The role of trust in innovation networks

Innovation networks, a form of open innovation, can be implemented in several configurations or typologies. One form that has gained some traction in the marketplace is the knowledge intermediary or hub firm that attempts to create two-sided market in intellectual property (Rochet & Tirole, 2004). This paper examines how trust, which has many possible institutional roles, may be critical to the successful operation of innovation networks and hub firms in particular. A case study from the automotive industry is used to examine the role of trust in innovation networks.