Network Embeddedness and Performance of Joint R&D Projects

The purpose of this paper is to examine the role of network position in the performance of joint R&D projects using data on European networks of excellence. Our empirical work asks whether centrality (structural embeddedness) and connectivity (junctional embeddedness) increase the project performance. Results show that while structural embeddedness exerts a clear influence on the performance of exploitation projects, the effect of centrality degree has a lower impact on exploration projects due to the redundant information that this location implies. Similarly, while junctional embeddedness positively affects the performance of exploration projects, the heterogeneity of partners involved in a betweenness centrality position does not favor the performance of exploitation projects. This paper contributes to social capital theory by offering new empirical evidence of the effect of network position on performance, which depends on the technological objectives of joint R&D projects.