The trade-offs of brokerage in inter-city innovation networks

Abstract

Brokers play a critical role in the evolution of innovation systems by accessing and diffusing external knowledge. However, while brokers’ activity allows benefits for the entire system, it entails costs for those who play the broker role. Using patent data to analyse inter-city networks in Latin America, we identify broker cities and estimate the effects of brokerage on patenting outcomes between 2006 and 2017. Our findings reveal that cities holding a central position in the network show higher patenting activity; however, being a broker, particularly connecting Latin American cities with the rest of the world, negatively influences patenting outcomes.