Knowledge Management in the Learning Economy

The purpose of this paper is to show why to build ‘learning organisations’ must be a central element of knowledge management. The paper argues that the wide use of information technology has a contradictory impact on knowledge management. On the one hand it extends the potential for codifying knowledge. On the other hand it makes tacit knowledge scarcer and it contributes to the formation of ‘a learning economy’. The argument is supported by an empirical analysis of survey data from Denmark showing that firms that introduce several organisational practices, assumed to characterise the learning organisation, are more innovative than the average firm. The paper contributes to the empirical foundation for the argument that learning organisations stimulate innovation and competence building and it makes an original conceptual contribution of practical relevance by linking knowledge management to HRM and innovation management.Knowledge management, learning economy, interactive learning, organisational change

The University in the Learning Economy

In all parts of the world, universities are exposed to a growing pressure to change. This is caused by the emergence of new relationship between the economic dynamics and the production of knowledge as well as by policy and administrative initiatives finding their rationale in interpretations of these changes. In this paper an attempt is made to specify some of the new challenges, and suggest appropriate responses. Under the heading ‘the learning economy’ changes in the context of universities are identified. One important conclusion is that traditional modes of organisation, characterised by sharp and rigid borders between disciplines and isolation from the society at large are being challenged and alternatives have to be developed. Another conclusion is that strategies of alliance and networking have become a key factor behind the success of universities. A third conclusion is that the universities’ most significant contribution to society and the economy will remain welleducated graduates with critical minds and good learning skills.Production of knowledge, education, networks

One Knowledge Base or Many Knowledge Pools?

It is increasingly realized that knowledge is the most important resource and that learning is the most important process in the economy. Sometimes this is expressed by coining the current era as characterised by a ‘knowledge based economy’. But this concept might be misleading by indicating that there is one common knowledge base on which economic activities can be built. In this paper we argue that it is more appropriate to see the economy as connecting to different ‘pools of knowledge’. The argument is built upon a conceptual framework where we make distinctions between private/public, local/global, individual/collective and tacit/codified knowledge. The purpose is both ‘academic’ and practical. Our analysis demonstrates the limits of a narrowly economic perspective on knowledge and we show that these distinctions have important implications both for innovation policy and for management of innovation.Knowledge, economic development

The Social Dimension of the Learning Economy

This paper is a slightly revised version of Bengt-Åke Lundvall's Inaugural Lecture, the 10th of November at Department for Business Studies, Aalborg University. The general message is that the growing frequency of so-called paradoxes in economic theory and of unsolved socioeconomic problems reflects that neither economic theory nor policy has been adapted to the fact that we have entered a new phase: the 'Learning Economy'. It is shown that in the learning economy the capacity to learn increasingly determines the relative position of individuals, firms and national systems. The growing polarisation in the OECD-labour markets is explained by the increasing importance of learning and the acceleration in the rate of change. Finally, it is argued that the learning economy will not be sustainable if these tendencies are not countered by a New New Deal which puts the focus on the distribution of capabilities to learn

China's Innovation System and the Move Toward Harmonious Growth and Endogenous Innovation

Observers around the world are impressed by the rapid growth of China’s economy. While outside observers tend to focus on the success story of unprecedented growth policy documents and recent domestic debates in China have pointed to the need for a shift in the growth trajectory with stronger emphasis on ‘endogenous innovation’ and ‘harmonious development’. This paper attempts to capture the current characteristics of China’s production and innovation system; how they were shaped by history and what major challenges they raise for the future. On the basis of the analysis the authors propose that it is possible to link together the two key concepts ‘endogenous innovation’ and ‘harmonious development’ by focusing innovation and development efforts in China on domestic needs, including social needs, rather than a one-sided focus on export-promotion and commodity production.China; economic growth; R&D; innovation systems

Innovation, Learning Organizations and Industrial Relations

Innovation may be seen as a process of knowledge creation and the speed and direction of knowledge creation reflects the organizational set-up of the firm as well as its investments in R&D and training. Establishing ‘a learning organization’ where horizontal interaction and communication inside and across the borders of the firm is a major factor promoting knowledge creation in the context of a learning economy. An important issue is to what extent direct and indirect participation of employees in shaping the new form of organization is critical for its realization. On the basis of a unique data set covering 2000 Danish private firms it is demonstrated that firms combining several of the organizational traits of the learning organization are much more prone to introduce new products than the others. It is also demonstrated that such firms have involved employees in different forms of direct and indirect participation much more frequently than the rest. As more sectors become exposed to the need to engage in incremental product and service innovation the economic potential of diffusing good practices in terms of organization and participation is growing and needs to be reflected in firm strategies and public policies aiming at promoting innovation and knowledge creation.Innovation, knowledge creation, learning economy

Transformative policies for sustainable innovation systems

In this paper, we criticize attempts to present narrow perspectives on innovation policy as reflecting the use of the concept innovation system as policy framing. While it is correct that innovation policy, at least until recently, has given priority to economic growth and low priority to global challenges such as climate change and income inequality this is in no way immanent in the innovation system concept. To illustrate, we introduce concepts and perspectives related to the innovation system approach which are particularly useful, when it comes to develop innovation policies aiming at system transformation. They include the uneven rhythm of respectively incremental innovation, radical innovation, and technological revolutions, shifts in technological paradigms, system transformation at the organisational level and the distinction between policies aiming at path dependent innovation promotion and policies aiming at system change. We also point to the usefulness of the learning economy perspective that has been developed in close connection with the innovation system literature. We conclude that there is a need to combine different theoretical framings as inspiration for transformative innovation policy. In addition, we argue, first, that all these framings need to have a double focus on climate change and global income inequality and, second, that they all need to go beyond national perspectives and consider policies aiming at system transformation at the global level