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Multilayer network analysis of innovation intermediaries' activities:

methodological issues and an application to a regional policy programme

M

argherita Russo*°

|

Annalisa Caloffi

|

Riccardo Righi°

|

Simone Righi

§

|

Federica Rossi

*corresponding author: margherita.russo@unimore.it | °Department of Economics, Univ. of Modena and Reggio Emilia, Italy | Department of Economics and Man-agement, Univ. of Padua, Italy | §Department of Agricultural and Food Sciences, Univ. of Bologna, Italy | ∧ Birkbeck Univ., London, United Kingdom

Acknowledgments

Poli.in_Analysis and modelling of innovation poles in Tuscany [Analisi e modellizzazione dei poli

di innovazione in Toscana] is a research project co-funded by Tuscany Regional Administration and University of Modena and Reggio Emilia, Italy

http://www.poliinnovazione.unimore.it/

SELECTED REFERENCES

Caloffi, A., et al. (2015) in Handbook on Complexity

and Public Policy

De Domenico M. et al., (2015) Physical Review X Kauffeld-Monz, M., M.Fritsch. (2013) Reg. Studies Lazaric, N.C. et al. (2008), Reg. Studies

Rosvall, M., C.T.Bergstrom. (2007) Proceed. Nat.

Acad. Sciences

Russo, M., F. Rossi. Evaluation (2009)

ISSUE The growing importance of policies sponsoring innovation intermediaries (Howells, 2006; Lazaric et al, 2008; Kauffeld-Monz and Fritsch, 2013; Russo and Rossi, 2009; Caloffi et al, 2015) asks for appropriate analytical tools. We suggest a network perspective (a)

to analyse the multidimensional activities of innovation intermediaries and (b) to assess the contribution of the agents involved in their activities.

CASE STUDY Methodological issues are ad-dressed within the context of an application to a regional innovation policy in Tuscany. The industrial structure of this region includes a large number of small and medium-sized

en-terprises (SMEs) having relatively few

con-nections with universities and other regional research hubs. In the period 2011-2013, the regional government funded 12 'innovation poles' to strengthen the regional innovation

system; to support the development of a

range of knowledge-intensive services; to en-courage technology transfer and to stimulate the innovation capabilities of regional (SMEs). Specific goal of the innovation poles: to sup-port the regional innovation system by promot-ing common activities between regional ac-tors: universities, research organizations, KIBS, large businesses, SMEs.

RESEARCH QUESTIONS

Innovation intermediaries create links between agents, facilitating the exchange of information and creating opportunities for joint actions to boost innovation. In turn, through the different activities they perform, those agents create in-direct connections between the intermediaries.

a) centrality of agents

With regard to the case study, the 12 innova-tion intermediaries (organized to provide a range of services, including brokering and matchmaking) have mobilized a large

num-ber of agents that were directly involved with different roles in the creation of the region-al system of technology transfer: 46

organi-zations managing the poles, 420 technicians and consultants, more than 100 research la-boratories and 8 incubators were pooled to supply innovative services to more than three thousand members, mainly SMEs, of the 12 poles.

 To which extent are the poles pivotal

agents in those multidimensional inter-actions?

 Who are the other pivotal agents? b) detecting the overlapping communities To analyse the structure of the network, we focus on overlapping communities of agents doing different activities together.

 What is the emergent structure of

com-munities supporting the regional inno-vation system?

METHODOLOGY: multilayer perspective We adopt the multilayer analysis introduced by De Domenico et al. (2015, PRX), who extend to multiplex networks the setup developed by Rosvall and Bergstrom (2007), based on

in-formation theory. Infomap solves the main

problem with Newman and Girvan (2004) in identifying communities of very different sizes. The algorithm operates by minimizing the de-scription length of a network and the loss of in-formation due to clustering. Since there is no reason to exclude overlapping communities, the adoption of Infomap to multilayer analysis is more appropriate than other methods that maximize modularity producing disjoint clus-ters. By taking into account the multilayer

structure of networks one can assess new features emerging from nodes interacting in the different layers.

A random walker is used to compute flows among nodes (in the same and different lay-ers). As for teleportation in Page Rank algo-rithm, the random walker jumps, with probabil-ity r=0.15. If two nodes in two different layers tend to be visited with similar patterns, they are associated to the same community that becomes a multi-layer community. As layers

are themselves informative, the outcome is a more realistic and informative clustering.

For each agent-node, the algorithm

com-putes the total information flow resulting in

the aggregate network and from the state-node's activity in the various layers.

Moreover, the algorithm identifies the

over-lapping communities and the intercohesive nodes (Sewell 1992; Stark & Vedres 2008). With regard to our case study, we identify six

modes of interaction-layers (Fig. 1):

Share-holding of organizations managing the poles; Leading and managing the poles; Collabora-tion agreement, Service provision; Being se-conded to a managing organization and providing work services to a pole; Membership to a pole. Descriptive statistics of agents' activ-ities in the layers are summarized in Fig 2.

Fig. 1 Graph of 3,896 agents, by mode of interaction (layer)

Legenda: nodes' colours: black nodes with white figures: poles;

managing organizations; KIBS; personnel,all other types of agents,

edges' colour: by layer

Shareholding of

organizations man-aging the poles

Leading organiza-tion/ org.

manag-ing the poles

Collaboration agreement

Personnel & consultants

Services Membership

Fig. 2 Agents' activities in the six layers: descrip-tive statistics

MAIN RESULTS

Pivotal agents: 55% of the Infomap flow is

due to 58 agents, not only the 12 poles, but also the 46 managing organizations (with, respectively, 37% and 18% of the total flow).

Aggregate Infomap analysis: produces a

large number of overlapping communities (44 out of 45) with 1,019 intercohesive agents (26% of total) active in 2 to 7 com-munities.

Multilayer analysis: produces 71

communi-ties, 63 of them are overlapping (represent-ed in Fig.3), with 605 intercohesive agents (15% of the total) mainly active in 2 commu-nities.

Fig. 3 Multilayer overlapping communities

Legenda

nodes' size

pro-portional to Info-map flow (the 12 communities cen-tred on poles are not represented in proportion to their size); slices rep-resent the share of flow per layer (see colours in Fig 1);

edges' width

pro-portional to the number of agents in common be-tween communi-ties

LESSONS from multilayer analysis

Methodological issues: (a) Identification

of layers: is crucial for an effective analysis;

(b) Weights of interactions matter: they are not comparable; (c) Directedness: in the case study does not affect ranking; (d)

Multi-layer analysis is very informative on

structur-al aspects. Anstructur-alysis & interpretation: (a) structural characters of the intermediation in-frastructure; (b) Composition of the different communities; (c) Characteristics of interco-hesive agents. Current development: mod-elling the relation between agents’ Infomap flow and their performance.

NA 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 NA 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 338 63 166 601 477 3181 0 1000 2000 3000

shareholder managing collaboration service worker member

n um b e r o f n od e s 3305 611 20 24 13 13 0 1000 2000 3000

1 layer 2 layers 3 layers 4 layers 5 layers 6 layers number of nodes active in each layer number of layers in which a node is active

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