The Power of Networking: New Evidence from Britain

It’s commonplace to claim that networking is essential to entrepreneurial success, but what specifically seems to matter when it comes to networking? A new study from a group of British researchers sheds some light on this question. The analysts carried out an extensive literature review with the goal of understanding how networking contributes to innovation.

They find that networking supports innovation in all organizational forms — from small start-ups to large corporations. By networking, individuals help manage risk, obtain access to new markets, and gain knowledge about new technologies. How one networks also seems to matter. Firms with access to diverse networks tend to be more innovative than those with access to more limited networks (e.g. networking only with customers).

The researchers conclude by noting that while it is clear that networking contributes to innovation, it is not yet clear where and how public activities can support such networking. More research is needed to better understand the linkages between public policies and effective networking organizations and activities.

Networking and Innovation: A Systematic Review of the Evidence, Lancaster University Management School Working Paper 2004/016, by Luke Pittaway, Maxine Robertson, Kamal Munir, and David Denyer, is available at http://www.lums.lancs.ac.uk/publications/viewpdf/000261/