Knowledge Dynamics and Innovation

Traditional research on business innovation and entrepreneurship tends to focus on an individual-centered perspective of knowledge creation (e.g., Olson, 1985; Wood, 2002). In recent years, a more social and process-oriented perspective on innovation is gradually gaining attention, which better takes into account the knowledge dynamics that unfold during the generation and dissemination processes of new knowledge creation (Steinberg, 2005).

There exists a plethora of innovation models such as the model of knowledge creation by Nonaka and Takeuchi (1995); the model of expansive learning by Engestrom (1999); the model of knowledge building by Bereiter (2002); the model of knowledge management within organizations by Easterby-Smith and Lyles (2003); and the model of knowledge management between external organizations by Carlson (2003). While each model possesses certain unique characteristics, most emphasize that innovation entails much more than the simplistic view of individuals’ spontaneous moments of discovery based on their existing knowledge bases (Paavola, Lipponen, & Hakkarainen, 2004). On the contrary, innovation often involves ambiguity and ‘creative chaos’ where uncertainty, non-linearity and actor heterogeneity become central factors (Gilbert, Ahrweiler, & Pyka, 2014).

It is argued that institutional and geographical settings, along with actors’ ontological and epistemological perspectives, have created knowledge and cognitive boundaries which frame the way actors think and learn (see e.g., Dredge, 2014). During the shared or collaborative innovation process, social interactions provide essential tools and resources to transcend ‘cognitive boundaries’ or ‘conceptual thresholds’ and in turn, allow participating actors to transform their thinking and improve their current understanding of the problem (Dredge, 2014; Paavola et al., 2004). Unsurprisingly, in a review of various innovation models, Paavola et al. (2004, p. 564) noted that innovation is fundamentally a social process that evolves over sustained periods of time, to which knowledge dynamics play a significant role:

New ideas and innovations emerge between rather than within people... Knowledge creation is not primarily a matter of creative individuals, but instead requires fundamental reorganization of the practices of the whole community.