Knowledge flows in the road Industry – Queensland’s experience

This paper is based on empirical data obtained from a large scale survey of the Queensland road industry in 2002. The survey focused on innovation activity in the industry and this paper examines a key part of that study – knowledge flows. This focus responds to the rapidly increasing knowledge intensity of successful and sustainable economic activity in the 21st century. Knowledge ‘flows’ and networking, both within organisations and between them, are seen as key elements in successful innovation processes. In turn, innovation is widely regarded as a key driver of economic growth and environmental sustainability. The paper reports on knowledge flows between industry participants as revealed in the survey of over 200 contractors, consultants, clients and suppliers. Two types of knowledge flows are discussed – the first involves communication patterns, and the second involves the sources of new ideas about technologies and advanced practices. The tracing of these knowledge flows amounts to mapping business networks. The objectives of this paper are to: • measure the level of networking between organisations; • identify the key nodes in networks; • map the patterns of usage of key nodes by industry sub-sector, region and business size; and • determine whether there is a relationship between level of networking by an organisation and innovation adoption rates. The most important finding of the study is that business networking, both in terms of consultation patterns and sources of new ideas of innovation, is positively related to innovation levels, measured by adoption activity. Participation in business networks is one of the key features that differentiates innovative businesses from other businesses. The paper concludes by highlighting the value, for industry participants, of comprehensive relationships with the key nodes identified by the study.