Researchers at the University of Washington and New York University who examined networks of companies in relation to their creative strengths have discovered that it is, indeed, a small world.
Corey Phelps, an assistant professor of management and organization at the UW Business School and co-author of the study, says that when companies are indirectly linked in a network of strategic alliance relationships with only a few degrees of separation, they are more innovative.
Phelps and Melissa Schilling, an associate professor at NYU, analyzed the innovative performance of 1,106 companies in 11 different industries over a six-year period. They examined the pattern or structure of strategic alliance relationships among companies in each industry. They found that how firms are connected to one another influences the number of patented inventions they obtained. Those that secured more patents were classified by Phelps and Schilling as being more creative.
“Most social networks, whether we're talking about friendships among individuals or alliances between companies, are typically clustered,” Phelps says. “Generally speaking, we only know a very small number of people and these individuals mostly know each other. As we know from high school, the world is cliquish. This is the essence of clustering.
“Because of this clustering, we might expect that it would take many connections to link two people or two firms from different parts of the world. However, if only a small number of individuals have ties that bridge clusters, then the average degree of separation between any two individuals in the network decreases dramatically. This is the essence of a small world. We know a small subset of people well, who also know each other, but thanks to a few boundary spanners, it only takes a few links to connect anyone in the world.”
According to the researchers, companies reap greater benefits when they are part of a network that exhibits a high degree of clustering and only a few degrees of separation, both of which are characteristic of a small world network.
They found that clustering enables information to travel quickly and accurately because it creates redundant paths between companies and increases the level of cooperation among them. Clusters within networks are important structures for making information exchange meaningful and useful, they add. Clustering can make firms more willing and able to exchange information. A network in which companies are directly or indirectly connected to many others by only a few degrees of separation has high reach. Reach increases the amount and diversity of information available by increasing the number of companies that provide information and by decreasing the length of the path the information has to travel. Based upon their analysis, the authors conclude that companies involved in large-scale alliance networks that exhibit high levels of clustering and reach are more innovative.
"When a small-world network structure emerges within an industry, all companies in the network benefit in terms of increased innovation, Phelps says. “Our results are particularly important because in today's knowledge economy, innovation is king. Without the ability to continually create and commercialize new products and services, companies often wither and die. This study helps us understand how large-scale alliance networks influence innovation. It improves our understanding of why some industries and regions are more innovative than others.”
Nancy Gardner | EurekAlert!
Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik
RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung
So-called quantum many-body scars allow quantum systems to stay out of equilibrium much longer, explaining experiment | Study published in Nature Physics
Recently, researchers from Harvard and MIT succeeded in trapping a record 53 atoms and individually controlling their quantum state, realizing what is called a...
The historic first detection of gravitational waves from colliding black holes far outside our galaxy opened a new window to understanding the universe. A...
A team led by Austrian experimental physicist Rainer Blatt has succeeded in characterizing the quantum entanglement of two spatially separated atoms by observing their light emission. This fundamental demonstration could lead to the development of highly sensitive optical gradiometers for the precise measurement of the gravitational field or the earth's magnetic field.
The age of quantum technology has long been heralded. Decades of research into the quantum world have led to the development of methods that make it possible...
Cardiovascular tissue engineering aims to treat heart disease with prostheses that grow and regenerate. Now, researchers from the University of Zurich, the Technical University Eindhoven and the Charité Berlin have successfully implanted regenerative heart valves, designed with the aid of computer simulations, into sheep for the first time.
Producing living tissue or organs based on human cells is one of the main research fields in regenerative medicine. Tissue engineering, which involves growing...
A team of scientists of the Max Planck Institute for the Structure and Dynamics of Matter (MPSD) at the Center for Free-Electron Laser Science in Hamburg investigated optically-induced superconductivity in the alkali-doped fulleride K3C60under high external pressures. This study allowed, on one hand, to uniquely assess the nature of the transient state as a superconducting phase. In addition, it unveiled the possibility to induce superconductivity in K3C60 at temperatures far above the -170 degrees Celsius hypothesized previously, and rather all the way to room temperature. The paper by Cantaluppi et al has been published in Nature Physics.
Unlike ordinary metals, superconductors have the unique capability of transporting electrical currents without any loss. Nowadays, their technological...
02.05.2018 | Event News
13.04.2018 | Event News
12.04.2018 | Event News
18.05.2018 | Power and Electrical Engineering
18.05.2018 | Information Technology
18.05.2018 | Information Technology