Innovation competence has become an essential requirement for technology-based organizations to survive in the new economy. Commitment to long-term objectives and learning are considered as indispensable for building innovation competence. Communication networks play a crucial role in both these aspects. In this context management faces the question of how the characteristics as well as the contents of communication present in the network will influence the innovation competence. In this paper a literature study is done to present an understanding of the relationships between communication networks and innovation competence. The paper proposes that the characteristics of communication (frequency, diversity, and centrality) along with the content of communication (shared vision, shared task knowledge, and shared social knowledge) significantly affect the elements necessary to build technological innovation.

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