Knowledge networks and resilience: Under which conditions regional economies overcome external shocks

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Abstract In recent years, due to the increasing instability of economic systems, the debate among scholars and policymakers about restoring economic growth has centred around the concept of resilience—that is, the ability of a system to anticipate, prepare for, respond to, and recover from a shock. This work aims to contribute to this debate by developing an agent-based model that explores the conditions under which economic systems successfully cope with external shocks and achieve a long-term growth path. The focus is on the role of network structures in regional economic resilience. The findings show that the network structures that best support long-term regional growth in stable conditions are not necessarily those that promote resilience and recovery in the aftermath of a shock. In stable environments, or when non-specialized regions experience only mild disruptions, a small-world network, characterized by high clustering and short average path lengths, proves most effective. However, in the case of a shock affecting a specialized regional economy, openness becomes the critical factor. These structures indeed provide access to diverse knowledge sources and alternative pathways for adaptation.
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Knowledge networks and resilience: Under which conditions regional economies overcome external shocks | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Knowledge networks and resilience: Under which conditions regional economies overcome external shocks Andrea Morrison, Lorenzo Zirulia This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7228081/v1 This work is licensed under a CC BY 4.0 License Status: Under Review Version 1 posted 11 You are reading this latest preprint version Abstract In recent years, due to the increasing instability of economic systems, the debate among scholars and policymakers about restoring economic growth has centred around the concept of resilience—that is, the ability of a system to anticipate, prepare for, respond to, and recover from a shock. This work aims to contribute to this debate by developing an agent-based model that explores the conditions under which economic systems successfully cope with external shocks and achieve a long-term growth path. The focus is on the role of network structures in regional economic resilience. The findings show that the network structures that best support long-term regional growth in stable conditions are not necessarily those that promote resilience and recovery in the aftermath of a shock. In stable environments, or when non-specialized regions experience only mild disruptions, a small-world network, characterized by high clustering and short average path lengths, proves most effective. However, in the case of a shock affecting a specialized regional economy, openness becomes the critical factor. These structures indeed provide access to diverse knowledge sources and alternative pathways for adaptation. regional resilience agent based model small world network shock Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Under Review Version 1 posted Editorial decision: Revision requested 21 Nov, 2025 Reviews received at journal 07 Nov, 2025 Reviews received at journal 06 Nov, 2025 Reviews received at journal 05 Oct, 2025 Reviewers agreed at journal 24 Sep, 2025 Reviewers agreed at journal 22 Sep, 2025 Reviewers agreed at journal 13 Aug, 2025 Reviewers invited by journal 04 Aug, 2025 Editor assigned by journal 28 Jul, 2025 Submission checks completed at journal 28 Jul, 2025 First submitted to journal 27 Jul, 2025 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. 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