Abstract

In today's fast-paced economy the innovative capability of a company cannot be studied without considering the external organizational relationships that firms maintain. Within inter-organizational networks, firms can learn from one another and benefit from new knowledge developed by other organizations. The ability to access this knowledge is an effective source of competitive advantage. The present study focused on the relationships between organizations in the biotechnology sector. Using network analysis, the study examined the impact of network position on innovation, speed of innovation, access to complementary knowledge, number of R&D projects, and strategic direction. By examining the pattern of network interactions between firms, this research shows that being located in a central position leads to innovation and access to knowledge advantages. Furthermore, it demonstrates that firms that are regularly equivalent and similar in network roles tend to adopt a similar strategic direction.