ABSTRACT
This chapter presents the classical definitions of strategic operational and dynamic capabilities and clarifies knowledge and learning processes as the key components in these formal concepts. It introduces the model around client-specific capabilities as proposed by G. Winch and R. Leiringer. The chapter presents a model that dynamically reflects on the knowledge that clients need to relate to when it comes to varying degrees of involvement in a production process. The latter model represents a possible complement to the model of Winch and Leiringer. The chapter focuses on analysing cases of municipal actors and their involvement in projects that represent innovative solutions. The approach intends to assess both the operational and dynamic capabilities of the clients; innovation and change generally require a change of operational capabilities of the involved actors, i.e. they have to be able to have or develop dynamic strategic capabilities.
