Innovations in the global knowledge economy: consequences for organizations

Abstract

The authors know with a high degree of certainty that when new knowledge emerges, innovations in organizations will be created and economic growth stimulated in the global knowledge economy. The question the authors will examine is: How might a move from industrial knowledge clusters to global knowledge clusters impact on the development of innovations in organizations? The question is answered by means of a discussion of three components that the authors, supported by knowledge and innovation theory, conceptualize as ‘new knowledge’, ‘global knowledge clusters’ and ‘new global markets’. In the paper, the authors discuss how these three components are the prime driving forces that have consequences for innovations in organizations. The authors suggest a conceptual model that depicts the interactive links between the three components. The contribution is threefold. The first element is related to the development of new knowledge and expertise, the second element to the development of global knowledge clusters (of expertise), and the third element to an enhanced understanding of the new global market that is emerging. The originality of the study lies in the conceptualization of new constructs and a thorough discussion of three components that, the authors opine, may impact the development of innovations in organizations that are influenced by changes in the global knowledge economy.