MIXED NETWORKS IN BUILDING INNOVATIVE CAPABILITY IN DEVELOPING ECONOMIES: THE TURKISH CASE

This study investigates the networking behavior of innovative firms in two regions in Turkey: Ankara and Istanbul. Specifically, it compares the geographical extent and characteristics of innovation networks between the two regions when firms carry out innovation, i.e. developing new or improved products or processes. Ego-centric networks of 89 firms were studied to investigate the geographical extent and the nature of innovation network ties. Based on these two regional case studies, three conclusions were made: (1) when firms in developing countries introduce technological innovation of products and/or processes, they engage in mixed networks, i.e. local and non-local (interregional and international) networks, (2) while local networks are important, non-local networks are used to access capabilities that are not present locally; these networks are not substitutes for each other but complementary, and (3) innovative firms in both types of regions (new vs. established) engage in mixed networks. However, the characteristics of these networks differ based on the regions development level. It, therefore, makes sense, analytically as well as politically, to distinguish between different types of networks, so that a much broader array of policy implications can be made for building innovative capability from this wider perspective in developing countries.