The network society

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					     The network society

Networks & circulation of knowledge
             06-10-2009
             Mila Davids
Networks & circulation of
      knowledge



      Arjan van Rooij
       Rudi Bekkers
  Why networks & circulation of
         knowledge?

Relationships with other ‘The network society’
lectures?
Contribution to understanding of technological
change

Overview lectures focusing ‘circulation of
knowledge’

Case study
Earlier lectures:

Why networks & innovation?
  Classic innovation studies focus mainly on characteristics of
  individuals or firms to explain innovation
   – e.g. firm size and innovativeness

  However, innovation, is inherently social in nature
   – e.g. firms have relations with other firms and
     consequently access to additional external resources

  Hence, networks of social relations between actors
   – (individuals and organizations) may be important factors
     in explaining innovation
   – and innovation may change networks of social relations
     as well
  Innovativeness & learning

Resource based view of the firm
– Edith Penrose (1959)




– 1980s
  capabilities: historically determined; firm specific;
  difficult to imitate
    Inovativeness & learning

The knowledge base view of the firm
– Conner & Prahalad, Grant, Kogut & Zander
Dynamic capability perspective
– Teece, Pisano, Shuen


Organizational learning & routines
– Nelson & Winter
– Nonaka
         Networks & circulation of
               knowledge
Knowledge (& transfer)
 – Explicit knowledge / information <->     Tacit knowledge / know-how
 – General knowledge                <->     specific knowledge

 – Innovation & capability development: Various kind of knowledge


Knowledge transfer
 – Documents, publications, patents, licences
 – Personal contacts
 ..

Knowledge sources
 – Universities                                       -> lecture 13/10 & 17/11
 – Consumers
 – Suppliers
 – competitors
 ..
          Networks & circulation of
                knowledge
Knowledge flows via
 -informal / personal relations
 -education
 -licensing
 -alliances
 -co-operation / co-design
 ..
Networks
 – Specific relations: alliance networks
 – Sources: consumer network; supplier network                           -> lecture 1/12
 ..

Focus on specific innovation - firm:
      Various knowledge sharing networks; knowledge; knowledge flows, sources, carriers
                                                                        -> lecture 6/10, 1/12
                                                                                     & 8/12
University – industry     Universities Arjan van
relations                 Rooij (13-10)
                          Ac Ind researchers
                          Rudi Bekkers (17-11)
International             Globalisation &
knowledge flows           Learning in networks


Knowledge networks        Contribution to
and societal transition   societal change
  Why networks and alliance management?
The knowledge economy is a network economy


                         Third Industrial Revolution




Second Industrial Revolution
                                                      CEO
                                                                            Networked model:
                                              Staff                         Economies of skill:
                                                                            -access to knowledge
                                                                            -co-development
                                                                            -leverage knowledge
                                                                Divisions
     Guild                                                                  -focus on core
                                                                            competences
                         Master                                             -learn and innovate
    Master      Master
                                              ‘Stand alone’ model:
                                              - Economies of scale
                                              - Optimize assets
     Pupil       Pupil    Pupil


             Organizational models are transforming from “stand alone” to “networked”
            Case study:
  Philips & solid-state technology

1. constraints for networking
2. actual networkbuilding


  internal knowledge building
  expectations
  path-dependency
Patrick Dixon: future trends …



http://www.youtube.com/watch?v=99p-
pWW7ljI
            Case study:
  Philips & solid-state technology

1. constraints for networking
2. actual networkbuilding


  internal knowledge building
  expectations
  path-dependency
                                Importance in innovation process

         high



                              1940s/1950s
                           Germanium/transistor




External knowledge
                                                         mid 1950s-
                                                  High frequency transistor



                                                                      1950s/1960s
                                                                        Silicon/IC




         low
                                           Internal knowledge
                     low                                                             high
              …????…

Why did Philips’ attitude towards external
knowledge change?
          Argument:


Expectations largely influenced
 the searching for and acquiring
          of knowledge
They influenced Philips’ attitude
    & company approached
           Necessary ….

Knowledge base
                     External knowledge
  Receptivity            acquisition




 Expectations
                 Expectations
 related to:
1. future technological possibilities, with regard to
    the artefact, material or process
2. market expectations and
3. ideas about broad technological trends.
4. character of the licence agreement

(Van Lente)
External knowledge acquisition

Knowledge base
                       External knowledge
                           acquisition
  Receptivity

                 Self-confidence


                   Coherence
 Expectations
                Overview
 three periods:
1. End 1940s – begin 1950s
  Germanium transistor

2. Mid 1950s
  High frequency transistor

3. End 1950s – begin 1960s
  Silicon / IC

aspects:
-external knowledge and internal knowledge
-expectations
* receptivity & knowledge base
* self-confidence & coherence
  End 1940s – begin 1950s
   Germanium transistor
 1930s semiconductors
         Selenium & copper oxide (selenium rectifiers)
          Natlab research
after WOII: American companies
        Selenium, germanium & silicon
         Philis -> germanium (germanium rectifiers)
          experience
1948: Bell
         Transistor effect (point contact transistor)
          publications
 1952: Bell
         layer transistor: double doping technique
          Bell symposium & licence agreement
         Natlab versus production department: RCA (alloy
          junction)
          publications
                                                    Importance in innovation process
                                           high


                                                           1940s/1950s
                                                        Germanium/transistor




                            External knowledge




                                           low                         Internal knowledge
                                                  low                                            high

                      Importance in ‘knowledge acquisition’                               Importance of expectations determined by:
    strong                                                                         high


                       1940s/1950s
                    Germanium/transistor




Receptivity                                                                Self-confidence

                                                                                                   1940s/1950s
                                                                                                Germanium/transistor




    weak                         Knowledge base                                    low                        coherence
             weak                                                strong                   low                                 high
         Mid 1950s
    High frequency transistor

Mid 1950s: high frequency transistors
    Philips: in-house development (POB transistors)
     own development
    Instead of Philco’s knowledge (surface base
     transistor / jet etching process)

Reasons:
- Technical
- Expected profitability
- Future semiconductor companies : tube
  manufacturing capabilities
                                                       Importance in innovation process
                                           high


                                                            1940s/1950s
                                                         Germanium/transistor




                                                                                  mid 1950s-
                            External knowledge
                                                                           High frequency transistor




                                           low                          Internal knowledge
                                                   low                                                  high

                      Importance in knowlege acquisition                                        Importance of expectations determined by:
    strong                                                                               high


                       1940s/1950s
                    Germanium/transistor


                                                                                                                            mid 1950s-
                                            mid 1950s-                                                               High frequency transistor
Receptivity                          High frequency transistor                 Self-confidence

                                                                                                          1940s/1950s
                                                                                                       Germanium/transistor




    weak                         Knowledge base                                          low                         coherence
             weak                                                 strong                        low                                              high
            End 1950s – begin 1960s
                    Silicon / IC

   Philips: own capabilities
   End 1950s: Am. companies: silicon
   Philips: germanium (silicon diodes)
      Passive attitude towards silicon transistors
          POB transistor / market expectations
          Agreement with Texas Instruments
   End 1950s: Am. Companies: ICs
          Focus on germanium / poor market prospects
          IBM preference (thin film versus planar process)
          Underestimation of TI
 Acquisition of Wembly lab (General Electric Company): not
  sufficient
 Westinghouse
                                                        Importance in innovation process
                                           high


                                                              1940s/1950s
                                                           Germanium/transistor




                                                                                    mid 1950s-
                            External knowledge
                                                                             High frequency transistor


                                                                                             1950s/1960s
                                                                                               Silicon/IC




                                           low                            Internal knowledge
                                                     low                                                    high

                      Importance in knowledge acquisition                                         Importance of expectations determined by:
    strong                                                                                 high


                                                                                                                                    1950s/1960s
                       1940s/1950s
                                                                                                                                      Silicon/IC
                    Germanium/transistor


                                                                                                                              mid 1950s-
                                            mid 1950s-                                                                 High frequency transistor
Receptivity                          High frequency transistor                   Self-confidence

                                                                                                            1940s/1950s
                                                  1950s/1960s                                            Germanium/transistor
                                                    Silicon/IC




    weak                         Knowledge base                                            low                         coherence
             weak                                                   strong                        low                                              high
       Concluding remarks
Interaction internal knowledge building and
external knowledge acquisition
In-house knowledge building important
Success -> self-confidence + coherence =>
external orientation
Importance market expectations (IBM) =>
germanium
Expected market dominance former tube
companies => TI
Expectations TI licence agreement =>
alertness & active search
Path dependence : techniques & networking
Institutional context
Thank you for your attention

				
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