Innovating in the Desert: a Network Perspective on Knowledge Creation in Developing Countries

There is a significant body of research on knowledge creation that built on network theory. However, few studies have focused on how networks impact the value of newly created knowledge. The current study utilizes network theory to advance our understanding on how knowledge workers from developing countries can create valuable knowledge. It examines how a network of knowledge workers from developing countries can create knowledge of high value by networking with their counterparts from developed countries. It is important to study knowledge creation in developing countries because most studies on knowledge creation have focused on developed countries, where knowledge is more likely to be created. The current paper is different than previous studies in two ways. First, unlike most research that used patent data of developed countries to examine various features of networks. For the purpose of this study, Saudi Arabia was chosen as a developing country that has some knowledge creation activities. Analysis of 582 patents in the period 1983–2014 from the USPTO indicates that the value of knowledge created by knowledge workers from developing countries increases with the addition of knowledge workers from developed countries and that network size negatively moderates the relationship. The paper offers some managerial implications along with ideas for future research.