonized competition code for all, while on the other hand the International Competition Network (ICN) has been established to take care of global competition concerns through policy coordination [Graham 2003; Janow 2003; Budzinski 2004b]. This paper discusses whether the institutional WTO or the voluntary ICN approach represents the better path to an international competition policy regime to control private anticompetitive activities. The second part will explain the importance of an international competition policy. Subsequently, unilateral, bilateral and multilateral approaches to the prevention and solution of problems in global competition are introduced. Section 3.1 gives a short overview of the WTO’s characteristics, its structural organization and its plans to integrate an international competition policy. The organization and the framework of the ICN as well as its attempts to prevent international anticompetitive behavior is explored in section 3.2. Based on the statements made in section 2 and the facts presented in section 3, the fourth section compares the WTO approach with the ICN qualities. The discussion will be divided into the following six criteria: (i) feasibility, (ii) acceptability, (iii) efficiency, (iv) negotiation and implementation of international competition rules, (v) conflict resolution and (vi) adaptability. Conclusions follow in section 5. |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:mar:volksw:200503&r=net |
| By: | Lucinda Platt (University of Essex) |
| Abstract: | It has long been accepted that lack of social participation in wider society is one aspect or one definition of poverty. Current concerns with the extent and distribution of social capital as both a measure of a good society and as means to upward mobility also emphasise the importance of social contacts and networks to the well-being of individuals and communities. While research has often focused on ‘civic participation’ and the measurement of trust, more informal social bonds are also a crucial part of individuals’ social capital. Moreover, informal social capital or social participation might be particularly important for those whose circumstances make them already more vulnerable to marginalisation, exclusion or poverty. For example, social interaction has been argued to be conducive to better outcomes for those with health problems; and there is an extensive literature which aims to chart and explain the role of ‘ethnic capital’ in the life chances of minority ethnic groups. I use the British Home Office Citizenship Survey 2001 for England and Wales to explore the impact on four aspects of lack of social engagement of long-term illness, caring for someone with such an illness, and ethnicity. Controlling for a range of characteristics and examining the relationships separately for men and women there is evidence that between them, the four measures reveal an underlying propensity for reduced social contact. Other things being equal, illness has little association with reduced social participation, but caring does seem to affect opportunities for sociability. Members of some ethnic groups are less likely to engage in neighbourly social visiting than others, and these differences are little affected by income level. By contrast differences in ‘going out’ across groups can largely be explained by differences in income. Overall, social engagement among male Bangladeshis and to a lesser extent Pakistanis is high, whereas Black Africans and Black Caribbeans, especially women, are notable for their lack of opportunities for social engagement compared with their otherwise similar peers. They would appear to be particularly at risk of social isolation, with consequences for their current and future welfare. |
| Date: | 2006–05 |
| URL: | http://d.repec.org/n?u=RePEc:ese:iserwp:2006-18&r=net |