SMEs and Knowledge-Based Innovation Networks

Abstract

The hierarchical structure of the conventional organization form was inadequate for the shift towards the customization of product development and global linkages of product markets. In particular, high-tech industry characteristics are short product cycles and rapid market changes. Therefore, network systems defined by long-term relationships are essential to innovation and networks offer a competitive advantage, in terms of innovations. In the era of knowledge economy, high-tech firms are facing dynamic competitive and rapid changes in global marketplaces. They have to emphasize the creation, accumulation, diffusion, transferring and application of knowledge to accelerate product, service and process innovation and value creation to meeting the needs of customers. Therefore, the main research problem for the study is “why should, and how can, companies create and operate knowledge-based innovation networks for value creation and to meeting the needs of customers?” The integrated model can be an easy-to-follow innovation model for high-tech SMEs to address when adopting knowledge-based innovation network. This helps to ensure that the essential determinants and approaches for innovation processes. In other words, from sources of innovation, open innovation, cooperation innovation to innovation network for implementation/commercialization.