Networks of Innovators

Based on Chapter 3: Networks of Innovators by

Powell and Grodal in The Oxford Handbook of
Innovation

Definition and Formation of Networks:

group of organizations or individuals that work together to create and develop new products or technologies.
networks can be formal or informal and can take many different forms, such as partnerships, collaborations, or joint
ventures.

One example of an innovation network is the Global Alliance for Clean Cookstoves. This network was formed in 2010
and is composed of over 1,200 organizations working together to promote the use of clean cookstoves in developing
countries. The network includes governments, NGOs, research institutions, and private sector companies, all working
together to improve public health, reduce deforestation, and mitigate climate change.

The Role of Networks in Innovation:

Networks play an important role in innovation by providing access to resources, information, and knowledge that
would otherwise be difficult to obtain. Networks can also provide a platform for the exchange of ideas and feedback,
which can lead to the development of new and innovative solutions.

One example of a network that has facilitated innovation is the Open Source Drug Discovery network. This network
was formed in India in 2008 and brings together scientists, researchers, and clinicians from around the world to
collaborate on the development of new drugs for neglected diseases. By sharing information and resources, this
network has been able to develop new drug candidates at a much lower cost than traditional drug development
processes.

Access to: eg: StackOverflow

Resource
Information
Knowledge

Platform for:
Exchange of Ideas and Feedback

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 • A network is any system that can be
described by a set of things or actors
(people, firms, regions, computers and so
on) and the connections between them.
• Examples:
What are • Computer networks where nodes are pieces of
networks? hardware and the links are wired or wireless
• Social networks where nodes are people and the
links are social connections
• Citation networks where nodes are academic
papers and the links are citations
• Financial exchange networks were nodes are
people and links are financial transactions

Innovation networks can be defined as a group of organizations or

individuals that work together to create and develop new products
or technologies. These networks can be formal or informal and
can take many different forms, such as partnerships,
collaborations, or joint ventures.

Group of Organization or Individuals -> collaborate, partner, joint

venture to develop new products and technologies or services

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 read about these -> some reasoning ques may come from these

Innovation Networks
• Public Human Genome Project: The Human Genome Project was a publicly funded
project initiated in 1990 with the objective of determining the DNA sequence of the
entire euchromatic human genome within 15 years.
• Funding from the Department of Energy (DOE), the National Institutes of Health,
Wellcome Trust in UK
• Five institutions and 11 Collaborators
• Rival private consortia; lead by Biotech Celera included commercial firms and academic
researchers from University of California, Penn State, Case Western, Johns Hopkins, Cal
Tech, Yale, Rockfeller; private firms, universities and nonprofit institutes in 4 countries
• Pluralist, multiorganizational and multinational confederations
• Industrial R&D involves more and more collaborations

Some examples of innovation networks:

Global Alliance for Vaccines and Immunization (GAVI): GAVI is an international partnership
that brings together governments, NGOs, and the private sector to increase access to
vaccines in developing countries. By working together, GAVI has been able to accelerate
the development and delivery of vaccines, reducing the burden of infectious diseases
worldwide.

Open Source Drug Discovery (OSDD): OSDD is a network of scientists, researchers, and
clinicians from around the world who collaborate on the development of new drugs for
neglected diseases. By sharing information and resources, OSDD has been able to develop
new drug candidates at a much lower cost than traditional drug development processes.

MIT Media Lab: The MIT Media Lab is an interdisciplinary research lab that brings together
researchers, students, and industry partners to work on cutting-edge technologies and
innovations. The lab has produced a number of groundbreaking innovations, including the
first wearable computing devices and advanced robotics.

Silicon Valley: Silicon Valley is a geographic concentration of technology companies and

startups in the San Francisco Bay Area of California. The concentration of expertise,
venture capital, and research institutions in Silicon Valley has facilitated the development of
many new technologies and products.

BioBridge: BioBridge is a network of biotech companies, research institutions, and

government agencies in the San Antonio, Texas region. The network works together to
promote the development of new biotech products and technologies, with a focus on
regenerative medicine, medical devices, and vaccines.

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 Examples

• Video storage formats like Blu-ray, HD and DVD achieved commercial

success only when industry players ultimately agreed to work together.
• The NEC, Sony and Toshiba collaboration helped develop the 45 nanometer
micro chip at a lower combined cost for the industry, while allowing each
company to retain its own competitive edge.
• In the 1920s, the manufacture of airplanes would have stalled if Congress
had not created a “patent pool” to nudge companies to share technology—
and allow a nascent aircraft industry to take off.
• Industry univ collaborations
• Open source software
• Source:Collaborating for better R&D productivity | Bain & Company

Group of Organization or Individuals -> collaborate, partner, joint venture to develop

new products and technologies or services

firms present requirements and innovators fulfill those requirements.. since both of
them are collaborating together they are able to produce world class products :P

also, provides innovator a competitive edge over its rivals since they are directly
working with the industry and have some sort of tie-ups or bonds that result in funding
for r&d or confirm probable market

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 Focus
• Factors
• Types of networks
• Leverage provided by networks

Types of networks: As discussed earlier, there are various types of innovation networks, such as
project-based, regional, business, and informal networks. The type of network a firm chooses to
be a part of can significantly impact its innovation outcomes.

For instance, a firm operating in a science-driven industry might benefit more from being a part
of a regional network that includes universities and research institutions to access knowledge
and expertise. On the other hand, a firm looking to improve its production processes might
benefit more from being part of a supply chain network, which can provide access to raw
materials and suppliers.

Leverage provided by networks: Being a part of an innovation network provides firms with
access to various resources and capabilities, such as knowledge, expertise, funding, and
market opportunities. The leverage provided by these networks can significantly impact a firm's
innovation outcomes.

For example, a small start-up firm may be able to access funding and expertise by being part of
a business network that includes investors and industry experts. Similarly, a firm may be able to
access new markets by being part of a regional network that includes buyers and distributors.

Overall, the types of networks a firm chooses to be part of, and the leverage it gains from these
networks, can significantly impact its innovation outcomes. Hence, firms need to carefully
evaluate their options and choose the right network to leverage their resources effectively.

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 Innovation Networks
• Social theory and network analysis
• Advantages of having broad and diverse social circles:
• Informational
• Status
• Resource
• Significant role in commercialization of knowledge jointly developing ideas and skills
• In fields where scientific or technological progress is developing rapidly and sources of
knowledge are widely distributed no single firm has all necessary skills to stay at the top
of game
• Networks were widely present in craft based industries in industrial districts and in field
of aerospace and have only grown with developments in new knowledge-intensive
industries

Access to resources: Innovation networks can provide access to a range of resources, such as funding, expertise,
and infrastructure, that would otherwise be difficult to obtain. By pooling resources, members of a network can
achieve economies of scale and reduce the costs associated with innovation.

Knowledge sharing: Innovation networks can facilitate the exchange of ideas and knowledge between members,
leading to the development of new and innovative solutions. By sharing best practices and expertise, members
can learn from each other and avoid reinventing the wheel.

Collaboration: Innovation networks can bring together organizations and individuals with complementary skills and
expertise, leading to more effective collaboration and greater innovation. By working together, members can
leverage their strengths and overcome their weaknesses, leading to better outcomes than they could achieve
alone.

Reduced risk: Innovation networks can help to reduce the risk associated with innovation by spreading the cost
and risk across multiple organizations or individuals. This can make it easier to undertake high-risk, high-reward
projects that might be too risky for a single organization to undertake alone.

Greater impact: Innovation networks can lead to greater impact by addressing complex problems that require a
collaborative approach. By bringing together a range of stakeholders, innovation networks can tackle problems
from multiple angles, leading to more comprehensive solutions that have a greater impact.

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 Innovation Networks
Advantages of being part of network:
• More experiences
• Different competencies
• Added opportunities
• Better communication networks and as better protocols develop for exchange of
information and dispute resolutions
• Capable of transferring complex knowledge hence more appropriate in science-driven
fields
• Capable of pulling new entrants into the networks

Creativity and innovation happens at boundaries not within the provincial territory of one
knowledge and skill base

More experiences: Being part of a network allows you to learn from the experiences of others. By working with
individuals or organizations from different backgrounds, you can gain a broader perspective on issues and learn
new skills and techniques.

Different competencies: Innovation networks often bring together individuals or organizations with different
competencies, skills, and expertise. By working with others who have different strengths, you can complement
your own skills and develop new competencies.

Added opportunities: Being part of a network can provide access to new opportunities, such as funding,
partnerships, or collaborations. By leveraging the resources and connections of the network, you can take
advantage of new opportunities that might not be available to you otherwise.

Better communication networks: Networks often develop protocols and systems for exchanging information and
resolving disputes. This can lead to better communication and more effective collaboration among members of
the network.

Transfer of complex knowledge: Innovation networks can facilitate the transfer of complex knowledge and
expertise. By working together, members of the network can share knowledge and expertise in areas that are
complex or difficult to understand, leading to more effective problem-solving.

Pulling in new entrants: Innovation networks can attract new entrants into the field by offering opportunities to
work with established organizations and individuals. This can help to develop new talent and encourage
innovation and creativity.

Creativity and innovation at boundaries: Innovation often happens at the boundaries between different
knowledge and skill bases. Innovation networks can bring together individuals or organizations from different
fields or disciplines, leading to more creative and innovative solutions to problems.

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 Understanding Networks
Parameters to understand networks:
• Duration: short or long term
• Stability
• Specific: to accomplish a specific task
• General: based on pre-existing relationships
• Hierarchal monitored by central authority
• Heterarchical with distributed authority and self- oraganizing feature
• Another classification by Grabher and Powell (2004) of informal, project, regional,
business (purposive, and strategic)

Duration: One example of a short-term innovation network is the COVID-19 Vaccines Global
Access (COVAX) facility, which was established in 2020 to accelerate the development,
production, and equitable distribution of COVID-19 vaccines. COVAX is a partnership between
governments, international organizations, and pharmaceutical companies, and is expected to
operate for a limited period of time until the pandemic is under control. In contrast, the
European Union (EU) is an example of a long-term innovation network, with a range of policies
and programs designed to support innovation and collaboration among its member states.

Stability: The Internet Engineering Task Force (IETF) is an example of an innovation network
with high stability. The IETF is responsible for developing and maintaining the standards that
underpin the Internet, and has been in operation since 1986. The IETF has established
protocols and systems for developing and maintaining standards, and has a stable membership
of volunteers who work together to achieve the organization's objectives.

Specific vs. General: The Global Alliance for Clean Cookstoves is an example of a specific
innovation network. It was established in 2010 to address the problem of indoor air pollution
caused by traditional cooking methods, and brings together a range of stakeholders, including
governments, NGOs, and private sector companies. In contrast, the World Economic Forum
(WEF) is an example of a general innovation network, with a range of initiatives and programs
aimed at fostering collaboration and innovation across a range of sectors and industries.

Hierarchical vs. Heterarchical: The World Health Organization (WHO) is an example of a

hierarchical innovation network, with a central authority that monitors and directs the activities of
the organization. The WHO is responsible for promoting global health, and has a defined
hierarchy of decision-making and authority. In contrast, the open-source software community is
an example of a heterarchical innovation network, with distributed authority and self-governance
among members. The open-source community operates on a voluntary basis, with members
contributing their time and expertise to develop and maintain open-source software projects.

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 Varieties of Networks
Networks: Formal and informal

• Formal networks: contractual relationships, subcontracting

relationships, strategic alliances or participation in industry wide
research consortium,

• Informal ties: common membership in professional and trade

associations, or even looser affiliation with technological
communities

Grabher and Powell (2004) proposed a classification of innovation networks based on different levels of formalization and structure.
Here are the different types of networks and examples:

Informal Networks: These are networks that are characterized by a high degree of informality and flexibility, with few formal rules or
structures. Informal networks often emerge spontaneously through social relationships or personal contacts, and are often used for
knowledge-sharing and problem-solving. An example of an informal network is a group of colleagues from different companies who
meet regularly for coffee to exchange ideas and insights.

Project Networks: These are networks that are formed to achieve a specific project or goal, and are often temporary in nature.
Project networks are more formalized than informal networks, with specific roles and responsibilities for network members. An
example of a project network is a consortium of companies and research institutions that come together to develop a new technology
or product.

Regional Networks: These are networks that are based on geographic proximity, and are often focused on a specific industry or
sector. Regional networks are more formalized than project networks, with established structures and governance mechanisms. An
example of a regional network is a cluster of software companies in Silicon Valley, who share knowledge and collaborate on projects
to drive innovation in the industry.

Business Networks: These are networks that are driven by specific business objectives, such as market expansion or cost reduction.
Business networks can be either purposive or strategic. Purposive business networks are formed to achieve specific goals, such as
reducing supply chain costs or developing new products. Strategic business networks, on the other hand, are formed to achieve
longer-term strategic objectives, such as entering new markets or creating new business models. An example of a purposive
business network is a group of retailers who come together to negotiate lower prices with suppliers, while an example of a strategic
business network is a group of automotive manufacturers who collaborate on developing electric vehicle technology to meet
regulatory requirements.

These different types of innovation networks provide a framework for understanding how networks can be structured and organized
to achieve different objectives, and highlight the importance of considering factors such as formality, geographic proximity, and
business objectives when forming and participating in innovation networks.

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 Varieties of Networks
Strong and weak ties: in terms of interpersonal terms

• Strong ties: social support; cohesive, more effective in exchange of

complex information

• Weak ties: novel information; new ideas and tastes; longer reach but
narrow bandwidth

The concept of strong and weak ties can also be applied to innovation networks, where the strength of
the ties between network members can influence the flow of information and ideas.

Strong ties in innovation networks refer to close relationships between individuals or organizations that
have a high degree of trust, emotional closeness, and frequent interaction. These ties are characterized
by social support and are more effective in exchanging complex information, such as technical
knowledge, experience, and best practices. For example, a team of researchers working on a new drug
discovery project may have strong ties with one another due to their shared expertise and collaboration
over an extended period of time. Their strong ties enable them to exchange complex information more
effectively, leading to better outcomes for the project.

Weak ties in innovation networks, on the other hand, refer to more casual relationships between
individuals or organizations that have a lower degree of trust, emotional closeness, and less frequent
interaction. These ties are characterized by the potential for access to novel information, new ideas, and
diverse perspectives. For example, an entrepreneur looking to start a new business may have weak ties
with a wider range of people, such as acquaintances from different industries, social networks, or online
communities. These weak ties may provide the entrepreneur with access to new ideas and perspectives
that they may not have considered before, leading to more innovative and creative solutions.

In summary, strong ties in innovation networks provide social support and are effective in exchanging
complex information, while weak ties provide access to novel information and diverse perspectives. By
leveraging both types of ties, individuals and organizations can access a wider range of information,
resources, and expertise, and improve their chances of success in innovation.

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 Varieties of Networks
Networks as a Bridges and Structural holes and redundant ties

Bridges are points of connection between parties that lack ties such
when A knows B and C knows B but not A. B is gateway of linkage

Structural holes as potential connection between clusters of units that

are not connected.

networks can be seen as bridges that connect individuals or organizations that lack direct
ties. Bridges are points of connection between different parties that enable the flow of
information and resources across otherwise disconnected groups. For example, consider a
software development company that wants to expand its product offerings to a new market.
The company may use its existing network of contacts to identify potential partners or
customers in the new market who can serve as bridges between the company and the new
market. By leveraging these bridges, the company can more effectively enter the new market
and achieve its strategic goals.

Structural holes, on the other hand, refer to the gaps or holes in a network that exist between
clusters of individuals or organizations that are not directly connected. These structural holes
represent potential connections that have not yet been made and can be important sources of
new information, resources, and opportunities. For example, consider a group of researchers
who work in different areas of science, but who are not directly connected. By identifying
these structural holes in their network, the researchers can identify new opportunities for
collaboration and innovation. They may seek out individuals or organizations who can serve
as bridges between their respective clusters in order to more effectively share knowledge and
resources.

Redundant ties refer to connections that are duplicated or unnecessary, as they provide no
new information or resources beyond what is already available through other connections.
While redundant ties can be useful for maintaining social cohesion and trust within a network,
they do not contribute to innovation or the flow of new information. In order to foster
innovation and creativity, it is important for individuals and organizations to seek out new and
diverse connections that provide novel information and resources. By doing so, they can fill
structural holes and leverage bridges in their network to more effectively share knowledge
and resources, and achieve their innovation goals.

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 Networks, Innovation and Recent Trends
Vertical disaggregation

Subcontractor can end up involved in design issues, doing critical R&D

or become central to efforts to improve quality

Contemporary life sciences

Co-authorship, mentor-mentee relationship and common training.

Innovation networks are complex social systems that facilitate the exchange of
knowledge, resources, and ideas between individuals and organizations.

Vertical disaggregation is a common strategy used by firms to outsource non-core

functions to specialized subcontractors. However, this can result in subcontractors
becoming involved in design issues or critical R&D, and they may become central to
efforts to improve quality. In the context of innovation networks, this means that
subcontractors can become key players in the network, bringing unique skills and
knowledge that can contribute to the overall innovation ecosystem.

In the contemporary life sciences industry, co-authorship, mentor-mentee relationships,

and common training programs are important components of innovation networks.
Co-authorship is a common practice in the life sciences, where researchers from
different organizations collaborate on research projects and publications. This helps to
build bridges between organizations and facilitates the exchange of knowledge and
ideas. Mentor-mentee relationships are also important in innovation networks, as they
help to develop the skills and knowledge of younger researchers, and ensure that
knowledge is passed down from experienced to less experienced researchers.
Common training programs, such as graduate programs or industry training programs,
provide a common knowledge base and language for researchers and industry
professionals to communicate and collaborate. These components of innovation
networks in the life sciences industry help to foster a collaborative and innovative
environment, where knowledge and ideas can flow freely between individuals and
organizations, leading to new discoveries and advances in research and development.

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go through this

Primordial Networks:
The nodes in Primordial Networks are individuals who share a common culture, history, and tradition. They
are often based on family, kinship, or other social relationships, and are typically characterized by strong
ties. The common identity function in primordial networks is based on shared cultural or social norms, and
the structure is often informal and non-hierarchical. Examples of primordial networks include ethnic
communities, religious groups, and social clubs.

Supply Chain Networks:

The nodes in Supply Chain Networks are companies that are linked together by a common product or
service. They are characterized by hierarchical relationships between companies, with each company
playing a specific role in the supply chain. The common identity function in supply chain networks is based
on the shared goal of delivering a product or service to the end customer, and the structure is often formal
and hierarchical. Examples of supply chain networks include the automotive industry, the technology
industry, and the retail industry.

Invisible College Networks:

The nodes in Invisible College Networks are academics and researchers who are linked together by a
common interest or research area. They are characterized by weak ties, with individuals often working
independently but sharing information and resources. The common identity function in invisible college
networks is based on the shared goal of advancing knowledge and understanding in a specific research
area, and the structure is often informal and non-hierarchical. Examples of invisible college networks include
academic research communities and scientific conferences.

Strategic Networks:
The nodes in Strategic Networks are companies or organizations that are linked together by a common
strategic goal or interest. They are characterized by flexible relationships, with each company or
organization playing a specific role in achieving the strategic goal. The common identity function in strategic
networks is based on the shared strategic goal, and the structure is often formal or informal and may be
hierarchical or non-hierarchical depending on the specific network. Examples of strategic networks include
industry associations, joint ventures, and government-industry partnerships.

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 Network centrality

Network centrality
Social network analysis metrics
Measures the degree to which a person or organization is central to a
network

Centrality means a network is directly connected to many others (degree centrality):

No. of connection each node has

Close to many others indirectly (closeness centrality): Measure of closeness or distance

to other in the network

Serve as a key broker between many other nodes (betweenness centrality): Shortest
path between the two other nodes

Network centrality is an important concept in the study of innovation networks. Social network
analysis metrics are used to measure the degree to which a person or organization is central to a
network. Centrality is important because it indicates the degree to which a network is directly or
indirectly connected to many others. There are several measures of centrality that are used in
social network analysis.

One of the most commonly used measures of centrality is degree centrality, which refers to the
number of connections each node has. In innovation networks, degree centrality can be used to
identify key players or organizations that are highly connected to others in the network. For
example, in a network of technology startups, a company with a high degree centrality may have
many connections to other startups, venture capitalists, and other players in the technology industry.

Closeness centrality is another measure of centrality that is used in social network analysis. This
measure is based on the distance between nodes in a network. Nodes that are close to many
others in the network are considered to have high closeness centrality. In innovation networks,
closeness centrality can be used to identify key players or organizations that are central to the flow
of information or resources within the network.

Finally, betweenness centrality is a measure of centrality that is used to identify key brokers or
intermediaries in a network. This measure is based on the shortest path between two nodes in a
network. Nodes with high betweenness centrality are those that are essential to connecting other
nodes in the network. In innovation networks, betweenness centrality can be used to identify key
players or organizations that act as intermediaries between different parts of the network.

For example, in a network of pharmaceutical companies, a research university with high

betweenness centrality may be seen as a key broker between different pharmaceutical companies
and government agencies. Its ability to connect different parts of the network may make it a
valuable partner for many of the other players in the network.

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 read from here

Role of Networks in Innovation

Formal ties
• Tie characteristics: domestic vs foreign; prior interaction; radical innovation emerge
from close and prolonged interactions
• Are there limits to connectivity?
• Role of direct and indirect ties
• Entrepreneurial firms: start-ups in biotechnology, semiconductor industries
• Network dynamics: role of absorptive capacity; support firm in attaining central
position, feedback cycle
• Technological Uncertainty: risk-taking firms make more alliances
• Networks provide access to information, increase innovation, young and small firms
gain more, centrally located firm innovate more, both direct and indirect ties are
important, successful relation increase more alliances
• Difference across industries
• Buyer-supplier relationships

Innovation networks play a crucial role in fostering innovation by providing access to information, increasing
innovation, and supporting firms in attaining central positions in the network. The types of networks, leverage
provided by networks, and network dynamics all influence innovation outcomes.

Formal ties, such as domestic versus foreign ties and prior interaction, can impact the emergence of radical
innovation, which often emerges from close and prolonged interactions.
The role of direct and indirect ties is also important in innovation networks, as both types of ties can provide
access to unique knowledge and resources.
Entrepreneurial firms, particularly in biotechnology and semiconductor industries, rely heavily on innovation
networks to gain access to complementary assets and knowledge.

Technological uncertainty can also impact the role of networks in innovation, as risk-taking firms are more
likely to make alliances to manage the uncertainty.
Networks also provide access to information, and young and small firms gain more from this information than
larger, more established firms. Additionally, centrally located firms in the network are more likely to innovate,
and successful relationships often lead to the formation of more alliances.

Different industries may have unique characteristics that influence the role of networks in innovation, such as
buyer-supplier relationships. Informal ties also play an important role in innovation networks, as they often
underlie formal ties and can facilitate knowledge sharing and collaboration. However, the issue of proprietary
knowledge leakage must also be considered.

Multiparty relations, such as those found in the development of the Linux operating system, can also be
important in innovation networks. Knowledge transfer is central to the innovation process, and the role of
complementary assets, such as the case of drug development by university scientists, can also impact the
success of innovation networks.

In summary, innovation networks play a crucial role in fostering innovation, and the types of networks,
leverage provided by networks, and network dynamics can all impact innovation outcomes. Formal and
informal ties, access to information, and the transfer of both tacit and explicit knowledge are all important
factors to consider in the context of innovation networks.

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 Role of Networks in Innovation
• Informal ties: “beneath most formal ties lie a sea of informal ties”
• Can proprietary knowledge be leaky?

• Multiparty relations: Linux

• Knowledge transfer:
• Role of KT is central to innovation process
• Role of complementary assets: case of drug development by university scientist
• Existing information is recombined in novel way
• Tacit and explicit knowledge

https://ieeexplore.ieee.org/document/8587299

Types of Networks:
Industry Clusters: Industry clusters are geographic concentrations of firms in a particular industry. These clusters can facilitate innovation
by providing a concentration of expertise, infrastructure, and resources.

An example of an industry cluster is Silicon Valley in California, which is home to many of the world's leading technology companies. The
concentration of expertise, venture capital, and research institutions in Silicon Valley has facilitated the development of many new
technologies and products.

Communities of Practice: Communities of practice are groups of individuals who share a common interest or profession and work together
to develop knowledge and expertise.

An example of a community of practice is the Lean Startup community. This community is composed of entrepreneurs, investors, and
business professionals who share a common interest in lean startup methodologies. By sharing best practices and knowledge, this
community has helped to promote innovation in startup development.

Innovation Ecosystems: Innovation ecosystems are networks of organizations and individuals that work together to support innovation
and entrepreneurship.

An example of an innovation ecosystem is the Boston area in Massachusetts, which is home to many leading universities, research
institutions, and startup companies. The concentration of expertise and resources in this area has facilitated the development of many
new technologies and startups.

Challenges and Opportunities in Networks:

Power Imbalances: Networks can be prone to power imbalances, where certain members or organizations have more influence than
others. This can lead to unequal access to resources and information.

Trust: Networks depend on trust between members in order to function effectively. However, trust can be difficult to establish and
maintain, especially in large or diverse networks.

Collaboration: Collaboration is essential for innovation in networks. However, collaboration can be difficult to achieve, especially in large
or diverse networks where there may be competing interests or goals.

An example of a challenge in network collaboration is the development of electric vehicle charging infrastructure in the United States. The
development of a nationwide charging infrastructure requires collaboration between governments, utilities, automakers, and other
stakeholders. However, the development of this infrastructure has been slow due to competing interests and challenges in collaboration.

Implications for Innovation Policy:

Policymakers can support innovation networks by creating an environment that is conducive to network formation and collaboration. This
can include providing funding for network-building activities and promoting the development of shared infrastructure.

An example of innovation policy that supports networks is the Small Business Innovation Research (SBIR) program in the United States.
This program provides funding for

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