Tim Kastelle

The Role of Networks in Small and Medium‐Sized Enterprise Innovation and Firm Performance

The objective of this paper is to understand the contribution of networks to innovation and firm performance in small and medium enterprises (SMEs). Based on longitudinal data from 1,435 SMEs, we show that strong, heterogeneous ties improve innovation in SMEs. However, the connections between network ties and firm performance are more complex than previously thought, as the positive association is mediated by innovation. Consequently, SMEs should only concentrate on cultivating and maintaining networks if they lead directly to improvements in innovation.

Public sector innovation research: What’s next?

Abstract This paper introduces the analytic context of public sector innovation studies along with an overview of the nine papers in this volume. But it also seeks to advance a new research agenda in public sector innovation studies from the economic perspective of the incentives to innovation in the public sector. This argues for a practical model of public sector innovation that is less about imitation of the market sector or other public sector best practice and more cognizant of the scientific method of randomised controlled experiments.

Are Small World Networks Always Best for Innovation

Abstract It is becoming increasingly apparent that a firm’s communication network structure has a significant impact on its innovative capability. We know that in many cases, small world network structures in particular lead to improved innovation output. This paper is the first to test whether or not this finding is also true inside of large project-based firms We study a project team with 130 members using complex network analysis. The team’s project includes several innovations, and the knowledge sharing networks do have small world structures. However, these networks have much more hierarchical structures than those measured in other innovation networks. We conclude that identifting a small world structure is only the first necessary step in analysing such networks. We identift a hierarchical generative mechanism for these structures, which demonstrates that gaining a better understanding of the history and evolution of particular networks is a critical step in analysing them.

Ideas are not innovations

Tim Kastelle is a senior lecturer in innovation management at University of Queensland Business School (UQBS). He is managing editor of Innovation: Management, Policy & Practice, the leader of the UQBS executive education and MBA innovation programs, and does research and consulting on the topic of management of innovation. John Steen is a senior lecturer in strategy at UQBS. He currently holds an Australian Research Council grant to examine innovation in capital-intensive and project-based firms. He has published in a variety of strategy and innovation journals, but does not refer to any of them when he is talking to managers.

Small worlds: the best network structure for innovation?

The properties of social networks have been used to explain the behaviour and performance of diverse economic and social systems. Recently, attention has been given to a class of network structures identified as ‘small‐worlds’, due to their apparent efficiency in connecting different actors through short path lengths within a relatively sparse network. Intuitively, such network structures should also be conducive for innovation due to better flows of information and the possibility of new connections between skills and ideas. While there is some evidence for this hypothesis, we urge caution in interpreting the results of small‐world studies of innovation and suggest future improvements for empirical research.

The evolving role of research consortia in East Asia

Summary Research consortia have played an important role in the economic success of several East Asian countries. This paper looks at the ways these consortia – which are created for strategic rather than cost-saving purposes – have evolved over time. Three models for institutional learning are suggested, and three case studies are presented of research consortia in each model. The cases demonstrate the centrality of learning in facilitating the development then transition from innovation diffusion capabilities to innovation generation capabilities in East Asian firms. Cases are provided of the Samsung Electronics in Korea, the clusters of firms that are associated with ITRI in Taiwan, and the technological development of Ericsson China. Reference is made to the use of institutional innovations in the East Asian context such as patent pools that supplement more conventional forms of R&D collaboration.

Handbook on the Knowledge Economy : Volume Two

This thoroughly revised second edition of the Handbook on the Knowledge Economy expands the range of issues presented in the first edition and reflects important new progress in research about knowledge economies. Readers with interests in managing knowledge- and innovation-intensive businesses and those who are seeking new insights about how knowledge economies work will find this book an invaluable reference tool. Chapters deal with issues such as open innovation, wellbeing, and digital work that managers and policymakers are increasingly asked to respond to. [Book summary from WorldCat]

Innovation in the Public Sector

Why does the public sector innovate, how should the public sector innovate, and, even more basically, should the public sector innovate? These are some of the questions that these contributions explore and to which they provide some salutary answers. Martin Stewart-Weeks, an independent consultant working at the intersection of government, innovation, and technology, draws some lessons from his direct experience and advisory work about how the public sector catches the innovation ‘bug’ and turns it into in- spired action. From infection to inspiration to implementation, the public sector needs to lower its defences and put itself ‘in harms way’ to engage with innovators and new ideas. Tim Kastelle, one of Australias leading innovation scholars and practitioners, sets out some practical ways that the public sector can extend and entrench its innovation practice. These include managing innovation as a process, shifting the risk equation, and experimenting.

The Role of Social Media for Innovation

It is now well-documented that social media can play an important role in supporting the innovation process. Social approaches are most commonly thought to be useful in either idea generation, as in open innovation approaches, or in idea diffusion. However, while the connection between social media and innovation success has been established, the mechanics of how social media supports innovation are less well understood. This is the issue that we investigate in this chapter. We use data from two case studies. One firm has been very successful in using social media to support organizational innovation, the other less so. After describing the cases in some detail, we discuss how social media use affects all phases of the innovation process. We then also look at how social media use addresses innovation capability at an individual level. We draw several conclusions and key learnings from the data presented. It appears as though social media best supports innovation when social approaches are effectively integrated into the day-to-day activities of an organisation. Instead of simply “adding some social” and hoping to see improvements, the use of social media must be integrated with the strategy and objectives of the firm. The selection of the best social media channels to use then follows from this integration with strategy. There is no absolute must-use channel—the correct tools will depend on the value proposition and target market of the organisation. At a personal level, social media can be leveraged to strengthen important innovation capabilities, such as exploration, connection and network building. Using social media to support innovation is only worth the effort for both organisations and individuals when there is a clear outcome desired, accompanied by a suitable strategy for reaching these objectives.

The importance of trade in economic development: Australia in the international trade network

This article uses complex network analysis to investigate the question of the contribution international trade makes to growth in small-population, developed economies, with an emphasis on Australia. Using a longitudinal data set, the empirical work investigates the opportunities available to these economies to improve their position within the international trade network, looks at one common tool for doing so (free trade agreements), and discusses the role that firm-level actions play in the generation of the macro-level patterns of trade and development. The latter uses a complementary case study data from eighteen Australian firms regarding their process of integration with the international trade network. The findings indicate that economic growth is driven primarily by the formation of new international trade connections. However, such connections are difficult for small firms to make, which poses potential problems for countries with economies dominated by small firms.