ABSTRACT
The industrial networks approach has been applied to a wide variety of the phenomena of industrial life. However particular emphasis has been laid on the twin processes of internationalisation and technological development. In the former case an industrial network approach offers an alternative to the traditional economic and more recent transaction cost approaches. It argues that internationalisation follows the existing patterns of relationships. The importance of networks in invention and innovation has been demonstrated. It is argued that these processes occur between firms and not solely within them. For an innovation to succeed the network must be capable of being mobilised. The resources must be available in the network and under the control of, or accessible to, the actors with an interest in the success of the innovation. The development of institutional economics which gives transaction costs a major role in determining vertical market mechanisms comes closest to addressing the same issues as the industrial network approach.
