Knowledge management and innovation

Knowledge counsel and institutionIn recent years, there argon a big tot of academic articles, which have been focused on the topic of friendship circumspection and figure. Both academic researchers and professions seem to agree that companionship is the most expensive asset of a soaked (Garca-Muia et al., 2009). Moreover, Hsiangchu and Tsai-Hsin (2002) suggested that the corporations familiarity is the principal(prenominal) rivalrous advantage for a corporation. Therefore, managing fellowship in geological formations could be considered as a key factor for the victor in todays telephone line world. There ar four major elements in the acquaintance process which includes creating cognition, integrating knowledge, share knowledge and codifying knowledge (Newell et al. 2009). A study by Teece et al. (1997 cited Leiponen 2006) proposed that the creation of knowledge can have the important effects on performance of a corporation. While other researchers mentioned that creating knowledge is not great enough and super knowledge sharing and integration of an organisation are displayed its success (Okhuysen and Eisenhardt, 2002).The cultivation of this paper is to review the existing literature on knowledge counseling and apply these theories in combination with some examples of other organisations to analyse main strategic knowledge train of an organisation by examining one detail case study of a biopharmaceutic company Panther Biotech The cultivation of a radical upstart therapeutic for an acute inflammatory disease. It could be verbalise that the case study provides a good example of managing knowledge and innovation in a knowledge intensive firm. Moreover, this paper ordain as well as provide an in-depth analysis of how Panther Biotech makes an elbow grease to introduce good practices in knowledge sharing and knowledge integration in order to emend its new drug development process.DefinitionKnowledgeAccording to Davenport and Prusak (1998) the interpretation of knowledge is described as Knowledge is a fluid commingle of framed experience, values, contextual information, expert insight and grounded intuition that provides an environment and model for evaluating and incorporating new experiences and information originates. There are a number of definitions of knowledge but this definition could be one of the most referenced definitions in the literature of this field.Moreover, variant forms of knowledge such as tacit, explicit and underlying at the individual, social and organisational levels need to be considered in order to founder its potential contribution to the performance of the firm (Nonaka and Takeuchi 1995, Spender 1996).Knowledge cautionIn today business, it could be verbalise that most of firms show their effort to apply knowledge management in order to improve business performances or to promote innovation process. According to McIrnerney (2002), knowledge management is delimitate as an eff ort to increase useful knowledge within the firm by promoting communication, offering opportunities to learn, and promoting the sharing and transfer of appropriate knowledge.Knowledge management can be defined as the set of activities that enable the creation, storage, distribution, and exercise of knowledge in organizations(Chow et al. 2005).Different definitions of knowledge and its management shows the diversity of the knowledge management processes ranging from knowledge creation, sharing, integration, codification, transfer, search, storage, use and so on.Knowledge Intensive firmsA Knowledge intensive firm has been defined by Alvensson (2004) as an organisation which sell knowledge-based harvestings or the use of knowledge to the merchandise. It can be said that the core activities of this firm based on the knowledge of a large number of employees.InnovationVerloop (2004 cited Khiji et al., 2006) describes innovation as a new topic or concept created by RD activities and p rosperous innovation requires changes in organizational processes and transformation of an idea into a commercially useable product.Other scholarly person defines innovation as a process the development and implementation of new ideas by people who over time engage in transactions with others in an institutional context (Van de Ven, 1986).Literature review of Knowledge management and InnovationThe emerging of the concept of knowledge-based societies, our societies have been shifting gradually to choke knowledge societies (Hsiangchu and Tsai-Hsin 2002). Emerging countries like China and India are shifting their manufacturing-based economies to knowledge-based economies, and these devil countries could be the main thread to the US and Western economies. For example, China and India are the two biggest markets for IT outsourcing. An industrial-based economy transforms to the information age or knowledge-based era and products of knowledge and knowledge works are becoming main sour ces for firms and nations to create mesh and competitive advantages (Newell et al. 2009). The major advantage of China when compare with other nations could be a plentiful supply of cheap knowledge workers. For these reasons, it could be suggested that managing knowledge and the management of knowledge workers play an important role in the success of the firms and the nations as well.During the last two decades, there has been a growing in the number of researchers which conduct their research in the field of knowledge and its management. question on this field has been in like manner received a successful memorial (Argote et al., 2003). These scholars as well suggested that research on knowledge management spans umpteen different areas such as economics, information systems and organisational behaviour and theory (Argote et al., 2003). The diversity of knowledge management research shows the great impact of this field in many disciplines thus bioengineering and pharmaceutica l industriousness might not be stood out of this trend. Gans and Stern (2004 cited Khiji et al., 2006) suggested that biotechnology plays an important role in spherical industry and gradually rises with the encouragement of innovation to improve human heath and quality of life. Biotech firms may be unique among some reasons. Gans and Stern (2004 cited Khiji et al., 2006) also said that the development of a biotechnology company strongly depends on its science activities. It can be proposed that biotechnology companies are knowledge intensive firms. Nowadays, visiting the answer for a question where and how knowledge is created and protected that is the argufy task for this industry and managing knowledge is also not as a basic task as before (Allarakhia and Walsh 2011). Pharmaceutical firms are to a greater extent often driving partner relationships with biotech firms and research centres (Walsh et al., 2002 cited Allarakhia and Walsh 2011). Alliances between biotech companies, academic institutions and pharmaceutical companies may be the norm in this industry. It can be suggested that these alliances could tending these firms get better access to fund and knowledge from their strategic partners and firms will respond to the new development and technology in faster and more flexible ways. According to Khiji et al., (2006), the average time for the whole biotech process from start-off investment for scientific discovery to sell product in the market can take up to 15 years. Biotech companies often try to retract capital and partnerships in the early stages of theirs development process and with numerous attempts to find the right company partners for the next steps which can include manufacturing, product design and marketing (Khiji et al., 2006). Unfortunately, most of them fail to deal with these tasks Gassman et al. (2004 cited Khiji et al., 2006) showed a trace of these decisions with a 90% failure rate among biotech companies. This can be suggeste d that biotechnology is a long-term investment with high risk and firms must passing consider the role of time-sensitive decision. Additionally, despite many people believe that biotech industry has showed immense potential for growth, not many firms can share in the success.Case study4.1 BackgroundPanther is a biopharmaceutical company this center it develops medical products using biotechnology. Developing therapeutic technologies to improve patients heath in order to gain outstanding benefits for shareholders is the main task of Panther. It is a in public listed company with net cash and liquid resource of $400 million, and it also creates nearly 300 jobs on the West coast of the US. Its employees are experts in the early stage of the new drug development process. All RD activities of Panther, keep out later on stage of drug development are funded by itself. The purpose of this financial strategy is to ensure the operation of firm runs smoothly until it shows the successful of development drug in clinical trials. The funding for any later stage of drug development processes is carefully decided on a case-by-case basis. Until now Panther has taken only four development processes into clinical trials by itself.4.2 Discussion