Networking
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[edit] Networking
Networking is important in innovation activities, especially for those in global markets. Reciprocal communication and exchange are typical for networks. In hierarchies the relationships are often defined in contracts but in networks the transactions occur in interaction. The network development includes trial and error according to which the network members adjust their behaviour.
Learning by doing
The learning takes place when the network members interact with each other. Such process continues until the network reaches the coherence, a dynamic balance in the mode of working. Business networks can be viewed as self-organizing systems rather than imposed by a central controller.
Networking and rapid interaction
For the organizations in rapidly developing fields, the collaboration between different kinds of actors is important. Besides the firm-to-firm co-operation, the collaboration between firms, higher education institutes and governmental research centres are vital. This is in particular valuable in industries with rapid technological or scientific progress.
Exchange resources and knowledge
The organisations can pool or exchange resources and knowledge, and develop new ideas and skills through inter-organisational networks. A single firm has seldom the necessary skills and competences to create globally competitive innovations in the global economy based on horizontal and vertical disintegration, subcontracting and outsourcing.
The Innovation Network
Therefore the network has become the centre of innovation. The creation of knowledge is crucial to improve the competitive position of enterprises and regions. Furthermore, the knowledge transfer and utilization are typical for innovation networks formed by knowledge intensive enterprises and higher education and research institutions.
Short and long term
Networks vary temporally from short term projects to long term relationships: informal networks based on shared experience, project networks with short-term combinations to accomplish specific tasks, regional networks in which spatial proximity helps sustain a common community and business networks as purposive, strategic alliances between two parties. These types can overlap and interweave with one another.
Leadership and management
The development of innovation environments requires different aspects, interests and skills from different experts. One major and time-consuming task is to seek the right people and organisations for the innovation environment and make them to realise the importance of the network and co-operation.
The actors and their interests
The actors of the innovation environments, for example, higher education institutions and enterprises have often different tasks and aims. Some actors insist their own interests and not the broader development strategies. They develop the innovation system mainly along their interests. Especially challenging is to motivate them to support the general regional development strategy.
