The Evolution of Innovation Network in the United States

Sasan Bakhtiari

Australian Economic Review, 2026, vol. 59, issue 1, 84-101

Abstract: Background Dense networks of collaboration improve the rate and novelty of innovations. I use US patents to construct the network and examine its evolution, connecting the changes to particular theoretical predictions and policies. Research Findings The network starts as sparse and only develops a dense giant component after policy change. Federally funded labs are pivotal and become the most central. Most recently, the growth of network has been attributed to universities with an added emphasis on commercialization. Government and universities have also been the most central to certain technologies, though their portfolio of technologies expands over time. Policy Implications Public institutes, that is, universities and government research centers, play an integral role in the formation and cohesion of the network. Expanding their role as collaborator is as important as measures such as R&D tax incentives in spurring basic innovation. Methodology The analysis uses network statistics alongside network regressions to generate insights about the topology and evolution of the network.

Date: 2026
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