Networking for Innovation

1. Aim

The research is aimed at investigating the potential benefits of Networking for Innovation within WMita members

2. Objectives

The objectives of the research are as follows:

a. Establish the benefits and drawbacks of Networking for Innovation

b. Evaluate the potential of this for WMita members

c. Assess the ways in which members of WMita can be networked in the organisation

d. Establish the interests of members in Networking for Innovation within WMita

3. Background

3.1 West Midlands IT Association

Advantage West Midlands invest around Ј300 million each year into activity that will help transform the West Midlands' economy, focusing

on: Business, Skills, Infrastructure, Communities and promoting the region.

Part of their investment is the funding of a three-year contract with WMita founded in January 2003 by sub-regional IT groups from around the West Midlands to provide a support programme for information and communication technology (ICT) companies covering networking, training, events and other activities to promote the industry to local, regional and national clients.

WMita target market is small and medium-sized businesses involved in (ICT) within the West Midlands region. The WMita Board is committed to core business values that ensure they act fairly and equitably to all our stakeholders. These values are Independence, Transparency: Excellence, Inclusivity and Partnership.

The benefits that are available to members include the WMita Quality Mark, local and regional networking events, training courses and seminars, marketing activities, member-to-member collaboration, market research and intelligence, and access to WMita's public and private partners for business, funding and training opportunities.(Source:www.wmita.co.uk)

3.2 Networking for Innovation

As products become increasingly modular and knowledge is distributed across organisations (Baldwin and Clark 2000), Firms recognise an increasing requirement to collaborate with other firms both formally and informally. The locus of innovation is no longer the individual or the firm but increasingly the network in which a firm is embedded (Powell, Koput and Smith-Doerr, 1996)

Innovation is the successful exploitation of ideas, into new products, processes, services or business practices, and is a critical process for achieving the two complementary business goals of performance and growth, which in turn will help to close the productivity gap (DTI's Innovation Report 2003, p. 8).

Network is a firm's set of relationships with other organisation (Perez and Sanchez, 2002, p.261) Networking behaviour was identified as significantly boosting the innovation output and competitiveness of firms in a diverse range of industries (Ahuja 2000: Powell, Koput and Smith-Doerr, 1996)

From the review carried out, it has been established that Firms rarely innovate alone and when they do, the innovation process is usually inefficient and unsustainable. More efficient solutions are based on interaction mechanisms with other firms and institutions in order to acquire, develop and share information, knowledge and other resources (Szeto, 2000:150 and Carlsson, 2003)

Networks provide impetus to interactive innovation development processes. They bring firms together, and make available the atmosphere and conditions for knowledge creation and sharing (Seufert et.al, 1999)

Some network benefits are noted in the following literature (Hamalaien and Schienstock, 2000; Arias,1995 , Akkermans, 2001; Grandori 1997; Grandori and Soda 1995; Kogut 1989; Eisenhardt and Schoonven 1996; Hagerdoorn and Duysters, 2002; Leibeskind, Poerte, Zucker and Brewer, 1996; Powell, Koput and Smith-Doerr, 1996; Cooke 1996, Pittaway, Robertson, M., Munir, k. and Denyer, D. (2004))

Also it was found out that through Networking the success rate of Entrepreneurial activities can be enhanced (Baum, Calabrese and Silverman, 2000) which can enhance the formation of more small medium enterprises within the west midlands region. Successful entrepreneurs consistently use networks to get ideas and gather information and advice (Birley, 1985)

Networks can be highly informal, flexible and trust based or formal and rigid connections. This depends on the networks organizational structure. Also, considering the actors involved, networks can be vertical- connecting actors along a supply chain; Horizontal - connecting actors from similar functional areas or sector; Diagonal - connecting actors from complementary functional areas or sectors (Jorges, Maria, Irina, 2004)

With the vast potential advantages of networking for innovation, some drawbacks do occur which prevent the effective operation of networking behaviour. Networks do go through periods of conflicts between partners which can and do lead to the failure of networks (Coles, Harris and Dickson, 2003). Technological adaptation encountered by small and medium sized firms in a Japanese district of traditional ceramics manufacturing looked into by (Izushi 1997) explains how external ties to networks prevailing in new Japanese industries have endangered the existence of innovative networks in an old industrial region.

4. Research Design

The research looks at a sample of 120 members in WMITA to be able to establish their interest in Networking for Innovation. Two types of data collection techniques would be employed to carry out this research. This includes use of Questionnaire and semi-structured interviews. This will enable us to achieve a reliable and valid data result.

4.1 Methodology

Literature review of potential advantages and drawbacks of Networking for Innovation would be done. Also the ways members can be networked in promoting innovation and leading to sustainable technological developments in participating firms is to be studied as well. This will act as secondary data source

Focus group of about 10 people would be formed among key staffs of Research and Development departments of some members of WMita drawn within the six regions to generate more ideas on this topic in a scheduled brainstorming session..

Questionnaire