The Role of Business Networks in Fostering Innovation 1 The Role of Business Networks in Fostering...

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The Role of BusinessNetworks in FosteringInnovation

The Role of Business Networksin Fostering InnovationThe Role of Business Networksin Fostering Innovation

ERSA Summer School 2006ERSA Summer School 2006Bastiaan de GoeiBastiaan de Goei

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GREATER SOUTH EASTGREATER SOUTH EAST

SOUTH EASTLONDONEAST OF ENGLAND

POPULATION: 21.7 M

ECONOMIC MOTOR

AREA: 40,000 KM2THE GREATER SOUTH EAST

CASE STUDY

THE GREATER SOUTH EAST

CASE STUDY

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ECONOMIC THEORYECONOMIC THEORY

Source: CBR Summit on Innovation and Governance, 2006

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ECONOMIC THEORYECONOMIC THEORY

Differences Between Dynamic ExternalitiesDifferences Between Dynamic ExternalitiesIn Their Relation With Economic GrowthIn Their Relation With Economic Growth

MARMAR PorterPorter JacobsJacobs

ConcentrationConcentration ++ ++ ––

DiversityDiversity –– –– ++

CompetitionCompetition –– ++ ++

Source: Van Oort (2002)

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NETWORK ANALYSISNETWORK ANALYSIS

1) Growth of the Network: This starts with a small number of nodes, say N and each time-step, a new node m is introduced in the network. The new node is connected to the nodes from N.

2) Preferential attachment: The choice of nodes to which m (≤M) is connected, the probability that m will be connected to a node, depends upon the connectivity of the node. 3) After t(≤T) time steps, the model evolves to a network with t + m nodes and Mt edges. The network evolves into a ‘scale variant’ state such that the degree distribution follows a power-law, with the scaling component independent of M.

j j

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AL

BE

RT

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D B

AR

AB

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POWER LAW

In economic geography one might think of

economic magnets such as agglomeration of talent, capital, and

services.

Source: Alam, 2006

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Questions….

-How big are agglomerations, and how to measure it?

-How do they function and how can we visualise that?

-What is, from a policy point of view, the ‘dominant’ agglomeration to focus on? (geographical scale and social levels)

-Ways to integrate social network analysis and spatial econometrics?

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THE END

QUESTIONS?

ACKNOWLEDGMENTSACKNOWLEDGMENTS

DR. MICHAEL KITSONDR. MICHAEL KITSON

DR. MARIA ABREUDR. MARIA ABREU

DR. MARIA SAVONADR. MARIA SAVONA

SAMANTHA SAMANTHA SAMARAWICKRAMASAMARAWICKRAMA

CAMBRIDGE-MIT-INSTITUTECAMBRIDGE-MIT-INSTITUTE

The Role of Business Networks in Fostering Innovation 1 The Role of Business Networks in Fostering...

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