Technological co-operation between firms can be essential to boosting successful innovative businesses by creating networks of knowledge flows. International cooperation and collaboration between individuals, businesses and sectors has been central to the sector’s runaway growth in the tech industry.
In London, a start-up can find success by working with skilled European workers backed by capital from Asian investors. The same can be said for any major tech cluster around the world.
There is evidence to highlight the importance of technology collaboration for innovative businesses. For instance, Winters and Stam (2007), in an analysis of high-tech enterprises, show that innovation networks positively affect both product and process innovation. Regarding global collaboration, participation in global value chains contributes positively to the efficiency and innovative potential of firms (OECD, 2008b).
This is particularly true in knowledge-intensive sectors, where cutting-edge suppliers are unlikely to be locally available and strategic alliances are crucial to launching new products and exploring new markets.
Hubs in the United States, South East Asia and Europe have generated ecosystems that store intellectual property (IP) and knowledge by exchanging information, experience and capital with one another.
Over the course of London Tech Week, it’s been great to see events that celebrate this spirit of international cooperation with many from overseas attending the nearly 300 events.
In the same way that investment flows across borders, tech companies must be able to access the international workforce and ensure that they continue to grow.
Technological collaboration can help innovative businesses get access to complementary assets, including labour and finance. Technological collaboration critically depends on effective IP systems and developed markets for technology. The extent to which firms collaborate differs across countries but also across types of firms.