Innovation Policy in a Networked World

42 Pages Posted: 24 May 2017

Date Written: May 2017

Abstract

Social relationships channel information, influence, and access to scarce resources. As a consequence, social networks – the patterns of these relationships across the members of a community – influence who comes up with important innovations, whether and how rapidly those innovations get adopted, and who has the ability to commercialize them. They therefore also affect the overall rate at which innovation occurs in the economy. This essay provides an introduction to and review of the research on social networks most relevant to innovation, with a particular focus on the earliest stages of the innovation process. It then discusses the likely consequences of a variety of policy interventions that could either reduce the importance of social relationships to innovation or alter the patterns of relationships in ways that might promote innovation.

Suggested Citation

Sorenson, Olav, Innovation Policy in a Networked World (May 2017). NBER Working Paper No. w23431. Available at SSRN: https://ssrn.com/abstract=2971828

Olav Sorenson (Contact Author)

Yale School of Management ( email )

135 Prospect Street
P.O. Box 208200
New Haven, CT 06520-8200
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
24
Abstract Views
724
PlumX Metrics