Strategic alliances between firms yield more patents, innovation, says study in Management Insights

July 31, 2007

Larger numbers of patents and more perceptible innovation are the outcomes of certain well-designed strategic alliances between firms, according to the Management Insights feature in the July special issue of Management Science on Complex Systems. Management Science is the flagship journal of the Institute for Operations Research and the Management Sciences (INFORMS®).

Management Insights, a regular feature of the journal, is a digest of important research in business, management, operations research, and management science. It appears in every issue of the monthly journal.

"Interfirm Collaboration Networks: The Impact of Large-Scale Network Structure on Firm Innovations" is by Melissa A. Schilling of the Stern School of Business at NYU and Corey C. Phelps of the University of Washington.

Strategic alliances are widely-used and important vehicles for firm growth and innovation. As firms form and maintain alliances, they weave a network of direct and indirect relationships. The pattern of these relationships constitutes the structure of the alliance network.

The authors believe that a firm benefits when it participates in a network that exhibits both "high clustering" and "high reach."

A highly clustered network is one in which subsets of firms in the larger network are densely connected to each other. Clustering enables information to travel quickly and with high fidelity because it creates paths between firms and increases the level of cooperation among them.

A network in which firms are directly or indirectly connected to many others via short paths has high reach. Reach increases the amount and diversity of information available to a firm by increasing the number of other firms that provide information and by decreasing the path length the information has to travel.

The authors analyzed the innovative performance of 1,106 firms in 11 industry-level alliance networks over a six-year period, and concluded that large-scale alliance networks that exhibited high levels of clustering and reach enhanced firm innovation.

The current issue of Management Insights is available at http://mansci.journal.informs.org/cgi/reprint/53/7/iv . The full papers associated with the Insights are available to Management Science subscribers. Individual papers can be purchased at http://institutions.informs.org. Additional issues of Management Insights can be accessed at http://mansci.pubs.informs.org/.

The Insights in the current issue are:INFORMS journals are strongly cited in Journal Citation Reports, an industry source. In the JCR subject category "operations research and management science," Management Science ranked in the top 10 along with two other INFORMS journals.
-end-
The special MBA issue published by Business Week includes Management Science and two other INFORMS journals in its list of 20 top academic journals that are used to evaluate business school programs. Financial Times includes Management Science and four other INFORMS journals in its list of academic journals used to evaluate MBA programs.

About INFORMS


The Institute for Operations Research and the Management Sciences (INFORMS®) is an international scientific society with 10,000 members, including Nobel Prize laureates, dedicated to applying scientific methods to help improve decision-making, management, and operations. Members of INFORMS work in business, government, and academia. They are represented in fields as diverse as airlines, health care, law enforcement, the military, financial engineering, and telecommunications. The INFORMS website is www.informs.org. More information about operations research is at www.scienceofbetter.org.

Institute for Operations Research and the Management Sciences

Related Innovation Articles from Brightsurf:

Food system innovation -- and how to get there
Food production has always shaped the lives of humans and the surface of the Earth.

What is the best way to encourage innovation? Competitive pay may be the answer
Economists and business leaders agree that innovation is a major force behind economic growth, but many disagree on what is the best way to encourage workers to produce the 'think-outside-of-the-box' ideas that create newer and better products and services.

Innovation is widespread in rural areas, not just cities
Conventional measures of innovation suggest that only big cities foster new ideas, but a more comprehensive measure developed at Penn State shows that innovation is widespread even in rural places not typically thought of as innovative.

Scaling up search for analogies could be key to innovation
Investment in research is at an all-time high, yet the rate of scientific breakthroughs isn't setting any records.

Why you should be concerned about Oprah Winfrey when introducing an innovation
New research by Bocconi University's Paola Cillo and Gaia Rubera with Texas A&M's David Griffith asserts that the reaction of large individual investors to innovation is an important component of stock returns, their reaction to innovation depends on their national culture, and there is a way to segment large individual investors and pitch innovation to them accordingly.

Responsible innovation key to smart farming
Responsible innovation that considers the wider impacts on society is key to smart farming, according to academics at the University of East Anglia (UEA).

Pillars of academic innovation
Highlights from the Sixth Annual Conference of the National Academy of Inventors, including high-tech solutions to combat child pornography and radicalization materials; groundbreaking programs to promote STEM major retention; and new materials for wearable technology.

Universities drive innovation in the classroom
The current issue of Technology and Innovation, Journal of the National Academy of Inventors ® (19.2) examines innovation from the university perspective, highlighting what the most innovative institutions and educators worldwide are doing to prepare future engineers and industry leaders to effectively manage IP to grow their companies and the global economy as a whole.

How universities are fostering innovation and entrepreneurship
Technology and Innovation 19.1 zeroes in on innovation and entrepreneurship, with a special focus on what universities are currently doing to foster growth in those areas both for their success and the success of the communities and regions to which they are connected.

Shaping the future of health innovation
Future advances in healthcare will be aided by a new £10 million facility -- the National Institute for Health Research Innovation Observatory based at Newcastle University, UK.

Read More: Innovation News and Innovation Current Events
Brightsurf.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.