Innovation Networks

Upsurge in Innovation Networks

Already in the 1960s, key findings of empirical research focused on the role of external sources for the generation of innovation and thus, on the importance of boundary-spanning networks for a company's research and development (R&D) activities. Until that time, most innovation research was a little systematic, more or less anecdotal or purely technical. Even economists such as Joseph Schumpeter did not study the specific features of actual innovations in any depth. During the late 1960s, research started to demonstrate the vital importance of external information networks and of collaboration with customers, suppliers, research institutes, universities, and other R&D partners during the product development process. As documented by Roy Rothwell and colleagues, the SAPPHO project was one of the most comprehensive empirical studies, which is representative of research on innovation at this time. Among the most important characteristics for the success and failure of innovation as identified in the project are user needs and networks, coupling of development, production, and marketing activities, linkage with external sources of scientific and technical information and advice, and concentration of high-quality R&D resources on the innovative project. These characteristics already show the primary importance of networks and external resources as critical factors for the success [Page 417]and failure of innovation. Moreover, the results of the project already stressed the importance of both formal and informal networks.

A plant pathologist examines fungi used to control weeds. Researchers partner with agribusiness for crop innovations.

During the 1980s, research provided many examples of the impact of externalities that are generated by regional networks. They had been historically important since the early days of the Industrial Revolution: networks of suppliers are as old as industrialized economies. Nevertheless, a major upsurge of formal and informal networks can be realized in research and literature of the 1980s of changes in both quantitative and qualitative character. In quantitative terms, there is abundant evidence of a strong upsurge of various forms of research collaboration involving extensive international collaboration as well as national and regional networks. There is also ample evidence of a qualitative change in the nature of older networking relationships that have existed for a long time. The latter includes subcontracting networks, research associations, government R&D projects and programs, computerized databanks, and value-added networks.

Since the late 1980s, a new upsurge of all kinds of networks has taken place with the spread of new information and communication technologies based on Internet technologies. This constitutes their primary importance in what is known as the knowledge society. It is the various kinds of information technologies that affect—through their convergence with the telecommunication systems—the network of communications within and between organizations, including the firm and its supplier networks, technology networks, and customer networks.

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