The power of loose ties: networking for market diversification in remote Australia

Tourism in remote Outback areas of Australia has become increasingly homogenous in terms of products and markets over the last decade and is currently suffering substantial declines in visitor numbers (Carson and Taylor, 2009). As a result, calls have been mounting for more innovative approaches to market diversification and product development in remote Australia. Much of the literature on innovation suggests that one of the most effective ways to create innovations is by operating as a 'system of innovation' in which individual business, public organisations and institutions interact and influence each other (Carlssson and Stankiewicz, 1991; Edquist, 1997; Iammarino, 2005). Having strong institutional arrangements that encourage strong network and clusters is a key factor in the development of regional systems of innovation (Doloreux and Parto, 2005' Storper, 1995). Remote regions appear to be fundamentally constrained in the pursuit of networks and clusters by a lack of critical mass, the geographic dispersal and isolation of firms, and limted resources and preparedness to engage in networks and collaboration (Doloreux and Dionne, 2008; Virkkala, 2006).