Modeling technological value net through network contagion: The case of LED industry

Co-opetition provides a framework from which to identify firms' strategic position and alternatives in any given situations. The value net model is a strategic view of the key relationships that drives any company's ability to compete or cooperate with other players in a business condition. The idea of the value net model can be used in the technological system where the company can identify its technological competitors and complements. This study aims to construct a quantitative method for modeling the technological value net with the help of social network analysis. Patent citations are quantified by social network contagion in order to ascertain what kinds of contagion patterns take place in a technological system. The study employs LED industry as a research samples about 17 LED manufacturers are identified. The 17 manufacturers' patents that are issued in USPTO from 2006 to 2012. The study finds that the technological competitors of players are different in supplier views and customer views. On the other hand, the technological complements of players are different from supplier views and customer views. These findings can help the company to identify technological competitors and complements in the technological system.