CHALLENGES AND OPPORTUNITIES IN INNOVATIVE FIRMS' NETWORK DEVELOPMENT

The purpose of this paper is to describe and discuss challenges and opportunities related to the development of innovative firms' networks. The paper utilises four case studies based on interviews with representatives of young innovative firms and their present and previous network partners. The findings show that while early network partners often play several roles simultaneously, the roles of both the innovative firm and its network partners become increasingly distinct as the innovative firm develops. Such clarification of roles highlights competition between parties. For the innovative firm, the early phases are marked by innovativeness and problems related to growth and financial issues; later phases may include challenges of dependence, competition, exclusion of actors, decreased innovativeness and less innovative freedom.