Research Reveals How Collaboration Networks Shape Corporate Innovation Performance

Innovation performance in corporations is strongly influenced by how firms are embedded within collaboration networks, according to new research published in Frontiers of Engineering Management. The study, which analyzed 22 years of patent and network data from the global 3D printing industry, finds that both within-community and cross-community embeddedness promote higher innovation output, but collaboration complementarity plays a crucial contingency role. These findings clarify why previous research reported inconsistent results and provide new evidence for how network structure drives innovation outcomes.

Researchers from Beijing University of Posts and Telecommunications, Tsinghua University, the Higher School of Economics in Russia, and collaborators published this work with DOI 10.1007/s42524-025-4188-x. The study analyzes global patent data from 6,109 organizations over 22 years, constructing collaboration networks to identify innovation communities using topological clustering methods. By examining within-community and cross-community embeddedness alongside collaboration complementarity, the research uncovers how network structure and partner diversity jointly shape firms' innovation performance.

The authors constructed global collaboration networks based on co-patenting activities using rolling five-year windows, identifying innovation communities through Louvain topological clustering. Embeddedness was measured at two levels: within-community embeddedness representing ties to peers inside the same community, and cross-community embeddedness reflecting ties that bridge multiple communities. Both relational and structural dimensions were evaluated, and innovation performance was proxied by annual firm-level patent counts. Negative binomial regression models reveal that both embeddedness types significantly enhance innovation output.

Within-community connections provide trusted access to shared knowledge, allowing faster resource integration and reducing coordination costs. Cross-community ties offer diverse expertise and non-redundant information, broadening innovation perspectives. However, collaboration complementarity is pivotal: when complementarity is high, firms gain more from within-community relational embeddedness, while the innovation benefits of cross-community collaboration weaken due to integration complexity and resource absorption costs. These insights reconcile contradictory findings in past literature and highlight the importance of balancing local cohesion and external openness for innovation growth.

The research offers strategic guidance for firms pursuing innovation advantage. Companies embedded deeply in innovation communities may strengthen internal ties to leverage complementarities, while selectively bridging external communities to maintain diversity of ideas. Policymakers can use these insights to guide industrial cluster development, promote cross-sector collaboration, and design incentive mechanisms for innovation-driven industries. The analytical framework is also applicable to emerging domains such as AI, new materials, and biomanufacturing. Overall, optimizing embeddedness and collaboration patterns can accelerate technological progress and enhance competitiveness in global innovation ecosystems.