This article explores the gap within the extant literature regarding the effectiveness of innovation networks comprising small firms and public research organisations (PROs). By integrating the knowledge-based view, relational view and social capital approach, the article analyses innovation-driven dyadic networks involving SMEs and PROs. Through a multiple case-study method, an examination was undertaken of the structural, relational and cognitive configuration of networks. The study found a co-evolution path between the life-cycle of the relationship, mechanisms of governance and innovation objectives; the existence of a risk of ‘inertial trust’ and a need to overlap ‘basic’ knowledge bases and develop shared languages.