nep-net New Economics Papers
on Network Economics
Issue of 2009‒07‒03
seven papers chosen by
Yi-Nung Yang
Chung Yuan Christian University

  1. Network-independent partner selection and the evolution of innovation networks. By Joel BAUM; Robin COWAN; Nicolas JONARD
  2. The structure and dynamics of the global network of inter-firm R&D partnerships 1989-2002 By Bojanowski, Michał; Corten, Rense; Westborck, Bastian
  3. Conflict Networks By Jörg Franke; Tahir Öztürk
  4. The dynamic management of manufacturing networks By Vereecke, A.; De Meyer, A.
  5. Knowledge Structures. By Moritz Müller; Robin COWAN; Geert Duysters; Nicolas JONARD
  6. Costly Network Formation and Regular Equilibria By Francesco De Sinopoli; Carlos Pimienta
  7. Network Measures in Civil Air Transport: A Case Study of Lufthansa By Aura Reggiani; Sara Signoretti; Peter Nijkamp; Alessandro Cento

  1. By: Joel BAUM; Robin COWAN; Nicolas JONARD
    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 it 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 of 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 leaning and innovation to be possible, and thus for an alliance to be feasible. The striking result is that while containing no social capital considerations, this simple model replicates the firm conduct, network structure, and contingent effects of network position on performance observed and discussed in the empirical literature.
    Date: 2009
  2. By: Bojanowski, Michał; Corten, Rense; Westborck, Bastian
    Abstract: This paper examines the structure and dynamics of the global network of inter-firm research and development (R&D) partnerships using longitudinal data for 1989--2002. We contribute to a recent literature that has attributed patterns and changes in the network to major political and technological developments, but which has omitted the structure in the underlying firm population. Two often made claims are that R&D collaboration is important in nowadays fierce competitive environment, but that the importance of international partnerships has declined over time. We integrate data on firms and alliances and confront both hypotheses with our data and a novel set of methods, which enable to control for structure in the firm population.
    Keywords: Inter-firm collaboration; R\&D partnerships; International technology transfer; Social network analysis
    JEL: L14 O32
    Date: 2009–05–07
  3. By: Jörg Franke; Tahir Öztürk
    Abstract: Conflict parties are frequently involved into more than one conflict at a given time. In this paper the interrelated structure of conflictive relations is modeled as a conflict network where opponents are embedded in a local structure of bilateral conflicts. Conflict parties invest in specific conflict technology to attack their respective rivals and defend their own resources.We show that there exists a unique equilibrium for this conflict game and examine the relation between aggregated equilibrium investment (interpreted as conflict intensity) and underlying network characteristics. The derived results have implications for peaceful resolutions of conflicts because neglecting the fact that opponents are embedded into an interrelated conflict structure might have adverse consequences for conflict intensity.
    Keywords: Network games, conflicts, conflict resolution
    JEL: C72 D74 D85
    Date: 2009–06
  4. By: Vereecke, A.; De Meyer, A. (Vlerick Leuven Gent Management School)
    Abstract: The structure and organization of international manufacturing has changed over the past twenty years. It seems as if manufacturing is moving towards emerging countries e.g. China or India, often to take advantage of lower labour costs. Whilst production cost is an important consideration in choosing a location for the factory, we argue that one should not become victim of a herd effect and that other parameters, such as quality, flexibility, transportation and energy costs need to be taken into consideration in the determination of the optimal manufacturing network. Relocating a factory is changing the strategic architecture of the company’s manufacturing network and requires a long term view and a good model to design the architecture of the manufacturing network. Based on a longitudinal empirical study of eight European multinational companies we have gained an understanding of the dynamics of a company’s manufacturing architecture. We observed that market entry drives the creation of new factories more than mere production cost, and that skills and knowledge can be a ticket for a safe future of the factory. Over ten years, we observed an increase in the knowledge sharing role of factories. And we also learnt that it is important to keep a significant variety of factories in order to provide flexibility in reshaping the strategic architecture of your manufacturing.
    Keywords: international manufacturing, network management, manufacturing architecture
    Date: 2009–06–20
  5. By: Moritz Müller; Robin COWAN; Geert Duysters; Nicolas JONARD
    Abstract: This paper investigates how technological distance between firms affects their network of R&D alliances. Our theoretic model assumes that the benefit of an alliance between two firms is given by their technological distance. This benefit-distance relationship determines the ego-network of each firm as well as the overall network structure. Empirical relevance is confirmed for the bio-pharmaceutical industry. Although we find that the network structure is largely explained by firm size, technological distance determines the positioning of firms in the network.
    Keywords: technological distance, research alliance, network formation, pharmaceutical industry.
    Date: 2009
  6. By: Francesco De Sinopoli (Dipartimento di Scienze Economiche, Universita degli Studi di Verona); Carlos Pimienta (School of Economics, The University of New South Wales)
    Abstract: We prove that for generic network-formation games where players incur some strictly positive cost to propose links the number of Nash equilibria is finite. Furthermore all Nash equilibria are regular and, therefore, stable sets.
    Keywords: Network-formation games; Regular equilibrium; Stable sets
    JEL: C62 C72 D85
    Date: 2009–06
  7. By: Aura Reggiani (University of Bologna, Italy); Sara Signoretti (University of Bologna, Italy); Peter Nijkamp (VU University Amsterdam); Alessandro Cento (KLM Royal Dutch Airlines, Milan Italy)
    Abstract: Air transport networks have exhibited a trend towards complex dynamics in recent years. Using Lufthansa’s networks as an example, this paper aims to illustrate the relevance of various network indicators – such as connectivity and concentration – for the empirical analysis of airline network configurations. The results highlight the actual strategic choices made by Lufthansa for its own net-work, as well in combination with its partners in Star Alliance.
    Keywords: air transport; complex networks; connectivity; concentration; Lufthansa
    Date: 2009–05–27

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