• Received : 2019.09.06
  • Accepted : 2019.12.04
  • Published : 2019.12.25


This paper examines individual and social strategies to form profitable cooperation networks. These two types of strategies measure network stability and efficiency that may not meet in a single network. We apply restrictions on knowledge flows (R&D spillovers) and links formation to integrate these benefits into structures that ensure high outcomes for both strategies. The results suggest that linking the spillovers to the firms' positions and restricting cooperation contribute to reducing the conflict between the individual and social strategies in the development of cooperative networks.


Supported by : King Saud University


  1. Goyal, S., and Moraga-Gonzalez, J. L. (2001). R&D Networks. Rand Journal of Economics 32, 686-707.
  2. Cowan, R. and Jonard, N (2004). Network structure and the diffusion of knowledge. Journal of Economic Dynamics and Control. 28 (8), 1557-1575.
  3. Farasat, A., Nikolaev, A., Srihari, S. N., and Blair, R. H. (2015). Probabilistic graphical models in modern social network analysis. Social Network Analysis and Mining, 5(1), 62.
  4. Jackson, M. O., and Wolinsky, A. (1996). A Strategic Model of Social and Economic Networks. Journal of Economic Theory 71, 44-74.
  5. Autant-Bernard, C., Billand, P., Frachisse, D. and Massard, N. (2007). Social distance versus spatial distance in R&D cooperation: Empirical evidence from European collaboration choices in micro and nanotechnologies. Papers in Regional Science 86, 495-519.
  6. Tomasello, M. V., Napoletano, M, Garasz, A and Schweitzer, F. (2013). The Rise and Fall of R&D Networks. Industrial and corporate change, 26(4), 617-646.
  7. van der Pol, J. and Rameshkoumar, J. P. (2018). The co-evolution of knowledge and collaboration networks: the role of the technology life-cycle. Scientometrics, 114(1), 307-323.
  8. Hackner, J. (2000). A note on price and quantity competition in differentiated oligopolies. Journal of Economic Theory 93, 233-239.
  9. D'Aspremont, C., and Jacquemin, A. (1988). Cooperative and Noncooperative R&D in Duopoly with Spillovers. American Economic Review 78, 1133-1137.
  10. Alghamdi, M. (2017). Maximum total welfare versus Growth of R&D networks. Journal of mathematics in industry, (2017) 7:11.
  11. Dawid, H. and Hellmann, T. (2014). The evolution of R&D networks. Journal of Economic Behavior and Organization, 105: 158-172.
  12. Knig, M. D., Battiston, S., Napoletano, M., Schweitzer, F. (2012). The efficiency and stability of R&D networks. Games and Economic Behavior 75, 694-713.
  13. Alghamdi, M. (2016a). Expenditure of firms on R&D in different structural markets. Journal of Business Economics and Finance. 5(2): 191-205.
  14. Alghamdi, M. (2016b). Economic returns in forming stable R&D networks. Springerplus, 5(1) 1570.
  15. Conti, C. and Marini, M. A. (2018). Are you the right partner? R&D agreement as a screening device. Economics of Innovation and New Technology, 1-22.
  16. Roketskiy, N. (2018). Competition and networks of collaboration. Theoretical Economics 13, 1077-1110.
  17. Meagher, K., and Rogers, M. (2004). Network density and R&D spillovers. Journal of Economic Behavior & Organization, 53(2), 237-260.
  18. Narula, R., and Santangelo, G. D. (2009). Location, collocation and R&D alliances in the European ICT industry. Research Policy, 38(2), 393-403.
  19. Zhang, Y., and Yang, N. (2014). Development of a mitigation strategy against the cascading propagation of risk in R&D network. Safety Science, 68, 161-168.
  20. Newman, M. E. J. (2010). Networks: an introduction. Oxford University Press, Oxford, UK.