| Abstract: | Whilst inter-organisational networks are increasingly significant in making production systems more flexible and responsive, these organisational arrangements could be even more important in other phases of the production cycle, and particularly in new product development. The literature on R&D and technological innovation has come to stress the role that 'networks of innovators' play in the R&D, product development and marketing phase of technological innovation. This 'fusion-network' model stands in marked contrast to the previously dominant model of innovation which envisaged the process as a linear sequence from one technology to another, with R&D conducted as a proprietary activity within a single firm. The Australian high-technology group TCG, which operates internally as a cluster of autonomous small firms, has developed a unique 'triangular' approach to fusion networking, which has now been perfected through several successful experiences with leading firms. Case studies of the approach are described, and its significance as an industry development strategy is analysed. |
