Cooperation in regional innovation networks among small and medium enterprises: Case study of a veterinary pharmaceutical company in Jalisco, Mexico

Regional innovation networks (RINs) in emerging countries often struggle with the absence of sufficient social capital necessary for development. The current research analyzes factors that have led an SME from the veterinary pharmaceutical sector in Jalisco to cooperate in RINs. These groups develop cooperation as an innovative strategy to confront threats within their market, as well as competition from large transnational producers. Specialized literature shows a tight relationship between cooperation in innovation networks and success in the market, especially among firms in high technology industrial sectors. This paper discusses the processes and phases involved in generating the synergy required for a company to build a cooperation network with other companies in the industry, with firms from complementary sectors, and with public agencies. This research documents the building process of the network including the agents involved, the role played by the leader company and the surrounding innovation processes. Results show that internal factors such as learning and absorptive capabilities, and external factors such as market configuration and public policy, are determining factors for involving the company in RINs. These networks lead to the creation of new boundaries for innovation, and the ultimate success of companies involved.