Technology management in the network age: a report from the field based on a cross-regional comparison of technology-intensive entrepreneurial firms

Abstract

Essential to the creation and development of innovative, high technology, knowledge-driven organizations is a tight symbiosis between regional culture and infrastructure. Although this symbiosis is often recognized anecdotally, there is virtually no systematic research testing whether regional cultures are a driving factor in the creation of successful technology ventures. In this paper, the authors compare four geographic regions using a diagnostic research tool specifically developed for profiling knowledge management practices in high-technology firms. As an outcome of their previous research, the authors have been able to identify those key practices that distinguish firms that we characterize as "leading-edge". In an analysis of high-technology centers around the globe, Wired magazine rated 46 regions from 1 (low) to 4 (high) on each of four factors: (1) the ability of area universities and research facilities to develop new technologies and to provide skilled knowledge professionals, (2) the presence of established companies and multinationals to provide expertise and economic stability, (3) the population's entrepreneurial drive to start new ventures and (4) the availability of venture capital to ensure that ideas make it to market. Of the four regions included in this study, two - Silicon Valley and Israel - were rated highest on the four factors. Two regions - Singapore and the Netherlands are rated lower. Therefore, if regional infrastructure and culture are key drivers for high technology innovation, we hypothesized that the highest performing organizations, as based on the results of the survey of knowledge management practices, will be found in the Silicon Valley and in Israel, with lower performing organizations found in the Netherlands and Singapore. No significant differences were found between Silicon Valley/Israel vs. Singapore/the Netherlands. However, key practices that were found to be common to leading-edge firms in all regions included: (1) a propensity for experimentation; (2) collective sharing of knowledge, and (3) collective decision-making. Overall, this paper (a) describes the research in terms of the four regions, (b) devices key determinants of competitiveness, (c) profiles regional characteristics which enhance innovation and entrepreneurship and (d) closes with a discussion on the implications of the research outcomes for entrepreneurial firms seeking to build a global presence.