Knowledge networks for innovation: From theory into practice, the case for SMEs

Bradford, John; Saad, Mohammed; Winnington, Terry; Mahdi, Surya

Abstract

This paper is part of an externally funded three year Network for Innovation (iNET), whose main goal is to
improve the innovative capacities of small and medium enterprises (SMEs) in Aerospace and Advanced
Engineering (AAE) across the South West of England. This paper investigates the sourcing and managing of
knowledge exchange as a basis for developing innovation, through the case of the AAE iNET. This is based
upon the strong relationship between learning and innovation, and the theories of resource-based value and
dynamic capabilities. It is also based upon the assumption that innovation is significantly influenced by the
formation of networks. This view is supported by the literature on triple helix systems which draw the attention
to the point of effective institutional relationships between university, industry and government as being crucial
for knowledge exchange and sustainable innovation and competitiveness.

The firm’s capacity for knowledge exchange can be conceptualised through knowledge acquisition,
assimilation, transformation and exploitation. Together they determine the organisation’s ability to evaluate
and utilise external knowledge known as the ‘relative absorptive capacity’. The process of knowledge
exchange depends on ‘innovative routines’ or ‘dynamic routines’. To this model of dynamic capacity we
introduce the precursor capacity of awareness, and discuss how innovation networks also need to develop
this within themselves and their membership.

• Journal Article Type: Article
• Publication Date: Oct 1, 2011
• Publicly Available Date: Jun 8, 2019
• Journal: Institute of Small Business & Entrepreneurship
• Peer Reviewed: Peer Reviewed
• Keywords: innovation, network, SME, absorptive capacity, small and medium enterprises, knowledge network
• Public URL: https://uwe-repository.worktribe.com/output/958672
• Publisher URL: http://www.jbsh.co.uk/wp-content/uploads/2012/02/b19.pdf