Determining Factors in Innovation of Small Firm Networks: A case of Cross Industry Groups in Japan

Determining Factors in Innovation of Small Firm Networks: A case of Cross Industry Groups in Japan We examine the relationship between network characteristics and innovation under different phases of innovation. Based on micro data of cross industry groups, small firm networks for knowledge sharing and R&D cooperation, we show that close-knit networks, represented as dense communication and a high level of commitment among members, are correlated with initiating joint product development. Furthermore, the results show that establishing contact with external sources of knowledge such as public research institutes is important to achieve technical success in innovation. Lastly, engaging in cooperative activities in sales is correlated with commercial success in innovation. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Small Business Economics Springer Journals

Determining Factors in Innovation of Small Firm Networks: A case of Cross Industry Groups in Japan

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 2006 by Springer
Subject
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
ISSN
0921-898X
eISSN
1573-0913
D.O.I.
10.1007/s11187-006-0010-2
Publisher site
See Article on Publisher Site

Abstract

We examine the relationship between network characteristics and innovation under different phases of innovation. Based on micro data of cross industry groups, small firm networks for knowledge sharing and R&D cooperation, we show that close-knit networks, represented as dense communication and a high level of commitment among members, are correlated with initiating joint product development. Furthermore, the results show that establishing contact with external sources of knowledge such as public research institutes is important to achieve technical success in innovation. Lastly, engaging in cooperative activities in sales is correlated with commercial success in innovation.

Journal

Small Business EconomicsSpringer Journals

Published: Feb 22, 2006

References

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