Networks as the organization form of the knowledge economy

This chapter provides a general background to the relation hip between networks and knowiedge. It argues that networks are the organization form of the knowledge economy for two reasons. First, competition in knowledge forces companies to focus on increasingly narrow areas of knowledge in which they are able to maintain a competitive edge. This simultaneously increases the need to collaborate with other companies in other knowledge areas in order to deliver a complete product or service to customers. Knowledge access links are sufficient to achieve this. This leads to modular networks. Second, learning from other companies has become a necessity to upgrade existing competencies. This requires more intense forms of collaboration with other companies to achieve knowledge exchange. Learning may lead to either social capital or structural hole types of networks.