Technological Regimes and the Growth of Networks: An Empirical Analysis

Abstract

This paper shows how specific technological and relational regimes have shaped the growth of the network of R&D collaborative agreements in pharmaceuticals in the 1990s. Our analysis reveals the existence of a complex set of regimes of firm growth within the network, providing additional evidence supporting prediction that both growth and innovative activities of large and small firms respond, even within a given industry, to considerably different technological and economic factors. Moreover, the paper shows, in the context of a specific industry and by means of a series of preliminary and explorative empirical analyses, that information on the topological properties of a given industrial settings and on roles/positions of organizations within it can be used to disentangle some fundamental generative processes underlying observed processes of growth. This result contributes to the old stochastic approach to firm growth, in the direction of building parsimonious and, at the same time, more realistic, representations of processes of industrial growth.