You don’t forget where you come from: linking formation and operations in publicly funded innovation networks

Abstract

Publicly funded innovation networks (PFINs) are an increasing form of organizing joint innovation activities. Yet, little is known about this form of organization which mixes characteristics of centralized and de-centralized innovation networks. This research investigates how processes of network formation affect its operation in PFINs as a hybrid form between centralized and de-centralized networks. Presenting rich data from a PFIN in the Scandinavian maritime industry, the findings show three patterns linking network formation and operation. The first pattern – well-aligned centralized and de-centralized approaches – in network formation resulted in well-functioning network operation. The second pattern – misalignment between centralized and de-centralized approaches in network formation resulted in stagnating innovation activities during network operation. The third pattern – a pre-dominant de-centralized approach during network formation resulted in unconnected sub-activities during network operation. This research contributes by showing the importance of utilizing both centralized and de-centralized approaches and aligning them to enable well-functioning network formation and operation.