Determining Factors in Innovation of Small Firm Networks: A case of Cross Industry Groups in Japan |
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Authors: | Nobuya Fukugawa |
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Institution: | (1) Department of Economics, Nagasaki Perfectural University, 123 Kawashimo, Sasebo Nagasaki, 858-8580, Japan |
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Abstract: | We examine the relationship between network characteristics and innovation under different phases of innovation. Based on
micro data of cross industry groups, small firm networks for knowledge sharing and R&D cooperation, we show that close-knit
networks, represented as dense communication and a high level of commitment among members, are correlated with initiating
joint product development. Furthermore, the results show that establishing contact with external sources of knowledge such
as public research institutes is important to achieve technical success in innovation. Lastly, engaging in cooperative activities
in sales is correlated with commercial success in innovation. |
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Keywords: | |
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