Dynamics of Innovation and Interfirm Networks

This book aims to understand how sectoral dynamics condition learning and innovation activities within interfirm networks. To do so, a dynamic model of co-evolution at an industry level is developed, differentiating between a setting of exploration and exploitation. In analysing this co-evolutionary process, two views on organisation are combined; a competence view and a governance view. This combination of competence and governance yields a more complete view of interfirm relations. Based on this, hypotheses are developed and tested in two Dutch knowledge-intensive industries: multimedia and pharmaceutical biotechnology. The empirical findings indicate that a general pattern of co-evolution on an industry level can be identified, but how it settles in a specific combination of network structure and coordination mechanisms varies across the two industries. In other words, optimality of network structure and coordination mechanisms is local as it settles differently in different (subsets of) industries. Academics, specifically those interested in innovation, networks and their dynamic interaction, will find this book of great interest, as well as policy makers and management practitioners.