Network structure and the diffusion of knowledge

Robin Cowan and Nicolas Jonard
Additional contact information
Nicolas Jonard: CREA - Centre de recherche en épistémologie appliquée - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique, X-DEP-ECO - Département d'Économie de l'École Polytechnique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris

Post-Print from HAL

Abstract: This paper models knowledge diffusion as a barter process in which agents exchange different types of knowledge. This is intended to capture the observed practice of informal knowledge trading. Agents are located on a network and are directly connected with a small number of other agents. Agents repeatedly meet those with whom direct connections exist and trade if mutually profitable trades exist. In this way knowledge diffuses throughout the economy. We examine the relationship between network architecture and diffusion performance. We consider the space of structures that fall between, at one extreme, a network in which every agent is connected to n nearest neighbours, and at the other extreme a network with each agent being connected to, on average, n randomly chosen agents. We find that the performance of the system exhibits clear ‘small world' properties, in that the steady-state level of average knowledge is maximal when the structure is a small world (that is, when most connections are local, but roughly 10 percent of them are long distance). The variance of knowledge levels among agents is maximal in the small world region, whereas the coefficient of variation is minimal. We explain these results as reflecting the dynamics of knowledge transmission as affected by the architecture of connections among agents.

Keywords: Knowledge; Networks; Small worlds; Diffusion; Innovation policy (search for similar items in EconPapers)
Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (220)

Published in Journal of Economic Dynamics and Control, 2004, 28 (8), pp.1557-1575. ⟨10.1016/j.jedc.2003.04.002⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Network structure and the diffusion of knowledge (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00279020

DOI: 10.1016/j.jedc.2003.04.002

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().