This document discusses networks and knowledge sharing as they relate to development. It introduces the Networks for Prosperity Initiative, which aims to study how networks can facilitate knowledge management, learning, and governance. The document outlines several types and functions of networks, and discusses examples of networks in various countries and organizations that have supported knowledge exchange and development goals. It also presents initial work on developing a Connectedness Index to measure and analyze differences in how networked countries are globally.

1. Axel Marx – Research Manager – Senior Researcher
axel.marx@ggs.kuleuven.be

2. Networks for Prosperity Initiative
Development is increasingly about learning -> Knowledge management
-> Networks are crucial for learning/knowledge management
• Networks differ significantly in design and their capability to manage
and create knowledge and facilitate learning.
•Different types of networks exist, and some are more instrumental in
the context of learning, information exchange and knowledge creation.
Origin – Importance of Knowledge in Development

3. Networks for Prosperity Initiative
Observe the emergence of a profound new form of governance =>
network governance
=> Non-hierarchical coordination of policy actionbetween actors
=> Distinct from governing by hierarchies (states) and markets (Börzel,
Williamson; Powell; Torfing; Scharpf; Slaughter; Woods).
Renate Mayntz (1993): “the notion of ‘policy networks’ does not so much
represent a new analytical perspective but rather signals a real change
in the structure of the polity.”
Origin – The Emergence of Network Governance

4. Networks for Prosperity Initiative
Network governance – some characteristics (Lobel)
(1) increased participation of non-state (private) actors in public policy making
and provision due to their knowledge and expert capabilities and efficiency.
(2) adaptability and constant learning. Given the nature of a highly dynamic
policy environment with increasingly new complex policy challenges governance
requires adaptability and constant learning, recognizing the constant requirement
to adapt to change. Systems/networks to facilitate this form of learning are
increasingly developed
Origin – Network Governance

5. Networks for Prosperity Initiative
Martinez-Diaz and Woods (2009)
1.agenda-setting
2.consensus building
3.policy coordination
4.knowledge production and exchange
5.norm-setting and diffusion
Slaughter (2004)
•Information networks => exchange of information and knowledge.
•Enforcement networks => enhancing cooperation among national
regulators to enforce existing rules
• Harmonization networks (trade agreements) =>harmonizing regulatory
standards such as product-safety standards with the aim of abolishing
technical barriers to trade.
Origin – Functions of Networks

6. Networks for
Prosperity:
Achieving Development
Goals Through
Knowledge Sharing
Networks for Prosperity Initiative

7. Networks for Prosperity Initiative

8. Networks for Prosperity Initiative
Knowledge without Frontiers: international
networks
1 Cases from Cuba and Viet Nam.
2 Regional networks like ERIA, Red Mercosur and
NEPAD
3 UNIDO supported networks like AfrIPAnet & CAMI
From Dialogue to Collaboration: inter-
organizational networks
Cases of public-private sector networking from Bolivia,
Costa Rica, Dominican Republic, Ethiopia,
Panama, Peru, Serbia.
The Knowledge Organization: intra-organizational
networks
1 Cases from Egypt, El Salvador and Turkey.
2 UN Teamworks social network
Positive experiences
•Costa Rica’s medical devices
cluster is achieving better than
average knowledge spillovers
•Panama’s Ciudad de Saber is
pioneering a knowledge
economy
•Improved public-private
dialogue in Ethiopia and Serbia
•Innovation in Bolivia’s sugar
supply chain
•Technology transfer in shoes,
pisco and gastronomy in Peru
•Securing public procurement
success for SMEs in Republica
Dominicana;

9. Networks for Prosperity: Connecting Development Knowledge Beyond 2015
Networks for
Prosperity
Connecting Development
Knowledge Beyond 2015
www.Networks4Prosperity.org

10. Networks for Prosperity: Connecting Development Knowledge Beyond 2015
Case Studies
Jorge Rodríguez Vives on competitiveness councils in Costa Rica
Johan Adriaensen on the importance of inter-organisational networks in trade
policy
Ariane Corradi on the importance of network managers in incubators (business
development centres)
Thomas Vogel and Petra Koppensteiner provide a perspective from civil
society on a project (HORIZONT3000) which aims to construct a network for
sharing best practices among partner organizations in the developing world.

11. Networks for Prosperity: Connecting Development Knowledge Beyond 2015
Essays
Jacint Jordana on the proliferation of regulatory agencies and the role they play
in new forms of governance including network governance
Ettore Bolisani and Enrico Scarso on knowledge networks in business stressing
the diversity of knowledge networks in business and their varying
effectiveness.
Ana Miric on barriers to building learning networks stressing the importance of
strategy, culture and leadership for making knowledge networks performant
Tim Meyer analyzing the transformation in international organization from
hierarchies to networks with a specific emphasis on managing knowledge and
science

12. Networks for Prosperity: Connecting Development Knowledge Beyond 2015
Essays
Orly Lobel reflecting on how to manage knowledge in organizations focusing
on different aspects related to legal governance of human resources and
intellectual capital
Michele Clara, from UNIDO, reflecting on the importance of knowledge
networks in industrial policymaking and related learning processes

14. Networks for Prosperity Initiative
Connectedness Index
Aim: Capture the degree to which countries are networked and
analyze variation between countries (include many countries)
How: Creating a connectedness index which consists of three sub-
indices on the basis of existing databases (best available data)
Approach: Inductive – screening of 70+ ‘global’ databases
containing more than 7000 variables.
Status: Data availability, methodological issues => improve it

15. Networks for Prosperity: Connecting Development Knowledge Beyond 2015
Measuring Connectedness: levels and components
Each component is transformed to
the same scale, ranging 0-1.
Each sub-index is created by
averaging its components.
Connectedness Index is the
average of its three sub-indices.
=> Do not weigh components

16. Networks for Prosperity: Connecting Development Knowledge Beyond 2015
Connectedness Index 2012

17. Networks for Prosperity: Connecting Development Knowledge Beyond 2015
Variation in the connectedness sub-indices

18. Networks for Prosperity: Connecting Development Knowledge Beyond 2015
Connectedness Index 2012 – Main Results
Switzerland, Sweden and Denmark are the three most connected countries
(equal to the previous index).
Differences in the countries rankings are moderate compared to 2011
Overall, countries are slightly more connected.
Differences in scores are sometimes very small => small changes can lead to
ranking changes => better work in the future with clusters of countries

19. Networks for Prosperity: Connecting Development Knowledge Beyond 2015
Connectedness and development measures

20. Networks for Prosperity: Connecting Development Knowledge Beyond 2015
Connectedness and development measures

21. Networks for Prosperity: Connecting Development Knowledge Beyond 2015
Connectedness and development measures
The graphs show a strong positive linear relationship between connectedness
and government effectiveness, GDP per capita and industrial performance.
However, these linear relationship (or high correlations) cannot be interpreted
as cause and effect.
⇒Future work
⇒Many methodological issues, many questions
⇒Understand better variation between countries

22. Networks for Prosperity: Connecting Development Knowledge Beyond 2015
Conclusions
Establish the foundations for a research program on the importance of network
governance, especially MICs
Future work to concentrate on types of networks, management of networks and
effectiveness of network governance.
The UNIDO Connectedness Index is distinct from others, as it accounts for the
degree to which a country is networked externally and internally = further
development and consolidation