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Entrepreneurial networks and open innovation: the role of strategic and embedded ties

Robert Huggins and Piers Thompson

Industry and Innovation, 2017, vol. 24, issue 4, 403-435

Abstract: This paper considers the open innovation paradigm in the context of entrepreneurial firms. Based on an analysis of survey data, it examines the relationship between network ties and innovation. These are considered as the strategic network ties associated with open innovation and the embedded ties associated with entrepreneurial networks. It is found that both strategic and embedded ties are significantly associated with rates of innovation for entrepreneurial firms, although for the former this relationship is driven by a minority of larger or highly innovative firms. Strategic ties are most strongly linked to product and organisational innovations, whilst process innovations are more related to embedded network ties. There is some evidence of complementarity between the two forms of network tie. It is concluded that in the entrepreneurial context, the open innovation concept should be broadened to encompass the role performed by embedded network ties.

Date: 2017
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DOI: 10.1080/13662716.2016.1255598

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