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Multilayer network analysis of innovation intermediaries' activities:
methodological issues and an application to a regional policy programme
Margherita Russo*° | Annalisa Caloffi‡
| Riccardo Righi° | Simone Righi§
| Federica Rossi∧
*corresponding author: margherita.russo@unimore.it | °Department of Economics, Univ. of Modena and Reggio Emilia, Italy |
‡
Department of Economics and Man-
agement, Univ. of Padua, Italy |
§
Department of Agricultural and Food Sciences, Univ. of Bologna, Italy |
∧
Birkbeck Univ., London, United Kingdom
Acknowledgments
Poli.in_Analysis and modelling of innovation
poles in Tuscany [Analisi e modellizzazione dei poli
di innovazione in Toscana] is a research project co-
funded by Tuscany Regional Administration and
University of Modena and Reggio Emilia, Italy
http://www.poliinnovazione.unimore.it/
SELECTED REFERENCES
Caloffi, A., et al. (2015) in Handbook on Complexity
and Public Policy
De Domenico M. et al., (2015) Physical Review X
Kauffeld-Monz, M., M.Fritsch. (2013) Reg. Studies
Lazaric, N.C. et al. (2008), Reg. Studies
Rosvall, M., C.T.Bergstrom. (2007) Proceed. Nat.
Acad. Sciences
Russo, M., F. Rossi. Evaluation (2009)
ISSUE The growing importance of policies
sponsoring innovation intermediaries (Howells,
2006; Lazaric et al, 2008; Kauffeld-Monz and
Fritsch, 2013; Russo and Rossi, 2009; Caloffi
et al, 2015) asks for appropriate analytical
tools. We suggest a network perspective (a)
to analyse the multidimensional activities of
innovation intermediaries and (b) to assess
the contribution of the agents involved in
their activities.
CASE STUDY Methodological issues are ad-
dressed within the context of an application to
a regional innovation policy in Tuscany. The
industrial structure of this region includes a
large number of small and medium-sized en-
terprises (SMEs) having relatively few con-
nections with universities and other regional
research hubs. In the period 2011-2013, the
regional government funded 12 'innovation
poles' to strengthen the regional innovation
system; to support the development of a
range of knowledge-intensive services; to en-
courage technology transfer and to stimulate
the innovation capabilities of regional (SMEs).
Specific goal of the innovation poles: to sup-
port the regional innovation system by promot-
ing common activities between regional ac-
tors: universities, research organizations,
KIBS, large businesses, SMEs.
RESEARCH QUESTIONS
Innovation intermediaries create links between
agents, facilitating the exchange of information
and creating opportunities for joint actions to
boost innovation. In turn, through the different
activities they perform, those agents create in-
direct connections between the intermediaries.
a) centrality of agents
With regard to the case study, the 12 innova-
tion intermediaries (organized to provide a
range of services, including brokering and
matchmaking) have mobilized a large num-
ber of agents that were directly involved with
different roles in the creation of the region-
al system of technology transfer: 46 organi-
zations managing the poles, 420 technicians
and consultants, more than 100 research la-
boratories and 8 incubators were pooled to
supply innovative services to more than three
thousand members, mainly SMEs, of the 12
poles.
 To which extent are the poles pivotal
agents in those multidimensional inter-
actions?
 Who are the other pivotal agents?
b) detecting the overlapping communities
To analyse the structure of the network, we
focus on overlapping communities of agents
doing different activities together.
 What is the emergent structure of com-
munities supporting the regional inno-
vation system?
METHODOLOGY: multilayer perspective
We adopt the multilayer analysis introduced by
De Domenico et al. (2015, PRX), who extend
to multiplex networks the setup developed by
Rosvall and Bergstrom (2007), based on in-
formation theory. Infomap solves the main
problem with Newman and Girvan (2004) in
identifying communities of very different sizes.
The algorithm operates by minimizing the de-
scription length of a network and the loss of in-
formation due to clustering. Since there is no
reason to exclude overlapping communities,
the adoption of Infomap to multilayer analysis
is more appropriate than other methods that
maximize modularity producing disjoint clus-
ters. By taking into account the multilayer
structure of networks one can assess new
features emerging from nodes interacting
in the different layers.
A random walker is used to compute flows
among nodes (in the same and different lay-
ers). As for teleportation in Page Rank algo-
rithm, the random walker jumps, with probabil-
ity r=0.15. If two nodes in two different layers
tend to be visited with similar patterns, they
are associated to the same community that
becomes a multi-layer community. As layers
are themselves informative, the outcome is
a more realistic and informative clustering.
For each agent-node, the algorithm com-
putes the total information flow resulting in
the aggregate network and from the state-
node's activity in the various layers.
Moreover, the algorithm identifies the over-
lapping communities and the intercohesive
nodes (Sewell 1992; Stark & Vedres 2008).
With regard to our case study, we identify six
modes of interaction-layers (Fig. 1): Share-
holding of organizations managing the poles;
Leading and managing the poles; Collabora-
tion agreement, Service provision; Being se-
conded to a managing organization and
providing work services to a pole; Membership
to a pole. Descriptive statistics of agents' activ-
ities in the layers are summarized in Fig 2.
Fig. 1 Graph of 3,896 agents, by mode of interaction (layer)
Legenda: nodes' colours: black nodes with white figures: poles;
managing organizations; KIBS; personnel,all other types of agents,
edges' colour: by layer
Shareholding of
organizations man-
aging the poles
Leading organiza-
tion/ org. manag-
ing the poles
Collaboration
agreement
Personnel &
consultants
Services Membership
Fig. 2 Agents' activities in the six layers: descrip-
tive statistics
MAIN RESULTS
Pivotal agents: 55% of the Infomap flow is
due to 58 agents, not only the 12 poles, but
also the 46 managing organizations (with,
respectively, 37% and 18% of the total flow).
Aggregate Infomap analysis: produces a
large number of overlapping communities
(44 out of 45) with 1,019 intercohesive
agents (26% of total) active in 2 to 7 com-
munities.
Multilayer analysis: produces 71 communi-
ties, 63 of them are overlapping (represent-
ed in Fig.3), with 605 intercohesive agents
(15% of the total) mainly active in 2 commu-
nities.
Fig. 3 Multilayer overlapping communities
Legenda
nodes' size pro-
portional to Info-
map flow (the 12
communities cen-
tred on poles are
not represented in
proportion to their
size); slices rep-
resent the share of
flow per layer (see
colours in Fig 1);
edges' width pro-
portional to the
number of agents
in common be-
tween communi-
ties
LESSONS from multilayer analysis
Methodological issues: (a) Identification
of layers: is crucial for an effective analysis;
(b) Weights of interactions matter: they are
not comparable; (c) Directedness: in the
case study does not affect ranking; (d) Multi-
layer analysis is very informative on structur-
al aspects. Analysis & interpretation: (a)
structural characters of the intermediation in-
frastructure; (b) Composition of the different
communities; (c) Characteristics of interco-
hesive agents. Current development: mod-
elling the relation between agents’ Infomap
flow and their performance.
NA
1
2
3
4
5
6
7
8 9
10
11
12
1
2
3
4
5
6
7
8 9
10
11
12
NA
1
2
3
4
5
6
7
8 9
10
11
12
1
2
3
4
5
6
7
8 9
10
11
12
338
63 166
601 477
3181
0
1000
2000
3000
shareholder managing collaboration service worker member
numberofnodes
3305
611
20 24 13 13
0
1000
2000
3000
1 layer 2 layers 3 layers 4 layers 5 layers 6 layers
number of nodes activein each layer number of layers in which a node is active

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153-Russo Multilayer network analysis of innovation intermediaries activities

  • 1. Multilayer network analysis of innovation intermediaries' activities: methodological issues and an application to a regional policy programme Margherita Russo*° | Annalisa Caloffi‡ | Riccardo Righi° | Simone Righi§ | Federica Rossi∧ *corresponding author: margherita.russo@unimore.it | °Department of Economics, Univ. of Modena and Reggio Emilia, Italy | ‡ Department of Economics and Man- agement, Univ. of Padua, Italy | § Department of Agricultural and Food Sciences, Univ. of Bologna, Italy | ∧ Birkbeck Univ., London, United Kingdom Acknowledgments Poli.in_Analysis and modelling of innovation poles in Tuscany [Analisi e modellizzazione dei poli di innovazione in Toscana] is a research project co- funded by Tuscany Regional Administration and University of Modena and Reggio Emilia, Italy http://www.poliinnovazione.unimore.it/ SELECTED REFERENCES Caloffi, A., et al. (2015) in Handbook on Complexity and Public Policy De Domenico M. et al., (2015) Physical Review X Kauffeld-Monz, M., M.Fritsch. (2013) Reg. Studies Lazaric, N.C. et al. (2008), Reg. Studies Rosvall, M., C.T.Bergstrom. (2007) Proceed. Nat. Acad. Sciences Russo, M., F. Rossi. Evaluation (2009) ISSUE The growing importance of policies sponsoring innovation intermediaries (Howells, 2006; Lazaric et al, 2008; Kauffeld-Monz and Fritsch, 2013; Russo and Rossi, 2009; Caloffi et al, 2015) asks for appropriate analytical tools. We suggest a network perspective (a) to analyse the multidimensional activities of innovation intermediaries and (b) to assess the contribution of the agents involved in their activities. CASE STUDY Methodological issues are ad- dressed within the context of an application to a regional innovation policy in Tuscany. The industrial structure of this region includes a large number of small and medium-sized en- terprises (SMEs) having relatively few con- nections with universities and other regional research hubs. In the period 2011-2013, the regional government funded 12 'innovation poles' to strengthen the regional innovation system; to support the development of a range of knowledge-intensive services; to en- courage technology transfer and to stimulate the innovation capabilities of regional (SMEs). Specific goal of the innovation poles: to sup- port the regional innovation system by promot- ing common activities between regional ac- tors: universities, research organizations, KIBS, large businesses, SMEs. RESEARCH QUESTIONS Innovation intermediaries create links between agents, facilitating the exchange of information and creating opportunities for joint actions to boost innovation. In turn, through the different activities they perform, those agents create in- direct connections between the intermediaries. a) centrality of agents With regard to the case study, the 12 innova- tion intermediaries (organized to provide a range of services, including brokering and matchmaking) have mobilized a large num- ber of agents that were directly involved with different roles in the creation of the region- al system of technology transfer: 46 organi- zations managing the poles, 420 technicians and consultants, more than 100 research la- boratories and 8 incubators were pooled to supply innovative services to more than three thousand members, mainly SMEs, of the 12 poles.  To which extent are the poles pivotal agents in those multidimensional inter- actions?  Who are the other pivotal agents? b) detecting the overlapping communities To analyse the structure of the network, we focus on overlapping communities of agents doing different activities together.  What is the emergent structure of com- munities supporting the regional inno- vation system? METHODOLOGY: multilayer perspective We adopt the multilayer analysis introduced by De Domenico et al. (2015, PRX), who extend to multiplex networks the setup developed by Rosvall and Bergstrom (2007), based on in- formation theory. Infomap solves the main problem with Newman and Girvan (2004) in identifying communities of very different sizes. The algorithm operates by minimizing the de- scription length of a network and the loss of in- formation due to clustering. Since there is no reason to exclude overlapping communities, the adoption of Infomap to multilayer analysis is more appropriate than other methods that maximize modularity producing disjoint clus- ters. By taking into account the multilayer structure of networks one can assess new features emerging from nodes interacting in the different layers. A random walker is used to compute flows among nodes (in the same and different lay- ers). As for teleportation in Page Rank algo- rithm, the random walker jumps, with probabil- ity r=0.15. If two nodes in two different layers tend to be visited with similar patterns, they are associated to the same community that becomes a multi-layer community. As layers are themselves informative, the outcome is a more realistic and informative clustering. For each agent-node, the algorithm com- putes the total information flow resulting in the aggregate network and from the state- node's activity in the various layers. Moreover, the algorithm identifies the over- lapping communities and the intercohesive nodes (Sewell 1992; Stark & Vedres 2008). With regard to our case study, we identify six modes of interaction-layers (Fig. 1): Share- holding of organizations managing the poles; Leading and managing the poles; Collabora- tion agreement, Service provision; Being se- conded to a managing organization and providing work services to a pole; Membership to a pole. Descriptive statistics of agents' activ- ities in the layers are summarized in Fig 2. Fig. 1 Graph of 3,896 agents, by mode of interaction (layer) Legenda: nodes' colours: black nodes with white figures: poles; managing organizations; KIBS; personnel,all other types of agents, edges' colour: by layer Shareholding of organizations man- aging the poles Leading organiza- tion/ org. manag- ing the poles Collaboration agreement Personnel & consultants Services Membership Fig. 2 Agents' activities in the six layers: descrip- tive statistics MAIN RESULTS Pivotal agents: 55% of the Infomap flow is due to 58 agents, not only the 12 poles, but also the 46 managing organizations (with, respectively, 37% and 18% of the total flow). Aggregate Infomap analysis: produces a large number of overlapping communities (44 out of 45) with 1,019 intercohesive agents (26% of total) active in 2 to 7 com- munities. Multilayer analysis: produces 71 communi- ties, 63 of them are overlapping (represent- ed in Fig.3), with 605 intercohesive agents (15% of the total) mainly active in 2 commu- nities. Fig. 3 Multilayer overlapping communities Legenda nodes' size pro- portional to Info- map flow (the 12 communities cen- tred on poles are not represented in proportion to their size); slices rep- resent the share of flow per layer (see colours in Fig 1); edges' width pro- portional to the number of agents in common be- tween communi- ties LESSONS from multilayer analysis Methodological issues: (a) Identification of layers: is crucial for an effective analysis; (b) Weights of interactions matter: they are not comparable; (c) Directedness: in the case study does not affect ranking; (d) Multi- layer analysis is very informative on structur- al aspects. Analysis & interpretation: (a) structural characters of the intermediation in- frastructure; (b) Composition of the different communities; (c) Characteristics of interco- hesive agents. Current development: mod- elling the relation between agents’ Infomap flow and their performance. NA 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 NA 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 338 63 166 601 477 3181 0 1000 2000 3000 shareholder managing collaboration service worker member numberofnodes 3305 611 20 24 13 13 0 1000 2000 3000 1 layer 2 layers 3 layers 4 layers 5 layers 6 layers number of nodes activein each layer number of layers in which a node is active