Exploring innovation networks : two simulations, two perspectives and the mechanisms that drive innovation performance

![CDATA[Business networks are complex systems, made up of interdependent organisations whose managers are each trying to accomplish their own goals whilst simultaneously responding to the actions of others. Understanding the complex interactions that occur within networks requires perspectives that consider whole systems and the complex interdependencies that exist between its parts. Case research methodologies provide the requisite rich perspectives and have been crucial in developing our understanding of business networks. In this paper we show how simulation can be used to complement case-based research to enrich our understanding of the market forms. We develop competing simulations of a prototypical innovation network using two different modelling approaches. We then use these simulations to show how actors’ choices impact the distribution of resources within the network and which subsequently produce variations in the innovative performance of the network. In doing this we are able to provide a unique perspective on the mechanisms that produce different network eventualities (i.e. innovation network success and failure).]]