A recursive analysis of network and institutional evolution is offered to account for the decentralized structure of the commercial field of the life sciences. Four alternative logics of attachment-accumulative advantage, homophily, follow-the-trend, and multiconnectivity-are tested to explain the structure and dynamics of interorganizational collaboration in biotechnology. Using multiple novel methods, the authors demonstrate how different rules for affiliation shape network evolution. Commercialization strategies pursued by early corporate entrants are supplanted by universities, research institutes, venture capital, and small firms. As organizations increase their collaborative activities and diversify their ties to others, cohesive subnetworks form, characterized by multiple, independent pathways. These structural components, in turn, condition the choices and opportunities available to members of a field, thereby reinforcing an attachment logic based on differential connections to diverse partners.

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The current economic crisis illustrates a critical need for new and fundamental understanding of the structure and dynamics of economic networks. Economic systems are increasingly built on interdependencies, implemented through trans-national credit and investment networks, trade relations, or supply chains that have proven difficult to predict and control. We need, therefore, an approach that stresses the systemic complexity of economic networks and that can be used to revise and extend established paradigms in economic theory. This will facilitate the design of policies that reduce conflicts between individual interests and global efficiency, as well as reduce the risk of global failure by making economic networks more robust.