ABSTRACT
The growth of informal networks has been identified as one of the distinctive features of the evolution of high-tech economies (Benner, 2003). Less attention has been paid to the extent of the role of formal networks in regional economic development in establishing informal interactions. This chapter contributes to understanding where and how business networking happens and the value of business networking to participant companies and business professionals. It also indicates the importance of government funding for pump-priming network in contributing to the churn of networks. To do so, the chapter uses evidence from a case study of business networks in Oxfordshire in the UK.
It argues that extent, membership and utilization reflect stages in development of economic activity in particular locations. Moreover, as some aspects of network usage can be quantified through surveys of members, the relative importance of formal networking compared to the firms' other forms of making contact with potential suppliers, customers and collaborator firms, and the limitations of networks, can be gauged. In addition, the speculation that led to this study, that there are too many networks in Oxfordshire, is at least in part borne out by the data.
