Weak Ties Are Stronger in Innovation Networks

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    Weak Ties are Stronger in Innovation Networks?

    PhD. Burak Kuzucu

    Istanbul University

    Management Faculty

    21/12/2010

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    Introduction

    Innovation networks can provide firms with access to

    information

    resources

    new markets technologies

    whatever they need

    to integrate theircore competence

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    Introduction

    Growing interest in understanding the nature and

    characteristics of innovation networks

    Collaboration impact on the degree of innovation

    novelty have not analyzed yet

    Main Question:

    In innovation networks,

    which type of (sectoral) linkages

    is more efficient for

    which type of innovation?

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    Literature Review

    Innovation Network

    Linkages in Innovation Network

    Novelty of Innovation

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    Innovation Network

    Network is a set of nodes and relationships that

    connect them

    Nodes can be anything

    In case of innovation networks; the nodes might be mainly considered as companies linked by

    innovation-oriented relationships

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    Innovation Network

    Innovation: new combination of knowledge

    No single company with all resources of knowledge

    required to innovate on its own

    Innovation-focused collaboration

    Different actors with the aim of accessing knowledge:

    suppliers, competitors, universities and other knowledge-based

    organizations

    Partnership takes on many forms with network actors

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    Innovation-focused Collaboration

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    Linkages in Innovation Network

    Different Ties in Network Theory:

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    Linkages in Innovation Network

    The Strength of Weak Ties (Granovetter, 1973)

    weak ties rather than strong ties are appropriate

    for access to new information

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    Linkages in Innovation Network

    Strong Ties: Intra-sectoral linkages

    Partners in the same core technological field

    Strong ties broaden basic knowledge of relative mature products

    and technologies

    Weak Ties: Inter-sectoral linkages

    Partners outside the core technological field in a different sub-

    sector of the industry

    New ideas come from partners in different lines of business

    Companies from different networks are the source of different

    knowledge bases

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    Novelty of Innovation

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    Hypothesis Development

    Assumption:

    Core competences are getting more differentiated in case firms

    sectors are differentiated

    Statements:1. Intra-sectoral cooperation attempts to harness similar strengths

    in improvement of existent products and processes

    2. Inter-sectoral cooperation consists of actors from different

    sectors with radically different knowledge bases

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    Hypothesis Development

    Example for intra-sectoral linkage

    WiMAX Forum: Innovation Network in Telecom sector

    Promoting and accelerating the introduction of cost-effective

    broadband wireless access services into the marketplace

    Incremental Innovation

    Example for inter-sectoral linkage

    Quadruple Play: Innovation Network from different sectors such

    as telecom, software and entertainment

    Disrupting the market by changing the existent technology

    Radical Innovation

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    Hypothesis Development

    To investigate the relationship between the different

    type of linkages in innovation networks and the degree

    of novelty of innovations:

    H.1: For radical innovation, inter-sectoral linkages (weak ties)are more efficient in innovation networks than intra-sectoral

    linkages (strong ties).

    H.2: For incremental innovation, intra-sectoral linkages (strong

    ties) are more efficient in innovation networks than inter-sectoral linkages (weak ties).

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    Q&A