The dynamics of networks and the evolution of industries: a survey of the empirical literature

The aim of this chapter is to review the empirical literature on interfirm technological agreements. Together with the phenomenon it describes, this literature has increased exponentially in recent years. Several suggestions on the rationale and effects of interfirm technological agreements have been proposed, receiving various degrees of confirmation by the empirical evidence. Interestingly, these efforts have been interdisciplinary, with contributions coming from disciplines such as economics, sociology and management. After a discussion of the empirical evidence, this chapter suggests a perspective that is relatively uncommon in the literature: interfirm technological agreements and R&D networks are seen as structural elements in the evolution and dynamics of industries. Our main point is that the existing empirical literature can constitute the basis for an appreciative theory of the role of R&D networks in industry evolution, which should be particularly appealing for economists interested in improving their knowledge of the fundamental link between technological progress and market structure. Furthermore, such a theory can be conceived of as a step towards further empirical analysis and formal modeling.