Forms of Knowledge, Modes of Innovation and Innovation Systems

Abstract

Inspired by the concepts tacit and codified knowledge introduced by Polanyi, this paper makes a distinction between two modes of innovation. On the one hand there are innovation strategies (Science, Technology, and Innovation, STI-mode) that give main emphasis to promoting R&D and creating access to explicit codified knowledge. On the other hand there are innovation strategies (Doing, Using, and Interacting, DUImode) mainly based on learning by doing, using and interacting. We show that firms using mixed strategies that combine a strong version of the STI-mode with a strong version of the DUI-mode excel in product innovation. The distinctions made and the results obtained have important implications for innovation policy and for the analysis of innovation systems. They help to avoid biased approaches exaggerating the role of science-based innovation while also indicating limits for experience-based innovation strategies.