ABSTRACT
This chapter considers the challenge of capturing new knowledge and transforming that knowledge into new products, services or ways of working. It also considers the need for different approaches to capture and share new information when compared to those required for new 'know how'. The chapter explores how organisations can build a capability to absorb new knowledge from external partners and customers and the dilemmas that this can create. It illustrates the importance of knowledge and learning to an organisation in creating incremental and radical innovations. Learning does not have to be a solitary activity restricted to the boundaries of the organisation. Learning is often most powerful when it reaches outside the organisation, by learning from others. Knowledge capture is clearly important, but to leverage this knowledge an organisation also needs to formalise organisational learning. As a foundation for innovation, capturing the right knowledge enables organisations to gain a powerful competitive advantage.
