Collaboration is a powerful business tool for companies, regardless of their size or industry. It typically refers to organisations working together to address problems and achieve goals that seem to be out of reach when working alone.

By combining the effort and expertise of different organisations, all partners in the network are better able to innovate and grow, and increase their competitiveness on many levels.

Business collaboration benefits

Key benefits of business collaboration fall under several categories:

• financial benefits - collaboration can boost your domestic or export sales, enable you to tender for larger contracts or cut costs by sharing resources
• human capital - collaboration can increase your ability to develop employees' skills and capabilities, safeguard jobs, increase employment and encourage staff motivation
• physical capital - collaboration can enable you to share facilities, resources, equipment and raw materials
• intellectual capital - collaboration can allow you to tap into the combined expertise, knowledge and capabilities 

Collaborative competitiveness

Business networks may provide member companies with access to resources that would otherwise be beyond the scope of a single business. Individual businesses can face several limitations when trying to compete in global markets. This may include scale and expertise.

Through successful business collaboration, companies can often complement each other and specialise in different areas to compete in markets usually beyond their individual reach.

Collaboration vs competition

In collaborative working, communication and information sharing between partners are essential. However, this doesn't mean you have to give up all your business 'know-how'.

Collaboration can take many forms and you can build a network in a way that allows companies to complement each other without risking their market share or intellectual property. Read about the different types of business collaboration.

Collaborative networking can take many forms. You can form strategic alliances and partnerships, or join business or development networks, or even collaborate on a regional or national level.

Business networks

These involve businesses working together for specific purposes where the collaboration has identifiable and measurable benefits to all participants in the network. Key features of a business network are:

• a core group of businesses (members may include academia and other organisations)
• a restricted membership
• agreed co-operation between members
• common business objectives likely to boost mutual competitiveness and financial gain

Development network

These are the most basic forms of networks consisting simply of businesses associating with other businesses. Their activity is often confined to:

• networking
• the exchange of information
• shared services

These networks are usually informal and unstructured. They are also less likely to have a purpose linked directly to financial gain or competitive advantage for the members.

Regional business network

These are geographically defined groups of companies, educational institutions, local councils and economic development agencies connected by linkages across sectors. They can make up business clusters that share a common regional location, where 'region' is defined as:

• a geographical area
• a labour market
• an economic unit

Regional networks often bring benefits to businesses but this is not always their sole purpose. They are often motivated by broader goals of regional and national economic development. Find Northern Ireland business networks.

Different manifestations of collaboration networks

Some common forms of collaboration networks include:

• Virtual organisation - this type of partnership uses technology to collaborate and relies heavily on telecommunications.
• Virtual enterprise - this is a temporary grouping of businesses that come together to solve a problem or respond to a particular business opportunity, co-operating via computer networks.
• Extended enterprise - this is collaborative working between participants in a supply chain concerned with providing goods and services to the market. Companies can work independently (eg through the open market exchange) or cooperatively (eg through agreements and contracts).
• Virtual organisation breeding environment (VBE) - this is a cluster of organisations that make themselves available for opportunities. They agree to the main working and sharing principles to enable them to create dynamic virtual organisations that can respond to rapid changes in market needs.
• Business ecosystem - this is a network of businesses (eg suppliers, distributors, customers or even regulatory bodies) involved in delivering a product or service through both competition and collaboration.

With technology and many industries changing rapidly, ways of collaborative networking continue to evolve. The key thing to remember is that all businesses behave differently and that successful business collaboration doesn't rely on a single definitive model.

The ultimate aim of collaborative networking, in whatever shape it takes, is to gain access to skilled labour, additional resources and opportunities for sharing ideas and growing profit. See more on the benefits of business collaboration.

A successful business collaboration doesn't rely on a single definitive model or way of working. All businesses are different. Depending on your operational, cultural and financial approach, certain types of business collaboration may suit you better than others.

Nevertheless, some common elements make collaborative networking success more likely. For example:

• transparency and trust - between different members working as one team
• mutuality and solidarity - working together for the benefit of each other
• information exchange - communicating openly about problems and ways of working

Businesses that collaborate may also find it helpful to have a similar culture, operational synergies and a desire to make collaboration work. Support from top management and key people within a business will also contribute to successful collaboration.

Stages of business collaboration

Collaborative networks are often achieved in stages involving:

• exploration - looking at the potential benefits and ways of collaborating
• assimilation - transforming the ideas into a working collaboration
• exploitation - pooling resources and knowledge to create new processes or products

Challenges can emerge at each stage of this life cycle.

Planning for collaboration

A foundation of any collaboration is establishing:

• a clear purpose
• an agreed business opportunity
• clear rules of engagement between members

This will allow you to set clear expectations regarding the inputs and outputs of members. It will also enable you to align the interests of the initial membership. Once you define the focus of the network, you can assess and design the criteria for additional members to bring the greatest benefit.

Establishing a business collaboration

After agreeing the collective business goals, you should implement a formal partnership arrangement. This will establish clear roles and responsibilities in the new network. You should also draw up:

• a formal project plan
• a risk register
• governance procedures to manage the different business interests within the group

Many successful collaborations appoint one company to act as a project lead. A major company with a high profile as the flag bearer for the network can bring greater visibility to attract new members, funding and customers.

See how to set up a business collaboration.

Delivering a collaborative network

Successful collaboration relies on trust as much as the viability of the project itself. Ensuring that members work honestly and openly is a priority. The simplest way to achieve this is through effective communication between members. For example, you may want to:

• schedule meetings at regular intervals
• identify clear roles for individuals in project change or snags

Each member of the network should follow agreed procedures and protocols. You should communicate these clearly to all members.

A fair gain sharing mechanism should be in place to ensure the long-term success of the collaboration. Correct legal documents for business collaboration can help support this aim and formalise the rules of engagement.

The way you set up a business collaboration can determine how successful the network might be. Progress will depend on a range of issues, including how clear and realistic the group is about their objectives, and how committed members are to working together.

Any collaboration must take into account key strategic elements to ensure that partners can work together in the long term. That may include resources, commitment, intra-organisational support, the business case, and technology.

Establishing collaborative networks

Collaborations naturally evolve over time. The table below identifies the various stages of business collaboration. It also outlines what information you might share and what activities you might undertake in each, as you build your network.

You should support and formalise your collaboration with the correct legal documents, which will set out agreed rules of engagement. 

Legal agreements can help avoid uncertainties between different members in a business collaboration. They can clarify things like:

• the nature, scope and duration of the relationships
• the allocation of responsibilities
• the decision-making structure
• the accountability processes
• the ownership and control of the outputs
• the division of revenues derived from the collaboration

A number of useful legal documents can help you protect your own individual business, as well as the collaborative interest of the network.

Letter of intent

A letter of intent provides an overview of the goals and objectives of the proposed network. It proposes what collaboration should include, how long it would last, the activities members will encourage, and the expected benefits. It also establishes the points of contact for the collaboration.

Memorandum of understanding

A memorandum of understanding is a document describing a bilateral or multilateral agreement between members of the collaboration. It outlines each party's intent to agree or do business with one another.

Consortium agreement

A consortium agreement is a document to help businesses share information, network and collaborate. The details in the agreement can help ensure any intellectual property that arises from the collaboration is managed effectively. The agreement will establish boundaries for key issues.

See GOV.UK's guidance on model consortium agreements for collaborative research.

Collaborative network ground rules

You should consider documenting some ground rules from the start of the collaboration. This gives you a non-legally binding way for members (current and future) to agree to the minimum set of acceptable behaviours and processes.

Handling new network member enquiries

You can consider creating a workflow tool for existing members to evaluate requests from potential new network members.

Role of the network facilitator

This document outlines the essential and desired skills required by the facilitator and an indication of the key tasks expected of them.

A range of support is available for Northern Ireland businesses that are looking to collaborate with other companies, academia or research partners.

The support can be advisory or financial and it can help strengthen your business, raise its profile and open up new business opportunities within and outside Northern Ireland.

Collaborative Growth Programme

Invest Northern Ireland (Invest NI) runs a Collaborative Growth Programme offering support to SME-led networks that want to work together on innovative projects. Networks wishing to enquire about the programme should consist of a minimum of four Northern Ireland SMEs. At least one of the participating businesses must be an Invest NI customer and be prepared to make the application on behalf of the group.

Innovation Vouchers

Innovation Vouchers enable small businesses to work with expert knowledge providers (such as universities and colleges) to develop innovative solutions to business issues. The voucher is worth up to £5,000. Invest NI typically hold four Innovation Vouchers calls per year.

Innovate UK

Innovate UK delivers numerous programmes, including funding competitions, to enable individual businesses and groups to pursue research and innovation opportunities. Some Innovate UK competitions are only open to collaborative projects led by UK-based companies. Search Innovate UK competitions.

Innovate UK Business Growth

Innovate UK Business Growth, formerly known as Innovate UK EDGE, supports and advises businesses across the UK. Through participation in this programme, businesses can find collaboration partners, access R&D funding, and improve their presence in new markets. Innovate UK Business Growth regional team in Northern Ireland operates out of Invest NI, offering bespoke support to ambitious and innovative businesses wanting to grow and scale. Find out about Innovate UK support in Northern Ireland.

Innovate UK Business Connect

Innovate UK Business Connect, previously Innovate UK Knowledge Transfer Network, can help you connect with experts outside your usual networks and industry, and link with academics, government and funding opportunities. The programme supports a diverse range of UK industries, including agrifood, creative industries, manufacturing, transport and more. Read about the work of Innovate UK Business Connect.

Knowledge Transfer Partnerships

A Knowledge Transfer Partnership (KTP) is a three-way partnership between a business, an academic institution and a qualified graduate delivering a project lasting about two years. Innovate UK and Invest NI fund the scheme in Northern Ireland. They partner businesses and graduates, matching project requirements with management or technical skills and academic disciplines. Find out more about the KTP scheme.

Horizon Europe

Horizon Europe is the main source of European funding for collaborative research and innovation. Invest NI can help Northern Ireland businesses find Horizon collaboration partners and opportunities, and understand if they meet the criteria for application. Find out more about Horizon Europe support in Northern Ireland.

The Northern Ireland Contact Point network is another resource available to all potential applicants from NI who are interested in engaging with Horizon Europe. More information and contact details are available via the Horizon Europe NI website. 

Catapult centres

Catapults are not-for-profit, independent technology and innovation centres that connect businesses with the UK's research and academic communities. Each specialises in a different area of technology, and offers facilities and expertise to enable businesses and researchers to solve key problems together and develop new products and services on a commercial scale. Find out more about Catapults.

Competence centres

Competence centres bring together universities, research institutes and innovative businesses to carry out strategic collaborative research in areas with a direct industrial focus. Any NI-based business that wants to collaborate in applied research at a reduced cost can get involved. Centres that currently operate in NI include connected health, sustainable energy and agri-food.

Innovation Boost programme

Previously known as Fusion, InterTradeIreland's Innovation Boost programme helps to fund a high calibre science, engineering or technology graduate and partner you with a third-level institution with specific expertise. The graduate is employed by you and is based in your company throughout the project with mentoring from the academic partner and InterTradeIreland Innovation Boost consultant.

Synergy programme

Synergy is another InterTradeIreland programme designed to increase SME participation in innovative networks of entrepreneurs, academics, policy makers, corporates and third sector participants. It aims to scale cross-border collaboration, using cluster and network development supports to increase the impact of programmes with economic benefit to Ireland and Northern Ireland. Find out more about Synergy.

Collaboration is a powerful business tool for companies, regardless of their size or industry. It typically refers to organisations working together to address problems and achieve goals that seem to be out of reach when working alone.

By combining the effort and expertise of different organisations, all partners in the network are better able to innovate and grow, and increase their competitiveness on many levels.

Business collaboration benefits

Key benefits of business collaboration fall under several categories:

• financial benefits - collaboration can boost your domestic or export sales, enable you to tender for larger contracts or cut costs by sharing resources
• human capital - collaboration can increase your ability to develop employees' skills and capabilities, safeguard jobs, increase employment and encourage staff motivation
• physical capital - collaboration can enable you to share facilities, resources, equipment and raw materials
• intellectual capital - collaboration can allow you to tap into the combined expertise, knowledge and capabilities 

Collaborative competitiveness

Business networks may provide member companies with access to resources that would otherwise be beyond the scope of a single business. Individual businesses can face several limitations when trying to compete in global markets. This may include scale and expertise.

Through successful business collaboration, companies can often complement each other and specialise in different areas to compete in markets usually beyond their individual reach.

Collaboration vs competition

In collaborative working, communication and information sharing between partners are essential. However, this doesn't mean you have to give up all your business 'know-how'.

Collaboration can take many forms and you can build a network in a way that allows companies to complement each other without risking their market share or intellectual property. Read about the different types of business collaboration.

Collaborative networking can take many forms. You can form strategic alliances and partnerships, or join business or development networks, or even collaborate on a regional or national level.

Business networks

These involve businesses working together for specific purposes where the collaboration has identifiable and measurable benefits to all participants in the network. Key features of a business network are:

• a core group of businesses (members may include academia and other organisations)
• a restricted membership
• agreed co-operation between members
• common business objectives likely to boost mutual competitiveness and financial gain

Development network

These are the most basic forms of networks consisting simply of businesses associating with other businesses. Their activity is often confined to:

• networking
• the exchange of information
• shared services

These networks are usually informal and unstructured. They are also less likely to have a purpose linked directly to financial gain or competitive advantage for the members.

Regional business network

These are geographically defined groups of companies, educational institutions, local councils and economic development agencies connected by linkages across sectors. They can make up business clusters that share a common regional location, where 'region' is defined as:

• a geographical area
• a labour market
• an economic unit

Regional networks often bring benefits to businesses but this is not always their sole purpose. They are often motivated by broader goals of regional and national economic development. Find Northern Ireland business networks.

Different manifestations of collaboration networks

Some common forms of collaboration networks include:

• Virtual organisation - this type of partnership uses technology to collaborate and relies heavily on telecommunications.
• Virtual enterprise - this is a temporary grouping of businesses that come together to solve a problem or respond to a particular business opportunity, co-operating via computer networks.
• Extended enterprise - this is collaborative working between participants in a supply chain concerned with providing goods and services to the market. Companies can work independently (eg through the open market exchange) or cooperatively (eg through agreements and contracts).
• Virtual organisation breeding environment (VBE) - this is a cluster of organisations that make themselves available for opportunities. They agree to the main working and sharing principles to enable them to create dynamic virtual organisations that can respond to rapid changes in market needs.
• Business ecosystem - this is a network of businesses (eg suppliers, distributors, customers or even regulatory bodies) involved in delivering a product or service through both competition and collaboration.

With technology and many industries changing rapidly, ways of collaborative networking continue to evolve. The key thing to remember is that all businesses behave differently and that successful business collaboration doesn't rely on a single definitive model.

The ultimate aim of collaborative networking, in whatever shape it takes, is to gain access to skilled labour, additional resources and opportunities for sharing ideas and growing profit. See more on the benefits of business collaboration.

A successful business collaboration doesn't rely on a single definitive model or way of working. All businesses are different. Depending on your operational, cultural and financial approach, certain types of business collaboration may suit you better than others.

Nevertheless, some common elements make collaborative networking success more likely. For example:

• transparency and trust - between different members working as one team
• mutuality and solidarity - working together for the benefit of each other
• information exchange - communicating openly about problems and ways of working

Businesses that collaborate may also find it helpful to have a similar culture, operational synergies and a desire to make collaboration work. Support from top management and key people within a business will also contribute to successful collaboration.

Stages of business collaboration

Collaborative networks are often achieved in stages involving:

• exploration - looking at the potential benefits and ways of collaborating
• assimilation - transforming the ideas into a working collaboration
• exploitation - pooling resources and knowledge to create new processes or products

Challenges can emerge at each stage of this life cycle.

Planning for collaboration

A foundation of any collaboration is establishing:

• a clear purpose
• an agreed business opportunity
• clear rules of engagement between members

This will allow you to set clear expectations regarding the inputs and outputs of members. It will also enable you to align the interests of the initial membership. Once you define the focus of the network, you can assess and design the criteria for additional members to bring the greatest benefit.

Establishing a business collaboration

After agreeing the collective business goals, you should implement a formal partnership arrangement. This will establish clear roles and responsibilities in the new network. You should also draw up:

• a formal project plan
• a risk register
• governance procedures to manage the different business interests within the group

Many successful collaborations appoint one company to act as a project lead. A major company with a high profile as the flag bearer for the network can bring greater visibility to attract new members, funding and customers.

See how to set up a business collaboration.

Delivering a collaborative network

Successful collaboration relies on trust as much as the viability of the project itself. Ensuring that members work honestly and openly is a priority. The simplest way to achieve this is through effective communication between members. For example, you may want to:

• schedule meetings at regular intervals
• identify clear roles for individuals in project change or snags

Each member of the network should follow agreed procedures and protocols. You should communicate these clearly to all members.

A fair gain sharing mechanism should be in place to ensure the long-term success of the collaboration. Correct legal documents for business collaboration can help support this aim and formalise the rules of engagement.

The way you set up a business collaboration can determine how successful the network might be. Progress will depend on a range of issues, including how clear and realistic the group is about their objectives, and how committed members are to working together.

Any collaboration must take into account key strategic elements to ensure that partners can work together in the long term. That may include resources, commitment, intra-organisational support, the business case, and technology.

Establishing collaborative networks

Collaborations naturally evolve over time. The table below identifies the various stages of business collaboration. It also outlines what information you might share and what activities you might undertake in each, as you build your network.

You should support and formalise your collaboration with the correct legal documents, which will set out agreed rules of engagement. 

Legal agreements can help avoid uncertainties between different members in a business collaboration. They can clarify things like:

• the nature, scope and duration of the relationships
• the allocation of responsibilities
• the decision-making structure
• the accountability processes
• the ownership and control of the outputs
• the division of revenues derived from the collaboration

A number of useful legal documents can help you protect your own individual business, as well as the collaborative interest of the network.

Letter of intent

A letter of intent provides an overview of the goals and objectives of the proposed network. It proposes what collaboration should include, how long it would last, the activities members will encourage, and the expected benefits. It also establishes the points of contact for the collaboration.

Memorandum of understanding

A memorandum of understanding is a document describing a bilateral or multilateral agreement between members of the collaboration. It outlines each party's intent to agree or do business with one another.

Consortium agreement

A consortium agreement is a document to help businesses share information, network and collaborate. The details in the agreement can help ensure any intellectual property that arises from the collaboration is managed effectively. The agreement will establish boundaries for key issues.

See GOV.UK's guidance on model consortium agreements for collaborative research.

Collaborative network ground rules

You should consider documenting some ground rules from the start of the collaboration. This gives you a non-legally binding way for members (current and future) to agree to the minimum set of acceptable behaviours and processes.

Handling new network member enquiries

You can consider creating a workflow tool for existing members to evaluate requests from potential new network members.

Role of the network facilitator

This document outlines the essential and desired skills required by the facilitator and an indication of the key tasks expected of them.

A range of support is available for Northern Ireland businesses that are looking to collaborate with other companies, academia or research partners.

The support can be advisory or financial and it can help strengthen your business, raise its profile and open up new business opportunities within and outside Northern Ireland.

Collaborative Growth Programme

Invest Northern Ireland (Invest NI) runs a Collaborative Growth Programme offering support to SME-led networks that want to work together on innovative projects. Networks wishing to enquire about the programme should consist of a minimum of four Northern Ireland SMEs. At least one of the participating businesses must be an Invest NI customer and be prepared to make the application on behalf of the group.

Innovation Vouchers

Innovation Vouchers enable small businesses to work with expert knowledge providers (such as universities and colleges) to develop innovative solutions to business issues. The voucher is worth up to £5,000. Invest NI typically hold four Innovation Vouchers calls per year.

Innovate UK

Innovate UK delivers numerous programmes, including funding competitions, to enable individual businesses and groups to pursue research and innovation opportunities. Some Innovate UK competitions are only open to collaborative projects led by UK-based companies. Search Innovate UK competitions.

Innovate UK Business Growth

Innovate UK Business Growth, formerly known as Innovate UK EDGE, supports and advises businesses across the UK. Through participation in this programme, businesses can find collaboration partners, access R&D funding, and improve their presence in new markets. Innovate UK Business Growth regional team in Northern Ireland operates out of Invest NI, offering bespoke support to ambitious and innovative businesses wanting to grow and scale. Find out about Innovate UK support in Northern Ireland.

Innovate UK Business Connect

Innovate UK Business Connect, previously Innovate UK Knowledge Transfer Network, can help you connect with experts outside your usual networks and industry, and link with academics, government and funding opportunities. The programme supports a diverse range of UK industries, including agrifood, creative industries, manufacturing, transport and more. Read about the work of Innovate UK Business Connect.

Knowledge Transfer Partnerships

A Knowledge Transfer Partnership (KTP) is a three-way partnership between a business, an academic institution and a qualified graduate delivering a project lasting about two years. Innovate UK and Invest NI fund the scheme in Northern Ireland. They partner businesses and graduates, matching project requirements with management or technical skills and academic disciplines. Find out more about the KTP scheme.

Horizon Europe

Horizon Europe is the main source of European funding for collaborative research and innovation. Invest NI can help Northern Ireland businesses find Horizon collaboration partners and opportunities, and understand if they meet the criteria for application. Find out more about Horizon Europe support in Northern Ireland.

The Northern Ireland Contact Point network is another resource available to all potential applicants from NI who are interested in engaging with Horizon Europe. More information and contact details are available via the Horizon Europe NI website. 

Catapult centres

Catapults are not-for-profit, independent technology and innovation centres that connect businesses with the UK's research and academic communities. Each specialises in a different area of technology, and offers facilities and expertise to enable businesses and researchers to solve key problems together and develop new products and services on a commercial scale. Find out more about Catapults.

Competence centres

Competence centres bring together universities, research institutes and innovative businesses to carry out strategic collaborative research in areas with a direct industrial focus. Any NI-based business that wants to collaborate in applied research at a reduced cost can get involved. Centres that currently operate in NI include connected health, sustainable energy and agri-food.

Innovation Boost programme

Previously known as Fusion, InterTradeIreland's Innovation Boost programme helps to fund a high calibre science, engineering or technology graduate and partner you with a third-level institution with specific expertise. The graduate is employed by you and is based in your company throughout the project with mentoring from the academic partner and InterTradeIreland Innovation Boost consultant.

Synergy programme

Synergy is another InterTradeIreland programme designed to increase SME participation in innovative networks of entrepreneurs, academics, policy makers, corporates and third sector participants. It aims to scale cross-border collaboration, using cluster and network development supports to increase the impact of programmes with economic benefit to Ireland and Northern Ireland. Find out more about Synergy.

Collaboration is a powerful business tool for companies, regardless of their size or industry. It typically refers to organisations working together to address problems and achieve goals that seem to be out of reach when working alone.

By combining the effort and expertise of different organisations, all partners in the network are better able to innovate and grow, and increase their competitiveness on many levels.

Business collaboration benefits

Key benefits of business collaboration fall under several categories:

• financial benefits - collaboration can boost your domestic or export sales, enable you to tender for larger contracts or cut costs by sharing resources
• human capital - collaboration can increase your ability to develop employees' skills and capabilities, safeguard jobs, increase employment and encourage staff motivation
• physical capital - collaboration can enable you to share facilities, resources, equipment and raw materials
• intellectual capital - collaboration can allow you to tap into the combined expertise, knowledge and capabilities 

Collaborative competitiveness

Business networks may provide member companies with access to resources that would otherwise be beyond the scope of a single business. Individual businesses can face several limitations when trying to compete in global markets. This may include scale and expertise.

Through successful business collaboration, companies can often complement each other and specialise in different areas to compete in markets usually beyond their individual reach.

Collaboration vs competition

In collaborative working, communication and information sharing between partners are essential. However, this doesn't mean you have to give up all your business 'know-how'.

Collaboration can take many forms and you can build a network in a way that allows companies to complement each other without risking their market share or intellectual property. Read about the different types of business collaboration.

Collaborative networking can take many forms. You can form strategic alliances and partnerships, or join business or development networks, or even collaborate on a regional or national level.

Business networks

These involve businesses working together for specific purposes where the collaboration has identifiable and measurable benefits to all participants in the network. Key features of a business network are:

• a core group of businesses (members may include academia and other organisations)
• a restricted membership
• agreed co-operation between members
• common business objectives likely to boost mutual competitiveness and financial gain

Development network

These are the most basic forms of networks consisting simply of businesses associating with other businesses. Their activity is often confined to:

• networking
• the exchange of information
• shared services

These networks are usually informal and unstructured. They are also less likely to have a purpose linked directly to financial gain or competitive advantage for the members.

Regional business network

These are geographically defined groups of companies, educational institutions, local councils and economic development agencies connected by linkages across sectors. They can make up business clusters that share a common regional location, where 'region' is defined as:

• a geographical area
• a labour market
• an economic unit

Regional networks often bring benefits to businesses but this is not always their sole purpose. They are often motivated by broader goals of regional and national economic development. Find Northern Ireland business networks.

Different manifestations of collaboration networks

Some common forms of collaboration networks include:

• Virtual organisation - this type of partnership uses technology to collaborate and relies heavily on telecommunications.
• Virtual enterprise - this is a temporary grouping of businesses that come together to solve a problem or respond to a particular business opportunity, co-operating via computer networks.
• Extended enterprise - this is collaborative working between participants in a supply chain concerned with providing goods and services to the market. Companies can work independently (eg through the open market exchange) or cooperatively (eg through agreements and contracts).
• Virtual organisation breeding environment (VBE) - this is a cluster of organisations that make themselves available for opportunities. They agree to the main working and sharing principles to enable them to create dynamic virtual organisations that can respond to rapid changes in market needs.
• Business ecosystem - this is a network of businesses (eg suppliers, distributors, customers or even regulatory bodies) involved in delivering a product or service through both competition and collaboration.

With technology and many industries changing rapidly, ways of collaborative networking continue to evolve. The key thing to remember is that all businesses behave differently and that successful business collaboration doesn't rely on a single definitive model.

The ultimate aim of collaborative networking, in whatever shape it takes, is to gain access to skilled labour, additional resources and opportunities for sharing ideas and growing profit. See more on the benefits of business collaboration.

A successful business collaboration doesn't rely on a single definitive model or way of working. All businesses are different. Depending on your operational, cultural and financial approach, certain types of business collaboration may suit you better than others.

Nevertheless, some common elements make collaborative networking success more likely. For example:

• transparency and trust - between different members working as one team
• mutuality and solidarity - working together for the benefit of each other
• information exchange - communicating openly about problems and ways of working

Businesses that collaborate may also find it helpful to have a similar culture, operational synergies and a desire to make collaboration work. Support from top management and key people within a business will also contribute to successful collaboration.

Stages of business collaboration

Collaborative networks are often achieved in stages involving:

• exploration - looking at the potential benefits and ways of collaborating
• assimilation - transforming the ideas into a working collaboration
• exploitation - pooling resources and knowledge to create new processes or products

Challenges can emerge at each stage of this life cycle.

Planning for collaboration

A foundation of any collaboration is establishing:

• a clear purpose
• an agreed business opportunity
• clear rules of engagement between members

This will allow you to set clear expectations regarding the inputs and outputs of members. It will also enable you to align the interests of the initial membership. Once you define the focus of the network, you can assess and design the criteria for additional members to bring the greatest benefit.

Establishing a business collaboration

After agreeing the collective business goals, you should implement a formal partnership arrangement. This will establish clear roles and responsibilities in the new network. You should also draw up:

• a formal project plan
• a risk register
• governance procedures to manage the different business interests within the group

Many successful collaborations appoint one company to act as a project lead. A major company with a high profile as the flag bearer for the network can bring greater visibility to attract new members, funding and customers.

See how to set up a business collaboration.

Delivering a collaborative network

Successful collaboration relies on trust as much as the viability of the project itself. Ensuring that members work honestly and openly is a priority. The simplest way to achieve this is through effective communication between members. For example, you may want to:

• schedule meetings at regular intervals
• identify clear roles for individuals in project change or snags

Each member of the network should follow agreed procedures and protocols. You should communicate these clearly to all members.

A fair gain sharing mechanism should be in place to ensure the long-term success of the collaboration. Correct legal documents for business collaboration can help support this aim and formalise the rules of engagement.

The way you set up a business collaboration can determine how successful the network might be. Progress will depend on a range of issues, including how clear and realistic the group is about their objectives, and how committed members are to working together.

Any collaboration must take into account key strategic elements to ensure that partners can work together in the long term. That may include resources, commitment, intra-organisational support, the business case, and technology.

Establishing collaborative networks

Collaborations naturally evolve over time. The table below identifies the various stages of business collaboration. It also outlines what information you might share and what activities you might undertake in each, as you build your network.

You should support and formalise your collaboration with the correct legal documents, which will set out agreed rules of engagement. 

Legal agreements can help avoid uncertainties between different members in a business collaboration. They can clarify things like:

• the nature, scope and duration of the relationships
• the allocation of responsibilities
• the decision-making structure
• the accountability processes
• the ownership and control of the outputs
• the division of revenues derived from the collaboration

A number of useful legal documents can help you protect your own individual business, as well as the collaborative interest of the network.

Letter of intent

A letter of intent provides an overview of the goals and objectives of the proposed network. It proposes what collaboration should include, how long it would last, the activities members will encourage, and the expected benefits. It also establishes the points of contact for the collaboration.

Memorandum of understanding

A memorandum of understanding is a document describing a bilateral or multilateral agreement between members of the collaboration. It outlines each party's intent to agree or do business with one another.

Consortium agreement

A consortium agreement is a document to help businesses share information, network and collaborate. The details in the agreement can help ensure any intellectual property that arises from the collaboration is managed effectively. The agreement will establish boundaries for key issues.

See GOV.UK's guidance on model consortium agreements for collaborative research.

Collaborative network ground rules

You should consider documenting some ground rules from the start of the collaboration. This gives you a non-legally binding way for members (current and future) to agree to the minimum set of acceptable behaviours and processes.

Handling new network member enquiries

You can consider creating a workflow tool for existing members to evaluate requests from potential new network members.

Role of the network facilitator

This document outlines the essential and desired skills required by the facilitator and an indication of the key tasks expected of them.

A range of support is available for Northern Ireland businesses that are looking to collaborate with other companies, academia or research partners.

The support can be advisory or financial and it can help strengthen your business, raise its profile and open up new business opportunities within and outside Northern Ireland.

Collaborative Growth Programme

Invest Northern Ireland (Invest NI) runs a Collaborative Growth Programme offering support to SME-led networks that want to work together on innovative projects. Networks wishing to enquire about the programme should consist of a minimum of four Northern Ireland SMEs. At least one of the participating businesses must be an Invest NI customer and be prepared to make the application on behalf of the group.

Innovation Vouchers

Innovation Vouchers enable small businesses to work with expert knowledge providers (such as universities and colleges) to develop innovative solutions to business issues. The voucher is worth up to £5,000. Invest NI typically hold four Innovation Vouchers calls per year.

Innovate UK

Innovate UK delivers numerous programmes, including funding competitions, to enable individual businesses and groups to pursue research and innovation opportunities. Some Innovate UK competitions are only open to collaborative projects led by UK-based companies. Search Innovate UK competitions.

Innovate UK Business Growth

Innovate UK Business Growth, formerly known as Innovate UK EDGE, supports and advises businesses across the UK. Through participation in this programme, businesses can find collaboration partners, access R&D funding, and improve their presence in new markets. Innovate UK Business Growth regional team in Northern Ireland operates out of Invest NI, offering bespoke support to ambitious and innovative businesses wanting to grow and scale. Find out about Innovate UK support in Northern Ireland.

Innovate UK Business Connect

Innovate UK Business Connect, previously Innovate UK Knowledge Transfer Network, can help you connect with experts outside your usual networks and industry, and link with academics, government and funding opportunities. The programme supports a diverse range of UK industries, including agrifood, creative industries, manufacturing, transport and more. Read about the work of Innovate UK Business Connect.

Knowledge Transfer Partnerships

A Knowledge Transfer Partnership (KTP) is a three-way partnership between a business, an academic institution and a qualified graduate delivering a project lasting about two years. Innovate UK and Invest NI fund the scheme in Northern Ireland. They partner businesses and graduates, matching project requirements with management or technical skills and academic disciplines. Find out more about the KTP scheme.

Horizon Europe

Horizon Europe is the main source of European funding for collaborative research and innovation. Invest NI can help Northern Ireland businesses find Horizon collaboration partners and opportunities, and understand if they meet the criteria for application. Find out more about Horizon Europe support in Northern Ireland.

The Northern Ireland Contact Point network is another resource available to all potential applicants from NI who are interested in engaging with Horizon Europe. More information and contact details are available via the Horizon Europe NI website. 

Catapult centres

Catapults are not-for-profit, independent technology and innovation centres that connect businesses with the UK's research and academic communities. Each specialises in a different area of technology, and offers facilities and expertise to enable businesses and researchers to solve key problems together and develop new products and services on a commercial scale. Find out more about Catapults.

Competence centres

Competence centres bring together universities, research institutes and innovative businesses to carry out strategic collaborative research in areas with a direct industrial focus. Any NI-based business that wants to collaborate in applied research at a reduced cost can get involved. Centres that currently operate in NI include connected health, sustainable energy and agri-food.

Innovation Boost programme

Previously known as Fusion, InterTradeIreland's Innovation Boost programme helps to fund a high calibre science, engineering or technology graduate and partner you with a third-level institution with specific expertise. The graduate is employed by you and is based in your company throughout the project with mentoring from the academic partner and InterTradeIreland Innovation Boost consultant.

Synergy programme

Synergy is another InterTradeIreland programme designed to increase SME participation in innovative networks of entrepreneurs, academics, policy makers, corporates and third sector participants. It aims to scale cross-border collaboration, using cluster and network development supports to increase the impact of programmes with economic benefit to Ireland and Northern Ireland. Find out more about Synergy.

Collaboration is a powerful business tool for companies, regardless of their size or industry. It typically refers to organisations working together to address problems and achieve goals that seem to be out of reach when working alone.

By combining the effort and expertise of different organisations, all partners in the network are better able to innovate and grow, and increase their competitiveness on many levels.

Business collaboration benefits

Key benefits of business collaboration fall under several categories:

• financial benefits - collaboration can boost your domestic or export sales, enable you to tender for larger contracts or cut costs by sharing resources
• human capital - collaboration can increase your ability to develop employees' skills and capabilities, safeguard jobs, increase employment and encourage staff motivation
• physical capital - collaboration can enable you to share facilities, resources, equipment and raw materials
• intellectual capital - collaboration can allow you to tap into the combined expertise, knowledge and capabilities 

Collaborative competitiveness

Business networks may provide member companies with access to resources that would otherwise be beyond the scope of a single business. Individual businesses can face several limitations when trying to compete in global markets. This may include scale and expertise.

Through successful business collaboration, companies can often complement each other and specialise in different areas to compete in markets usually beyond their individual reach.

Collaboration vs competition

In collaborative working, communication and information sharing between partners are essential. However, this doesn't mean you have to give up all your business 'know-how'.

Collaboration can take many forms and you can build a network in a way that allows companies to complement each other without risking their market share or intellectual property. Read about the different types of business collaboration.

Collaborative networking can take many forms. You can form strategic alliances and partnerships, or join business or development networks, or even collaborate on a regional or national level.

Business networks

These involve businesses working together for specific purposes where the collaboration has identifiable and measurable benefits to all participants in the network. Key features of a business network are:

• a core group of businesses (members may include academia and other organisations)
• a restricted membership
• agreed co-operation between members
• common business objectives likely to boost mutual competitiveness and financial gain

Development network

These are the most basic forms of networks consisting simply of businesses associating with other businesses. Their activity is often confined to:

• networking
• the exchange of information
• shared services

These networks are usually informal and unstructured. They are also less likely to have a purpose linked directly to financial gain or competitive advantage for the members.

Regional business network

These are geographically defined groups of companies, educational institutions, local councils and economic development agencies connected by linkages across sectors. They can make up business clusters that share a common regional location, where 'region' is defined as:

• a geographical area
• a labour market
• an economic unit

Regional networks often bring benefits to businesses but this is not always their sole purpose. They are often motivated by broader goals of regional and national economic development. Find Northern Ireland business networks.

Different manifestations of collaboration networks

Some common forms of collaboration networks include:

• Virtual organisation - this type of partnership uses technology to collaborate and relies heavily on telecommunications.
• Virtual enterprise - this is a temporary grouping of businesses that come together to solve a problem or respond to a particular business opportunity, co-operating via computer networks.
• Extended enterprise - this is collaborative working between participants in a supply chain concerned with providing goods and services to the market. Companies can work independently (eg through the open market exchange) or cooperatively (eg through agreements and contracts).
• Virtual organisation breeding environment (VBE) - this is a cluster of organisations that make themselves available for opportunities. They agree to the main working and sharing principles to enable them to create dynamic virtual organisations that can respond to rapid changes in market needs.
• Business ecosystem - this is a network of businesses (eg suppliers, distributors, customers or even regulatory bodies) involved in delivering a product or service through both competition and collaboration.

With technology and many industries changing rapidly, ways of collaborative networking continue to evolve. The key thing to remember is that all businesses behave differently and that successful business collaboration doesn't rely on a single definitive model.

The ultimate aim of collaborative networking, in whatever shape it takes, is to gain access to skilled labour, additional resources and opportunities for sharing ideas and growing profit. See more on the benefits of business collaboration.

A successful business collaboration doesn't rely on a single definitive model or way of working. All businesses are different. Depending on your operational, cultural and financial approach, certain types of business collaboration may suit you better than others.

Nevertheless, some common elements make collaborative networking success more likely. For example:

• transparency and trust - between different members working as one team
• mutuality and solidarity - working together for the benefit of each other
• information exchange - communicating openly about problems and ways of working

Businesses that collaborate may also find it helpful to have a similar culture, operational synergies and a desire to make collaboration work. Support from top management and key people within a business will also contribute to successful collaboration.

Stages of business collaboration

Collaborative networks are often achieved in stages involving:

• exploration - looking at the potential benefits and ways of collaborating
• assimilation - transforming the ideas into a working collaboration
• exploitation - pooling resources and knowledge to create new processes or products

Challenges can emerge at each stage of this life cycle.

Planning for collaboration

A foundation of any collaboration is establishing:

• a clear purpose
• an agreed business opportunity
• clear rules of engagement between members

This will allow you to set clear expectations regarding the inputs and outputs of members. It will also enable you to align the interests of the initial membership. Once you define the focus of the network, you can assess and design the criteria for additional members to bring the greatest benefit.

Establishing a business collaboration

After agreeing the collective business goals, you should implement a formal partnership arrangement. This will establish clear roles and responsibilities in the new network. You should also draw up:

• a formal project plan
• a risk register
• governance procedures to manage the different business interests within the group

Many successful collaborations appoint one company to act as a project lead. A major company with a high profile as the flag bearer for the network can bring greater visibility to attract new members, funding and customers.

See how to set up a business collaboration.

Delivering a collaborative network

Successful collaboration relies on trust as much as the viability of the project itself. Ensuring that members work honestly and openly is a priority. The simplest way to achieve this is through effective communication between members. For example, you may want to:

• schedule meetings at regular intervals
• identify clear roles for individuals in project change or snags

Each member of the network should follow agreed procedures and protocols. You should communicate these clearly to all members.

A fair gain sharing mechanism should be in place to ensure the long-term success of the collaboration. Correct legal documents for business collaboration can help support this aim and formalise the rules of engagement.

The way you set up a business collaboration can determine how successful the network might be. Progress will depend on a range of issues, including how clear and realistic the group is about their objectives, and how committed members are to working together.

Any collaboration must take into account key strategic elements to ensure that partners can work together in the long term. That may include resources, commitment, intra-organisational support, the business case, and technology.

Establishing collaborative networks

Collaborations naturally evolve over time. The table below identifies the various stages of business collaboration. It also outlines what information you might share and what activities you might undertake in each, as you build your network.

You should support and formalise your collaboration with the correct legal documents, which will set out agreed rules of engagement. 

Legal agreements can help avoid uncertainties between different members in a business collaboration. They can clarify things like:

• the nature, scope and duration of the relationships
• the allocation of responsibilities
• the decision-making structure
• the accountability processes
• the ownership and control of the outputs
• the division of revenues derived from the collaboration

A number of useful legal documents can help you protect your own individual business, as well as the collaborative interest of the network.

Letter of intent

A letter of intent provides an overview of the goals and objectives of the proposed network. It proposes what collaboration should include, how long it would last, the activities members will encourage, and the expected benefits. It also establishes the points of contact for the collaboration.

Memorandum of understanding

A memorandum of understanding is a document describing a bilateral or multilateral agreement between members of the collaboration. It outlines each party's intent to agree or do business with one another.

Consortium agreement

A consortium agreement is a document to help businesses share information, network and collaborate. The details in the agreement can help ensure any intellectual property that arises from the collaboration is managed effectively. The agreement will establish boundaries for key issues.

See GOV.UK's guidance on model consortium agreements for collaborative research.

Collaborative network ground rules

You should consider documenting some ground rules from the start of the collaboration. This gives you a non-legally binding way for members (current and future) to agree to the minimum set of acceptable behaviours and processes.

Handling new network member enquiries

You can consider creating a workflow tool for existing members to evaluate requests from potential new network members.

Role of the network facilitator

This document outlines the essential and desired skills required by the facilitator and an indication of the key tasks expected of them.

A range of support is available for Northern Ireland businesses that are looking to collaborate with other companies, academia or research partners.

The support can be advisory or financial and it can help strengthen your business, raise its profile and open up new business opportunities within and outside Northern Ireland.

Collaborative Growth Programme

Invest Northern Ireland (Invest NI) runs a Collaborative Growth Programme offering support to SME-led networks that want to work together on innovative projects. Networks wishing to enquire about the programme should consist of a minimum of four Northern Ireland SMEs. At least one of the participating businesses must be an Invest NI customer and be prepared to make the application on behalf of the group.

Innovation Vouchers

Innovation Vouchers enable small businesses to work with expert knowledge providers (such as universities and colleges) to develop innovative solutions to business issues. The voucher is worth up to £5,000. Invest NI typically hold four Innovation Vouchers calls per year.

Innovate UK

Innovate UK delivers numerous programmes, including funding competitions, to enable individual businesses and groups to pursue research and innovation opportunities. Some Innovate UK competitions are only open to collaborative projects led by UK-based companies. Search Innovate UK competitions.

Innovate UK Business Growth

Innovate UK Business Growth, formerly known as Innovate UK EDGE, supports and advises businesses across the UK. Through participation in this programme, businesses can find collaboration partners, access R&D funding, and improve their presence in new markets. Innovate UK Business Growth regional team in Northern Ireland operates out of Invest NI, offering bespoke support to ambitious and innovative businesses wanting to grow and scale. Find out about Innovate UK support in Northern Ireland.

Innovate UK Business Connect

Innovate UK Business Connect, previously Innovate UK Knowledge Transfer Network, can help you connect with experts outside your usual networks and industry, and link with academics, government and funding opportunities. The programme supports a diverse range of UK industries, including agrifood, creative industries, manufacturing, transport and more. Read about the work of Innovate UK Business Connect.

Knowledge Transfer Partnerships

A Knowledge Transfer Partnership (KTP) is a three-way partnership between a business, an academic institution and a qualified graduate delivering a project lasting about two years. Innovate UK and Invest NI fund the scheme in Northern Ireland. They partner businesses and graduates, matching project requirements with management or technical skills and academic disciplines. Find out more about the KTP scheme.

Horizon Europe

Horizon Europe is the main source of European funding for collaborative research and innovation. Invest NI can help Northern Ireland businesses find Horizon collaboration partners and opportunities, and understand if they meet the criteria for application. Find out more about Horizon Europe support in Northern Ireland.

The Northern Ireland Contact Point network is another resource available to all potential applicants from NI who are interested in engaging with Horizon Europe. More information and contact details are available via the Horizon Europe NI website. 

Catapult centres

Catapults are not-for-profit, independent technology and innovation centres that connect businesses with the UK's research and academic communities. Each specialises in a different area of technology, and offers facilities and expertise to enable businesses and researchers to solve key problems together and develop new products and services on a commercial scale. Find out more about Catapults.

Competence centres

Competence centres bring together universities, research institutes and innovative businesses to carry out strategic collaborative research in areas with a direct industrial focus. Any NI-based business that wants to collaborate in applied research at a reduced cost can get involved. Centres that currently operate in NI include connected health, sustainable energy and agri-food.

Innovation Boost programme

Previously known as Fusion, InterTradeIreland's Innovation Boost programme helps to fund a high calibre science, engineering or technology graduate and partner you with a third-level institution with specific expertise. The graduate is employed by you and is based in your company throughout the project with mentoring from the academic partner and InterTradeIreland Innovation Boost consultant.

Synergy programme

Synergy is another InterTradeIreland programme designed to increase SME participation in innovative networks of entrepreneurs, academics, policy makers, corporates and third sector participants. It aims to scale cross-border collaboration, using cluster and network development supports to increase the impact of programmes with economic benefit to Ireland and Northern Ireland. Find out more about Synergy.