the network society networks & circulation of knowledge 06-10-2009 mila davids

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The network society The network society Networks & circulation of Networks & circulation of knowledge knowledge 06-10-2009 06-10-2009 Mila Davids Mila Davids

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Page 1: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

The network societyThe network society

Networks & circulation of knowledgeNetworks & circulation of knowledge06-10-200906-10-2009Mila DavidsMila Davids

Page 2: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

Networks & circulation of Networks & circulation of knowledgeknowledge

Arjan van Rooij Arjan van Rooij

Rudi Bekkers Rudi Bekkers

Page 3: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

Why networks & circulation of Why networks & circulation of knowledge?knowledge?

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

Overview lectures focusing ‘circulation of Overview lectures focusing ‘circulation of knowledge’ knowledge’

Case study Case study

Page 4: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

Earlier lectures:Earlier lectures:

Why networks & innovation?Why networks & innovation?

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

However, innovation, is However, innovation, is inherently socialinherently social in nature in nature – e.g. firms have relations with other firms and consequently e.g. firms have relations with other firms and consequently

access to additional external resourcesaccess to additional external resources

Hence, networks of social relations between actors Hence, networks of social relations between actors – (individuals and organizations) may be important factors in (individuals and organizations) may be important factors in

explaining innovation explaining innovation – and innovation may change networks of social relations as welland innovation may change networks of social relations as well

Page 5: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

Innovativeness & learningInnovativeness & learning

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

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

Page 6: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

Inovativeness & learning Inovativeness & learning

The knowledge base view of the firmThe knowledge base view of the firm– Conner & Prahalad, Grant, Kogut & ZanderConner & Prahalad, Grant, Kogut & Zander

Dynamic capability perspectiveDynamic capability perspective– Teece, Pisano, ShuenTeece, Pisano, Shuen

Organizational learning & routinesOrganizational learning & routines– Nelson & Winter Nelson & Winter – NonakaNonaka

Page 7: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

Networks & circulation of Networks & circulation of knowledge knowledge

Knowledge (& transfer)Knowledge (& transfer)– Explicit knowledge / information Explicit knowledge / information <-><-> Tacit knowledge / know-howTacit knowledge / know-how– General knowledgeGeneral knowledge <-><-> specific knowledgespecific knowledge

– Innovation & capability development: Various kind of knowledgeInnovation & capability development: Various kind of knowledge

Knowledge transferKnowledge transfer– Documents, publications, patents, licencesDocuments, publications, patents, licences– Personal contactsPersonal contacts....

Knowledge sourcesKnowledge sources– UniversitiesUniversities -> lecture 13/10 & 17/11 -> lecture 13/10 & 17/11 – ConsumersConsumers– Suppliers Suppliers – competitorscompetitors....

Page 8: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

Networks & circulation of Networks & circulation of knowledge knowledge

Knowledge flows viaKnowledge flows via-informal / personal relations-informal / personal relations-education-education-licensing-licensing-alliances-alliances-co-operation / co-design-co-operation / co-design....

NetworksNetworks– Specific relations: alliance networksSpecific relations: alliance networks– Sources: consumer network; supplier networkSources: consumer network; supplier network -> lecture 1/12-> lecture 1/12....

Focus on specific innovation - firm:Focus on specific innovation - firm:Various knowledge sharing networks; knowledge; knowledge flows, sources, carriersVarious knowledge sharing networks; knowledge; knowledge flows, sources, carriers

-> lecture 6/10, -> lecture 6/10, 1/12 1/12 & & 8/128/12

Page 9: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

University – industry University – industry relationsrelations

International International knowledge flowsknowledge flows

Knowledge networks Knowledge networks and societal transitionand societal transition

Universities Arjan van Universities Arjan van Rooij (13-10)Rooij (13-10)

Ac Ind researchers Ac Ind researchers Rudi Bekkers (17-11)Rudi Bekkers (17-11)

Globalisation & Globalisation & Learning in networksLearning in networks

Contribution to Contribution to societal changesocietal change

Page 10: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

CEO

Staff

Divisions

Master

Pupil

Guild

Second Industrial Revolution

Third Industrial Revolution

Master

Pupil

Master

Pupil

‘Stand alone’ model:- Economies of scale- Optimize assets

Networked model:Economies of skill: -access to knowledge-co-development-leverage knowledge-focus on core competences-learn and innovate

Why networks and alliance management?The knowledge economy is a network

economy

Organizational models are transforming from “stand alone” to “networked”

Page 11: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

Case study: Case study: Philips & solid-state technologyPhilips & solid-state technology

1.1. constraints for networkingconstraints for networking

2.2. actual networkbuildingactual networkbuilding

internal knowledge buildinginternal knowledge building

expectationsexpectations

path-dependencypath-dependency

Page 12: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids
Page 13: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

Patrick Dixon: future trends …Patrick Dixon: future trends …

http://www.youtube.com/watch?v=99p-pWhttp://www.youtube.com/watch?v=99p-pWW7ljIW7ljI

Page 14: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

Case study: Case study: Philips & solid-state technologyPhilips & solid-state technology

1.1. constraints for networkingconstraints for networking

2.2. actual networkbuildingactual networkbuilding

internal knowledge buildinginternal knowledge building

expectationsexpectations

path-dependencypath-dependency

Page 15: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

low

high

External knowledge

low highInternal knowledge

Importance in innovation process

1940s/1950s Germanium/transistor

mid 1950s- High frequency transistor

1950s/1960s Silicon/IC

Page 16: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

……????…????…

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

Page 17: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

Argument:Argument:

Expectations largely influenced Expectations largely influenced the searching for and acquiring the searching for and acquiring

of knowledgeof knowledge

They influenced Philips’ attitude They influenced Philips’ attitude

& company approached& company approached

Page 18: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

Necessary ….Necessary ….

Knowledge base

Receptivity

External knowledge acquisition

Expectations

Page 19: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

ExpectationsExpectations

1.1. future technological possibilities, with regard to future technological possibilities, with regard to the artefact, material or process the artefact, material or process

2.2. market expectations and market expectations and

3.3. ideas about broad technological trends. ideas about broad technological trends.

4. character of the licence agreement4. character of the licence agreement

(Van Lente)(Van Lente)

related to:

Page 20: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

External knowledge acquisitionExternal knowledge acquisition

Knowledge base

Receptivity

External knowledgeacquisition

ExpectationsCoherence

Self-confidence

Page 21: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

OverviewOverview

three periods:three periods:1. End 1940s – begin 1950s1. End 1940s – begin 1950s

Germanium transistorGermanium transistor

2. Mid 1950s2. Mid 1950sHigh frequency transistorHigh frequency transistor

3. End 1950s – begin 1960s3. End 1950s – begin 1960sSilicon / ICSilicon / IC

aspects:aspects:-external knowledge and internal knowledge -external knowledge and internal knowledge -expectations -expectations * receptivity & knowledge base* receptivity & knowledge base* self-confidence & coherence* self-confidence & coherence

Page 22: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids
Page 23: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

End 1940s – begin 1950sEnd 1940s – begin 1950sGermanium transistor Germanium transistor

1930s semiconductors1930s semiconductors Selenium & copper oxide (selenium rectifiers)Selenium & copper oxide (selenium rectifiers)

Natlab researchNatlab researchafter WOII: American companiesafter WOII: American companies

Selenium, germanium & siliconSelenium, germanium & silicon Philis -> germanium (germanium rectifiers)Philis -> germanium (germanium rectifiers)

experienceexperience1948: Bell1948: Bell

Transistor effect (point contact transistor)Transistor effect (point contact transistor)publicationspublications

1952: Bell 1952: Bell layer transistor: double doping techniquelayer transistor: double doping technique

Bell symposium & licence agreementBell symposium & licence agreement Natlab versus production department: RCA (alloy junction)Natlab versus production department: RCA (alloy junction)

publicationspublications

Page 24: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

External knowledge

low

high

low highInternal knowledge

Importance in innovation process

1940s/1950s Germanium/transistor

weak

strong

Receptivity

weak strongKnowledge base

Importance in ‘knowledge acquisition’

1940s/1950s Germanium/transistor

low

high

Self-confidence

low highcoherence

Importance of expectations determined by:

1940s/1950s Germanium/transistor

Page 25: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

Mid 1950sMid 1950s High frequency transistorHigh frequency transistor

Mid 1950s: high frequency transistorsMid 1950s: high frequency transistorsPhilips: in-house development (POB transistors)Philips: in-house development (POB transistors)

own developmentown development Instead of Philco’s knowledge (surface base Instead of Philco’s knowledge (surface base

transistor / jet etching process)transistor / jet etching process)

Reasons:Reasons:- Technical Technical - Expected profitabilityExpected profitability- Future semiconductor companies : tube manufacturing Future semiconductor companies : tube manufacturing

capabilitiescapabilities

Page 26: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

External knowledge

low

high

low highInternal knowledge

Importance in innovation process

1940s/1950s Germanium/transistor

weak

strong

Receptivity

weak strongKnowledge base

Importance in knowlege acquisition

1940s/1950s Germanium/transistor

low

high

Self-confidence

low highcoherence

Importance of expectations determined by:

mid 1950s- High frequency transistor

mid 1950s- High frequency transistor

mid 1950s- High frequency transistor

1940s/1950s Germanium/transistor

Page 27: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

End 1950s – begin 1960sEnd 1950s – begin 1960sSilicon / IC Silicon / IC

Philips: own capabilitiesPhilips: own capabilities End 1950s: Am. companies: siliconEnd 1950s: Am. companies: silicon Philips: germanium (silicon diodes)Philips: germanium (silicon diodes)

Passive attitude towards silicon transistorsPassive attitude towards silicon transistors POB transistor / market expectationsPOB transistor / market expectations Agreement with Texas InstrumentsAgreement with Texas Instruments

End 1950s: Am. Companies: ICsEnd 1950s: Am. Companies: ICs Focus on germanium / poor market prospectsFocus on germanium / poor market prospects IBM preference (thin film versus planar process)IBM preference (thin film versus planar process) Underestimation of TIUnderestimation of TI

Acquisition of Wembly lab (General Electric Company): not Acquisition of Wembly lab (General Electric Company): not sufficientsufficient

WestinghouseWestinghouse

Page 28: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

External knowledge

low

high

low highInternal knowledge

Importance in innovation process

1940s/1950s Germanium/transistor

weak

strong

Receptivity

weak strongKnowledge base

Importance in knowledge acquisition

1940s/1950s Germanium/transistor

low

high

Self-confidence

low highcoherence

Importance of expectations determined by:

1950s/1960s Silicon/IC

1950s/1960s Silicon/IC

1950s/1960s Silicon/IC

mid 1950s- High frequency transistor

mid 1950s- High frequency transistor

mid 1950s- High frequency transistor

1940s/1950s Germanium/transistor

Page 29: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

Concluding remarksConcluding remarksInteraction Interaction internal knowledge building and external internal knowledge building and external knowledge acquisitionknowledge acquisitionIn-house knowledge building importantIn-house knowledge building importantSuccess -> self-confidence + coherence => external Success -> self-confidence + coherence => external orientation orientation Importance market expectations (IBM) => germanium Importance market expectations (IBM) => germanium Expected market dominance former tube companies => TIExpected market dominance former tube companies => TIExpectations TI licence agreement => alertness & active Expectations TI licence agreement => alertness & active search search Path dependence : techniques & networkingPath dependence : techniques & networkingInstitutional context Institutional context

Page 30: The network society Networks & circulation of knowledge 06-10-2009 Mila Davids

Thank you for your attention Thank you for your attention