Porter and Ketels' (2003) study of British competitiveness emphasised the importance of business networking for innovativeness. Until recently insights into the dynamics of this relationship have been fragmented. This paper presents a systematic review of research linking the networking behaviour of firms with their innovative capacity. We find that the principal benefits of networking as identified in the literature include, risk sharing; obtaining access to new markets and technologies; speeding products to market; pooling complementary skills; safeguarding property rights when complete or contingent contracts are not possible; and acting as a key vehicle for obtaining access to external knowledge. The evidence also illustrates that those firms which do not cooperate and which do not formally or informally exchange knowledge limit their knowledge base on a long-term basis and ultimately reduce their ability to enter into exchange relationships. At an institutional level, national systems of innovation play an important role in the diffusion of innovations in terms of the way in which they shape networking activity. The paper provides evidence suggesting that network relationships with suppliers, customers, and intermediaries such as professional and trade associations are important factors affecting innovation performance and productivity. Where networks fail it is due to inter-firm conflict, displacement, lack of scale, external disruption and lack of infrastructure. The review identifies several gaps in the literature that need to be filled. For instance, there is a need for further exploration of the relationship between networking and different forms of innovation, such as, process and organisational innovation. Similarly, we need better understanding of network dynamics and network configurations, as well as the role of third parties such as professional and trade associations. Our study highlights the need for inter-disciplinary research in these areas.

/pdf/networking-and-innovation-a-systematic-review-of-the-1desphqodi.pdf

Networking and innovation: a systematic review of the evidence

Introduction: Explaining the EU Political System PART I: GOVERNMENT Executive Politics Legislative Politics Judicial Politics PART II: POLITICS Public Opinion Democracy, Parties and Elections Interest Representation PART III: POLICY-MAKING Regulation of the Single Market Expenditure Policies Economic and Monetary Union Citizen Freedom and Security Policies Foreign Policies Conclusions: Rethinking the European Union Appendix: Decision-making Procedures of the European Union Bibliography

The political system of European Union

The prevailing ownership-based theories of the firm are increasingly being challenged by new forms of organising, as exemplified by the Asian network multinational enterprise (MNE). We believe that an institutional approach, that tries to bridge both the macro and micro levels of analysis, and that encompasses both formal and informal institutions, offers a promising way to advance our understanding of the different forms of the contemporary MNE. This paper introduces a theoretical framework which draws substantially on the work of Douglass North, and examines how an institutional dimension can be incorporated into the three components of the OLI paradigm.

Institutions and the OLI paradigm of the multinational enterprise

Technological globalisation and innovative centres: the role of corporate technological leadership and locational hierarchy

Prior research on M&As and invention outcomes has not systematically examined the influence of two types of knowledge differences. Knowledge relatedness has typically been equated with knowledge similarity and the separate influence of knowledge complementarity has been overlooked. Similarly, studies examining innovation outcomes of M&As have typically focused on the role of technological knowledge and overlooked the influence of scientific knowledge. We develop a model of relatedness and invention performance of high-technology M&As that considers science and technology similarity and complementarity as important drivers of invention. We test the model using a sample of M&As from the drug, chemical, and electronics industries and a fine-grained measure of knowledge relatedness that distinguishes between science and technology relatedness. We find that complementary scientific knowledge and complementary technological knowledge both contribute to post-merger invention performance by stimulating higher quality and more novel inventions. This suggests that high-technology firms seeking acquisitions should search for, identify, and acquire businesses that have scientific and technological knowledge that is complementary to their own. Our results also suggest that similarities in knowledge facilitate incremental renewal, while complementarities would make discontinuous strategic transformations more likely, and that absorptive capacity research should be expanded to consider complementarities as well as similarities.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1995792_code1720149.pdf?abstractid=1995792&mirid=4

Complementary Technologies, Knowledge Relatedness, and Invention Outcomesin High Technology Mergers and Acquisitions

Dedicated biotechnology firms (DBFs) have played an important role in commercializing biotechnology. They emerged first in the US and, after a 5-year time lag, they also appeared in Europe. Faced with long and costly product lead times, DBFs raised money by entering into research contracts, mainly with large chemical and pharmaceutical companies. These coopertive research alliances have not vanished as biotechnology has matured and are more in evidence today than they were in the early dasy of the commercialization of biotechnology. This paper investigates how and why large and small companies enter research collaborations, what they learn from working together, and the effects on European competitiveness.

Organizational Learning in Cooperative Alliances: Some Case Studies in Biotechnology

Technology Policy in the 1990s: Old Trends and New Realities

Competitiveness and cohesion : are the two compatible ?

Part 1 The background of European industry and technology: the global context of new technology, C. Freeman and C.H.G. Oldham the changing patterns of production and trade - some implications for European technological activities, M.L. Matthews and C.T. Saunders the EC in the global energy context, A.J. Surrey East and West Europe, M.H. Kaldor Europe's technological performance - how Europe compares with US and Japan in science and technology, K.L.R. Pavitt the Single Market and European policies for advanced technologies, M.L. Sharp. Part 2 Information and communication technology: the European semiconductor industry - resurgence and rationalization, M.G. Hobday innovation and global competition in the European computer industry, G.N. von Tunzelmann et al computer software - the vital constraint?, P. Quintas and T.M. Brady computer-aided design in Europe, P.J. Senker and P. Simmmonds evolution telecommunication infrastructures - organizing the new European community marketplace, R.E. Mansell and K. Morgan electronic consumer goods, A. Cawson and P. Holmes new telematic services in Europe - the 1992 prospect, N.S.B. Jagger and I.D. Miles. Part 3 Other industries and technologies: mechatronics and the machinery industry, J. Bessant and W. Haywood globalization of the automobile industry - the challenge for Europe, A.P. Graves the defence industry, W.B. Walker the chemical industry - bulk chemicals and specialities, P.L. Cook and M.L. Sharp bio-technology, P.L. Cook and M.L. Sharp technological change and the internationalization of construction in Europe, D.M. Gann cross-industry comparisons of Japan/US/Europe sectoral strengths and weaknesses - globalization?, P. Patel and K.L.R. Pavitt. Part 4 Policy issues: the environmental challenge in Europe, S.A. Boehmer-Christiansen and J.F. Skea the limits of harmonization - regulating industrial wastes in Europe, F. Berkhout European utilities under pressure - new regimes for the electricity and telecommunications industries, F. McGowan and R.E. Mansell policies for consumer protection in Europe - the quality of food, E.P. Millstone standards, M. Rosario and S.K. Schmidt. Part 5 Conclusions: technology, competition, regulation and the environment - how to sustain European technological dynamism, whilst promoting environmental and social goals, the Editors.

Margaret Sharp

Papers

Organizational Learning in Cooperative Alliances: Some Case Studies in Biotechnology

Technology Policy in the 1990s: Old Trends and New Realities

Competitiveness and cohesion : are the two compatible ?

Technology and the future of Europe : global competition and the environment in the 1990s

Global shift: industrial change in a turbulent world