Innovation and network structural dynamics: Study of the alliance network of a major sector of the biotechnology industry

The large-scale topology and dynamics of maps of alliances in a major segment of the biotechnology industry point to the joint dynamics of network and innovation and it is demonstrated that the network is scale-free.

Abstract

We study the large-scale topology and dynamics of maps of alliances in a major segment of the biotechnology industry. The results point to the joint dynamics of network and innovation. The study demonstrates that the network is scale-free. Competition for links translates into a dynamic exponent that seems to follow the fitter-get-richer model of network growth, with preferential attachment to firms holding key technologies. This network also shows a small-world effect. This work highlights the strategic importance of understanding the growth dynamics and structure of collaboration networks for the building of leading positions in industries led by sustained radical change.