Small worlds: the best network structure for innovation?

Abstract

The properties of social networks have been used to explain the behaviour and performance of diverse economic and social systems. Recently, attention has been given to a class of network structures identified as ‘small‐worlds’, due to their apparent efficiency in connecting different actors through short path lengths within a relatively sparse network. Intuitively, such network structures should also be conducive for innovation due to better flows of information and the possibility of new connections between skills and ideas. While there is some evidence for this hypothesis, we urge caution in interpreting the results of small‐world studies of innovation and suggest future improvements for empirical research.