Network Structure and Economic Performance

Sammanfattning: Purpose - The purpose of this study is to examine and map out the network innovative companies and to calculate values of the network structure in order to compare them to different performance measures. Furthermore, we aim to investigate the trade-off efficiency of innovations in a particular network structure, more specifically to investigate if the same elements generating more innovations have a relationship with economic performance that originates from innovations.   Methodology - This study give emphasis to map and illustrate the Swedish companies on NASDAQ OMX First North network through direct and indirect connection and to compare the centrality, density and size of the companies ego network in our population with the performance measures which are logically connected with the launch of an innovation; average EBITDA (earnings before interest, taxes, depreciation and amortization) and average annual turnover. Findings - First we noticed that there was a significant connection between a negative average EBITDA and positive average annual turnover for our population, as we foretold would occur during the launch of an innovation. Secondly, the paper suggests that there is a weak or near non-existent connection between the elements that generates more innovations and the result of innovations, e.g. the economic performance of innovative firms. This might indicate that the focus of recent studies in the subject might have been mistaken focusing on the quantity of innovation, when the basic assumption of an innovation is that it is qualitative and thereby generates money for the company. This study suggests that more innovations do not necessarily lead to better economic performance for the companies within our population.