Commercializing Emerging Technologies through Networks: Insights from UK Nanotechnology SMEs

Abstract

This research investigates how small and midsize enterprises (SMEs) manage in networks for commercializing emerging technologies. Contrasting network types and their influences on commercialization outcomes are probed in the context of SME value chain positions. We build on literature on SMEs and innovation, networks, and how innovation occurs within collaborative arrangements. In a multiple case approach, 20 UK nanotechnology SMEs and their value-chain positions and strategic nets for commercialization are examined. Data are collected through 40 semi-structured primary interviews with managers and informants and from secondary business databases and other sources. We consider roles of SME agency and strategy to put forward a refined six-part framework of network types. Commercialization outcomes are found to vary by SME strategic net type and value chain positioning. SMEs can proactively create incumbent-oriented, SME-oriented or broker-oriented nets that aid commercialization. Incumbent-oriented nets with proactive SMEs enable successful commercialization of upstream and midstream products. SME-oriented nets are used for downstream commercialization. Broker-oriented nets facilitate commercialization in the upstream part of the value chain. Hybrid nets are used where SMEs pursue multiple commercialization strategies. Reactive approaches to networking and interrupted nets are unfavourable for commercialization. The study’s conceptual and managerial implications are discussed.