(MOD) Examining the Link between Informal Social Networks and Innovation: Using Netometrics to Quantify the Value of a Distributed Hetarchical Network

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This study analyzes the interactions between scientists and innovators in an informal virtual hetarchical social network (VHSN) using self-report questionnaires, state-of-the-art social network analysis methods, and customized network monitoring tools. These analyses permit identification of social-psychological characteristics and other variables in the use of informal social networks. If VHSNs facilitate innovation, then they constitute a very low-cost investment that accelerates efficiency and economic growth. More importantly, the study tests the extent to which VHSNs serve as incubators for sharing ideas that are precursors to innovation. Existing research shows that innovations and related spillovers serve as major sources of economic growth. This study applies an interdisciplinary approach to identifying a new model for an idiosyncratic innovation process by attempting to marry an evolving concept--virtual hetarchical social networks--to a proven concept for facilitating innovation--formal social networks. Markets involve exchange and, after sufficient forays of low-content information and after sufficient trust forms, market transactions are expected to reflect exchanges of highly-valued information. Nodes are likely to engage in strategic play--seeking to gather as much and as novel information as possible from other nodes based on the perceived trust and reputation assets that they possess, while restricting the flow of their own knowledge. The results of this research serves as foundational knowledge for developing exportable models that can inform the formation of future informal social networks that incubate, enrich and accelerate innovation.