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Understanding the Complex Nature of Innovation Network Evolution

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Foundations of Economic Change

Part of the book series: Economic Complexity and Evolution ((ECAE))

Abstract

In this article, we suggest a theoretical framework to explain how and why innovation networks emerge, change and eventually dissolve over time. We argue that network evolution is a multi-faceted phenomenon that needs to be studied at multiple levels. Our framework is based on the notion that network change is a result of exogenous and endogenous determinants. At the heart of our framework, we focus on four elementary network change processes at the micro level: the entry and exit of actors, and the formation and termination of the links between them. We integrate the actors’ knowledge endowments and strategic orientations to emphasize the role of actor-specific decision making processes in explaining the emergence of characteristic network patterns over time. In doing so, we add still missing pieces of the puzzle to the contemporary network evolution literature.

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Notes

  1. 1.

    The general idea of this study is based on Kudic (2015).

  2. 2.

    In a most basic sense, any kind of network consists of two basic elements: nodes and the ties between these nodes (Wasserman and Faust 1994). This justifies our focus on the four micro-level processes.

  3. 3.

    For an in-depth discussion, see Kudic (2015).

  4. 4.

    For an overview of contemporary research in the field of complexity economics, see Antonelli (2011).

  5. 5.

    For an in-depth discussion on the role of generic rules for economic evolution, see Dopfer and Potts (2008).

  6. 6.

    A firm’s ego network consists of its set of direct, dyadic ties and the relationships between these ties (Hite and Hesterly 2001; Wasserman and Faust 1994).

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Authors and Affiliations

  1. Faculty of Business Studies and Economics, University of Bremen, Bremen, Germany

    Muhamed Kudic & Jutta Guenther

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  1. Muhamed Kudic
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  2. Jutta Guenther
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Correspondence to Muhamed Kudic .

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Editors and Affiliations

  1. University of Hohenheim, Stuttgart, Germany

    Andreas Pyka

  2. Department of Economics, Friedrich Schiller University Jena, Jena, Germany

    Uwe Cantner

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Kudic, M., Guenther, J. (2017). Understanding the Complex Nature of Innovation Network Evolution. In: Pyka, A., Cantner, U. (eds) Foundations of Economic Change. Economic Complexity and Evolution. Springer, Cham. https://doi.org/10.1007/978-3-319-62009-1_20

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