White Spaces Innovation in Sweden - Innovation policy for ... - Vinnova

WHITE SPACES INNOVATION IN SWEDENFigure 5.1 The CubeTransactional/algorithmiclogic – market failuresDOKNOWRelational/systemic logic- Systemic failuresFORMInnovation is an emerging entity. There must be capabilities that support strategicaction. To KNOW and to DO is thus to possess structured knowledge but also to commandthe skills required to make use of knowledge and transform it to knowledge inaction; i.e. capabilities and routines. Another way to put it is that these are the requirementsfor knowledge to be absorbed and to have an impact on value creation. Overtime operational routines become obsolete. This may be due to external and/or internalperturbations. A new learning cycle starts with unlearning and forgetting and the activationof search and problem solving routines. The social learning cycle can be divided intwo major parts namely an exploration phase and an exploitation phase. The focus inthis report has been on the explorative issues. Exploration requires variation. Exploitationdestroys variation. It must be stressed that the social learning cycle is an aggregateof many individual and organisational learning cycles. This also means that there willalways be an overlay of learning cycles in different phases. So, the social learning cyclecan therefore also be a means to a richer understanding of the issues involved in balancingexploration and exploitation. Both exploration and exploitation are needed and theone important issue for businesses is how to achieve that in their organizations (March,1991).101