Density and Strength of Ties in Innovation Networks: An Analysis of Multi-Media and Biotechnology

Abstract

In this article, we provide an empirical illustration of hypotheses, developed in the literature, on the role of density and strength of ties in innovation networks. We study both exploration and exploitation networks in the Dutch multimedia and pharmaceutical biotechnology industry. We find support for most of our hypotheses but not all. These findings, in line with the mixed results in the literature, seem to indicate that the distinction between exploration versus exploitation, albeit useful, is still too general. There may be a stronger sectoral effect in how exploration and exploitation settle in network structural properties than anticipated thus far.

Keywords: Innovation, networks, density, strength of ties, governance, biotechnology, multimedia

JEL Classification: D23, D83, D85, L14, L63, L65