Innovation networks and capability building in the Australian high‐technology SMEs

Purpose – Studies of capability building and organisational learning through networked arrangements have been growing in recent years. In high‐technology industries, in particular, small and medium‐sized enterprises overcome problems of resource and information limitations by becoming a part of a knowledge network. This paper seeks to examine innovation networks of the Australian high‐technology small and medium enterprises (SMEs) by focusing on the linkages employed by small businesses to learn, adapt to technological change, and innovate. Design/methodology/approach – To study the innovation networks of high‐technology firms, research was conducted on biotechnology firms within the Sydney region and information and communication technology (ICT) firms within the metropolitan area of Melbourne. A mixed methodology approach for this research was adopted and a combination of quantitative and qualitative data was collected, via the means of a questionnaire and face‐to‐face interviews. Findings – The paper reports a range of findings on the nature and type of networked relationships and offers analysis of the extent of innovation linkages within the biotech clusters in Sydney and ICT cluster within Melbourne. Research limitations/implications – Limitation of the sample size indicates limited generalisability of final results and findings should be treated with caution. Practical implications – This research highlights critical factors of innovation success in the context of network linkages. This network analysis may enable more effective decision making on improving innovation processes on competitive capabilities by regional policy makers and firm managers. Originality/value – The paper reports the analysis and extent of innovation linkages within the biotech cluster in Sydney and ICT cluster the in Melbourne metropolitan area.