THE ROLE OF THE ENTREPRENEUR IN THE EMERGENCE OF REGIONAL INNOVATION NETWORKS
Sarah
Cooper, University of Strathclyde
Richard T. Harrison, University of Edinburgh
Colin M. Mason, University of Strathclyde
Principal Topic
The development of centres of innovation may be facilitated by the establishment of regional innovation networks into which new and existing firms tap to obtain information, advice or expertise. In addition to regional-level economic advantages that may be achieved it is recognised that proximity to key customers and suppliers provides firms with benefits that are difficult to achieve at a distance. Some economic development organisations are focused upon developing local firms and enhancing levels of interaction. The development of inter-organizational relationships between new ventures and external actors, including customers, suppliers and research providers, may be influenced strongly by social and professional networks of the founding entrepreneur/s. Particularly in the early stages of firm development, in advance of more formal strategies for relationship development, the venture’s founder/s knowledge may influence development of the organisation’s networks. Earlier research suggests that founders in different technology sectors bring contrasting networks to their ventures; the business networks which evolve may be influenced not only by the technology on which the firm is based but also by the shape of the founder/s network. Thus, in the emergence of regional innovation networks the role of the entrepreneur may be critical.
Method
This paper reports on research that investigates the establishment and growth of firms within the information and communication technologies sectors in Scotland. The industry comprises Tier 1 companies, including OEMs and other ‘lead’ companies, and a supporting raft of Tier 2 companies, who play an important supply, service and contracting role in the cluster. Telephone interviews with 120 Tier 1 firms in Lothian Region are used to gather data to enable the inter-organisational networks of firms to be mapped. Questions explore the level of local interdependence between organisations and the extent to which founding entrepreneurs are responsible for the scope and scale of their venture’s network.
Results and Implications
A greater understanding of the processes which leads to the emergence and growth of regional technology complexes may help policy makers in developing interventions to assist in the start-up/ growth stages of new ventures. The analysis in this paper of the shape of organisational networks and influences on their development opens up new areas of research on the cluster phenomenon as an expression of dynamic entrepreneurialism.
CONTACT: Sarah Cooper, Hunter Centre for Entrepreneurship, University of Strathclyde, Richmond Street, Glasgow, G1 1XH, Scotland, UK; (T)+44 141-548-4345; (F)+44 141-552-7602; sarah.cooper@strath.ac.uk
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