Inderscience Publishers

Optimal design of information flow in innovation networks

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Governments and regional organisations spend significant amounts of money in order to stimulate sustainable knowledge spillover and diffusion via innovation networks. Using metrics borrowed from graph theory and a newly defined metric, this paper sets up the taxonomy and provides a quantitative analysis of innovation networks in their broadest sense, topology-wise, as well as their efficiency from information flow perspective. I argue that decision makers should apply holistic approach to innovation and decide upon a balanced mix of different types of networks in order to maximise the innovation efficiency/intensity versus costs.

Keywords: innovation networks, clusters, strategic management, knowledge spillover, sustainable knowledge, knowledge diffusion, optimal design, information flow, graph theory, innovation intensity, costs, innovation efficiency

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