Sorenson O (Sorenson, Olav), Rivkin JW (Rivkin, Jan W.), Fleming L (Fleming, Lee) "Complexity, networks and knowledge flow" Research Policy 35(7):994-1017, September 2006.

Thu Nov 16 16:44:13 EST 2006

E-mail Addresses: osorenson at london.edu, jrivkin at hbs.edu, lfleming at hbs.edu 

Title: Complexity, networks and knowledge flow 

Author(s): Sorenson O (Sorenson, Olav), Rivkin JW (Rivkin, Jan W.), Fleming 
L (Fleming, Lee) 

Source: RESEARCH POLICY 35 (7): 994-1017 SEP 2006 

Document Type: Review 
Language: English 
Cited References: 102      Times Cited: 0     

Abstract: 
Because knowledge plays an important role in the creation of wealth, 
economic actors often wish to skew the flow of knowledge in their favor. We 
ask, when will an actor socially close to the source of some knowledge have 
the greatest advantage over distant actors in receiving and building on the 
knowledge? Marrying a social network perspective with a view of knowledge 
transfer as a search process, we argue that the value of social proximity 
to the knowledge source depends crucially on the nature of the knowledge at 
hand. Simple knowledge diffuses equally to close and distant actors because 
distant recipients with poor connections to the source of the knowledge can 
compensate for their limited access by means of unaided local search. 
Complex knowledge resists diffusion even within the social circles in which 
it originated. With knowledge of moderate complexity, however, high-
fidelity transmission along social networks combined with local search 
allows socially proximate recipients to receive and extend knowledge 
generated elsewhere, while interdependencies stymie more distant recipients 
who rely heavily on unaided search. To test this hypothesis, we examine 
patent data and compare citation rates across proximate and distant actors 
on three dimensions: (1) the inventor collaboration network; (2) firm 
membership; and (3) geography. We find robust support for the proposition 
that socially proximate actors have the greatest advantage over distant 
actors for knowledge of moderate complexity. We discuss the implications of 
our findings for the distribution of intra-industry profits, the geographic 
agglomeration of industries, the design of social networks within firms, 
and the modularization of technologies. (c) 2006 Elsevier B.V. All rights 
reserved. 

Addresses: Sorenson O (reprint author), London Business Sch, Sussex 
Pl,Regents Pk, London NW1 4SA, England
London Business Sch, London NW1 4SA, England
Harvard Univ, Sch Business, Boston, MA 02163 USA

E-mail Addresses: osorenson at london.edu, jrivkin at hbs.edu, lfleming at hbs.edu 

Publisher: ELSEVIER SCIENCE BV, PO BOX 211, 1000 AE AMSTERDAM, NETHERLANDS 

Subject Category: MANAGEMENT; PLANNING & DEVELOPMENT 
IDS Number: 082MS 

ISSN: 0048-7333 

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