Uncovering network changes in the evolution of an innovation niche

The present paper aims at unravelling the networking dynamics regarding the evolution of an innovation-niche, by looking at its network configuration over time. To this end, we investigate the actors’ role within the network as well as the network architecture. We employ the social network analysis (SNA) to four different but interrelated types of networks characterising the Italian biofuel industry. Each network was investigated in both its development and maturity phase. Our findings show that, over the niche evolution, actors established new relations, increasing networks’ density and making the networks more centralized. Furthermore, while two out of four networks confirmed their small world configuration over time, one (i.e. “communication” network) increased its small-world-ness, providing a larger number of information channels and more social reinforcement chances for niche actors to innovate. Overall, results suggest that policy makers should accompany and ease the innovation-niche evolution path by fostering the participation of the laggard behind and actors' clusterization, moderating any possible lock-in risk. • Analyzing network dynamics in innovation niche evolution over time. • Niche networks become denser and more centralized over time. • Increased small-world-ness enhances collaboration and knowledge flow. • Supporting lagging actors fosters sustainable niche development.