Managing and organizing innovation in the knowledge economy

Abstract

In the knowledge economy, where the business environment is characterised by turbulence and complexity, knowledge is the main source of creating both innovation and sustainable competitive advantage. This paper describes a conceptual model and an associated set of managerial and organising implications for the innovation‐led company. The question we are trying to answer is: which management and organising characteristics are necessary to manage innovation in the knowledge economy? The paper is based on in‐depth interviews of 32 CEOs and top executives in leading European organisations, 40 people known internationally for their ability to achieve and maintain a position among the top performers in their fields, and a “best practice study” of five leading international companies.

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