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Purpose – The purpose of this paper is to examine the innovative capabilities of biotech start-ups in relation to geographic proximity and knowledge sharing interaction in the R & D network of a major high-tech cluster. Design/methodology/approach – This study compares longitudinal informal communication networks of researchers at biotech start-ups with company patent applications in subsequent years. For a year, senior R & D staff members from over 70 biotech firms located in the Boston biotech cluster were polled and communication information about interaction with peers, universities and big pharmaceutical companies was collected, as well as their geolocation tags. Findings – Location influences the amount of communication between firms, but not their innovation success. Rather, what matters is communication intensity and recollection by others. In particular, there is evidence that rotating leadership – changing between a more active and passive communication style – is a predictor of innovative performance. Practical implications – Expensive real-estate investments can be replaced by maintaining social ties. A more dynamic communication style and more diverse social ties are beneficial to innovation. Originality/value – Compared to earlier work that has shown a connection between location, network and firm performance, this paper offers a more differentiated view; including a novel measure of communication style, using a unique data set and providing new insights for firms who want to shape their communication patterns to improve innovation, independently of their location.

This paper presents new evidence regarding a firm's probability for survival, based on the network structure of the firm's managers. We found that start-ups that have larger informal communication networks increased their chance to survive external shock. Original data have been collected from Israeli software start-ups during the dot-com economic growth. About eight years later, we added information about their ability to survive the burst of the dot-com bubble. From a theoretical point of view, this paper highlights the power of the classic social networks approach in explaining organizational performance. From a practical point of view, these findings offer some guidelines for managers of start-ups. Our results show that the size of informal interfirm networks really matters.

This article offers managers a novel approach to increase creativity in their teams by measuring individual personality characteristics, crucial for creative people. We assess interpersonal interaction with sensor-equipped badges worn on the body. In a research project with 22 study subjects, who wore the badges during work for one month, we were able to predict extroversion, neuroticism, openness, and agreeability based on microscopic social network analysis. We obtained control measures of these values with a standard psychological test (NEO-FFI). As opposed to conventional personality tests, where people have to fill out lengthy questionnaires and surveys, our method offers an automated and potentially more reliable way to assess these personality characteristics. Once these characteristics are considered, teams could be reshuffled and team membership changed for higher creativity.

This article offers managers a novel approach to increase creativity in their teams by measuring individual personality characteristics, crucial for creative people. We assess interpersonal interaction with sensor-equipped badges worn on the body. In a research project with 22 study subjects, who wore the badges during work for one month, we were able to predict extroversion, neuroticism, openness, and agreeability based on microscopic social network analysis. We obtained control measures of these values with a standard psychological test (NEO-FFI). As opposed to conventional personality tests, where people have to fill out lengthy questionnaires and surveys, our method offers an automated and potentially more reliable way to assess these personality characteristics. Once these characteristics are considered, teams could be reshuffled and team membership changed for higher creativity.