How can innovation economics benefit from complex network analysis?

There is a deficit in economics of theories and empirical data on complex networks, though mathematicians, physicists, biologists, computer scientists, and sociologists are actively engaged in their study. This paper offers a focused review of prominent concepts in contemporary thinking in network research that may motivate further theoretical research and stimulate interest of economists. Possible avenues for modelling innovation, considered the driving force behind economic change, have been explored. A transition is needed from the analysis in economics of the transaction to the explicit examination of market structure and how it processes, or is processed by, innovation.Network; statistics; economy; innovation; modelling

Communities, Knowledge Creation, and Information Diffusion

In this paper, we examine how patterns of scientific collaboration contribute to knowledge creation. Recent studies have shown that scientists can benefit from their position within collaborative networks by being able to receive more information of better quality in a timely fashion, and by presiding over communication between collaborators. Here we focus on the tendency of scientists to cluster into tightly-knit communities, and discuss the implications of this tendency for scientific performance. We begin by reviewing a new method for finding communities, and we then assess its benefits in terms of computation time and accuracy. While communities often serve as a taxonomic scheme to map knowledge domains, they also affect how successfully scientists engage in the creation of new knowledge. By drawing on the longstanding debate on the relative benefits of social cohesion and brokerage, we discuss the conditions that facilitate collaborations among scientists within or across communities. We show that successful scientific production occurs within communities when scientists have cohesive collaborations with others from the same knowledge domain, and across communities when scientists intermediate among otherwise disconnected collaborators from different knowledge domains. We also discuss the implications of communities for information diffusion, and show how traditional epidemiological approaches need to be refined to take knowledge heterogeneity into account and preserve the system's ability to promote creative processes of novel recombinations of idea

Variability of Contact Process in Complex Networks

We study numerically how the structures of distinct networks influence the epidemic dynamics in contact process. We first find that the variability difference between homogeneous and heterogeneous networks is very narrow, although the heterogeneous structures can induce the lighter prevalence. Contrary to non-community networks, strong community structures can cause the secondary outbreak of prevalence and two peaks of variability appeared. Especially in the local community, the extraordinarily large variability in early stage of the outbreak makes the prediction of epidemic spreading hard. Importantly, the bridgeness plays a significant role in the predictability, meaning the further distance of the initial seed to the bridgeness, the less accurate the predictability is. Also, we investigate the effect of different disease reaction mechanisms on variability, and find that the different reaction mechanisms will result in the distinct variabilities at the end of epidemic spreading.Comment: 6 pages, 4 figure

Great cities look small

Great cities connect people; failed cities isolate people. Despite the fundamental importance of physical, face-to-face social-ties in the functioning of cities, these connectivity networks are not explicitly observed in their entirety. Attempts at estimating them often rely on unrealistic over-simplifications such as the assumption of spatial homogeneity. Here we propose a mathematical model of human interactions in terms of a local strategy of maximising the number of beneficial connections attainable under the constraint of limited individual travelling-time budgets. By incorporating census and openly-available online multi-modal transport data, we are able to characterise the connectivity of geometrically and topologically complex cities. Beyond providing a candidate measure of greatness, this model allows one to quantify and assess the impact of transport developments, population growth, and other infrastructure and demographic changes on a city. Supported by validations of GDP and HIV infection rates across United States metropolitan areas, we illustrate the effect of changes in local and city-wide connectivities by considering the economic impact of two contemporary inter- and intra-city transport developments in the United Kingdom: High Speed Rail 2 and London Crossrail. This derivation of the model suggests that the scaling of different urban indicators with population size has an explicitly mechanistic origin.Comment: 19 pages, 8 figure

Temporal networks of face-to-face human interactions

The ever increasing adoption of mobile technologies and ubiquitous services allows to sense human behavior at unprecedented levels of details and scale. Wearable sensors are opening up a new window on human mobility and proximity at the finest resolution of face-to-face proximity. As a consequence, empirical data describing social and behavioral networks are acquiring a longitudinal dimension that brings forth new challenges for analysis and modeling. Here we review recent work on the representation and analysis of temporal networks of face-to-face human proximity, based on large-scale datasets collected in the context of the SocioPatterns collaboration. We show that the raw behavioral data can be studied at various levels of coarse-graining, which turn out to be complementary to one another, with each level exposing different features of the underlying system. We briefly review a generative model of temporal contact networks that reproduces some statistical observables. Then, we shift our focus from surface statistical features to dynamical processes on empirical temporal networks. We discuss how simple dynamical processes can be used as probes to expose important features of the interaction patterns, such as burstiness and causal constraints. We show that simulating dynamical processes on empirical temporal networks can unveil differences between datasets that would otherwise look statistically similar. Moreover, we argue that, due to the temporal heterogeneity of human dynamics, in order to investigate the temporal properties of spreading processes it may be necessary to abandon the notion of wall-clock time in favour of an intrinsic notion of time for each individual node, defined in terms of its activity level. We conclude highlighting several open research questions raised by the nature of the data at hand.Comment: Chapter of the book "Temporal Networks", Springer, 2013. Series: Understanding Complex Systems. Holme, Petter; Saram\"aki, Jari (Eds.