Problems and Solutions in Knowledge Transfer

A central feature of innovation systems is that innovation arises from interaction between organizational units. This requires 'cognitive distance' that is sufficiently large to yield novelty of combinations, but not too large for mutual understanding. Two problems and solutions in the transfer of knowledge, especially to small firms, are identified and discussed. There is a problem not only of expressing tacit knowledge, but also of absorbing new knowledge when it needs to replace existing tacit knowledge. Next to issues of learning or competence development there are also issues of governance, in the management of relational risk of dependence and spillover. The analysis yields a number of tasks and functions for regional systems of innovation.