1) In general, how can innovation networks increase the absorptive capacity of organizations?

2) Now, choose 2 innovation networks types from the Table and discuss how they could increase the absorptive capacity of an organization with which you are familiar.

Table 8.4 Types of Innovation Networks Network Type Entrepreneur-based Internal project teams Internal entrepreneur networks Communities of practice Spatial clusters Sectoral networks New product or process development consortium New technology development consortium Characteristics Bringing different complementary resources together to help take an opportunity forward. Often a combination of formal and informal depends a lot on the entrepreneur's energy and enthusiasm in getting people interested to join and stay in the network. Networks of this kind provide leverage for obtaining key resources, but they can also provide support and mentoring, for example, in entrepreneur clubs. Formal and informal networks of knowledge and key skills within organizations that can be brought together to help enable some opportunity to be taken forward, essentially like entrepreneur networks but on the inside of established organizations. The networks may run into difficulties because of having to cross internal organizational boundaries. Aimed at tapping into employee ideas, this model has accelerated with the use of online technologies to enable innovation contests and communities. Typically mobilizes on a temporary basis employees into internal ventures building networks. Not a new idea, comes out of two traditions employee involve- ment and 'intrapreneurship' but social and communications technology has amplified the richness/ reach. These are networks that can involve players inside and across different organizations what binds them together is a shared concern with a particular aspect or area of knowledge. They have always been important, but with the rise of the Internet, there has been an explosion of online communities sharing ideas and accelerating innovation (e.g., Linux, Mozilla and Apache). 'Offline' communities are also important (e.g., the emergence of 'fab-labs' and 'tech-shops' as places where networking around the new ideas of SD printing and the 'maker movement' is beginning to happen). Networks that form because of the players being close to each other (e.g., in the same geographical region). Silicon Valley is a good example of a cluster that thrives on proximity knowledge flows among and across the members of the network but is hugely helped by the geographical closeness and the ability of key players to meet and talk. Networks that bring different players together because they share a common sector and often have the purpose of shared innovation to preserve competitiveness. Often organized by sector or business associations on behalf of their members where there is shared concern to adopt and develop innovative good practice across a sector or product market grouping. Sharing knowledge and perspectives to create and market a new product or process concept (e.g., the Symbian consortium (Sony, Nokia, Ericsson, Motorola and others) worked towards developing a new operating system for mobile phones and PDAs). Sharing and learning around newly emerging technologies (e.g., the pioneering semiconductor research programs in the United States and Japan, or the BLADE server consortium organized by IBM but involving major players in devising new server architectures). (continued)