Network Building between Research Institutions and Small and Medium Enterprises : Dynamics of Innovation Network Building and Implications for a Policy Option

Explores the feasibility of research networkbuilding between government-funded research institutions and small and mediumsized enterprises (SMEs) in Korea.A review of applicable literatureprovides a number of variables that influence the formation of researchnetworks including trust, frequency, long-term nature of the relationship, andsatisfaction with the existing relationship. Data were collected from researchers in 105 SMEs and 102 researchers inthree major governmental labs in Korea.Using the variables identified inthe literature, the research sought to identify a formal networking policy foruse by these groups.Results from researchers in government labs indicatethat younger researchers are more likely to favor building research networks,and overall, governmental researchers tend to favor building relationships withSMEs as opposed to larger firms. Several policy implications are drawn from this research: (1) trust andfrequency of interaction in informal networks play a large and important rolein enhancing research performance, and (2) maintenance of informal networks iscritical in promoting formation of formal networks.Although the focus ofthis research was on network building in Korea, the policy conclusions drawncan be generalized for use in other countries. (SRD)