Abstract

http://ssrn.com/abstract=1529602
 
 

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Network Effects in Biology


Joachim Henkel


TUM School of Management - Technische Universität München (TUM); Centre for Economic Policy Research (CEPR)

Stephen M. Maurer


University of California, Berkeley

December 30, 2009


Abstract:     
Network effects play a central role in many information goods industries including electronics and software. So far, however, their role in shaping biotechnology innovation has largely been overlooked. This paper presents data documenting the presence of strong network effects in stem cell research. We also present survey evidence that researchers strongly prefer to work with cells that others have used in the past. We present a simple model of this process. Our model predicts that the dominance of particular cell lines should - unlike software or electronics - slowly erode over time. Our stem cell data support this prediction.

Number of Pages in PDF File: 34

Keywords: network effects, learning spill-overs, biology, stem cells

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Date posted: December 31, 2009 ; Last revised: March 30, 2013

Suggested Citation

Henkel, Joachim and Maurer, Stephen M., Network Effects in Biology (December 30, 2009). Available at SSRN: http://ssrn.com/abstract=1529602 or http://dx.doi.org/10.2139/ssrn.1529602

Contact Information

Joachim Henkel (Contact Author)
TUM School of Management - Technische Universität München (TUM) ( email )
Arcisstr. 21
Munich, D-80333
Germany
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Stephen M. Maurer
University of California, Berkeley ( email )
Berkeley, CA 94720
United States
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References:  19

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