Governance of innovation networks

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Testing the Effectiveness of Network Governance Mechanisms to Foster Ambidexterity of Agricultural Innovation Networks in East and Central Africa

Testing the Effectiveness of Network Governance Mechanisms to Foster Ambidexterity of Agricultural Innovation Networks in East and Central Africa

Meta-governance is less straightforward than first and second-order forms and concerns how exploration and exploitation are managed in multi-level innovation networks. Meta governance permits the simultaneous management of structural challenges of multi-level and sometimes geographically dispersed innovation networks, like international organisations (Schemeil, 2013), ambidextrous clusters (Ferrary, 2011), and global networks of practice (Agterberg et al., 2010). Meta-governance allows the emergence of sub-networks that are coordinated by mobile hubs of innovation network members (Pérez Perdomo and Farrow, 2016). The governance, composition and organisation of the mobile hubs change according to particular challenges faced by the innovation networks at different times (Pérez Perdomo and Farrow, 2016). In contrast to a hub firm (Dhanaraj and Parkhe, 2006) or a Network Administrative Organisation (Provan and Kenis, 2008) that manages large and diverse participants and monitor its activities from a neutral and central position, meta-governance is not led by a single organisation or network broker that coordinates the whole network, in a centralised manner.
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Density and Strength of Ties in Innovation Networks: A Competence and Governance View

Density and Strength of Ties in Innovation Networks: A Competence and Governance View

instruments could be taken, from Table 2? We propose that in exploration governance is based on a balance of mutual dependence, hostages in the form of sensitive information, a reputation mechanism, and relation-specific trust. A reputation mechanism is especially strong here, in exploration, in view of the uncertainty about possible future configurations of relations. Since it is impossible to assess who may and who may not in the future be a potential collaborator, one has to be careful in all relations. The point now is that density of relations is needed for a reputation mechanism. Also, the institutional basis for trust typically lies in professional values, norms, and standards, guarded by professional associations, which also play an important role in reputation mechanisms. A potential downside of density, from the perspective of governance, is that it facilitates spillover. However, under exploration knowledge is likely to be more tacit (relative to exploitation), which does not spill over so easily, and change of knowledge may be so fast that, as argued earlier, spillover risk is likely to drop out. Even if it does not, spillover may still be less of an issue, for the following reason. Since commercialisation is not yet established, and even the product and its technology are uncertain, it may not be clear who will turn out to be a competitor, so that it may not be clear where spillover is to be controlled. Then, since everyone may turn out to be a competitor, one should not give sensitive information to anyone, but that would preclude the learning by interaction that is essential in exploration. In other words, exclusiveness, which would reduce density, is improductive. Hence:
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Research on the Construction of Inclusive Innovation Networks

Research on the Construction of Inclusive Innovation Networks

CSV represents a concept of promoting the advancement of business and social coordination development. The core is the enterprise to obtain economic returns to create social value. The bottom for the practice of the concept provides a good market environment. This article, based on the analysis and comparison of six cases of enterprises, found that the BOP market has many restrictions on the ob- struction of value creation, in addition to itself, which has more than the poor dispersion and low production skills, including the lack of professional interme- diary service organization and market organization value chain vacancy caused by the imperfect system and formal system hole problem. In order to overcome these obstacles, the enterprise will promote the construction of cross-sectoral cooperation network, in the original decentralized organization, institutions and individuals to establish various forms of commercial and non-commercial, which on the one hand, can put the different members of the resources alloca- tion and integration to compensate for the missing link in the process of value creation within the BOP market, improve the ability and the consciousness of the BOP producers, and form a contract between members of the network and trust of mixed trading system of governance mode to fill the empty. BOP net- work running will continue to improve the ability of local BOP area, and at the same time promote the flow of information, knowledge and resources in the market and the connection with the external market, and finally realizes the cre- ation of shared value.
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Outsourcing, Contracts, and Innovation Networks

Outsourcing, Contracts, and Innovation Networks

ideas to be generated from outside by 2010, compared with 20 percent now (Engardio and Einhorn 2005). The growing importance of outsourcing has generated an intense de- bate on the costs and benefits of industrial fragmentation. Within the international trade literature, a recent strand of research tries to investi- gate the phenomenon of outsourcing as the result of a trade-off be- tween the governance costs of complex vertical organizations and the contractual costs of networks of independent specialized upstream and downstream producers. Such networks are tainted by problems of contractual incompleteness stemming from the lack of ex post verifi- ability by third parties as the quality of deliverables is too costly to ob- serve by courts. Related models can be classified in terms of their relative focus on two decisions: the ‘‘ownership decision’’ on whether production should be in-house or outsourced and the ‘‘location deci- sion’’ on where to place production. The ownership decision is the focus of, for example, McLaren (2000) and Grossman and Helpman (2002) for a closed economy and Antras (2003), Grossman and Help- man (2003), and Feenstra and Hanson (2003, 2004) for an open econ- omy. The location decision is analyzed by Grossman and Helpman (2005). Both decisions appear in Antras and Helpman (2004) as deter- minants of firm organizational form. 1
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Knowledge Exchange in Innovation Networks: How Networks Support open Innovation in Food SMEs

Knowledge Exchange in Innovation Networks: How Networks Support open Innovation in Food SMEs

7. Network governance and management 8. Performance Source: own research The data collection took place within the FP7 project NetGrow 1 . The interviews were carried out simultaneously within a short period from December 2010 until May 2011 to avoid effects from changing economic environments. A semi-structured interview guide was developed and tested in advance. The interview guide was build up by following sections and had been adjusted to the main categories of respondents as indicated in Table 1. The interview guide was adjusted for the different categories of respondents because of the relevance and formulation of questions for each respondent type. Each interview was audio-recorded and transcribed subsequently. The method of analysis used was Open coding based on Grounded theory by (Glaser, 1978). Accordingly the data were first broken down into corresponding paragraphs or quotes with a similar context. Secondly, they were grouped and categorised again by codes, following the open coding methodology.
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Tourism innovation networks: A regional approach

Tourism innovation networks: A regional approach

Department of Economics, Management, Industrial Engineering and Tourism, GOVCOPP – Research Unit in Governance, Competitiveness and Public Policies, University of Aveiro. Campus Universitário de Santiago, 3810-393 Aveiro, Portugal, e-mail: filipa.brandao@ua.pt, Phone: +351 927 162 262

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Intracompany Governance and Innovation

Intracompany Governance and Innovation

Economists and business scholars have pointed to the advantages of conglomerates in fund- ing R&D projects with cheaper internally generated funds (Gertner, Scharfstein and Stein, 1994 and Stein, 1997) while at the same time emphasizing the dark side of internal capital markets, in terms of reduced …nancial discipline for poorly performing investments (Scharf- stein and Stein, 2000). Seru (2007) …nds evidence consistent with this dark side of internal capital markets: publicly traded U.S. conglomerates with above-average reallocation of funds across divisions are less productive innovators than comparable stand-alone …rms. Similarly, Guedj and Scharfstein (2004) compare clinical trials in the biopharmaceutical industry and …nd that big pharmaceuticals …rms engaged in cancer research tend to initiate too many studies but are quicker to terminate unpromising research than smaller (stand-alone) biotech …rms. In contrast, Belenzon and Berkovitz (2008a) …nd European evidence that innovation tends to be concentrated in business-groups and that business-group a¢ liates tend to engage in more innovation than comparable stand-alone …rms.
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Innovation in financial governance reforms: for better or for worse?

Innovation in financial governance reforms: for better or for worse?

In any case, as previously mentioned, literature and practice have often also applied the concept of innovation to government reforms, theoretical conceptions of public management, like such as New Public Management (NPM), and to specific instruments and management solutions adopted to implement reform at a specific level of a government (e.g., regional or local governments), or in a function or an area of activity of the public sector (e.g., healthcare, education, civil servant management, etc.). In particular, NPFM is the component of NPM focusing on the financial information and accounting systems of public sector entities (e.g., Guthrie et al., 1999; Humphrey et al., 2005; Lapsley, 1999; Olson et al., 2001;). As is the case for NPM, reforms in NPFM are mainly based on the adoption of instruments and principles derived from the private sector, for example: improving efficiency in the use of resources and effectiveness in the pursuit of goals, increasing internal and external accountability, adopting accrual accounting or accounting standards (Brusca et al., 2015), and improving cost accounting or management control systems. Considering NPFM, Guthrie et al. (1999) identified five different categories of what we refer to as “new public financial management' reforms”: changes to financial reporting systems (including the promotion of accrual-based financial statements across government departments and sectors and a reliance on accounting standards set by accountancy professional bodies); development of commercially minded, market oriented management systems and structures to deal with the pricing and provision of public services (with emphasis on cash management, contracting-out arrangements, and internal and external charging/pricing mechanisms); development of a performance measurement approach; devolution, decentralization or delegation of budgets; and changes to internal and external public sector audits.
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Implementation of collaborative governance in cross sector innovation and education networks: evidence from the National Health Service in England

Implementation of collaborative governance in cross sector innovation and education networks: evidence from the National Health Service in England

Second, none of the HIECs were incorporated and/or registered as a charity because of the unstable policy envir- onment and the absence of perceived benefits. We did not find evidence that not having their own legal personality adversely affected the implementation of HIECs. On the contrary, many respondents felt that not having to deal with complex legal matters speeded up the implementation of HIECs. The form of the governance model was seen as being of less importance than the idea of the governance function. Our data show that HIEC governing bodies exer- cised largely independent decision-making authority within their mandate, and that they placed a high value on the governance function in terms of creating a sense of com- mon purpose and collaborative action. It is therefore un- clear whether in a more stable policy environment HIECs would have sought incorporation or registration as a char- ity; or what the benefits of such a move might have been. We propose that further research examines AHSCs and AHSNs that have been successfully incorporated or regis- tered as a charity in order to elucidate the benefits of these legal forms for other cross-sector health partnerships.
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Reflections on innovation networks: contractual vs. "conventional" networks

Reflections on innovation networks: contractual vs. "conventional" networks

Both of these "forms" probably exist but the reality is rarely dichotomous and all the intermediate forms are possible. Often, the most apparently formal networks can only function because they also possess, parallel to their visible structure, an informal dimension and relational content that is not directly discernable, not written, and not contractual. For instance, J. H. Gaudin, an experienced practitioner in the field of technical and industrial agreements of large multinational groups, noted in a short article published in Jacquemin and Remiche, eds. (1988) that within Interfirm cooperation," one of the most formal types of networks one can imagine—and one central to the viability, efficiency and effectiveness of joint ventures and other inter-firm cooperations—"is that of the personalities involved, be it the personalities of members of contracting corporate bodies or those of the individuals who are to work together… Therefore, it is not easy to have a large and a small firm cooperate… or firms with very different cultures.…" 15 .
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Governance of Innovation and Intermediation in Triple Helix Interactions

Governance of Innovation and Intermediation in Triple Helix Interactions

(industry). The competitiveness and performance of firms however, is increasingly dependent on successful R&D collaboration and knowledge sharing with universities. The effective transfer of innovation outputs across public and private sector organisations is critical for governments, for university and for industry. Innovation at firm level is often associated with industry absorption and commercialisation of knowledge and technology generated by universities and other public sector research establishments. Technology is transferred through PhD graduates, through collaborative contract research, or licensing activities. The governance of innovation and KTT, hence, is a key component in economic development platforms, where the effective interactions between regulatory government bodies, the industry and universities are critical. These new trilateral relationships are characterized by complexity of interactions, interdependencies, and intensive flow of knowledge and resources between public and private actors.
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Governance, Regulation and Innovation: Introducing New Studies

Governance, Regulation and Innovation: Introducing New Studies

For a long time, determinants of innovation had been studied with an exclusive focus on market structure, industry characteristics, technology choice, and appropriability of the innovation profits. This institution-free approach can be traced back to Schumpeter ’s (1934, 1942) seminal work, which argued that large firms and concentrated market structures promote innovation. Arrow (1962) takes issue with the Schumpeterian hypothesis and demonstrates that a monopoly shielded against competition has less incentive to innovate compared to firms within a perfectly competitive market. According to Gilbert (2006), we are still far from a general theory of the relationship between innovation and market structure as industry characteristics, the nature of technological competition and the distinction between product and process innovation emerge as confounding factors. Yet, recent empirical work informed by Aghion et al (2002a, 2005) demonstrate that the relationship between market structure and innovation is likely to be non-linear, with competition fostering innovation at low levels of competition but reducing innovation when the initial level of competition is already high (Peneder, 2012).
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Firm dynamic governance of global innovation by means of flexible networks of connections

Firm dynamic governance of global innovation by means of flexible networks of connections

We chose a major biotech sector of the global pharmaceutical industry for our multilevel analysis for a number of reasons. Emergence of biotechnology has presented a new technology paradigm with respect to drug discovery and development in this industry. It hence provides a natural laboratory for researchers because they can observe how and when existing firms have built their innovation capacities as well as potential links between innovation and firms’ embeddedness in social structures, whether institutional, spatial, technological, or other. Also of particular interest in the pharmaceutical industry is the fact that deal making between biotech companies has inten- sified in recent years. In the 2001-2003 time frame, biotech-biotech alli- ances accounted for more than 56 percent of new deals. Some 1,023 intra- biotech deals were reported in 2004 compared to only 199 deals in 1997. Biotech companies were involved in 86% of the 2,761 deals signed in 2004 against 64% of the 311 deals signed in 1997 (Cartwright, 2005). The bio- tech industry is therefore an increasingly mature industry that is no longer wholly reliant on partnerships with big pharmaceutical companies.
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Conceptualizing innovation clusters and networks

Conceptualizing innovation clusters and networks

As such, this approach appears well “calibrated” for innovation clusters analysis, and above all in high-tech or science-based sectors. Still, it rests on a somehow excessive technological and functional grounds as it surprisingly lacks a clear integration of some key dimensions highlighted by Nooteboom (2004) and Scott (2006) (see below) along with many others (including Porter, the OECD and the various general approaches of clusters; see above). Indeed, the social and institutional dimensions of actors’ interactions and embedding and the role of informal interactions and of interpersonal relationships are roughly underscored or even ignored. By the same token, the roles of various institutions that usually impact the formation, the functioning and the development patterns of an innovation cluster are not clearly stressed in this approach. Such institutions are typically funding organizations (banks, venture capital companies, business angels, public funding agencies…), law companies (especially those specialized in property rights’ issues), regulation entities (standardization committees, ethical commissions…), and so on. Yet these institutions are greatly differentiated across countries, across regions and across cities. Their impact on innovation dynamics is therefore likely to be quite variable from one location to another. 13 This stresses again the necessity to take explicitly into account the geographical specific locations of the actors involved in a clustering dynamics.
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The Self-Organisation of Innovation Networks

The Self-Organisation of Innovation Networks

good strategic reasons for this. If the value of the information each firm is willing to release is less than the expected value of reciprocated information then firms will exchange their knowledge voluntarily. The argument is interesting but, for this process to continue over time, strong assumptions are made about firms’ abilities to evaluate and process information. Nelson (1988) has similarly suggested that a more liberal attitude towards knowledge appropriation is emerging, noting that “in some cases firms take positive actions to make their proprietary knowledge available to others” (Nelson, 1988, p. 318). However the strategic motivation cited by Nelson is very different to that put forward by von Hippel. On the one hand, Nelson reiterates the ‘new’ view of innovation by stating that changing environmental conditions - increasing complexity and the high speed of innovation processes - are to some extent forcing firms to a adopt a more open position. In addition he observes that diffusing certain types of know-how can be beneficial to a competitor. If a firm’s proprietary technology becomes the industry standard then it gains enormous advantages because all subsequent innovations that built on that standard are readily understood and appropriated by the standard-setter. In this way Nelson makes a link with work by Arthur (1989), David (1985) and (starting from a different perspective) Katz and Shapiro (1985) on systemic lock-in to de facto standards.
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Ownership and governance of Finnish infrastructure networks

Ownership and governance of Finnish infrastructure networks

The traditional and MOE forms of organization often have overlapping super- vision by many boards or committees that makes decision-making slow and bureaucratic. Consideration should be given to the elimination of politically mandated boards’ altogether. It is emphasized that the corporate framework re- quires that there is a professional board that oversees the contracted private com- pany or companies. Absence of such professional board is a significant deficiency. MOEs are clearly a significant source of cash for cities and municipalities. In times of economic resource scarcity and uncertainty, this source can be ever more valuable in the future. Whether it is a good policy to finance other sectors with technical networks is another and wider issue. One may present a philosophical question that what is the difference between tax and paying for water or mobility? The latter at least gives something tangible in return. But this question will be one of the key issues in discussion on the role of municipal sector their task in the pro- vision of multiple basic services.
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Deploying governance networks for societal challenges

Deploying governance networks for societal challenges

and international organizations and the roles they play in these net- works could not be explored in our analysis. Nevertheless, the syntheses from the cases covered in this article reinforce the known facts on the centrality of the government parties in any Governance Network. The synthesis also suggests that in the wider Smart Society context where social actions are initiated by non-state actors, there may be signi ficant challenges in getting government parties to support such initiatives. An- other important aspect of Governance Networks not well highlighted in the cases but discussed extensively in the literature is the role of trust building in the overall success of governance network. Given the impor- tance of social capital in the ef ficacy of Governance Networks ( Huppé et al., 2012 ), providing strategies for building trusts across the network is very important. A general shortcoming of the reviewed cases is that they do not offer additional insights on the side effects or consequences of the Governance Networks, such as the hollow state effect (E.-H. Klijn, 2002 ). Finally, we believe that some of these findings will provoke fu- ture focused studies on Governance Networks in general and in the con- text of Smart Societies in particular.
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Innovation in Multiple Networks and Networks of Networks: The Case of the Fruit Sector in Emilia‐Romagna

Innovation in Multiple Networks and Networks of Networks: The Case of the Fruit Sector in Emilia‐Romagna

In terms of Network  configuration  and links with other networks,  Coop  1  maintains ties with  numerous other  regional,  national  and  international  networks  and  collaborates  with  its  two  principal  competitors  on  the  development  of  mutually  beneficial  fruit  sector  innovations  through  the  creation  of  a  partnership.  The  innovation  focus  of  the  partnership  is  the  identification  of  new  fruit  cultivars  and  their  subsequent  development,  management  and patenting. Indeed the results of  this partnership,  created  by  entities that  are  otherwise competitors in the market, constitute a large portion of the new varieties studied and developed by  its  founding  members.  In  this  case  there  are  contractual  relations  between  the  networks,  as  well  as  with  individual  experts,  such  a  breeders  who  provide  advice  regarding  which  new  varieties  are  most  suitable  for  specific environments.  Coop 1 is a  member of  the cooperative referred to in  the Research Institute  section, a  network  involving  large  retail  chains,  and  other  networks  focusing  on  technical  support  and  promotion  of  Italian  fruit  in  Italy and  abroad.  It  is  also a member  of  the  Centro  Servizi  Ortofrutticoli  (CSO) the mandate of  which is  “to create  synergy between operators, with  the  aim of increasing  competition in the  Italian fruit  and  vegetable  sector”,  and  UNAPROA  which  represents  cooperatives  with  respect  to  the  role  of  European  Union  mandated  Producer  Organisations  (PO).    Coop  2  participates  in  other  networks  and  has  links  with  other  cooperatives with similar and dissimilar and broader mandates, including a PO responsible for the marketing of  fruit at the national and international level.  These links  are  either informal or formal (contractual), depending  on the circumstances. 
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An exploration of innovation and governance in Australian Superannuation Organisations

An exploration of innovation and governance in Australian Superannuation Organisations

Financial markets (such as the superannuation industry) should be “innovation machines” that test investors’ fitness to succeed – and there are significant rewards for those that are able to identify and exploit unacknowledged market opportunities as well as significant rewards for those that create markets and financial products to price and distribute risk, such as in derivates and alternative investments (Baumol, 2002 and Clark and Urwin, 2006). Like Baumol (2002), Clark (2003:51) “believes that the rate of product and process innovation drives long-term economic growth, and that the financing of innovation is a crucial ingredient in this process”. Baumol (2002: 79) advocates that, “innovation is essential to the survival of firms in a capitalist economy”. Baumol further argues that in a capitalist economy, innovation rather than price is the primary competitive dimension and firms that do not innovate will find their market shrinking as they lose business to more innovative competitors.
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Governance decentralisation in education : Finnish innovation in education

Governance decentralisation in education : Finnish innovation in education

This paper introduces a Finnish education innovation known as decentralisation in education. The innovation is described based on education policy documents, research papers and two short interviews with national and municipality experts in curriculum design. In a decentralised education system local providers of education (municipalities) and teachers play important roles in the preparation of local curriculum and learning environments, including the use of digital learning tools and environments. Education providers localise the national aims and content and describe how education is organised. Classroom-based assessment is another characteristic of decentralisation. Three pre- conditions are required for a decentralised education system to be effective: 1) common, national level, long-term strategic aims and must be established and local level plans, such as curriculum and an equity plan, must be developed and the implemented, 2) quality work, student assessment, continuous improvement of learning environments and practices implemented at the local level and 3) professional teachers must collaborate and engage in broad planning and assess their teaching abilities and their students’ learning outcomes.
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