The formation of external innovation linkages of the periphery within multiplex regional networks: a multilayer exponential random graph modelling approach

Innovation in peripheral areas relies more on external linkages to overcome peripherality than in core areas. We study how these linkages are formed, especially through the interaction with diverse networks like transport and investment networks that connect the periphery with external areas. Using data from peripheral Zhejiang, China, we construct a four-layer network with co-patenting and three explanatory layers: transport, investment, and university headquarters-branch linkages. We use multilayer exponential random graph modelling to examine factors driving the formation of the co-patent network, specifically cross-layer interactions between co-patenting and the other three networks. Results show a tendency for the periphery to be linked to the core through co-patenting. All the other three layers have a positive association with the co-patent network, and their intersections show a stronger correlation with the network. This is especially true for the university headquarter-branch network and its intersection with the investment network. The main contribution of this paper is expanding the analysis of peripheral innovation by considering broader intercity networks rather than solely focusing on innovation linkages. Our findings also have policy implications for overcoming innovation constraints in peripheral areas and reducing spatial disparities in Zhejiang and similar regions.