Innovation strategies and network configurations in knowledge-intensive services

Abstract

In this paper we deal with the innovation strategies of software for telecommunications companies that develop innovative products through the creation, use and adaptation of various resources. In addition to in-house capabilities and resources, they resort to external sources via market and non-market transactions. We will focus on non-market exchanges, namely networks. The main goal is to determine if different innovation strategies (mostly radical versus mostly incremental) are associated with distinct networking strategies. With this aim, we adopted a specific analysis of innovation networks, which deals separately with the two main types of resource: knowledge and complementary assets. Results reveal that there are clear-cut differences in the network configurations of radical versus incremental innovators, particularly in the access to knowledge. They also give support to the adequacy of using a fine-grained analysis. These findings can therefore add to the debate on the most favourable networking strategies for innovation.