Organisational Network Topology of the Knowledge-driven Economy: Organisational Conditions of Knowledge Valorisation

This paper develops a framework of analysis of the emerging organisational network topology of the new knowledge-driven economy in order to identify critical success factors in the process of innovation. The central argument of the paper is that innovation constitutes the foundation of the competitiveness and value-creation capabilities of economic organisations. However, innovation is not something happening “inside” organisations but rather at the networked interfaces of organisations with the business, regulatory and institutional environment within which they operate. The new knowledge-driven economy is an emerging economic system that is powered by information and communication technology (ICT), is knowledge-driven, is organised around electronic and organisational networks that generate knowledge and transform industries and markets, and is dependent on dynamic and flexible regulatory public institutions. For new ICT to diffuse throughout the whole economy, thus enhancing the knowledge and learning capabilities of organisations, business firms, market conditions, and the culture and institutions of society need to undergo substantial change. It is the dynamic interdependence of these conditions that is the source of innovation and value creation in the new knowledge-driven economy. This is why the agenda of research on the dynamics of adoption of new economy practices, innovation, and economic growth needs to be expanded beyond the level of the firm. It needs to be built around the dynamic interrelationships between technological transformations, firms’ organisational and knowledge-creating capabilities, emerging market and industrial structures, and public institutions.