Tourism destinations have a necessity to innovate to remain competitive in an
increasingly global environment. A pre-requisite for innovation is the
understanding of how destinations source, share and use knowledge. This
conceptual paper examines the nature of networks and how their analysis can
shed light upon the processes of knowledge sharing in destinations as they
strive to innovate. The paper conceptualizes destinations as networks of
connected organizations, both public and private, each of which can be
considered as a destination stakeholder. In network theory they represent the
nodes within the system. The paper shows how epidemic diffusion models can act
as an analogy for knowledge communication and transfer within a destination
network. These models can be combined with other approaches to network analysis
to shed light on how destination networks operate, and how they can be
optimized with policy intervention to deliver innovative and competitive
destinations. The paper closes with a practical tourism example taken from the
Italian destination of Elba. Using numerical simulations the case demonstrates
how the Elba network can be optimized. Overall this paper demonstrates the
considerable utility of network analysis for tourism in delivering destination
competitiveness.Comment: 15 pages, 2 figures, 2 tables. Forthcoming in: The Service Industries
Journal, vol. 30, n. 8, 2010. Special Issue on: Advances in service network
analysis v2: addeded and corrected reference