Modularity, Higher-Order Recombination, and New Venture Success

Novelty, akin to gene mutation in evolution, opens possibilities for scholarly advancement. Although peer review remains the gold standard for evaluating novelty in scholarly communication and resource allocation, the vast volume of submissions necessitates an automated measure of scholarly novelty. Adopting a perspective that views novelty as the atypical combination of existing knowledge, we introduce an information-theoretic measure of novelty in scholarly publications. Th...

Innovators are creative people who can conjure the ground-breaking ideas that represent the main engine of innovative organizations. Past research has extensively investigated who innovators are and how they behave in work-related activities. In this paper, we suggest that it is necessary to analyze how innovators behave in other contexts, such as in informal communication spaces, where knowledge is shared without formal structure, rules, and work obligations. Drawing on comm...

This paper advances a framework for modeling the component interactions between cognitive and social aspects of scientific creativity and technological innovation. Specifically, it aims to characterize Innovation Networks; those networks that involve the interplay of people, ideas and organizations to create new, technologically feasible, commercially-realizable products, processes and organizational structures. The tri-partite framework captures networks of ideas (Concept Le...

We study the relationship between firms' performance and their technological portfolios using tools borrowed from the complexity science. In particular, we ask whether the accumulation of knowledge and capabilities related to a coherent set of technologies leads firms to experience advantages in terms of productive efficiency. To this end, we analyzed both the balance sheets and the patenting activity of about 70 thousand firms that have filed at least one patent over the per...

Purpose: The purpose of this paper is to examine the innovative capabilities of biotech start-ups in relation to geographic proximity and knowledge sharing interaction in the R&D network of a major high-tech cluster. Design-methodology-approach: This study compares longitudinal informal communication networks of researchers at biotech start-ups with company patent applications in subsequent years. For a year, senior R&D staff members from over 70 biotech firms located in th...

Entity retrieval is the task of finding entities such as people or products in response to a query, based solely on the textual documents they are associated with. Recent semantic entity retrieval algorithms represent queries and experts in finite-dimensional vector spaces, where both are constructed from text sequences. We investigate entity vector spaces and the degree to which they capture structural regularities. Such vector spaces are constructed in an unsupervised man...

Machine learning technologies have demonstrated immense capabilities in various domains. They play a key role in the success of modern businesses. However, adoption of machine learning technologies has a lot of untouched potential. Cost of developing custom machine learning solutions that solve unique business problems is a major inhibitor to far-reaching adoption of machine learning technologies. We recognize that the monolithic nature prevalent in today's machine learning a...

Despite our familiarity with specific technologies, the origin of new technologies remains mysterious. Are new technologies made from scratch, or are they built up recursively from new combinations of existing technologies? To answer this, we introduce a simple model of recursive innovation in which technologies are made up of components and combinations of components can be turned into new components---a process we call technological recursion. We derive a formula for the ex...

Artificial intelligence is an emerging topic and will soon be able to perform decisions better than humans. In more complex and creative contexts such as innovation, however, the question remains whether machines are superior to humans. Machines fail in two kinds of situations: processing and interpreting soft information (information that cannot be quantified) and making predictions in unknowable risk situations of extreme uncertainty. In such situations, the machine does no...

One new thing often leads to another. Such correlated novelties are a familiar part of daily life. They are also thought to be fundamental to the evolution of biological systems, human society, and technology. By opening new possibilities, one novelty can pave the way for others in a process that Kauffman has called "expanding the adjacent possible". The dynamics of correlated novelties, however, have yet to be quantified empirically or modeled mathematically. Here we propose...