Knowledge and innovation in organisations are fundamentally linked Essay

Knowledge and innovation in organisations are fundamentally linked. Critically analyse this statement - Essay Example In the internet this ranges from; data from all over the world has been categorized and catalogued by thousands of online companies making it possible for people to access and create resources online. Innovation is closely connected to the concept of creativity and although it is very commonly used, most scholars consider it a notourisily ambiguous concept since it is nearly impossible to pin it down as a single definition or measure (Terziovski, 2010). According to Galunic and Rodan (1998), innovation can be defined as the ability or capacity of an organization to constantly come up with and implement new ideas and in modern organisational management, it is considered a critical aspect of the organisational outcome. Many scholars agree that knowledge and innovation cannot be separated from each other and it is unquestionable that they are the driving force behind most economies in the world. Another way the connection between the two can be demonstrated is by perceiving innovation a s the application and transmission of knowledge from the research and development stage to the implementation and application (Gulbrandsen, 2007). Essentially, knowledge is superordinate to innovation since the former is simply a form of knowledge that has been synthesized and practically applied in a creative way. The intertwining relationship between the two concepts is especially demonstrated in the fact that organisations strive to acquire new knowledge which they then assimilate and apply so as to convert it into profit use it to drive whatever other non-fiscal or fiscal objectives that drive the company. Although it is only recently that attention has been focused on the concept of knowledge with the benefit of hindsight, there is little doubt that knowledge has always been central in human organisations. From the Stone Age era through to the modern period, creating and synthesizing new knowledge, which could also mean innovation has been the