The Role of Knowledge Management in Innovation

Abstract

Research on innovation practices reinforces the notion that majority of innovation projects fail systematically due to being managed as raw technology projects. Open forms of innovation where internal and external ideas are leveraged across the organisation are gaining importance over the internal and centralised approach to R&D. India, during the last 15 years, has been spiralling ahead towards ultimate economic success based on its 'knowledge-based talent pool'. Innovation has become a top strategic focus for most Indian companies. Seeing the growing importance of innovation and knowledge management, a need was felt to understand how organisations manage their knowledge capital so as to promote innovation. This paper aims to provide insights into how an organisation manages knowledge through culture, structure, technology and leadership, so as to promote acquisition and application of knowledge which leads to innovation. The study brings out the importance of tacit knowledge embedded in the firm's culture, structure and leadership as a complement to the explicit knowledge embedded in the firm's technology and documents.