Using not-for-profit innovation networks to transition new technologies across the Valley of Death

Purpose: This paper seeks answers to the question: What are the relevant factors that allow not-for-profit innovation networks to successfully transition new technologies from proof-of-concept to commercialization? Design/methodology/approach: This question is examined using knowledge-based view and network orchestration theory. Data are collected from 35 interviews with managers and engineers working within seven centres that comprise the High Value Manufacturing Catapult (HVMC). These centers constitute a not-for-profit innovation network where suppliers, customers and competitors collaborate to help transition new technologies across the "Valley of Death" (the gap between establishing a proof of concept and commercialization). Findings: Network orchestration theory suggests that a hub firm facilitates the exchange of knowledge amongst network members (knowledge mobility), to enable these members to profit from innovation (innovation appropriability). The hub firm ensures positive network growth, and also allows for the entry and exit of network members (network stability). Our study of not-for-profit innovation networks suggests the role of a network orchestrator is to help ensure that intellectual property becomes a public resource that enhances the productivity of the domestic economy. We observed how network stability was achieved by the HVMC's seven centers employing a loosely-coupled hybrid network configuration. This configuration however ensured that new technology development teams, comprised of suppliers, customers and competitors, remained tightly-coupled to enable co-development of innovative technologies. Matching internal technical and sectoral expertise with complementary experience from network members allowed knowledge to flow across organizational boundaries and throughout the network. Matrix organizational structures and distributed decision-making authority created opportunities for knowledge integration to occur. Actively moving individuals and teams between centres also helped to diffuse knowledge to network members, while regular meetings between senior management ensured network coordination and remove resource redundancies. Originality/value: The study contributes to knowledge-based theory by moving beyond existing understanding of knowledge integration in firms, and identified how knowledge is exchanged and aggregated within not-for-profit innovation networks. The findings contribute to network orchestration theory by challenging the notion that network orchestrators should enact and enforce appropriability regimes (patents, licenses, copyrights) to allow members to profit from innovations. Instead, we find that not-for-profit innovation networks can overcome the frictions that appropriability regimes often create when exchanging knowledge during new technology development. This is achieved by pre-defining the terms of network membership/partnership and setting out clear pathways for innovation scaling, which embodies newly generated intellectual property as a public resource. The findings inform a framework that is useful for policy makers, academics and managers interesting in using not-for-profit networks to transition new technologies across the Valley of Death.