Innovation Capital


Innovation capital is critical to building a competitive advantage in the knowledge economy. The concept explains how organisations can leverage their unique organisational knowledge to create economies of scale and scope, as well as differentiation.

Technique Overview

Innovation Capital Definition

Innovation capital refers to explicit organisational knowledge residing in an organisation’s intellectual property, business designs, business process techniques, patents, copyrights and trade secrets (among other factors) which enables organisations to build a competitive advantage either through economies of scale and scope or differentiation (Hsu & Mykytyn Jr., 2006).

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Business Evidence

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Examples of Innovation Capital *

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Business Application

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Professional Tools

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Further Reading

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Innovation Capital References (4 of up to 20) *

  • Abbott, C. and Allen, S. (2005) Facilitating Innovation: The Role of the Centre for Construction Innovation, International Journal of Strategic Property Management, Vol. 9 pp. 79-89.
  • BBC News (2010) Apple Patent Case 'Could Affect All Android Phones', [Online], available at: http://news.bbc.co.uk/1/hi/technology/8547230.stm.
  • Bessant, J., Lamming, R., Noke, H. and Philips, W. (2005) Managing Innovation Beyond the Steady State, Technovation, Vol. 25 pp. 1366-76.
  • Burnes, B. (2009) Managing Change (5th Ed.), Pearson Education, Essex, UK.

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