Proceedings of the 8th International Conference on Intellectual ...

Robertas Jucevicius
and innovation functions. The first dimension includes technologies and methods for innovation make
up a part <strong>of</strong> <strong>the</strong> main innovation process supported by rules and conventions built on institutions that
manage knowledge and technology flows. The second one is not just a simple projection <strong>of</strong> real
functions into virtual space but a radical reconstruction <strong>of</strong> those functions. The third component <strong>of</strong> <strong>the</strong>
intelligent or knowledgeable cluster is <strong>the</strong> processes <strong>of</strong> connecting <strong>the</strong> smart communities,
representing real innovation systems with a virtual space for innovations. It suggests <strong>the</strong> development
<strong>of</strong> <strong>the</strong> processes, methods and technologies enabling to combine <strong>the</strong> complexity <strong>of</strong> human
interactions with creativity <strong>of</strong> human thought in handling <strong>the</strong> unexpected circumstances that do not
follow <strong>the</strong> conventional logics.
Most <strong>of</strong> less developed business systems or <strong>the</strong> clusters could be characterized by <strong>the</strong> lack <strong>of</strong>
cooperation. It creates a number <strong>of</strong> practical problems while employing <strong>the</strong> intellectual capital <strong>of</strong>
single companies for <strong>the</strong> common needs <strong>of</strong> <strong>the</strong> whole business system. Most industries are
predominantly characterized by <strong>the</strong> presence <strong>of</strong> SMEs only exhibit a limited R&D intensity and
innovation capacity. The number and qualification <strong>of</strong> <strong>the</strong> employees <strong>of</strong> many <strong>of</strong> <strong>the</strong>se firms fall below
a critical mass necessary to engage in open innovation through absorptive capacity, let alone set up
an independent R&D unit. Exclusively relying on <strong>the</strong>ir limited internal absorptive capacity may cause
firms in such industries to be in a critical situation, given that those firms with higher levels <strong>of</strong>
absorptive capacity manage external knowledge flows more efficiently, stimulate innovative outcomes
and thus obtain competitive advantage. SMEs have to call upon third parties to help <strong>the</strong>m build
absorptive capacity.
One <strong>of</strong> possibilities is establishing collective research centers or concentration particular functions in
one <strong>of</strong> cluster companies. However, <strong>the</strong> concept <strong>of</strong> absorptive capacity also suggests that <strong>the</strong>se
centers have to dispose <strong>of</strong> sufficient absorptive capacity <strong>the</strong>mselves in order to fulfill <strong>the</strong>ir functions.
This way looks promising in ra<strong>the</strong>r big clusters or business systems and less perspective in smaller
one. Employing <strong>the</strong> internal and external competence networks as well as communities <strong>of</strong> practice
could be a possible way. Grant (1996) suggests that knowledge can be integrated externally through
relational networks that span organizational boundaries. Boundary-spanning networks create
opportunities for knowledge sourcing even in institutionalized environments (Wenger, et. al., 2002).
Networks serve as a tool for innovative collaborative strategy for combining working, learning and
innovation. They may be used by organizations to counteract static hierarchies and potentially provide
significant benefits to <strong>the</strong> organization and <strong>the</strong> whole business system in managing change. Networks
and communities <strong>of</strong> practice provide organizations with easier access to knowledge, quicker
responses to problems, and decreased learning. The principal logics how <strong>the</strong> internal networks and
communities <strong>of</strong> practice in <strong>the</strong> business system could be employed in intelligence knowledge sourcing
are presented in <strong>the</strong> Figure 2.
Coordination
Network 1 Knowledge
Network 2
Network 3
Network 4
Innovation infrastructure
Figure 2: Knowledge sourcing in <strong>the</strong> business system
• Technological
•Social
•Markets
•Political
• Economic
• Competition
•Business
•O<strong>the</strong>r
Analysis Knowledge products Users
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