Network externalities in technology adoption vs innovation networks. Preferential attachment and network topology determine outcomes. Strategic complementarities through connections.
Firms collaborate forming innovation network. Central firms access diverse knowledge from multiple partners enhancing innovation output. Peripheral firms limited by fewer connections. Network structure (centrality) determines innovation capacity. Successful innovators attract more partners (preferential attachment) reinforcing centrality advantage.
view paper→Technology adoption spreads through spatial and network channels. Spatial spillovers and network externalities interact multiplicatively - nearby adoption and connected peer adoption amplify each other. Cumulative adoption pressure accumulates along stochastic paths through spatial-network space. Network position amplifies or dampens spatial effects, creating non-linear adoption dynamics.
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