The impact of social networks on innovation and industrial development: social dimensions of industrial dynamics in Russia

Abstract

An increasing number of researchers in fields such as industrial dynamics, technology policy and firm strategy claim that technological development cannot be viewed as an isolated phenomenon but has to be studied as a part of a larger system, an Innovation System. However, there is still a great controversy about the way that channels of interaction between different actors develop and change over time. Bringing the concept of social networks into Innovation System’s analysis provides an essential tool for understanding the logic of technological development and industrial structures. To substantiate this theoretical appreciation we complemented it by an empirical study of Russian industrial reconstruction during transition. Extensive analysis of official data, case studies, SME survey and several interviews, illustrated the deep involvement of social networks in the process of industrial transformation.