Strength of Ties, Firm Age and Innovation: An NKC-Model Simulation

In this paper, we examine the impact of strength-of-ties and firm age on the innovation performance by a NKC-model simulation. The simulation results show that alliance has a positive effect on innovation in the early stage of alliance formation, and that with the increase of strength-of-ties, this positive effect become silent. Meanwhile, our results suggest that established firms benefit more from alliance in innovation than new startups.

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