Small-world network effects on innovation: evidences from nanotechnology patenting

This paper explores the effects of collaboration network on innovation in nanotechnology. We extend the idea of small-world to the heterogeneous network positions of actors by capturing the variation of how closely a given actor is connected to others in the same network and how clustered its neighbors are. We test the effects of small-world network in the context of nanotechnology patenting in China. Empirical results reveal that small-worldness, or the co-existence of high clustering and low path length in the network, displays inverse U-shape relationships with future patent output of the individual inventors and the system. Interestingly, the inflection point of the nonlinear relationship is significantly higher at the individual level. Based on these findings, we suggest that researchers of nanotechnology maintain a balance between friends in close-knit inner circles and colleagues in distant areas in their collaboration decisions and that policymakers interested in furthering the field offer collaboration opportunities for researchers in distant locations and areas.