Working Paper BETA #2009-24

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Title : Knowledge Structures and Complementarities in the Pharmaceutical Industry.

Author(s) : Moritz Müller, Robin Cowan, Geert Duysters, Nicolas Jonard

Abstract : This paper investigates how technological distance between firms affects their network of R&D alliances. Our theoretic model assumes that the benefit of an alliance between two firms is given by their technological distance. This benefit-distance relationship determines the ego-network of each firm as well as the overall network structure. Empirical relevance is confirmed for the bio-pharmaceutical industry. Although we find that the network structure is largely explained by firm size, technological distance determines the positioning of firms in the network.

Key-words : technological distance, research alliance, network formation, pharmaceutical industry.

JEL Classification : NA