Knowledge, Learning and Innovation (Essay Sample)

KNOWLEDGE, LEARNING AND INNOVATION
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Introduction
The manner in which innovation takes places follows a systematic manner. Scholars have over the years developed models to explain the manner in which innovation takes place. They have identified two models which they refer to as modes of innovation i.e. the STI mode of innovation and the DUI mode of innovation (Jensen, Johnson, Lorenz and Lundvall 2007). These two modes of innovation draw from the four types of knowledge i.e. the know-what, know-why, know-how and know-who (Jensen, Johnson, Lorenz and Lundvall 2007). Understanding these two modes of innovation, their strengths and weaknesses, is important to development of the national system of innovation. From this analysis the government can establish which mode is the most suitable for a particular sector of the economy. Organizations can also identify the suitable mode for innovation and knowledge management (Jensen, Johnson, Lorenz and Lundvall 2007). For example, performance-oriented organizations would be suited to innovate using the STI mode of innovation while learning organizations will be more suited with DUI mode of innovation (Peña-Legazkue, Parrilli and González-Pernía, 2012). This essay, therefore, presents an analysis of the STI and DUI modes of innovation, the merits and demerits they accrue to the UK System of Innovation.
Overview of the UK System of Innovation
According to the Organization for Economic Co-operation and Development (OECD) the United Kingdom spent 1.625% of its total gross domestic expenditure on research, development and innovation in 2013 (Data.oecd.org, 2015). This value has been staggering around 2% but has been reducing over the years. Compared to other world economic powerhouses such as the United States, Japan, Germany and France, the level of expenditure on research and development as a share of the GDP in the UK is slightly lower. The value is also lower than the OECD average which was 2.362% (Data.oecd.org, 2015). These countries have invested heavily in research institutes and institutes of higher learning. However, the expenditure on innovation in the UK has remained consistent even during economic recessions such as the global financial crisis of 2007/08.
The UK National System of Innovation is interconnected and coherent to reflect on the shape and what sectors of the economy to be prioritized. The system focus on the Eight Great Technologies, a partnership program between the government and the private sector, to develop economic industries and technologies in which the UK is capable of becoming a global leader (Dept. of Business Innovation and Skills 2014). The main participants of the national system of innovation, who in this essay will be referred to as actors, include; the government, businesses and the institutes of higher learning such as colleges and universities (Dept. of Business Innovation and Skills 2014).
The government, through its Industrial Strategy, has continued to provide infrastructure that will facilitate world leading innovation that will support business growth (Gov.uk, 2015). It has championed for the setup of universities and research institutes and provided research grants to pioneering innovations in every sector of the economy (Gov.uk, 2015). It has also setup Innovate UK, a governmental agency, to oversee innovations and work with start-ups to foster creativity, science and technology that will ensure the growth of the UK economy (Gov.uk, 2015). The legislature has created a conducive environment for innovation by enacting laws to safeguard intellectual and property rights (Borins, 2014).
Businesses and other organizations have also appreciated the fact that they do not operate in dynamic environments and have thus continued to invest heavily in their Research and Development (R&D) departments, to adapt to the changing levels of technology and automation and consumer preferences (Dept. of Business Innovation and Skills 2014).. The expenditure on innovation, however, varies from one industry to another with the pharmaceutical and computer programming and information services spending £4.2 billion and £1.9 billion in 2012 respectively. This represented 36% of the total expenditure on innovation in the UK in 2012 (Dept. of Business Innovation and Skills 2014). Businesses and other private for-profit institutes are the leading innovators in the UK accounting for 63% of all the innovations made in the UK. Institutes of higher education follow at 27% while the government, research councils and private non-profit organization account for 8% and 2% respectively (Dept. of Business Innovation and Skills 2014). The Technology Strategy Board is very keen on removing barriers that may hamper innovation processes especially in small businesses and start-ups. Since these firms offer employment to larger share of the labour force in the UK the Board ensures their growth by providing incentives to promote the innovation strategies of these small firms (Dept. of Business Innovation and Skills 2014).
The institutes of higher learning in the UK which include four of the top ten universities in the world have continued to be a leading force in research in the whole world (Dept. of Business Innovation and Skills 2014).. More and more highly skilled graduates continue to join the UK and the world’s workforce to further the nation’s research and innovation. These institute continue to attract the more foreign students, a number which is only second to the United States. However, the students from the UK continue to perform poorer in subjects related to talent and management skills compared to their counterparts from other OECD countries. The government has put focus on STEM2 subjects which aim to improve the student’s innovativeness by nurturing their talents (Dept. of Business Innovation and Skills 2014)..
STI Mode of Innovation
The Science, Technology and Innovation or the STI mode of innovation relies on scientific knowledge i.e. the know-why and specialized know-what (Jensen et al., 2007). The know-what type of knowledge is associated with understanding basic information and everyday processes (Jensen, Johnson, Lorenz and Lundvall 2007). For example know-what knowledge would be interested to understand why inflating a ball will make it expand. Know-why knowledge, on the other hand, is interested with the scientific laws and principles that come into play to enable the phenomena observed in the know-what knowledge (Jensen, Johnson, Lorenz and Lundvall 2007). The know-why knowledge would try to unravel the physical and chemical reactions that take place to enable the ball to expand once it has been inflated.
The knowledge used in STI mode of innovation is objective, codified and explicit and can be easily understood by everyone (Jensen, Johnson, Lorenz and Lundvall 2007). It can be easily written down and transformed into information. This ease of understand ability enables the sharing of information relating innovation. Since innovation cannot take place in isolation, firms can be able to share the information with other firms within and without their industry thus promoting fair competition (Peña-Legazkue, Parrilli and González-Pernía, 2012). Small companies and start-ups that cannot engage in expensive research and development get to enjoy information provided by large companies bringing a balance between small and big firms. From this sharing of information, the UK system of innovation is strengthened by equitable growth and development of research and innovation in industries and companies. Sharing of information brings about co-operation among the various actors involved in the systems of innovation (Jensen, Johnson, Lorenz and Lundvall 2007). It can assist in establishing disparities within the system, both among the actors and in relation to government policies and regulations, which can hamper technology development and innovation. Policies which seek to foster co-operation among the actors and institutions in the system of innovation and which aim at improving the innovative capacity of firms, particularly their ability to identify and absorb technologies, are prioritized (Jensen, Johnson, Lorenz and Lundvall 2007).
However, it is weakened by similarity of innovation since information used is similar (Jensen Johnson, Lorenz and Lundvall 2007). The system thus lacks diversity and people do not get to enjoy a variety of products and services. People will not buy an innovation if they do not enjoy it and will thus shy away from consuming products and services manufactured and delivered in the UK. Without a market to sell its innovations to, the national system of innovation is bound to collapse.
The STI mode puts an emphasis on continued learning and research. It focuses on creating new knowledge and expounding on the existent literature of the particular field (Jensen Johnson, Lorenz and Lundvall 2007). New scientific laws and principles are tested. New models, that help in explain emerging phenomena, are put across. This new information is then codified to make it explicit and examine ways in which it can be integrated into innovations. The continued learning involved with STI strengthens the UK system of information by ensuring a steady flow of up-to-date information and knowledge that will facilitate more innovations. The knowledge creation process weakens the UK system of innovation since it consumes a lot of time in learning and research leaving limited time to carry out the actual innovation. For example, studies and research in medicine and pharmaceutical sectors can even take 20 years. Firms which use STI mode of innovation make few innovations within a long period of time (Lundvall, 2010).
STI mode of innovation is science-driven (...