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We examine the relationship between network characteristics and innovation under different phases of innovation. Based on micro data of cross industry groups, small firm networks for knowledge sharing and R&D cooperation, we show that close-knit networks, represented as dense communication and a high level of commitment among members, are correlated with initiating joint product development. Furthermore, the results show that establishing contact with external sources of knowledge such as public research institutes is important to achieve technical success in innovation. Lastly, engaging in cooperative activities in sales is correlated with commercial success in innovation. Copyright Springer 2006

Based on university-level data, characteristics of industry-university linkages in Japan were examined. The results of statistical analysis present a contrasting picture regarding the characteristics of knowledge interactions according to the size of industrial partners. On the one hand, on the basis of direct connections, university-based scientists with high research potential are linked with large firms in broad areas through highly interactive spillover channels such as joint research. On the other hand, through the intermediation of liaison offices, university-based scientists with low research potential are linked with small firms, through less interactive spillover channels such as technical consultation.

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