Question (5) – How important is knowledge to support innovation?

Modern businesses grow and succeed in today’s corporate climate for a myriad of different
reasons. Some are known for their products, others for their services, and others still for less
easily-defined factors such as strong brand loyalty or captivating ad campaigns.
If you were to look at the organizations that truly stand out from the pack today as clear
leaders within their industries, however, it would be clear that they all have one common
factor: they all embrace innovation.

The process of innovation relies heavily on information, especially implied knowledge.

By translating general information into particular knowledge, new and useful knowledge is
generated and translated into goods and services. A very important and significant pre
requisite for innovation is the high intensity of knowledge in order to compete and have the
competitive advantage. We can short list some of important points as to why knowledge is
important for innovation shown below:

 Knowledge falls under the non-rival sector, using and implementing knowledge does
not exclude others or harm other for using it. Unlike any product or service,
knowedge or an idea needs to be initiated and produced only once and later it can
be used as many times as wanted without any depreciation of its value.

 Knowledge seems to be cumulative in nature. Any initial or current concept based on

knowledge can be further improved and researched onto to develop better and new
ideas.
 Knowledge can be reproduced and copied at very low or negligible cost, especially
the ones which are digitized.
 The element and significance knowledge can never be completely excluded.
 It falls under and intangible asset. No other producer or manufacturer can not
recover like a physical product i.e. machines, buildings, mobile phones can be
recovered and fixed.
 The most exciting thing is, generating new ideas using knowledge lies within vast
grounds of uncertainty. Nobody knows the result and neither can imagine to what
extent it can lead someone to, can take people beyond what they already know

Innovation helps companies grow you might choose to plod along your current path,
growing incrementally as you perfect your existing products and business models.
Instead, you might choose to grow your business by merging or acquiring others, which is
faster, but also typically a much more expensive avenue for growth. Innovation keeps
organizations relevant the world around us is constantly changing, and in order for your
business to remain relevant and profitable, it will eventually need to adapt in order to
meet these new realities. 90 percent of the world’s data has been created in the last couple
of years. More than 570 new websites are created every minute.8 billion devices will be
connected to the Internet by 2020. Innovation helps organization differentiate themselves